Shea Butter Market Size, Share, Industry, Forecast and outlook (2024-2031)

Shea Butter Market is segmented By Product (Raw Shea Butter, Refined Shea Butter, Processed Shea Butter), By End-Use Industry (Food, Cosmetics, Others), By Distribution Channel (E-Commerce Stores, Supermarkets & Hypermarkets, Specialty Stores, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Shea Butter Market Size

Global Shea Butter Market reached USD 2.1 billion in 2022 and is expected to reach USD 3.3 billion by 2031 growing with a CAGR of 6.2% during the forecast period 2024-2031. The increasing demand for shea butter in food and personal care products production is driving the global shea butter market growth.

The increasing product portfolio expansion by key market players and growing research and development activities are estimated to create abundant growth opportunities for the global shea butter market. The increasing number of product launches in the cosmetics & personal care segment is driving the market expansion. For instance, in September 2021, Shea Radiance, a hair and body care products brand, launched six new body care products with shea butter in the United States.

The critical health benefits associated with shea butter include reducing inflammations, skin smoothing, and high moisturizing content appropriate basis for hair and skin hydrating products. The shea butter can be used as a replacement for palm oil and cocoa butter due to its similar fatty acids profile to cocoa. The rising consumer preference for sustainable and eco-friendly choices is driving market growth.

Market Summary

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Market Dynamics

Increasing Demand for Natural-Ingredient Based Cosmetic Products Drives the Shea Butter Market Growth.

Consumers are prioritizing skincare options that are natural, environmentally friendly, and sourced ethically. The shea butter has several advantages, such as anti-aging capabilities, extra moisturizing properties, and a healing impact boosting its use in cosmetic products. The shea butter is used as a natural ingredient in various cosmetic products preparation. The organic shea butter is trending in the market. 

Natural ingredient-based cosmetic products are popular among women and younger generations. According to Wonderflow, in January 2022, about 24% of U.S. adult customers of natural skincare products preferred natural ingredient-based cosmetic products because of the multiple benefits provided by them. The refined shea butter help in improving moisture retention, and unrefined shea butter encourages cell regeneration. 

Various Benefits of Shea Butter Drive the Shea Butter Market Growth

There is a diverse use of shea nut butter in many sectors, such as food, personal care, and others. Shea butter has numerous benefits in a variety of conditions. It delivers improved benefit to skin and hair that helps nourish and hydrate the skin. Furthermore, it treats skin rash, eczema, insect bites, and poison ivy. In addition, it helps in reduces fine lines and wrinkles.

There is an increase in health consciousness among consumers worldwide due to the prevalence of lifestyle-related diseases rises. As a result, consumers prefer products containing natural ingredients such as shea butter to be safer and healthier than their processed or chemical alternatives. The increased acceptance of shea butter by customers is driving market growth.

Availability of Alternatives Restrains the Market Growth.

The major restraint for the global shea butter market is the wide availability of alternatives in the market. Avocado butter, mango butter, palm oil, cupuacu butter, and others are a few cheaper alternatives for shea butter that can be used in food, personal care, and other sectors. The cupuacu butter possesses better moisturizing properties than the shea butter.

The environmental requirements of the shea tree growth, the high price of raw shea nuts, and the lack of modern technology in the shea butter extraction & processing are major restraints for the global shea butter market. The lack of minimum quality standards and poor level of industry organization limits the market expansion. Furthermore, the lower product demand across the low and middle-income economies due to limited disposable income may further affect the market expansion.

Market Segment Analysis 

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

In the Shea Butter Products 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 shea butter is used as a key ingredient in producing various confectionery and bakery products, thus increasing the segment's growth.

The shea butter has healthy fats and micronutrients. It can be used as a natural antioxidant and trans-free edible oil. It has replaced cocoa butter and palm oil in producing ice creams, chocolates, and biscuits. The functional and enhanced nutritional composition of shea butter is increasing the segment’s growth. According to the U.S. Trade Commission, around 90% of shea demand comes from chocolate and confectionary products.

Market Geographical Share

The North America Held the Largest Share of the Global Shea Butter Market.

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. Increasing disposable income and rising purchasing power in this region boosts the market growth. 

The increasing health awareness among people and improving healthy lifestyles are driving the market growth in this region. The approvals from the FDA and other organizations for the use of shea butter in various sectors, such as food & beverages, personal care, and others, are driving the market growth in this region. For instance, the America Food and Drug Administration has approved the soft fraction of shea butter. This can deliver stability and premium quality products with various applications.

Market Key Players

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.

COVID-19 Impact on Market

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

The unprecedented COVID-19 pandemic in 2020 profoundly affected the food support and services industry. Covid-19 has considerably impacted the global food support and services 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 industries as well. The COVID-19 pandemic is upending life, and the food support and services 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.

By Product

• Raw Shea Butter
• Refined Shea Butter
• Processed Shea Butter

By End-Use Industry

• Food
• Cosmetics
• Others

By Distribution Channel

• E-Commerce Stores
• Supermarkets & Hypermarkets
• Specialty Stores
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In March 2023, Hanahana Beauty, a skincare brand, announced the launch of shea butter products at Ulta. 
• In March 2023, St Dvence, an Indian beauty products brand, announced the launch of soft creams with shea butter.
• In February 2022, the Byrdie brand launched Karite, a new line of skincare products. This brand offers a range of essentials, including body cream, lip balm, and hand cream, that are made with pure shea butter. These products have antioxidants and anti-inflammatory properties.

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 2024

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