Agriculture, Food, Environment, and Sustainability

Read this article on ResearchGate 

Market Potential for Coconut Shell-based Environmental-friendly Jewelry in Sri Lanka for Local and International Markets

P. M. N. Mihirani1 and D. S. T. K. R. Pathirana1

1Institute of Sustainable Agricultural, Food, and Environmental Sciences, Sri Lanka.

2Department of Agriculture, Sri Lanka.

Abstract

Coconut shells are an abundant agricultural byproduct in Sri Lanka that remain largely underutilized in high value manufacturing despite the country’s long history of craft production and strong global reputation for coconut-based products. In recent years, coconut shell-based jewelry has emerged as a niche category within the broader sustainable fashion and artisanal accessory markets, driven by increasing consumer demand for eco-friendly materials, ethical production, and culturally distinctive designs. This review critically examines the market potential for coconut shell-based jewelry in Sri Lanka by integrating evidence on raw material availability, production processes, unit production costs, local and international market prices, consumer preferences, value chain dynamics, sustainability narratives, and structural challenges. Drawing on peer reviewed literature, Sri Lanka specific craft sector reports, and verified online retail and export market data, the review demonstrates that coconut shell jewelry can generate significant value addition relative to raw shell disposal or low value uses. However, realizing this potential requires improvements in design innovation, cost efficiency, quality assurance, and market integration. The paper concludes that coconut shell-based jewelry represents a viable pathway for rural enterprise development and export diversification when supported by coordinated policy, research, and market development efforts.

1. Introduction

Sri Lanka is one of the world’s major coconut producing countries, with coconut cultivation forming a central pillar of rural livelihoods, food systems, and export earnings. While extensive value addition occurs in coconut oil, desiccated coconut, and activated carbon industries, coconut shells are frequently treated as residual waste or diverted to low value uses such as fuel. At the same time, global markets for sustainable lifestyle products have expanded rapidly, creating demand for accessories made from renewable and biodegradable materials. Jewelry produced from coconut shell occupies a distinctive position within this trend, combining visual appeal, environmental credentials, and artisanal craftsmanship.

Coconut shell based jewelry includes items such as necklaces, pendants, bracelets, earrings, rings, and beads, often produced through carving, polishing, and finishing of shell pieces. These products are typically positioned as fashion accessories rather than fine jewelry and compete within the segment of natural material and handcrafted jewelry. Understanding their market potential requires assessment not only of consumer demand but also of production economics, pricing structures, and value chain feasibility. This review therefore integrates technical, economic, and market perspectives to evaluate prospects for coconut shell jewelry in Sri Lanka.

2. Coconut Shell as a Raw Material and Production Input

Coconut shell is composed primarily of lignocellulosic material, giving it high hardness and durability relative to many other natural craft materials. Materials science studies describe coconut shell as having high impact resistance and good machinability when cut with appropriate tools. From a production perspective, the shell is advantageous because it is widely available at minimal or zero raw material cost in coconut producing regions. In Sri Lanka, shells are generated continuously from household consumption, oil mills, and desiccated coconut factories, ensuring year-round availability.

However, not all shells are equally suitable for jewelry production. Shell thickness, curvature, and absence of cracks influence usability. Sorting and cleaning are therefore required prior to processing, introducing labor inputs. Preparation stages include removal of residual coconut meat, washing, drying, cutting into workable segments, and initial sanding. These steps form the base of unit production cost structures and differentiate craft quality between informal and organized producers.

3. Production Process and Unit Cost Structure

The production of coconut shell jewelry is labor intensive rather than capital intensive, particularly at artisanal scale. Unit production costs can be broadly categorized into raw material acquisition, labor, tools and equipment, energy, finishing materials, and overheads such as packaging and transport. Raw material costs are generally negligible, as coconut shells are often obtained free of charge or at very low cost from coconut processors. Labor constitutes the largest cost component, particularly for hand carved or finely finished pieces.

Based on craft sector cost assessments and small enterprise studies in Sri Lanka, the estimated unit labor time for simple items such as earrings or rings ranges from thirty minutes to one hour per piece, while more complex necklaces or carved pendants may require two to three hours of skilled labor. Assuming conservative artisanal wage rates, labor cost per item can range from approximately Sri Lankan Rupees one hundred and fifty to five hundred depending on complexity. Additional costs for sandpaper, polishing compounds, simple tools, electricity, and finishing oils typically add another Sri Lankan Rupees fifty to one hundred per unit.

Packaging costs vary depending on market segment. Simple local market packaging may cost less than Sri Lankan Rupees fifty per item, while export oriented packaging with branding, labeling, and protective materials may exceed Sri Lankan Rupees one hundred per unit. When aggregated, estimated unit production costs for basic coconut shell jewelry items in Sri Lanka commonly fall in the range of Sri Lankan Rupees two hundred and fifty to seven hundred depending on design complexity and production scale.

4. Local Market Prices and Value Addition

Verified online retail platforms in Sri Lanka provide insight into current market prices for coconut shell jewelry. Locally sold coconut shell necklaces and pendants are priced in the range of approximately Sri Lankan Rupees six hundred to one thousand three hundred and fifty depending on design and finish, indicating value addition of two to four times estimated production cost in many cases. Earrings made from coconut shell are commonly sold at prices ranging from approximately Sri Lankan Rupees two hundred and fifty to four hundred and forty, while rings are priced between approximately Sri Lankan Rupees two hundred and eighty and five hundred and twenty. These prices suggest that even at domestic market level, coconut shell jewelry can generate positive margins for artisans when production efficiency and consistent quality are achieved

However, price sensitivity remains a factor in local markets. Consumers often compare coconut shell jewelry with low cost imported fashion accessories made from plastics or base metals. As a result, domestic market success depends on differentiation through design, perceived authenticity, and sustainability narratives rather than competing solely on price.

5. International Market Prices and Export Potential

International online marketplaces provide evidence of significantly higher price points for coconut shell jewelry positioned as sustainable or artisanal products. On platforms such as Etsy, coconut shell pendants and necklaces are listed at prices around fifteen United States dollars per piece, equivalent to several thousand Sri Lankan Rupees at prevailing exchange rates. Even simpler items often command prices well above domestic levels, reflecting higher willingness to pay among international consumers for handcrafted and eco friendly products. Listings on global platforms such as eBay show coconut shell jewelry from Sri Lanka priced at lower levels, around six United States dollars, but these typically represent less curated products or competitive pricing strategies aimed at volume sales rather than premium positioning

When compared with estimated unit production costs in Sri Lanka, export market prices offer substantial value addition potential. Even after accounting for export-related costs such as shipping, platform fees, compliance, and marketing, margins remain attractive if product quality and branding meet market expectations.

6. Consumer Preferences and Market Segmentation

Consumer research in sustainable fashion and accessory markets indicates that buyers of natural material jewelry prioritize factors such as design uniqueness, perceived authenticity, environmental responsibility, and ethical production. Coconut shell jewelry appeals particularly to consumers who value biodegradable materials and products with a visible natural origin. In international markets, such consumers are often concentrated in urban, higher income segments and are reached effectively through online platforms, boutique retailers, and fair-trade outlets.

In Sri Lanka, consumer segments include tourists seeking souvenirs, urban youth interested in alternative fashion, and environmentally conscious consumers. Tourist oriented markets place strong emphasis on cultural storytelling and place-based identity, while domestic fashion consumers emphasize affordability and style compatibility. Understanding these distinct segments is critical for product positioning and pricing strategies.

7. Value Chain Dynamics and Constraints

The coconut shell jewelry value chain in Sri Lanka is fragmented, with many artisans operating independently or in small informal groups. This fragmentation limits economies of scale, consistent quality control, and collective bargaining power. Access to design expertise, advanced tools, and finishing technologies is uneven, resulting in variable product quality. Export oriented value chains require coordination across sourcing, production, quality assurance, packaging, and logistics, which many small producers find challenging without institutional support.

Another constraint is limited access to market intelligence and pricing information. Many artisans are unaware of international market price differentials and therefore underprice products when selling through intermediaries. Strengthening producer awareness of market structures and cost based pricing can improve income outcomes.

8. Sustainability and Circular Economy Dimensions

Coconut shell jewelry aligns strongly with circular economy principles by converting agricultural waste into durable consumer products. Compared to plastic based fashion accessories, coconut shell jewelry has lower environmental impact in terms of raw material extraction and end of life disposal. Life cycle oriented assessments of natural material crafts indicate lower embodied energy and reduced reliance on nonrenewable resources.

However, sustainability claims must be substantiated through responsible sourcing, safe working conditions, and fair compensation. Transparent value chains and ethical branding strengthen credibility and consumer trust, particularly in export markets.

9. Barriers and Risks

Despite strong market signals, several risks must be managed. These include inconsistent raw material quality, limited skill transfer between artisans, vulnerability to fashion trend shifts, and exposure to competition from other natural material jewelry producers globally. Export markets impose regulatory requirements related to labeling and consumer safety that require compliance capacity. Without coordinated support, individual artisans may struggle to sustain export-oriented operations.

10. Strategic Recommendations

To enhance market potential, targeted interventions are required across the value chain. These include training programs focused on cost management, quality control, and design innovation; development of craft clusters to share tools and infrastructure; support for branding and storytelling that emphasizes Sri Lankan origin and sustainability; and facilitation of direct market access through digital platforms. Policy support linking coconut sector development with handicraft and export promotion strategies can amplify impact.

11. Conclusion

Coconut shell-based jewelry offers a compelling opportunity for Sri Lanka to convert an abundant agricultural byproduct into a high value artisanal product for both local and international markets. Verified market prices demonstrate significant value addition potential relative to production costs, particularly in export-oriented channels. While challenges related to scale, quality consistency, and market access remain, these are surmountable through coordinated efforts in design, enterprise development, and policy support. With appropriate investment and strategic positioning, coconut shell jewelry can contribute to rural livelihoods, sustainable production systems, and diversification of Sri Lanka’s creative export portfolio.

Read this article on ResearchGate 

Market Potential and Consumer Preferences for Cashew Based Products in Sri Lanka

P. M. N. Mihirani1 and W. R. W. M. S. N. P. Weerakoon2

1Institute of Sustainable Agricultural, Food, and Environmental Sciences, Sri Lanka.

2Department of Agriculture, Sri Lanka.

Abstract

Cashew based products encompass a broad range of edible and value added offerings including kernel snacks, specialty processed forms such as roasted and flavored nuts, cashew paste, cashew milk and dairy alternatives, cashew butter, and derivative ingredients used in confectionery and bakery industries. In Sri Lanka, cashew nuts occupy an important but relatively underdeveloped position within the broader nuts and snacks market despite rising global demand for nutrient dense plant based foods. This review critically examines the market potential for cashew based products in Sri Lanka by synthesizing global market projections, local consumption trends, production and trade dynamics, consumer preferences shaped by health and lifestyle considerations, competitive pressures from imported products, and challenges in supply chain and processing capacity. Evidence indicates that the global cashew market is expanding significantly driven by health oriented diets, convenience snacking, and innovative product applications. Sri Lanka’s domestic market benefits from increasing health consciousness among consumers and growth in modern retail and e commerce channels, but limitations in production volume, processing infrastructure, and product diversity constrain market development. Strategic interventions in value addition, quality assurance, branding, and consumer education are essential to unlock the full market potential of cashew based products in both domestic and export oriented segments.

1. Introduction

Cashew refers to the edible seed of the tropical evergreen tree Anacardium occidentale, belonging to the family Anacardiaceae, and is widely cultivated in tropical regions between 25° N and 25° S latitudes. Global production of cashew nuts (kernel) in 2023 reached approximately 3.9 million tons, with major contributions from countries including the Ivory Coast, India, and Vietnam, collectively representing the largest share of global output. Cashew kernels are consumed as snacks, incorporated into confectionery and baking, and processed into various derivative products such as cashew butter, cashew milk, and protein concentrates. The global market for cashew nuts, valued in billions of US dollars, has shown steady growth over the past decade, and consumer demand continues to rise with increasing preference for nutrient dense, plant based foods. Reflecting these trends, regional market analyses project continued expansion of the cashew market in the Asia Pacific where Sri Lanka is geographically located, creating opportunities for enhanced domestic consumption and value added production.

2. Global Market Trends and Projections

The global cashew nut market is projected to grow significantly over the next decade, with estimates indicating a potential expansion from a market size of over USD 10 billion in the mid 2020s to more than USD 15 billion by the early 2030s, driven by a compound annual growth rate in the mid single digits. Growth drivers include rising disposable incomes, increasing adoption of plant based diets, and consumer preference for healthy snack options that are rich in healthy fats, protein, and micro-nutrients. The Asia Pacific region, in particular, is forecast to grow steadily due to its dominant role in both production and consumption, with countries such as India, Vietnam, and Indonesia leading production and export activities. Evolving product innovations, such as flavored cashew kernels, organic and specialty offerings, and functional ingredients derived from cashews, further expand the market beyond traditional whole nut sales into higher value segments. As global consumption diversifies into dairy alternative products, confectionery, and bakery applications, cashews are increasingly integrated into broader food systems that support health oriented and convenience driven consumer preferences.

3. The Sri Lankan Context

In Sri Lanka, cashew nuts constitute a portion of the broader nuts market, which also includes popular varieties such as almonds and walnuts. Recent market overviews indicate that the Sri Lankan nuts market is poised for growth, as consumers increasingly seek healthy snack options, protein rich ingredients, and plant based protein sources, aligning with global trends. Demand for premium nuts, including flavored and value added cashew products, is rising within domestic retail channels and modern trade outlets, supported by product innovation and improved packaging designed to enhance convenience. However, Sri Lanka faces supply side constraints related to weather dependent production, fluctuations in raw material availability, and competition from imported nuts that benefit from larger scale production and supply chain efficiencies elsewhere. These factors influence pricing, availability, and competitive positioning of locally produced cashew based products.

4. Production and Supply Chain Considerations

While global leaders in cashew production maintain relatively large scale orchards and processing infrastructure, Sri Lanka’s production is comparatively modest in volume and highly seasonal. Industry observers note that Sri Lanka has to compete with larger cashew exporters including Indonesia, the United Arab Emirates, and African countries where production and processing capacity have expanded significantly. Limited production and inadequate maintenance of cashew plantations constrain consistent supply, contributing to reliance on imports when domestic yields are insufficient. This supply gap affects both the availability of raw nuts for processing and the capacity of local enterprises to scale value addition. Strengthening cashew cultivation practices, improving plantation management, and investing in processing technologies are important components of enhancing the domestic supply base.

5. Cashew Based Product Segments and Value Addition

Cashew based products can be classified into several categories, each with distinct market and consumer preference dynamics. The simplest form is roasted or raw whole kernels sold as snacks through retail and grocery channels. Beyond this, flavored and seasoned cashews cater to segments seeking taste variation and premium snacking experiences. Value added products such as cashew butter, similar to peanut or almond butter, appeal to consumers pursuing dairy free or plant based alternatives for spreads and cooking. Cashew milk and cashew based beverages have gained traction as dairy alternatives in health oriented diets, and cashew flour or powder serves as an ingredient in gluten free and specialty baking applications. These derivative products command higher unit prices and can diversify revenue streams for producers beyond commodity nut sales. Product innovation in cashew based offerings reflects global consumer trends toward natural, minimally processed foods with clean labels and functional benefits.

6. Consumer Preferences and Health Orientations

Consumer preferences in cashew based products are shaped by factors including perceived health benefits, convenience, taste preferences, and dietary lifestyles. Cashew nuts are recognised for their nutrient density, providing healthy fats, protein, fiber, vitamins, and minerals, attributes that align with consumer interest in nutritionally rich snack foods and protein sources within plant based dietary patterns. The global trend toward vegan and vegetarian diets has increased the attractiveness of cashew derived products such as cashew milk and cashew cheese alternatives. Domestically, Sri Lankan consumers similarly express growing interest in healthier snack options, as evidenced by market evaluations indicating increasing consumption of nuts including cashews as nutritious and convenient choices. Premiumisation of nut products, including organic and enhanced flavour offerings, reflects a willingness among segments of consumers to pay more for perceived quality and health credentials. Retailers and product developers respond to these preferences through product differentiation, packaging that conveys health benefits, and strategic positioning in health food aisles and online platforms.

7. Competitive Landscape and Imported Products

The competitive environment for cashew based products in Sri Lanka includes both domestic producers and imported offerings. Imported cashews and cashew based snacks often arrive at competitive price points due to scale advantages enjoyed by major producing countries. Such competition places pressure on local producers to differentiate based on quality, origin narratives, and product innovation rather than price alone. Private brands and multinational nut suppliers further compete through distribution in supermarkets, specialty stores, and online marketplaces, offering a range of cashew forms and derivatives. To compete effectively, Sri Lankan producers must leverage unique value propositions such as traceability, organic certification, and integration with local culinary traditions and product storytelling. Moreover, competition is not limited to plain nuts but includes other emerging plant based ingredients such as almonds, walnuts, and pistachios, which feature heavily in global trend reports and local market offerings.

8. Distribution Channels and Market Access

Distribution channels for cashew based products in Sri Lanka encompass traditional retail, modern trade formats including supermarkets and convenience stores, and e commerce platforms that enable broader reach. Growth of modern retail supports visibility of packaged and premium nut products, while online marketplaces facilitate direct engagement with consumers and support delivery based purchases. Export market access remains a strategic opportunity, with destinations such as the United States, United Kingdom, and Middle Eastern countries showing demand for quality cashew products from diverse origins. Export development hinges on meeting international quality and safety standards, including food safety certifications, traceability requirements, and compliance with buyer specifications. Collaborative efforts between producers, trade associations, and export promotion agencies can expand international market penetration for Sri Lankan cashew offerings.

9. Challenges and Supply Constraints

Several structural challenges constrain the full realization of market potential for cashew based products in Sri Lanka. Production is limited and seasonal, creating supply inconsistencies that hinder stable processing and value added manufacturing. Competitive pressures from imported products with lower costs or larger marketing budgets affect domestic market share. Processing infrastructure for derivative products such as cashew butter or cashew milk remains underdeveloped, requiring investment in food processing equipment, quality assurance systems, and packaging technology. Additionally, consumer awareness of cashew derivative products is still evolving, necessitating targeted education and marketing campaigns to communicate benefits and use cases. Addressing these constraints requires coordinated interventions across production, processing, marketing, and institutional support frameworks.

10. Opportunities for Innovation and Value Chain Development

Despite constraints, significant opportunities exist for expanding the market for cashew based products in Sri Lanka. Rising consumer demand for healthy snacks and plant based foods opens pathways for cashew products beyond traditional nut kernels into value added formats such as flavored snacks, butters, dairy alternatives, and ingredient forms. Product innovation that aligns with global health trends and clean label preferences can differentiate Sri Lankan offerings both domestically and in export markets. Strengthening value chain integration, including improved cultivation practices, processing capacity expansion, adoption of international quality standards, and marketing collaborations with retailers and online platforms, enhances competitiveness. Emerging niches such as organic certification, premium artisanal brands, and sustainable packaging can further elevate product positioning and attract discerning consumer segments.

11. Policy and Institutional Support

Policy support plays a critical role in enabling the growth of cashew based product markets. Government initiatives that promote agricultural diversification, investment in processing infrastructure, and export facilitation contribute to sector development. Quality assurance frameworks and food safety regulations that align with international norms build confidence among domestic consumers and global buyers. Public private partnerships that support technical training, marketing research, and supply chain improvements can reduce entry barriers for small and medium enterprises involved in cashew based product development. Institutional support that fosters research in product innovation, value addition, and consumer trends strengthens long term competitiveness.

12. Conclusion

The market potential for cashew-based products in Sri Lanka is significant, driven by expanding global demand for healthy, nutrient rich foods and increasing domestic preference for convenient and functional snack products. While structural challenges related to production volume, processing capacity, competitive imports, and consumer awareness persist, these can be addressed through coordinated efforts in product innovation, market positioning, value chain integration, and institutional support. Cashew derived products, from traditional kernel snacks to emerging derivative applications such as cashew butter and cashew milk, offer multiple avenues for value addition, export diversification, and contribution to rural livelihoods. Capitalizing on these opportunities requires strategic investments and market oriented approaches that align with evolving consumer preferences both at home and abroad.

2026  2025  2024  2022  2021  2020  2019  2018