Virgin coconut oil (VCO) is widely known for its role in beauty and skincare, but its journey in food, health, and wellness sectors is escalating. As consumers become more health-conscious and demand natural functional ingredients, VCO is carving out a broader role beyond the cosmetic shelf.

According to the MRFR report, food & beverage and pharmaceutical/health supplement applications are key segments in the VCO market alongside beauty & cosmetics. 

Drivers in Food & Wellness Use

• Functional Nutrition Trend
  VCO contains medium chain triglycerides (MCTs) which are metabolized faster and may support energy, weight management, or cognitive function in certain diets.

• Rise of Plant-Based / Clean-Label Diets
  As more people shift to natural, minimally processed diets, VCO is seen as an upgrade over refined or synthetic oils.

• Digestive & Immune Health Interest
  Some studies and popular literature highlight potential antimicrobial or gut-modulating properties of virgin coconut oil, which boosts its appeal in wellness nutrition.

Applications in Food & Supplement Sectors

• Cooking / Baking / Spreads: Using VCO in light cooking, baking, or spreads where coconut flavor is acceptable

• Functional Foods & Drinks: Blended nut milks, smoothies, health shots enriched with VCO

• Nutraceutical & Supplements: VCO oil capsules, combination blends with MCTs or ketone producers

• Food Wrappers, Togas & Candy: As fat source in small-batch artisanal food products

Challenges in Food Sector

• Flavor & Heat Sensitivity
  Coconut flavor may not suit all dishes. Also, VCO’s smoke point is lower than some refined oils, so using it in high-heat frying is limited.

• Cost / Price Premium
  VCO is often more expensive than refined coconut or other vegetable oils, limiting use in mass food production.

• Stability & Shelf Life
  Thermal, oxidative stability are constraints in processed foods or long storage.

Strategic Moves for Food & Wellness Players

• Introduce milder-flavored VCO or blends for broader cooking use

• Promote VCO in niche diet markets—keto, paleo, MCT-focused diets

• Co-brand with health / wellness brands to leverage credibility

• Use small-size trial packs to encourage consumer adoption

• Ensure high quality and certification, especially where ingestion claims may be scrutinized

Outlook

While beauty remains the dominant application, the food, wellness, and nutraceutical domains represent significant growth levers for VCO. Over time, the share of VCO used in edible, supplement, and functional formulations may rise, balancing and complementing its cosmetic usage. As margins and volumes expand, the VCO ecosystem will mature into a truly multipurpose natural-ingredient industry.