Shea Butter Market: Global Industry Analysis and Forecast (2023-2029)

Shea Butter Market size was valued at US$ 1.30 Billion. in 2022 and it is expected to reach US$ 3.07 Bn. by 2029, at a CAGR of 13.1% though the forecast period.
Shea Butter Market Overview:
Shea butter is edible vegetable oil or fat obtained from the kernels of the sun-dried seeds of Africa. It is made from Shea butter tree nuts that contain magnesium, potassium, and protein. Shea butter is made from ester resins that are recommended for repairing, cleansing, and sun screening damaged skin.



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Shea Butter Market Dynamics:
The strong demand for Shea butter stems from its use as a cheaper alternative to ice cream, chocolate, and biscuits due to its similar fat composition to the cocoa butter alternative. A positive outlook for the use of fatty acids in the food industry is driving the demand for shea butter in the market.

Bakery and confectionery makers use shea butter because of its superior functionality, shelf life, flavor profile, low price, and ability to change melting curves compared to cocoa butter. For example, Hershey's was launched to integrate Shea butter as a major CBE (Cocoa Butter Equivalent) into non-chocolate products such as Hershey's cookies and creams. The growing trend towards large bakeries, candy factories, artesian bakeries, and cafe chains. These factors are driving the market growth of the product.

With its excellent melting properties, smooth spreadability, and therapeutic properties, shea butter is an excellent base for cosmetics. Increasing demand for shea butter for the personal care and cosmetics sector by an infinite variety of consumer needs and product innovations. This factor is driving the demand for the shea butter market.

The surge in online beauty spending on premium and new cosmetics, the expansion of social networking sites, and the growth of the middle-class income group are driving the demand for the market. The growing popularity of diet aid products made from parts of shea butter among millennials is expected to drive the market. Antidiarrheal, reduced cholesterol, and arthritis symptoms will increase the demand for shea butter in the pharmaceutical sector.

Inexpensive alternatives such as mango butter and avocado butter are readily available, which is expected to limit industry growth. The high latex content of shea butter can cause allergic symptoms in skin-sensitive consumers. These factors are restraining the market growth.

Market trends and challenges are analyzed and compiled in the report. The data of 2022 is considered for a better understanding of the client. Moreover, Analytics of the market is based on real numbers of past years from 2018 to 2022 with market forecast until 2029.
Shea Butter Market Segment Analysis:
By Product, the Raw and Unrefined segment dominated the market with a 75% share in 2022. Consumer demand for less processed oils is increasing due to some of the benefits associated with unrefined or cold-pressed oils. For example, unpurified shea butter keeps the skin young by stimulating the tissue and helping the skin make its collagen. It has soothing moisturizing and nourishing properties suitable for dry and damaged hair and skin. It is a chemical-free alternative to many cosmetics and helps reduce inflammation. Because of this ability, raw, unrefined shea butter helps treat acne, anti-aging, dry and itchy skin, cracked lips, frostbite, psoriasis, rashes, stretch marks, and sunburn. These factors are driving the growth of the segment in the shea butter market.

The refined and ultra-refined segment is expected to grow at a CAGR of 4 % through the forecast period. Industrial usage, purified form, etc. are driving the demand of the segment. The refined and ultra-refined has a limited application which is limiting the market growth.



By Application, Personal care & cosmetics dominated the market with a 40% share in 2022. This growth is due to the high demand for products in this sector. Cosmetics companies are investing heavily in research and development to bring new, more effective products using shea butter to market. It is made from ester resins that are recommended for repairing, cleansing, and sun screening damaged skin. Increasing demand for anti-aging and skincare products. These factors are driving the market growth of the segment.

Food and Beverages are expected to grow at a CAGR of 9 % through the forecast period. Increasing demand for baked goods and confectionery and the demand for cocoa butter alternatives is expected to drive the demand of the market. Shea butter is used as a raw material for shortening and margarine in various baked goods such as puff pastry. It is stable at room temperature, eliminates the hydrogenation process, prevents the formation of trans-unsaturated fatty acids, and is a healthy alternative to margarine production. These factors are expected to drive the market growth of the segment through the forecast period.
Shea Butter Market Regional Insights:
Middle East and Africa dominated the market with a 39 % share in 2022. Rapid urbanization and increasing disposable income levels in the region. High production of shea butter as a result of abundant raw material supply and availability of cheap labor in the region. These factors are driving the market growth of the region.

Europe is expected to grow at a CAGR of 7.5% through the forecast period. Increasing demand for personal care and cosmetics products. Europe is the leading region in the global cosmetics industry. High consumption of chocolate and bakery products in the region. These factors are expected to drive the market growth through the forecast period.

The objective of the report is to present a comprehensive analysis of the Shea Butter market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Shea Butter market dynamics, structure by analyzing the market segments and projecting the Shea Butter market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Shea Butter market make the report investor’s guide.
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Global Shea Butter Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
USD 1.15 Bn.


Forecast Period 2022 to 2029 CAGR:
13.1%
Market Size in 2029:
USD 3.07 Bn.


 Segments Covered:
by Product
 Raw and unrefined
Refined and ultra-refined.


by Application
 Personal care and Cosmetics
Food and Beverages
Others


by Nature
 Organic
Conventional



Shea Butter Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Shea Butter Market Key Players:
1.Ghana Nuts Ltd
2.Maison Karite Sociedad Limitada
3.Adunni Ori Ltd.
4.Timiniya Tuma Company Ltd.
5.Savanna Shea Industries
6.Star Shea Ltd
7.Shea Radiance
8.VINK CHEMICALS GMBH & CO. KG
9.Jedwards International Inc.
10.IOI Loders Croklaan
11.Agrobotanicals LLC;
12.Lovinah Naturals
13.Maison Karite Sociedad Limitada
14.Shebu Industries
15.Shea Therapy Ltd

Frequently Asked Questions:

1. Which region has the largest share in Global Shea Butter Market?
Ans: Europe region holds the highest share in 2022.

2. What is the growth rate of Global Shea Butter Market?
Ans: The Global Shea Butter Market is growing at a CAGR of 13.1% during forecasting period 2022-2029.

3. What is scope of the Global Shea Butter market report?
Ans: Global Shea Butter Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Shea Butter market?
Ans: The important key players in the Global Shea Butter Market are – Ghana Nuts Ltd, Maison Karite Sociedad Limitada, Adunni Ori Ltd., Timiniya Tuma Company Ltd., Savanna Shea Industries, Star Shea Ltd, Shea Radiance, VINK CHEMICALS GMBH & CO. KG, Jedwards International Inc., IOI Loders Croklaan, Agrobotanicals LLC;, Lovinah Naturals, Maison Karite Sociedad Limitada, Shebu Industries, and Shea Therapy Ltd.

5. What is the study period of this market?
Ans: The Global Shea Butter Market is studied from 2022 to 2029.