Post harvest processing determines effective utilization of harvested produce and the quality of the end product, which ultimately tells upon the consumption and acceptance of the produce. One of the main reason for the variation in the price of the coconut and its products is dependency of price of coconut oil which is again depends on the cost of other vegetable oils. Thus product diversification of coconut and development of value added products become very important in the coconut industry. Different countries have been successful in evolving appropriate processing technologies for the profitable utilization of coconut. As a result, products like packed coconut milk, coconut creams, spray dried coconut milk powder, coconut water based products like vinegar and nata-de-coco. etc. have been developed and they seem to have good commercial potential. The development strategy for the coconut industry needs a new orientation with a thrust on integrated processing, product diversification, new product development, marketing and export promotion. More priority should be given for integrated processing of coconut for production of more products, which are flexible enough to vary the proportions of the production depending on the market response. And this would pave the way for the fuller utilization of coconut and its by products, resulting in value addition. Coconut processing sector can be strengthened by focusing attention on non traditional products from coconut. Research undertaken in the past has generated viable technologies for the manufacture of diversified products from coconut. A few of them are still in the stage of infancy due to the refinement needed in the packaging and quality up gradation, hence there is an urgent need to undertake pilot scale trials for commercializing. There is a need to promote and organize various market promotional activities and consumer awareness campaigns to strengthen the coconut based economy.