Shea Butter Global Market Report 2024

Shea butter is a fat obtained from the nut of the African shea tree (Vitellaria paradoxa). In its raw state, it appears ivory, and it is often tinted yellow using borututu root or palm oil. Shea butter finds common usage in cosmetics as a moisturizer, salve, or lotion. Additionally, in some African countries, it is recognized as a nutritious substance and is employed in food preparation.

The primary types of shea butter products include raw and unrefined shea butter, as well as refined shea butter. Raw and unrefined shea butter represent the purest form, valued for its high content of vitamins, fatty acids, and other beneficial compounds, making it particularly suitable for cosmetic applications. These variants are available in both organic and conventional forms and find use in various applications, such as food processing, cosmetics and personal care products, pharmaceuticals, and more.

The shea butter market research report is one of a series of new reports from The Business Research Company that provides shea butter market statistics, including shea butter industry global market size, regional shares, competitors with a shea butter market share, detailed shea butter market segments, market trends and opportunities, and any further data you may need to thrive in the shea butter industry. This shea butter market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The shea butter market size has grown strongly in recent years. It will grow from $2.01 billion in 2023 to $2.16 billion in 2024 at a compound annual growth rate (CAGR) of 7.5%. The growth observed in the historical period can be attributed to the traditional use of shea butter in cosmetics and skincare, the increasing demand for natural and organic ingredients, growth in the beauty and personal care industry, a rise in awareness of the benefits of shea butter, and its adoption in traditional medicine.

The shea butter market size is expected to see strong growth in the next few years. It will grow to $2.79 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The anticipated growth in the forecast period can be attributed to the expansion of the food industry, the increasing demand for plant-based ingredients, the incorporation of shea butter in nutraceutical and functional foods, a heightened use in hair care products, the growth of e-commerce and online sales, and the growing popularity of do-it-yourself (DIY) beauty and skincare with shea. Major trends expected in the forecast period include the development of shea butter derivatives and innovations, the introduction of shea butter-infused textiles and apparel, technological improvements in shea processing, the utilization of shea butter in sustainable packaging, and collaborative efforts for research and development in the shea industry.

The shea butter market is poised for growth due to the increasing use of cosmetics. Cosmetics encompass a diverse range of products applied to enhance or alter the appearance of the body, face, hair, or nails. Shea butter, known for its moisturizing, nourishing, and anti-inflammatory properties, is widely utilized in cosmetics to promote healthier and more hydrated skin and hair. In 2021, the Soil Association's annual organic beauty and wellbeing report revealed a 15% growth in the sales of Soil Association-certified organic and natural beauty products in the UK, reaching approximately $170 million. Additionally, Automat.ai reported a 13% increase in skincare product sales and a 1% rise in makeup item sales in the US in January 2021, with online beauty merchants experiencing a 24% growth, led by skincare products. Consequently, the escalating use of cosmetics is a key driver fueling the shea butter market's growth.

The shea butter market is anticipated to receive a significant boost from the growing e-commerce industry. E-commerce, encompassing online platforms facilitating the buying and selling of goods and services, has made shea butter more accessible globally. This increased accessibility, regardless of geographic location, has expanded markets for shea butter producers and heightened overall product demand. According to the International Trade Administration's October 2021 report, e-commerce for consumer goods is expected to constitute around 22% of global retail sales by 2024, growing at an average rate of over 1%. It also predicts an 8% consistent long-term increase in global retail e-commerce sales through 2024. Thus, the burgeoning e-commerce industry is a significant factor driving the growth of the shea butter market.

Major companies in the shea butter market are focusing on innovative products, such as shea butter-infused skincare items to cater to expanding customer bases and drive sales and revenue. These products, featuring shea butter as a key ingredient, offer enhanced benefits to consumers. For example, in September 2022, Salve Pharmaceuticals Pvt. Ltd., an India-based dermatology company, launched the Ultra skincare range. This line includes the Parasoft Ultra Hydrating and Protecting Cream and the Parasoft Ultra Daily Moisturizing Body and Face Lotion, both formulated for daily use and providing 72-hour hydration with ingredients such as almond oil, vitamin E, shea butter, and hibiscus extracts. The emphasis on such innovative products aims to meet the evolving needs of consumers and drive market growth.

Major companies in the shea butter market are adopting strategic partnerships to support the well-being of women involved in the shea supply chain in Ghana. Strategic partnerships involve leveraging mutual strengths and resources to achieve shared benefits and success. For instance, in June 2021, AAK, a Sweden-based producer of vegetable oils and fats, partnered with Mars Incorporated, a US-based confectionery and food product manufacturer, for the Women in Shea (WISH) initiative. This collaborative effort aims to enhance the livelihoods of over 13,000 women engaged in Ghana's shea supply chain across 150 communities until 2030.

Facility expansion emerges as a prominent trend in the shea butter market, with manufacturers focusing on enlarging their production facilities to meet the increasing market demand. In March 2021, Mali Shi, an Africa-based producer of shea butter and oilseeds, announced the establishment of a shea butter processing factory in Mali. This facility, the first of its kind in Mali, is capable of processing 14,100 metric tons of shea butter annually. The plant not only generates direct employment opportunities but also supports thousands of women, with future plans to benefit over 120,000 women across the country. Facility expansion is viewed as a strategic move to meet the growing demand for shea butter in the market.

Major companies operating in the shea butter market report are BASF SE, Bunge Limited, Wilmar Africa Limited, Clariant AG, AAK AB, Fuji Oil Holdings Inc., Croda International plc, L'Occitane en Provence, NOW Foods, Lily of the Desert, 3F Industries Limited, Anderson International Corp., OLVEA Group, Bulk Apothecary, International Oils & Fats Limited, Akoma International Ltd., Manorama Industries Limited, Sophim S.A., The Savannah Fruits Company, Green Leaf Naturals, Makers Ingredients Limited, Ghana Nuts Company Limited, Terry Laboratories LLC, Shea Radiance, Better Butter Company, Zoic Cosmetics, Shebu Industries, Jiangxi Hualong Plant Spice Co. Ltd., Suru Chemicals & Pharmaceuticals Pvt. Ltd., Purenso Select

North America was the largest region in the shea butter market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the shea butter market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the shea butter market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The shea butter market consists of sales of shea butter extract and shea tree seed fat. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Shea Butter Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on shea butter market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for shea butter ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The shea butter market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Product: Raw And Unrefined Shea Butter; Refined Shea Butter
• 2) By Nature: Organic; Conventional
• 3) By Application: Food Processing; Cosmetics And Personal Care; Pharmaceuticals; Other Applications
• Companies Mentioned: BASF SE; Bunge Limited; Wilmar Africa Limited; Clariant AG; AAK AB
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.