Shea Body Butter Market

Increased benefits of shea body butter will boost the market growth

Shea body butter is preferred by customers because it conditions, soothes, and smoothes their skin. Because of its high nutritional content and purity, shea body butter is becoming more and more popular in cosmetic goods, which is driving the market CAGR. As a result, top cosmetic companies are creating new shea body butter-based products, including body soaps, hand creams, lip balms, and moisturizers. For instance, Amazon.com, Inc. introduced Amazon Aware, a product line of Amazon beauty products, on March 1, 2022.

Two face cleansers, two moisturizers, two body creams, and a body cleanser with vitamin C, shea body butter, avocado oil, and dermatologist-tested ingredients are among the items in the beauty range. Furthermore, because shea body butter oil soothes dry and cracked skin and contains an essential fatty acid profile that closely resembles the lipids in the skin, customers gravitate to it. Additionally, it is a powerful moisturizer that does not clog pores and encourages skin to look healthier.

The market for shea body butter is anticipated to expand in the future due to the expanding e-commerce sector. The e-commerce industry, which includes digital channels and online marketplaces where buyers and sellers transact products and services, is referred to as the "e-commerce sector." Shea body butter is becoming more widely available due to e-commerce platforms. No matter where they are in the world, consumers can now readily locate and buy shea body butter. Because of this, producers of shea body butter now have access to new markets, which has raised the product's overall demand.

For instance, e-commerce for consumer goods is predicted to account for almost 22% of retail sales in October 2021, expanding at an average pace of more than 1% by 2024, according to a research released by the International Trade Administration, a US-based body. Additionally, retail e-commerce sales indicate that overall worldwide retail e-commerce sales will rise by 8% over the long term, starting in 2024 and continuing until then. Thus, the market for shea body butter is expanding due to the expanding e-commerce sector.

The market for shea body butter is anticipated to expand due to the rising use of cosmetics. A wide variety of goods used on the face, body, hair, or nails to improve or change look are referred to as cosmetics. Because of its nourishing, anti-inflammatory, and moisturizing qualities, shea body butter is frequently used in cosmetics to support healthier, more moisturized skin and hair.

For instance, the Soil Association, a UK-based nonprofit, reported in its annual organic beauty and wellbeing report for 2021 that sales of natural and organic beauty and wellbeing products certified by the Soil Association increased by 15% in the UK, to reach almost $170 million. In addition, Automat.ai, a Canadian provider of computer software, business services, and skincare products, reported in January 2021 that US skincare product sales had climbed by 13% and makeup sales by 1%, respectively. Furthermore, skincare accounted for the majority of the 24% growth in online beauty shops.

Thus, the market for shea body butter is expanding as a result of people using cosmetics more frequently. Thus, driving the shea body butter market revenue.

The Global Shea Body Butter Market Industry is poised for substantial growth, with projections indicating a market value of 2.68 USD Billion in 2024 and an anticipated increase to 5.95 USD Billion by 2035. This growth trajectory suggests a robust interest in shea body butter products, driven by consumer preferences for natural ingredients and effective skincare solutions. The market is expected to experience a compound annual growth rate of 7.53% from 2025 to 2035, reflecting the increasing demand for shea body butter across various demographics. This positive outlook underscores the potential for innovation and expansion within the Global Shea Body Butter Market Industry.

There is a marked rise in awareness regarding skin health and the importance of using quality skincare products. The Global Shea Body Butter Market Industry benefits from this trend as consumers seek products that provide hydration and nourishment. Shea body butter is rich in vitamins A and E, which are essential for maintaining skin elasticity and preventing dryness. This heightened awareness is reflected in the increasing sales of shea body butter products, as consumers prioritize their skin health. The market is expected to grow significantly, with projections indicating a value of 5.95 USD Billion by 2035, underscoring the potential for sustained growth in the Global Shea Body Butter Market Industry.

The rise of e-commerce platforms has transformed the way consumers access skincare products, including shea body butter. The Global Shea Body Butter Market Industry is witnessing a shift towards online shopping, which offers convenience and a wider selection of products. E-commerce allows brands to reach a global audience, thus expanding their market presence. This trend is particularly beneficial for smaller brands that may not have the resources for extensive brick-and-mortar distribution. As online sales continue to grow, the Global Shea Body Butter Market Industry is likely to see increased revenue, contributing to a projected CAGR of 7.53% from 2025 to 2035.

The Global Shea Body Butter Market Industry experiences a notable increase in demand for natural and organic skincare products. Consumers are increasingly aware of the benefits of using natural ingredients, which are perceived as safer and more effective than synthetic alternatives. This trend is particularly evident among millennials and Gen Z consumers, who prioritize sustainability and ethical sourcing. As a result, the market for shea body butter, known for its moisturizing and nourishing properties, is projected to reach 2.68 USD Billion in 2024. This growing preference for natural products is likely to drive further expansion in the Global Shea Body Butter Market Industry.

Sustainability has become a critical consideration for consumers when choosing skincare products. The Global Shea Body Butter Market Industry is responding to this demand by emphasizing sustainable sourcing and production practices. Brands that prioritize eco-friendly packaging and ethical sourcing of shea nuts are likely to attract environmentally conscious consumers. This focus on sustainability not only enhances brand loyalty but also aligns with global efforts to reduce environmental impact. As consumers increasingly seek out products that reflect their values, the Global Shea Body Butter Market Industry stands to benefit from this trend, potentially leading to higher sales and market growth.

Shea body butter is not only popular in skincare but also finds diverse applications in cosmetics and personal care products. The Global Shea Body Butter Market Industry benefits from its versatility, as it is used in lotions, creams, lip balms, and hair care products. This broad applicability allows brands to innovate and create new product lines that cater to various consumer needs. As the demand for multifunctional products rises, the market for shea body butter is expected to expand further. The increasing incorporation of shea body butter in various formulations may contribute to the overall growth of the Global Shea Body Butter Market Industry.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American shea body butter market area will dominate this market. Improved lifestyles and an increase in health-conscious consumers are the main drivers propelling the shea body butter market's expansion. The region's increased purchasing power has a significant positive impact on the sales of shea body butter products. Furthermore, a growing number of people are choosing natural and organic food and cosmetic products.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SHEA BODY BUTTER MARKET SHARE BY REGION 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe shea body butter market accounts for the second-largest market share. The market in Europe is expanding quickly as a result of the numerous pharmaceutical and cosmetics companies operating there. In the European region, Shea Body Butter Market is widely utilized by businesses that produce body lotions, chocolates, and moisturizers. Further, the German shea body butter market held the largest market share, and the UK shea body butter market was the fastest growing market in the European region.

The Asia-Pacific Shea Body Butter Market is expected to grow at the fastest CAGR from 2024 to 2032 due to a rise in research and development expenditures for the creation of novel shea body butter uses in the food and beverage, pharmaceutical, and cosmetics industries. Shea body butter consumption will also be supported by the Asia Pacific region's growing need for organic food items. Moreover, China’s shea body butter market held the largest market share, and the Indian shea body butter market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the shea body butter market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the shea body butter industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the shea body butter industry to benefit clients and increase the market sector. In recent years, the shea body butter industry has offered some of the most significant advantages to medicine. Major players in the shea body butter market are attempting to increase market demand by investing in research and development operations, including BASF SE, Olvea Group, AAK AB, Sophim S.A., Cargill, Inc., Clariant AG, Suru Chemicals, Agrobotanicals, LLC, Croda International Plc, and Ghana Nuts Company Ltd.

Specialty vegetable oils and fats are manufactured and distributed by AAK AB (AAK). Applications for the company's goods include food service and retail, bakery, confectionery and chocolate, personal care, dairy, and animal nutrition. For the technical products sector, it provides glycerin and fatty acids; for the feed business, it provides proteins and lipids. North America, South America, Africa, the Middle East, Asia-Pacific, and Europe are all involved in the company's business operations. The headquarters of AAK are in Malmo, Sweden.

Specialty chemicals are produced and sold by the chemical business Croda International Plc (Croda). The company offers a range of products that are utilized in coatings and polymers, crop care, geo technology, home care, personal care, industrial chemicals, and lubricants, as well as cosmetic oils. It supplies goods to a number of industries, including industrial specialties, consumer care, personal care, and life sciences.