Share on

Shea Butter Market By Type (Unrefined shea butter, Refined shea butter), and By Application (Cosmetics, Personal care, Food, Medical, and others), and By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa, and Rest of the World) - Global Industry Analysis, Size, Share, Growth, Trends, And Forecasts 2022 to 2027

Published: March, 2023
ID: 8061
Pages: 175
Formats: report pdf report excel report power bi report ppt

Shea Butter Market Size, and Growth Rate Analysis:

Shea Butter Market was worth USD 1.12 billion in 2019, and it is estimated to reach a valuation of USD 2.9 billion by the end of 2026, expanding at a CAGR of about 6.6% during the forecast period from 2022 - 2027.

Shea butter is used in a variety of hair and skin related products and is a type of fat with various healing properties. It is derived from the seeds of the VitellariaParadoxa (Shea) tree, found mainly in Africa. Shea butter has no artificial chemicals and consists of stearic acid and oleic acid. It is broadly used in cosmetics as skin moisturizers, hair conditioners, and lip gloss. In addition to this, shea butter is used in various industries, such as food and healthcare. Consumers around the world prefer these products. The process of extracting shea butter from walnuts includes multiple methods such as cracking, grinding, roasting, grinding, oil separation, and harvesting and shaping.

Recent Developments:

  1. On November 4, 2019, The Government of Ghana began construction of a shea butter processing plant in Bogrigo in the Bongo District, strengthening domestic production and shea butter in the coming years.
  2. In August 2018, Palladium invested in Naasakale, a women-owned shea butter manufacturing company, to improve shea production activities in each sector.
  3. In March 2018, Bunge Limited completed the acquisition of IOI LodersCroklaan.
  4. In November 2017, Unilver acquired Sundial. Sundial Brands is one of the largest personal care product companies with brands that use shea butter as the main ingredient in the manufacture of their products.
  5. Essence Ventures LLC confirmed its acquisition of Essence Communications Inc for an undisclosed amount. The deal reestablished Essence Communications Inc. as a totally black independent company, which it had held for 30 years until it was acquired by Time Inc. in 2000.
  6. In November 2017, Unilever signed a contract to purchase Sundial Brands, a personal care company based in New York that is a leading hair and skincare company known for its high quality and culturally authentic ingredients.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2020 – 2026

Base Year

2020

Forecast Period

2022 - 2027

CAGR

6.6%

Segments Covered

By Type , By Application

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

Star Shea Ltd, Bread For Life, All Pure Nature Ltd, Shea Radiance, VINK CHEMICALS GMBH & CO. KG, Jedwards International, Inc, Lovinah Naturals, Maison Karite Sociedad Limitada, Shebu Industries, Shea Therapy Ltd (formerly trading as AGC Ltd), The Pure Company

 

Market Growth

As the adoption of shea butter products for cocoa butter or palm oils increases, the market share for shea butter increases. Compared to cocoa and palm oil, shea butter has the advantage of lower fat content and better healing power than before. In addition, shea butter products are potent antioxidants and restore healthy skin and damaged hair. However, cocoa butter contains only polyphenols, which helps relieve stress. Shea butter comprises vitamins A and E, which are essential for the skin and eyes. Also, shea butter contains cinnamic acid, which blocks the skin from UV rays. Also, cocoa butter is an excellent moisturizer, but shea butter is more flexible and can be used in other healing processes, such as skin, hair and lip healing.

Drivers 

Shea butter is obtained from the nuts of the shea tree that contains magnesium, potassium, and protein. The growing demand for cocoa butter alternatives and increased consumption of chocolate and bakery products are expected to lead the market. Additionally, the widespread use of shea butter to replace edible vegetable oils and fats in various food applications will stimulate demand. Bakery and confectionery manufacturers are widely using it as an alternative to cocoa butter due to the limited supply and high price of cocoa. In addition, the high demand for products in the cosmetic and personal care industries will promote market growth. Shea butter contains essential fatty acids like stearic acid and oleic acid and non-saponifiable ingredients like sterol and phenol with moisturizing and conditioning properties. It has a better absorption rate than coconut butter and is suitable for all skin types, and demand is also increasing in the personal care and cosmetic industries. 

Furthermore, extensive R&D by cosmetic manufacturers to introduce innovative and compelling products based on shea butter will drive demand in this field. Therefore, personal care and cosmetic applications are supposed to be the largest segment during the outlook period. The increasing consumer willingness to natural products like shea butter and the expanding demand for shea butter in various end-use industries such as cosmetics and food and beverages are key factors driving the growth of the global shea butter market. About 80% of the demand for shea butter is also assumed to come from the confectionery industry. It serves as an alternative to cocoa butter for chocolate makers, and shea butter is rich in flavor and is also used in pancakes and toast. 

Cocoa butter is used as a source of fat in chocolate and confectionery to provide the shine, texture, and flavor of the product. As the demand for chocolate and confectionery increases, the demand for cocoa butter increases. However, cocoa butter is experiencing supply restrictions due to a decrease in cocoa production in the leading countries. Therefore, the price of cocoa butter is increasing rapidly, forcing chocolate and confectionery manufacturers to choose alternatives or equivalents to cocoa butter. Manufacturers are increasingly using Shea butter with the potential to replace expensive cocoa butter for chocolate and confectionery applications.

Restraints

The high cost of shea butter products is a crucial factor in slowing the growth of the global shea butter market. Furthermore, the availability of a number of alternative products that are cost-effective and readily available to customers to replace shea butter on the market is another critical factor that is suspected of slowing the growth of the global shea butter market during the prognosis period. Furthermore, the absence of minimum quality standards and low levels of the industrial organization represents a severe challenge to the growth of the world market for shea butter. The hydrogenation of vegetable oil leads to the production of trans unsaturated fatty acids, which negatively affect cardiovascular health. Because of this, manufacturers are moving toward using margarine and butter processing.

Shea Butter Market Segmentation Analysis:

Based on Type:                              

  • Unrefined shea butter       
  • Refined shea butter            

Based on Application:                 

  • Cosmetics
  • Personal care         
  • Food          
  • Medical    
  • Others      

Geographical Segmentation:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Regional Presence of the market:

The global Shea Butter Market has been categorized based on geography into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. Asia-Pacific, led by Japan, India and China, is expected to record a CAGR of more than 11% through 2025. Changes in consumer preferences and increased awareness of the availability of better health care products skin and health care in the market, followed by strong growth in economies such as India, China and South Korea that lead the reach of the product in this region. The Middle East and Africa shea butter market, led by Burkina Faso and Nigeria, is projected to exceed the CAGR of 10% until 2025. Harvesting and processing of karate shea nuts occurs in the sub-Saharan African belt, which They are then marketed to Asian food and European cosmetic companies. According to the Global Shea Alliance, shea butter is a key commercial product for the African economy, with Burkina Faso, Mali, Ghana, Nigeria, Benin, Togo and Guinea the main butter producers of shea. The rising dependence of African countries on shea butter exports is a crucial factor promoting the growth of the target market in this area.

Europe accounted for more than 25% of the worldwide shea butter market. The growing concept of premium, high-quality food products with promised health benefits is expected to support the growth of the segment. Changing socio-economic dynamics and increasing purchasing power have forced consumers to pay a high price for basic health products loaded with natural ingredients. Furthermore, strict EU laws to include a minimum of 5% shea butter in chocolate products, indicating a massive growth of shea butter in the European region by 2025.

Impact of COVID-19 on Shea Butter Market

The cloud kitchen and restaurant food delivery business continues to exist, although there is a drastic drop in sales. This is just the ray of hope for the F&B media in the wake of this pandemic. The food delivery option serves as a way to respond to customers on a limited scale, with the adoption of contactless delivery, a term that emerged after the outbreak of the Covid-19 pandemic. Only a few outlets offer the delivery option, especially in red areas like Mumbai, keeping in mind the health and safety of their staff and clients associated with logistical constraints. Moving forward, the delivery activity should be part of the business model of all food and beverage outlets and be a source of income to improve the chances of returning the business to a commercially viable and sustainable model. Efforts on the technology front with the use of QR codes, non-human interference except for serving food at the table, higher levels of hygiene for both staff and customers will become a reality in the operating world post-COVID for hotel companies.

Leading Company:

BASF SE had the largest share of the Shea Butter Market in terms of sales and revenue in 2018.

Leading Key Companies Covered in this market report are:

  1. Star Shea Ltd
  2. Bread For Life
  3. All Pure Nature Ltd
  4. Shea Radiance
  5. VINK CHEMICALS GMBH & CO. KG
  6. Jedwards International, Inc
  7. Lovinah Naturals
  8. Maison Karite Sociedad Limitada
  9. Shebu Industries
  10. Shea Therapy Ltd (formerly trading as AGC Ltd)
  11. The Pure Company.

Please wait. . . . Your request is being processed

Related Reports

Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500

Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM

Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!

REACH OUT TO US

Call us on: +1 888 702 9696 (U.S Toll Free)

Write to us: [email protected]