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So, you’re thinking about getting into coconut oil production. It’s a market that’s buzzing with opportunity, but I know how overwhelming it can feel. Newcomers to the oil pressing industry probably wondering where to even start. From understanding the difference between virgin and refined oil to figuring out the right equipment, there’s a lot to consider. And you want to do it right, creating a product that people will love and a business that actually makes money. Well, you’ve come to the right place. We’re going to walk through the entire process, step-by-step. I’ll share what you need to know about the product itself, the market trends, and, most importantly, the practical steps for extraction and how to get the most oil yield from every single coconut. By the end, you’ll have a clear roadmap for turning those coconuts into liquid gold. Let’s get into it.
What is Coconut Oil?
You’ve seen it everywhere, but what really is coconut oil? At its core, it’s a plant-based oil pulled from the meat of mature coconuts. What strikes me as unique is that it’s solid at room temperature, looking like a soft, white cream, but melts into a clear liquid when it heats up.
The thing is, it’s almost 100% fat, and about 80-90% of that is saturated fat, made of medium-chain fatty acids (MCFAs), especially lauric acid. This specific makeup is why it’s a star in so many industries. The potential benefits of coconut oil include increasing HDL cholesterol, controlling blood sugar, reducing stress, etc. In the kitchen, it’s great for high-heat cooking because of its stability and mild taste. Beyond cooking, it’s used as a natural moisturizer, hair conditioner, and even in making soaps and detergents due to its foam-boosting traits. It’s even found in some pharmaceutical products as a carrier oil for vitamins. So, while you might hear conflicting reports, its unique composition gives it a special place in both kitchens and cosmetic labs, offering a ton of uses from health to beauty. Which is exactly the point.
Analyzing the Coconut Oil Market.
Is this market even worth getting into? I think the numbers speak for themselves. The global coconut oil market is experiencing steady momentum, growing from USD 5.98 billion in 2022 to a projected USD 10.65 billion by 2030, at a CAGR of 7.31%. This growth is fueled by rising demand across beauty, wellness, and food sectors — particularly in Asia-Pacific, which remains the largest revenue contributor.
One key driver is the booming personal care industry. Coconut oil’s natural benefits for skin and hair — from hydration to anti-microbial properties — are propelling its use in shampoos, moisturizers, and massage oils. In fact, virgin coconut oil leads product sales due to its purity, mild aroma, and added nutritional appeal. Meanwhile, dry coconut dominates the source segment, valued for its high oil yield and ease of storage.
Geographically, India and Indonesia are at the heart of global production, with India alone contributing over 32% of global output. These countries not only supply raw materials but also set cultural trends around coconut oil usage in cooking and grooming. Additionally, the market is seeing innovation — such as herb-infused oils and multi-use organic formulations — attracting health-conscious consumers worldwide.
The surge in demand for clean-label, organic products presents strong upside potential. As brands invest in transparency and functional benefits, coconut oil’s versatility and heritage positioning give it a competitive edge in both emerging and mature markets.
What this tells us is that the market isn’t just surviving; it’s thriving. And that’s a good sign for anyone looking to invest.
How to Extract Coconut Oil?
Our customer service often receives requests for help from coconut oil newcomers from different regions. Just last month, Anita from Ghana told us about the difficulty she faced maintaining the right pressing temperature during coconut oil extraction. After a quick consultation with our technical team, we recommended a temperature-regulated oil press with a built-in digital sensor. Now, Anita reports smoother operations and clearer, higher-quality virgin coconut oil—plus less time spent cleaning the equipment.
You’re probably wondering how you get from a hard, hairy coconut to that smooth, fragrant oil. The process isn’t as simple as you might think, and the specific method used is what separates high-quality virgin coconut oil from the regular stuff.
How do you actually get oil out of a coconut? Basically, there are two main paths you can take: the dry process and the wet process. I’ve seen companies succeed with both, But the final choice depends on the commercial route of the product you are selling.
Hydraulic oil press can preserve the natural flavor of coconut.
For premium cold-pressed coconut oil, gentle extraction is key. Our hydraulic press applies gradual pressure (<40°C), avoiding heat damage to nutrients like lauric acid. Its unique dual-filter chamber removes 99.2% of impurities while retaining delicate aroma compounds – yielding golden, sediment-free oil with 30% longer shelf life. Ideal for small-batch producers valuing purity over speed.
| Process Type | Temperature Range | Oil Yield (% by weight) |
| Dry (Copra) | 104–110 °C → 93–102 °C | ~60–70% (with double press) |
| Wet–Dry hybrid (VCO) | Dry at 40–50 °C, press ≤50 °C | ~46–49% |
Have questions about starting a cold pressed oil business?
Our team will help you choose the right oil press model and start making a profit.
FAQ
What is the main difference between virgin and refined coconut oil?
The main difference is the extraction process. Virgin coconut oil is made from fresh coconut meat without high heat or chemicals, while refined oil is made from dried coconut meat (copra) and undergoes more processing.
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