The origin of ferromagnetism in ZnO doped with transition metal impurities has been discussed extensively and appeared to be a highly controversial and challenging topic in today's solid state physics. Magnetism observed in this system is generally weak and soft. We have grown Co:ZnO up to 30 at% Co in single crystal thin film form on c-plane sapphire. A composition dependent coercivity is observed in this system which reaches peak value at 25 at% Co, the values are 860 Oe and 1149 Oe with applied field along parallel and perpendicular to the film substrate interface respectively. This giant coercivity might pave the way to exploit this material as a magnetic semiconductor with novel logic functionalities. The findings are explained based on defect band itinerant ferromagnetism and its partial interaction with localized d electrons of Co through charge transfer. Besides large coercivity, an increase in the band gap with Co concentration has also been observed along with blue emission peak with long tail confirming the formation of extended point defect levels in the host lattice band gap. © 2013 Elsevier B.V. All rights reserved.