Parts of the coconut palm have been used in medicinal and health care products from historic times. Non-traditional uses of coconut derived products have been made possible due to the application of new technologies and presently the use of coconut oil derivatives for industrial and non-edible purposes has surpassed its use as an edible oil in developed countries. Resurgence of interest in 'naturals', increasing cost of petroleum based chemicals and the problems of environmental pollution have contributed to the creation of niche markets for products from natural sources such as coconut to be used in pharmaceutical, health food and cosmetic industries. Physical and chemical modifications of coconut meat, oil and shells have resulted in the production of cocochemicals and other products resulting in the diversification of coconut based products. In view of the global concerns and the growing demand for environmentally friendly products, focussed research on the development of new products which are biodegradable is vital for the initiation of viable new coconut based industries.