Global Shea Butter Market - 2023-2030

Market Overview

Global Shea Butter Market reached US$ 2.1 billion in 2022 and is expected to reach US$ 3.3 billion by 2030 growing with a CAGR of 6.2% during the forecast period 2023-2030. The growing use of shea butter as a replacement for cocoa butter and palm oil in bakery and confectionery products is driving the global shea butter market growth.

The increased awareness of the therapeutic advantages of shea butter increased its usage in the personal care sector. The increased use of shea butter as a natural ingredient-based cosmetic product is diversifying the shea butter market. For instance, the Crafters Choice brand launched personal care products that are designed with ultra-refined pure shea butter, in May 2021. The products include body lotion and soaps.

The demand for shea butter is increasing for being a natural ingredient known for its moisturizing, nourishing, and healing properties. The increasing consumer preference for natural and organic skincare products increases market expansion. The similar fatty acids profile of the shea butter composition to that of cocoa is increasing its use in food products. The rising demand for the need for cocoa butter substitutes is likely to boost the demand for the market.

Market Dynamics

The Growing Demand for Shea Butter Drives the Global Shea Butter Market Growth.

The use of shea butter in cosmetic products as an alternative ingredient in creams, soaps, and lotions, is expected to support the growth of the segment. Shea butter is used in food, personal care, and other sectors. The increasing health and beauty awareness among consumers drives the use of natural ingredient-based cosmetic products such as shea butter. Shea butter is considered a luxury skincare product ingredient driving market growth.

The increasing importance of sustainability has resulted in a steady increase in demand for organic and natural cosmetics. Aside from its current applications, the benefits of shea butter are being researched in various other areas. This is expected to broaden the applications of shea butter and open the door to the launch of several new products targeting newer indications.

New Product Launches Drive the Global Shea Butter Market Growth.

The rise in essential benefits of shea butter increased its use in the food and personal care sectors. Various forms of shea butter, such as raw, refined, and unrefined forms, are used in multiple preparations. The increasing number of product launches in the cosmetics and personal care segment is expected to drive the market's growth. For instance, the Beurre Shea Butter Skincare brand used shea butter as the key ingredient in the various products, in June 2022.

Many skincare brands are launching skin care products with pure and organic shea butter boosting the market expansion. For instance, in February 2022, the Byrdie brand launched Karite, a new line of skincare products. Pure shea butter is used in various essentials, such as body cream, lip balm, and hand cream. These products have antioxidants and anti-inflammatory properties.

The High Cost and the Availability of Substitutes Restrains Market Growth.

Shea butter is a versatile product with many uses in the food and personal care sectors. With the increasing popularity of shea butter in the confectionery and cosmetics sector, its high price is expected to restrain the market expansion. Many cheaper alternative sources, such as palm oil, avocado butter, and others, are available, hindering market growth.

The shea butter is an expensive ingredient. It is exported chiefly from Africa at a high tax rate. Also, the processing and extraction technologies used to prepare shea butter are expensive, making the production costs high. Furthermore, the minimal product availability and lack of presence of suitable environmental conditions for the production of shea trees restrains the growth of the shea butter market.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The global shea butter market is segmented based on product, end-use industry, distribution channel, and region.

In the Global Shea Butter Market, the Food Segment Holds the Largest Market Share.

The global shea butter market has been segmented by product into food, cosmetics, and others. The food segment held the largest shea butter market share of 48.8% in 2022 in the shea butter market analysis report. The increasing use of shea better as a main ingredient in the food sector is increasing the target segment's growth.

The shea nut butter is used in the preparing stable and premium quality products. They are used to replace cocoa butter and palm oil in various applications such as snacks, desserts, chocolates, and others. It helps in enhancing the consistency, texture, and other properties of chocolate. The increased premiumization of food products is driving market growth.

Geographical Analysis

The North America Region Held the Largest Shea Butter Market Share.

The global shea butter market is segmented into five parts based on geography: North America, South America, Europe, Asia-Pacific, the Middle East, and Africa. The North American shea butter market held the largest market share of 38.6% in 2022 in the shea butter market analysis. The increasing adoption of shea butter usage in the confectionery industry of this region is driving the market growth.

The rising demand for organic food products, and growing demand for eco-friendly and natural personal care products in this region. The increasing availability of many manufacturers and growing R&D spending on developing innovative shea butter applications across the cosmetics, pharmaceutical, and food sectors are boosting the market growth in this region.

Competitive Landscape

The major global players in the market include Now Foods, The Organic Shea Butter Company, Eu'Genia Shea, New England Shea Butter LLC, Sekaf Ghana Ltd, The Savannah Fruits Company, Ghana Nuts Company Limited, Timiniya Tumna Company, AKOMA Corporative Multipurpose Society, and Cargill Inc.

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

COVID-19 Impact:

The unprecedented COVID-19 pandemic in 2020 profoundly affected the food support and services industry. COVID-19 has considerably impacted the global food supply chain phases involving shea butter production, processing, distribution, and consumption due to lockdowns and restrictions imposed by various governments.

Everything has changed due to the COVID-19 epidemic. It has influenced practically every industry, whether positively or negatively. The COVID-19 pandemic's effects on world economic conditions have had an influence. They could impact interest rates, foreign exchange rates, commodities and energy prices, and the efficient operation of financial and capital markets.

The COVID-19 pandemic issue has had an impact on the food support and services industry as well. The COVID-19 pandemic is upending life, and the food support and service sector is seeing increased trends like shea butter. The food support and services businesses are launching innovative programs, including shea butter, that are straightforward to utilize.

Why Purchase the Report?

• To visualize the global shea butter market segmentation based on product, end-use industry, distribution channel, and region and understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of shea butter market-level with all segments.
• The PDF report includes a comprehensive market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The Global Shea Butter Market report would provide approximately 61 tables, 58 figures and 165 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies