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    Shea Butter Market

    ID: MRFR/F-B & N/4702-CR
    128 Pages
    Pradeep Nandi
    February 2021

    Shea Butter Market Research Report By Application (Cosmetics, Food Beverages, Pharmaceuticals, Personal Care, Nutraceuticals), By Form (Raw Shea Butter, Refined Shea Butter, Deodorized Shea Butter, Liquid Shea Butter), By End Use (Household, Commercial, Industrial), By Distribution Channel (Online, Offline, Direct Sales) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Shea Butter Market Infographic
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    Shea Butter Market Summary

    As per MRFR analysis, The Global Shea Butter Size was estimated at 1.77 USD Billion in 2024. The shea butter industry is projected to grow from 1.883 USD Billion in 2025 to 3.499 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.39 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Global Shea Butter is experiencing robust growth driven by increasing consumer preference for natural and sustainable products.

    • The demand for natural ingredients in cosmetics is surging, particularly in North America, which remains the largest market for shea butter.
    • Asia-Pacific is emerging as the fastest-growing region, with a notable rise in the adoption of shea butter in various applications.
    • The cosmetics segment continues to dominate the market, while the pharmaceuticals segment is witnessing rapid growth due to innovative product developments.
    • Key market drivers include the rising demand for natural cosmetics and the emphasis on sustainability and ethical sourcing practices.

    Market Size & Forecast

    2024 Market Size 1.77 (USD Billion)
    2035 Market Size 3.499 (USD Billion)
    CAGR (2025 - 2035) 6.39%

    Major Players

    Kahawa 1893 (KE), Shea Radiance (US), Ghana Nuts Company Limited (GH), AOS Products (US), Sustainable Shea (GH), Crown of Africa (GH), Natures Aid (GB), The Body Shop (GB), L'Occitane en Provence (FR)

    Shea Butter Market Trends

    The Global Shea Butter is currently experiencing a dynamic evolution, driven by increasing consumer awareness regarding natural and organic products. This shift in consumer preferences appears to be fostering a growing demand for shea butter, particularly in the cosmetics and personal care sectors. The market seems to be benefiting from the rising trend of clean beauty, where consumers are gravitating towards products that are free from harmful chemicals. Additionally, the versatility of shea butter, which is utilized in various applications ranging from skincare to food products, indicates its potential for sustained growth. Furthermore, the expansion of e-commerce platforms is likely facilitating greater accessibility for consumers, thereby enhancing market penetration. Moreover, The Global Shea Butter is also influenced by sustainability initiatives and ethical sourcing practices. As consumers become more conscious of the environmental impact of their purchases, brands that prioritize sustainable practices may gain a competitive edge. This trend suggests that companies focusing on fair trade and environmentally friendly sourcing could attract a loyal customer base. The market's future appears promising, with opportunities for innovation and diversification, particularly in product formulations that cater to specific consumer needs. Overall, The Global Shea Butter is poised for continued growth, driven by evolving consumer preferences and a commitment to sustainability.

    Rising Demand for Natural Ingredients

    There is an increasing consumer inclination towards products that contain natural ingredients, which is propelling the demand for shea butter in various sectors. This trend reflects a broader movement towards health-conscious choices and the desire for transparency in product formulations.

    Sustainability and Ethical Sourcing

    The emphasis on sustainability and ethical sourcing practices is becoming more pronounced. Brands that adopt fair trade practices and environmentally friendly sourcing methods are likely to resonate with consumers who prioritize ethical consumption.

    Expansion of E-commerce Channels

    The growth of e-commerce platforms is facilitating easier access to shea butter products. This trend indicates a shift in shopping behaviors, as consumers increasingly prefer the convenience of online shopping, which may enhance market reach.

    The Global Shea Butter Market is poised for growth as consumer demand for natural and organic products continues to rise, reflecting a broader trend towards sustainability and ethical sourcing in the beauty and food industries.

    U.S. Department of Agriculture (USDA)

    Shea Butter Market Drivers

    Innovations in Product Development

    Innovative product development is a key driver shaping The Global Shea Butter Industry. As consumer preferences evolve, manufacturers are increasingly focusing on creating unique formulations that incorporate shea butter in novel ways. This includes the development of multifunctional products that combine shea butter with other beneficial ingredients, such as essential oils and botanical extracts. The rise of personalized skincare solutions is also influencing product innovation, as consumers seek tailored products that address specific skin concerns. Furthermore, advancements in extraction and processing techniques are enhancing the quality and efficacy of shea butter, making it more appealing to manufacturers. This emphasis on innovation not only attracts new consumers but also encourages existing customers to explore a wider range of shea butter-infused products, thereby driving market growth.

    Expansion of Online Retail Channels

    The proliferation of e-commerce platforms is significantly impacting The Global Shea Butter Industry. As consumers increasingly turn to online shopping for convenience and variety, the demand for shea butter products is likely to rise. E-commerce provides brands with the opportunity to reach a broader audience, transcending geographical limitations. This shift is particularly relevant in regions where access to physical retail outlets may be limited. Online platforms also facilitate the introduction of niche and artisanal shea butter products, catering to specific consumer preferences. The growth of social media and influencer marketing further amplifies the visibility of shea butter products, driving consumer interest and engagement. As a result, brands that effectively leverage online retail channels are poised to capture a larger share of the market, contributing to the overall growth of the shea butter industry.

    Rising Demand for Natural Cosmetics

    The increasing consumer preference for natural and organic products is a pivotal driver in The Global Shea Butter Industry. As consumers become more health-conscious, they are gravitating towards cosmetics that contain natural ingredients, including shea butter. This trend is reflected in the cosmetic sector, where the market for natural cosmetics is projected to grow at a compound annual growth rate of approximately 10% over the next five years. Shea butter, known for its moisturizing and healing properties, is increasingly being incorporated into skincare and haircare products. This shift towards natural formulations not only enhances product appeal but also aligns with the growing awareness of the harmful effects of synthetic chemicals. Consequently, manufacturers are likely to invest more in shea butter as a key ingredient, thereby driving its demand in the market.

    Sustainability and Ethical Sourcing

    Sustainability has emerged as a crucial factor influencing consumer choices in The Global Shea Butter Industry. With a growing emphasis on ethical sourcing, consumers are increasingly seeking products that are not only effective but also environmentally friendly. Shea butter is often sourced from women-led cooperatives in Africa, promoting social responsibility and economic empowerment. This ethical dimension resonates with consumers who prioritize sustainability in their purchasing decisions. Furthermore, brands that adopt sustainable practices are likely to gain a competitive edge, as they appeal to a conscientious consumer base. The market for sustainably sourced shea butter is expected to expand, as more companies commit to transparent supply chains and environmentally friendly practices. This trend not only supports local communities but also enhances brand loyalty among consumers who value ethical considerations.

    Growth in Food Industry Applications

    The versatility of shea butter extends beyond cosmetics, finding significant applications in the food industry, which serves as a notable driver in The Global Shea Butter Industry. Shea butter is increasingly being utilized as a substitute for cocoa butter in chocolate production, owing to its similar properties and potential cost advantages. The food sector is projected to witness a steady growth rate, with the demand for shea butter in food applications expected to rise as manufacturers seek healthier alternatives to traditional fats. Additionally, the incorporation of shea butter in various culinary products, such as spreads and baked goods, is gaining traction. This diversification into food applications not only broadens the market scope for shea butter but also enhances its overall demand, as consumers become more aware of its nutritional benefits.

    Market Segment Insights

    By Application: Cosmetics (Largest) vs. Pharmaceuticals (Fastest-Growing)

    In The Global Shea Butter, the application segment reveals a notable distribution of market share. Cosmetics lead the way, driven by the high demand for natural ingredients in beauty products. Following closely are Food Beverages and Personal Care, which also demonstrate significant interest among consumers seeking health-oriented ingredients. The Pharmaceuticals and Nutraceuticals segments, though smaller, are witnessing a growing trend as more companies recognize the health benefits associated with shea butter in their products.

    Cosmetics: Dominant vs. Pharmaceuticals: Emerging

    Cosmetics have positioned themselves as the dominant application for shea butter, widely used in creams, lotions, and cosmetic products due to its moisturizing properties and natural appeal. This segment thrives on the increasing consumer shift towards organic and natural beauty products. Meanwhile, the Pharmaceuticals segment is emerging as a growth area, as shea butter's anti-inflammatory and healing properties are being utilized in topical applications and formulations. This trend is fueled by ongoing research and consumer awareness regarding natural substances' benefits in treating skin ailments, thereby enhancing the segment's market potential.

    By Form: Raw Shea Butter (Largest) vs. Refined Shea Butter (Fastest-Growing)

    The Global Shea Butter demonstrates a diverse distribution among its form segment, with Raw Shea Butter commanding the largest share. As consumers increasingly seek natural and unprocessed ingredients, Raw Shea Butter retains its appeal for its traditional uses, particularly in cosmetic and food applications. In contrast, Refined Shea Butter is emerging as the fastest-growing segment, driven by demand for products with consistent quality and extended shelf life across various industries.

    Raw Shea Butter (Dominant) vs. Refined Shea Butter (Emerging)

    Raw Shea Butter is characterized by its unrefined, natural state, retaining a higher level of nutrients and benefits, making it a dominant choice among consumers inclined towards organic and raw products. Its traditional usage in skincare and culinary applications positions it well in the market, appealing to a health-conscious demographic. Conversely, Refined Shea Butter, with its neutral scent and texture, is fast becoming an emerging choice in the beauty and cosmetics industry. Its purity and versatility make it ideal for formulations requiring consistency and stability, enabling brands to cater to consumer preferences for high-quality and multi-functional products.

    By End Use: Household (Largest) vs. Commercial (Fastest-Growing)

    The Global Shea Butter exhibits a diverse distribution among its end-use segments, prominently featuring the household segment as the largest contributor. This segment benefits from the increasing consumer preference for natural and organic products, driving demand for shea butter in various household applications, including cosmetics and personal care. Meanwhile, the commercial segment is emerging rapidly, attributed to growing demand in the food and beverage industry, as well as in cosmetics and personal care, thereby witnessing significant expansion as more retailers stock shea butter products for their diverse uses.

    Household (Dominant) vs. Commercial (Emerging)

    In The Global Shea Butter, the household segment stands as the dominant force, driven by increasing consumer awareness and demand for sustainable and natural ingredients in personal care and household products. This segment is characterized by its wide usage in skin and hair care products, supported by the growing trend of DIY formulations and a preference for products made from natural ingredients. Conversely, the commercial segment is an emerging powerhouse, particularly in the food industry, where shea butter's unique properties are being harnessed for both health and culinary applications. Its rapid growth is fueled by increasing incorporation in beauty and wellness products by major brands looking to capitalize on consumer preferences for ingredient transparency and sustainability.

    By Distribution Channel: Online (Largest) vs. Offline (Fastest-Growing)

    The Global Shea Butter showcases a diverse distribution channel landscape, which is characterized by a significant presence of online and offline sales channels. Online sales dominate the market, benefiting from the growing trend of e-commerce and increased consumer reliance on digital platforms for purchasing beauty and wellness products. Meanwhile, offline channels, which include retail stores and specialty boutiques, have maintained strong demand, particularly for consumers who prefer tactile shopping experiences and immediate product availability. In terms of growth trends, online distribution channels are rapidly expanding due to the increased penetration of the internet and mobile devices, which facilitate easier access for consumers. On the other hand, offline channels are also witnessing a resurgence as brands focus on experiential marketing and engage consumers through physical touchpoints. This combination of online dominance and offline growth presents a balanced distribution environment, catering to a diverse consumer base while adapting to evolving purchasing behaviors.

    Online (Dominant) vs. Offline (Emerging)

    The online distribution channel stands out as the dominant player in The Global Shea Butter, driven by the speed and convenience it offers to consumers. With a plethora of e-commerce platforms dedicated to beauty and skincare products, online sales provide a wider reach, allowing brands to tap into international markets with ease. In contrast, offline channels are emerging, fueled by consumer preferences for in-person shopping experiences and personalized customer service. Retail stores and specialty boutiques emphasize transparency and authenticity, which resonates with consumers who value nourishing and ethically sourced ingredients found in shea butter products. This dynamic interplay between online and offline channels highlights a shifting landscape, as companies strategize to integrate both approaches to maximize market penetration and customer engagement.

    Get more detailed insights about Shea Butter Market

    Regional Insights

    The Global Shea Butter Market is valued at 1.77 USD Billion in 2024, showcasing significant growth potential across its regional landscape. North America is expected to hold a value of 0.35 USD Billion in 2024, growing to 0.75 USD Billion in 2035, indicating a strong demand driven by the cosmetics and personal care industries. Europe follows closely, valued at 0.45 USD Billion in 2024 and anticipated to expand to 1.0 USD Billion by 2035, reflecting a growing trend towards natural and organic ingredients.

    The APAC region, valued at 0.3 USD Billion in 2024, is also poised for growth with its forecasted valuation of 0.8 USD Billion in 2035, attributed to rising awareness of health and wellness.South America, although smaller at 0.2 USD Billion in 2024, is projected to reach 0.4 USD Billion in 2035, driven by increasing applications in food products and cosmetics. Meanwhile, the MEA region, valued at 0.27 USD Billion in 2024 with a projected rise to 0.55 USD Billion by 2035, benefits from local production capabilities and a growing export market.

    The regional segmentation of the Global Shea Butter Market showcases varying dynamics that reflect consumer preferences, highlighting opportunities driven by sustainability and natural product trends across different territories.

    Shea Butter Market Regional Insights

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

    Key Players and Competitive Insights

    The Global Shea Butter Market has garnered significant interest over the years due to the rising awareness of the natural properties of shea butter and its versatility across various industries, including cosmetics, personal care, food, and pharmaceuticals. The competitive landscape of this market is characterized by a mix of large multinational corporations and smaller niche players, all vying for market share. Innovation, sustainability, and the ethical sourcing of shea butter are increasingly becoming critical factors for companies in this sector.

    The market is defined by dynamic trends such as clean beauty and the growing demand for organic products, which influence competitive strategies and product offerings. As companies continue to engage in value chain enhancements and explore new distribution channels to reach broader audiences, the competitive environment remains ever-evolving.Dukaan has emerged as a prominent player in the Global Shea Butter Market, leveraging its strong brand identity and commitment to quality to carve out a notable market presence. Known for its ethical sourcing and sustainability initiatives, Dukaan ensures that its shae butter products meet the increasing consumer demand for natural ingredients.

    The company’s strengths lie in its robust supply chain management, which enables it to maintain consistency in product quality while minimizing environmental impact. Dukaan has also adopted innovative marketing strategies to effectively engage with consumers, highlighting the numerous benefits of shea butter in personal care and cosmetic applications. Their approach to sustainability resonates well with environmentally-conscious buyers, allowing them to build customer loyalty and trust over time.On the other hand, Kahawa 1893 is making significant strides in the Global Shea Butter Market by focusing on addressing the needs of the premium segment and leveraging artisan craftsmanship in their product offerings.

    The company has a range of shea butter-based products that emphasize quality and purity, appealing particularly to niche markets that value authenticity. Kahawa 1893's strengths are anchored in its dedication to social impact and empowering local communities through ethical sourcing practices. This commitment not only enhances its brand image but also attracts socially responsible consumers. The company's market presence is bolstered by strategic partnerships and alliances, which include mergers and acquisitions that allow it to expand its product lines and distribution channels.

    Through these initiatives, Kahawa 1893 aims to maintain a competitive edge while contributing positively to the shea butter industry on a global scale.

    Key Companies in the Shea Butter Market market include

    Industry Developments

    • Q2 2024: L’Occitane Group Expands Shea Butter Sourcing Partnership with Women’s Cooperatives in Burkina Faso L’Occitane Group announced an expanded multi-year partnership with women’s shea butter cooperatives in Burkina Faso, aiming to increase direct sourcing and support sustainable production practices.
    • Q1 2024: Unilever Launches New Shea Butter-Based Personal Care Line Under Dove Brand Unilever introduced a new range of Dove products featuring ethically sourced shea butter, highlighting traceability and support for West African women producers.
    • Q2 2024: Bunge Opens New Shea Butter Processing Facility in Ghana Bunge commissioned a new processing plant in Tema, Ghana, to increase its capacity for producing high-quality shea butter for the food and cosmetics industries.
    • Q3 2024: AAK Signs Long-Term Supply Agreement with L’Oréal for Sustainable Shea Butter AAK AB secured a multi-year contract to supply sustainably sourced shea butter to L’Oréal, strengthening its position as a key supplier to the global cosmetics sector.
    • Q2 2024: Nestlé Announces Investment in Shea Butter Traceability Platform Nestlé invested in a digital platform to enhance traceability and transparency in its shea butter supply chain, aiming to ensure ethical sourcing and support for local communities.
    • Q1 2025: Shea Radiance Secures $10 Million Series B Funding to Expand US Market Presence Shea Radiance, a US-based natural skincare company, raised $10 million in Series B funding to scale up its shea butter product line and expand distribution across North America.
    • Q2 2025: Cargill Announces Acquisition of Ghanaian Shea Butter Exporter, Savanna Gold Cargill acquired Savanna Gold, a leading shea butter exporter in Ghana, to strengthen its supply chain and increase its share in the global shea butter market.
    • Q1 2024: L’Oréal Launches Shea Butter Innovation Center in Côte d’Ivoire L’Oréal opened a new innovation center focused on developing advanced shea butter extraction and formulation techniques, in partnership with local research institutes.
    • Q3 2024: Beiersdorf Appoints New Head of Shea Butter Sourcing to Drive Sustainability Initiatives Beiersdorf named a new executive to lead its global shea butter sourcing strategy, emphasizing sustainable procurement and community engagement in West Africa.
    • Q2 2025: Unilever Signs Memorandum of Understanding with Ghanaian Government for Shea Butter Sector Development Unilever signed an MoU with the Government of Ghana to invest in local shea butter processing infrastructure and support women-led cooperatives.
    • Q1 2025: Nestlé Receives Regulatory Approval for New Shea Butter-Infused Nutrition Bar in EU Nestlé obtained EU regulatory clearance to launch a new nutrition bar featuring West African shea butter as a key ingredient, targeting the health and wellness market.
    • Q3 2025: AAK Opens Second Shea Butter Refinery in Nigeria to Meet Rising Global Demand AAK inaugurated its second shea butter refinery in Nigeria, doubling its processing capacity and reinforcing its commitment to sustainable sourcing in West Africa.

    Future Outlook

    Shea Butter Market Future Outlook

    The Global Shea Butter is projected to grow at a 6.39% CAGR from 2024 to 2035, driven by rising demand in cosmetics, food, and pharmaceuticals.

    New opportunities lie in:

    • Expansion into emerging markets through localized production facilities.
    • Development of organic and sustainably sourced shea butter products.
    • Strategic partnerships with cosmetic brands for exclusive shea butter formulations.

    By 2035, the market is expected to solidify its position as a leader in natural ingredient sectors.

    Market Segmentation

    Shea Butter Market Form Outlook

    • Raw Shea Butter
    • Refined Shea Butter
    • Deodorized Shea Butter
    • Liquid Shea Butter

    Shea Butter Market End Use Outlook

    • Household
    • Commercial
    • Industrial

    Shea Butter Market Application Outlook

    • Cosmetics
    • Food Beverages
    • Pharmaceuticals
    • Personal Care
    • Nutraceuticals

    Shea Butter Market Distribution Channel Outlook

    • Online
    • Offline
    • Direct Sales

    Report Scope

    MARKET SIZE 20241.77(USD Billion)
    MARKET SIZE 20251.883(USD Billion)
    MARKET SIZE 20353.499(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)6.39% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesGrowing demand for natural cosmetics and personal care products drives opportunities in The Global Shea Butter.
    Key Market DynamicsRising demand for natural cosmetics drives competition and innovation in the shea butter market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Pradeep Nandi
    Senior Research Analyst

    I have a bachelor's degree in mechanical engineering and an MBA. I have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. A firm believer in lifelong learning and sharing of knowledge. Having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. Introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest. 

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    FAQs

    What is the projected market size of the Global Shea Butter Market in 2024?

    The Global Shea Butter Market is expected to be valued at 1.77 USD Billion in 2024.

    What is the expected market value of the Global Shea Butter Market by 2035?

    By 2035, the Global Shea Butter Market is anticipated to reach a value of 3.5 USD Billion.

    What is the expected CAGR for the Global Shea Butter Market from 2025 to 2035?

    The market is projected to have a CAGR of 6.39 percent from 2025 to 2035.

    Which region is expected to have the highest market value in 2035 for Shea Butter?

    Europe is expected to have the highest market value, projected at 1.0 USD Billion in 2035.

    What are the key applications driving the Global Shea Butter Market?

    The key applications driving the market include Cosmetics, Food & Beverages, Pharmaceuticals, Personal Care, and Nutraceuticals.

    What is the projected market value for the Cosmetics application in 2035?

    The Cosmetics application of the Global Shea Butter Market is projected to be valued at 1.3 USD Billion in 2035.

    Which key player is most notable in the Global Shea Butter Market?

    Prominent players in the Global Shea Butter Market include Dukaan, Kahawa 1893, and Global Shea Alliance among others.

    What is the anticipated market growth rate for the North America region from 2024 to 2035?

    The North America region is projected to experience market growth from 0.35 USD Billion in 2024 to 0.75 USD Billion in 2035.

    What is the forecasted market value for the Food & Beverages application in 2024?

    The Food & Beverages application is projected to have a market value of 0.55 USD Billion in 2024.

    What challenges might the Global Shea Butter Market face in the coming years?

    Key challenges for the Global Shea Butter Market include potential supply chain disruptions and competition from alternative ingredients.

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