IFBH officially debuted on the Hong Kong Stock Exchange on June 30, with its stock jumping more than 65% during intraday trading. At day one’s closing price of HKD 39.5, the company’s market capitalization exceeded HKD 10 billion (USD 1.3 billion).
Founded in 2013 by a Thai entrepreneur, IFBH generates about 96% of its total revenue from coconut water. Since entering the mainland China market in 2017 through e-commerce, the company has seen rapid growth, with China becoming its primary revenue driver.
According to its IPO prospectus, IFBH recorded USD 158 million in revenue in 2024, an 80% increase year-on-year (YoY). Mainland China contributed USD 146 million, accounting for 92.4% of the total. The brand held a 34% market share in China, more than seven times that of its closest competitor, and ranked first for five consecutive years.
Even more striking are its leading market position and swift regulatory approval, with the Hong Kong listing hearing completed in just over two months. Also notable is its lean team: IFBH reported only 46 employees, meaning each employee generated an average of RMB 25 million (USD 3.5 million) in revenue.
By comparison, Pinduoduo earned RMB 393.8 billion (USD 55.1 billion) in 2024 with 23,465 employees, or roughly RMB 16.78 million (USD 2.3 million) per person.
This combination of revenue efficiency, strong growth, and high demand attracted investors. During its IPO subscription, IFBH was oversubscribed more than 2,600 times.
Its cornerstone investors include HongShan’s HCEP Management, UBS Asset Management, and hedge fund Jain Global. These groups were among 11 institutions that subscribed for HKD 310 million (USD 39.5 million) in shares. Nongfu Spring chairman Zhong Shanshan’s Daohe Chengguang private equity fund also joined the international placement.
From legacy drinks like Yeshu Coconut Juice to Luckin Coffee’s 1.2 billion coconut lattes, coconuts have powered waves of consumer trends, and IF Coconut Water is the latest iteration.
Coconut water fits the asset-light mold
The current surge in coconut water popularity traces back to Luckin Coffee’s coconut latte, which launched in April 2021. Blending thick coconut milk with coffee, it became an instant hit, with over 70 million cups sold that year. The drink helped revive Luckin’s brand and boosted suppliers like FreeNow, which produces coconut milk.
But coconut water remained on the sidelines at first.
Consumers tended to associate coconut drinks with milkier products like Yeshu, often made by pressing coconut flesh. This created confusion around pure coconut water.
International brands struggled to break into China’s market. Coca-Cola even discontinued its Zico coconut water brand in 2020.
Things began to shift between 2022–2023, when coconut water gained recognition as a natural source of electrolytes, and demand rose alongside consumer interest in healthier, low-calorie beverages.
That’s when IF Coconut Water capitalized. With backing from top live streamers like Li Jiaqi, its 2022 revenue jumped 300% YoY. It topped e-commerce charts in 2023, and demand soared so much that raw coconut water prices rose from RMB 100 (USD 14) to RMB 4,000 (USD 560) per ton.
The brand’s asset-light model contributed to its growth.
According to the IPO filing, IFBH outsources manufacturing, logistics, and distribution. That allows the company to scale quickly without heavy fixed costs. Its main OEM (original equipment manufacturer) partner, General Beverage, was also founded by IFBH’s founder, giving it pricing and coordination advantages.
This model allowed IF Coconut Water to expand into convenience stores with smaller, more affordable packaging, which was an important move at a time when coconut water was still considered a premium product.
Marketing spend powers the brand
The company’s dominance in China’s coconut water market is also fueled by its marketing budget. From 2023–2024, the company’s revenue rose 80%, while marketing expenses doubled from USD 3.66 million to USD 7.36 million.
In 2023, IF Coconut Water launched a co-branded campaign with Pop Mart’s Crybaby IP and brought on celebrity ambassador Zhao Lusi. Actor Xiao Zhan joined midyear, and both partnerships have recently been extended into the new year.
Its approach mirrors elements of Genki Forest’s strategy: identify a health trend, adopt an asset-light model, pour money into marketing, and build around one core product.
But such strategies come with challenges.
Genki Forest once faced disruptions when rivals cut off OEM access. While IFBH’s connection to General Beverage may shield it, it is not immune to supply shocks. In 2024, heatwaves in Thailand reduced coconut yields and drove up IFBH’s costs by 70%. The company raised prices in response but saw sales decline. Data from WinWin Network shows IF Coconut Water’s market share dropped from 56% in the first quarter of 2024 to 30% by Q4 the same year.
Mixue Bingcheng offers a counterexample. By growing its own lemons, building its own factories, and controlling its own raw material supply, Mixue created a pricing moat in China’s competitive tea market. While it remains to be seen whether Mixue can hold the line amid rising lemon prices, its model clearly cushions it from short-term shocks.
Meanwhile, competition is intensifying. Retailers like Hema (known internationally as Freshippo), Pupu Supermarket, and Sam’s Club have all launched private-label coconut water offerings. Some price them as low as RMB 9.9 (USD 1.4). For a company that depends heavily on one product, that’s an ominous trend.
Still, low prices may erode consumer trust. Skepticism over ingredient quality could help IF Coconut Water maintain its appeal as a premium brand.
With its IPO complete, IFBH’s next test will be long-term growth: strengthening supply chains, broadening its product lineup, and closing strategic gaps. Only then can the company prove it has staying power in a crowded market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Li Xiaoxia for 36Kr.