Malaysian-based PT Resources Holdings Bhd (PT) has established a coconut processing facility in China under its wholly owned subsidiary, Fujian HJS International Holdings Co Ltd. The facility is located in the China-Indonesia Food Industrial Park in Fuqing City, Fujian Province.
PT is the first wholly foreign-owned enterprise to set up a coconut processing operation within the park and in China. The new facility is equipped to produce a wide range of value-added products such as frozen coconut water, frozen coconut milk, desiccated coconut, and other derivatives, capturing the complete potential of the coconut fruit.
The group is investing around Rmb 29 million (US$4.04 million) in the facility. Trial production is under way and commercial operation is expected to commence soon.
In the initial phase, the group will focus on supplying frozen and dried coconut products to B2B customers such as food and beverage (F&B) manufacturers within Fujian Province and nearby regions. Fujian is strategically positioned as one of China’s key import and processing hubs for mature coconuts, serving a wide network of F&B manufacturers within a 700km radius of the group’s facility. This further enhances the group’s logistical reach.
According to Grand View Research, China accounted for 10.2% of the global coconut product market in 2022, generating a revenue of US$2.1 billion. The China market is projected to grow to US$3.6 billion by 2030 and it is expected to remain a key market in the Asia-Pacific region.
PT Managing Director Heng Chang Hooi said, “We are optimistic about the growing demand for coconut-based products in China, supported by its large population of 1.4 billion, rising interest for plant-based diets, and increasing demand for dairy alternatives. The popularity of coconut milk in coffee chains and specialty beverage outlets reflects this trend. There is also a surge in demand for coconut water and coconut milk, attributed to greater health awareness and preference for natural, low-sugar beverages.”
Hooi also added that coconut-based dairy alternatives such as coconut yogurt are gaining popularity, with brands like Yeyo on Tmall and in retail outlets such as City Super, BHG, and ALDI. Beyond the F&B segment, coconut by-products such as coconut shells have industrial use, including in the production of activated carbon for airpurifiers.
PT is also actively exploring B2B collaborations with Chinese distributors and manufacturers, including opportunities for private-label production and OEM services as part of its localisation strategy. We also aim to leverage on Fujian’s export infrastructure to access ASEAN markets.
With regards to supply, PT will source its mature coconuts from Indonesia, one of the world’s leading producer of coconuts to ensure undisrupted supply.
