Coconut water powder is highly hygroscopic and has a strong tendency to absorb ambient moisture. As coconut water powder absorbs water, it begins caking and ultimately forms a hard, solid mass that is difficult to use in the manufacture and formulation of coconut water-based beverages, drink mixes and foods. The present invention is based on the discovery that the addition of comestible oils, such as coconut oil, prior to dehydration of coconut water results in a coconut water powder with greatly reduced hyrgoscopy. Compositions comprising coconut water powder with reduced hygroscopy are the subject of the invention, as are methods of making and using such compositions.