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Shea Butter Market Analysis

ID: MRFR//4702-CR | 100 Pages | Author: Pradeep Nandi| February 2021

The market dynamics of shea butter are undergoing substantial transformations influenced by a combination of factors that underscore the rising demand for natural and sustainable ingredients in the cosmetics, skincare, and food industries. Shea butter, derived from the nuts of the shea tree, has gained prominence for its versatile applications and numerous benefits. One key driver of the market is the growing consumer preference for natural skincare and beauty products. Shea butter's rich composition of fatty acids, vitamins, and antioxidants makes it a popular ingredient in cosmetics, contributing to moisturization, anti-aging properties, and skin nourishment. This trend is driven by the increasing awareness of shea butter's natural origin and its potential to address various skin concerns, aligning with the broader shift towards clean and green beauty.

The cosmetic and skincare industry plays a pivotal role in shaping the market dynamics of shea butter. With consumers becoming more conscious of the ingredients in their personal care products, manufacturers are incorporating shea butter into a wide range of formulations, including lotions, creams, balms, and haircare products. The versatility of shea butter in addressing dry skin, reducing inflammation, and providing a natural glow contributes to its popularity among consumers seeking effective and natural skincare solutions. This trend is further amplified by the global movement towards sustainable and ethical beauty, as shea butter production often involves fair trade practices and supports women's cooperatives in shea-producing regions.

The food industry also significantly contributes to the market dynamics of shea butter, particularly in regions where it has been traditionally used for culinary purposes. Shea butter is an essential ingredient in various traditional African dishes and is also gaining recognition in other parts of the world for its nutritional profile. The market dynamics reflect an increased interest in incorporating shea butter into health-conscious food products, including snacks, spreads, and confectionery items, given its unique flavor profile and potential health benefits.

The pharmaceutical and medicinal applications of shea butter contribute to the overall market dynamics. The anti-inflammatory and moisturizing properties of shea butter make it a valuable ingredient in certain topical formulations, such as ointments and creams, addressing skin conditions like eczema and dermatitis. Additionally, ongoing research into the potential health benefits of shea butter, including its antioxidant properties, may lead to further applications in pharmaceutical products.

Technological advancements in shea butter extraction and processing methods contribute to the evolving market dynamics. Innovations in production techniques aim to enhance the purity, quality, and shelf life of shea butter, meeting the standards of the cosmetic, food, and pharmaceutical industries. These advancements expand the application possibilities of shea butter, influencing market dynamics by providing high-quality and versatile products for diverse applications.

Global trade and international market dynamics impact the shea butter market, as the sourcing and availability of shea nuts from different regions influence pricing and supply chains. Regulatory considerations, quality standards, and variations in shea butter processing practices contribute to the overall market dynamics, necessitating industry stakeholders to navigate and adapt to changing global conditions.

Challenges within the market dynamics of shea butter include fluctuations in shea nut production, potential issues related to adulteration or poor quality, and the need for sustainable and ethical sourcing practices. Industry participants are addressing these challenges through initiatives promoting fair trade, quality certifications, and transparent supply chains, influencing market dynamics by aligning with consumer preferences for socially responsible and sustainable products.

Global Shea Butter Market Overview


Shea Butter Market Size was valued at USD 1.1 billion in 2021. The shea butter market industry is projected to grow from USD 1.17 Billion in 2022 to USD 1.87 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.89% during the forecast period (2022 - 2030). Rising use in growing industries such as cosmetics, pharmaceuticals, and food & beverages, and increased use in skin treatment are the key market drivers enhancing the market growth.Shea Butter MarketSource: Secondary Research, Primary Research, MRFR Database and Analyst Review


Shea Butter Market Trends



  • Growing cosmetic industry is expected to boost the market growth


The increased customer demand for goods that offer a variety of benefits and sustenance, the cosmetics sector has started to diversify its usage of shea butter. Additionally, it's a component of lotions, baby oil, skin care, hair care, colour cosmetics, and other goods. Shea butter has many applications, which will likely spur market expansion during the next seven years. For instance, Beurre Shea Butter Skincare debuted a line of products in June 2022 that use shea butter as their primary component and are designed to soothe and protect skin.


In the years to come, there will likely be an increase in demand for the market due to the rising demand for baked products and confectionery as well as the need for alternatives for cocoa butter. Puff pastry, cookies, and chocolates are just a few of the baked delicacies that use shea butter as a basic ingredient. For instance, Bunge Loders Croklaan introduced shea-based butter in December 2020 to raise the bar for its chocolate confections and satisfy consumer demand for sustainable food solutions. Throughout the forecast period, these factors are anticipated to drive the segment's market expansion.Figure 1: Growth of Shea Butter Industry from 2013-2026 (in $million)Growth of Shea Butter Industry from 2013-2026Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Additionally, in the coming years, market revenue is expected to increase as people become more aware of shea butter's therapeutic benefits for skin, including its anti-aging effects, additional moisturising characteristics, and healing effects. Additionally, the preference of people, particularly women and young people, for cosmetic goods made with natural ingredients is anticipated to promote market growth in the future. In March 2022, around 85% of consumers worldwide would favour skin care products with natural components like shea butter, according to a National Programs article. Therefore, such growing use of cosmetics products has enhanced the shea butter market CAGR across the globe in the recent years.


However, to cater the demand there has been significant advances in the technological innovations. For instance, a contract to buy sundial brands, a New York-based personal care product company, was signed by UNILEVER in November 2021 as a result of the company's use of premium and genuine ingredients in its goods which is another factor driving the growth of the shea butter market revenue.


Shea Butter Market Segment Insights


Shea Butter Product Insights


The  shea butter market segmentation, based on product, includes refined and unrefined/raw. The undefined/raw shea butter segment held the majority share in 2021 contribution to around ~60-65% in respect to the  shea butter market revenue. This is primarily owing to the Less processed oils are gaining popularity among consumers because to their advantages, which include increasing skin hydration, mending scrapes and cuts, and preventing breakouts. For instance, Karite Shea Butter introduced Crème Corps Body Cream in March 2020. This natural body care line offers the advantages of raw and unprocessed ingredients, making it healthy for the skin. The successful market growth trend is anticipated to be supported by such launches.


May 2021: Crafters Choice introduced personal care items made with pure shea butter that are ultra-refined, such as body lotion and soap.


Shea Butter Application Insights


The shea butter market data has been bifurcated by application into food & beverage, personal care, and pharmaceuticals. The food & beverage segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. In addition, since the product is used to improve the consistency, texture, and other qualities of chocolate, it is anticipated to experience a commensurate rise in demand due to the market's burgeoning need for chocolate. 


October 2021: Shea butter consumption saw an overall growth rate of 8.63%, according to a Tastewise article, an AI-powered data platform for food and beverage. This advancement has further broadened the growth opportunity for the shea butter industry.


Figure 2:  Shea Butter Market, by Application, 2021 & 2030 (USD Billion)Shea Butter Market, by ApplicationSource: Secondary Research, Primary Research, MRFR Database and Analyst Review


In 2021, the cosmetics and personal care sector held the greatest market share. The segment's growth is anticipated to be aided by rising consumer interest in cosmetic shea butter as a substitute for other ingredients in creams, lotions, colour cosmetics, soaps, and toiletries. A Wonderflow article estimates that in January 2022, roughly 24% of American adults will use natural skincare products. As a result, there has been a steady rise in demand for organic and natural cosmetics, which is expected to present opportunities for key players to create new products. This demand has been fueled by consumers' growing awareness of health and beauty issues as well as product developers' growing emphasis on sustainability.


Shea Butter Regional Insights


By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Shea Butter market accounted for USD 0.48 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the presence of many cosmetics and pharmaceutical companies across the region which drive the European shea butter market during the forecast period.


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


Figure 3:  SHEA BUTTER MARKET SHARE BY REGION 2021 (%)SHEA BUTTER MARKET SHARE BY REGIONSource: Secondary Research, Primary Research, MRFR Database and Analyst Review


North America shea butter market accounts for the second-largest market share due to the availability of many manufacturers and rising adoption of Shea butter products. Further, the United States shea butter market held the largest market share, and the Canada shea butter market was the fastest growing market in the North American region.


The Asia-Pacific Shea Butter Market is expected to grow at the fastest CAGR from 2022 to 2030. According to United Nations figures, Asia and the Pacific will be home to more than half of the world's population in December 2021. These rudimentary population statistics might be useful to manufacturers in understanding their market and creating new products. For instance, to meet consumer demand, Shilla DF introduced a limited-edition L'Occitane hand cream in China in January 2019. Moreover, China shea butter market held the largest market share, and the India shea butter market was the fastest growing market in the Asia-Pacific region.


Recent Development


In 2023, Hanahana beauty will be included in Ulta's Sparked collection, which debuts new brands in-store. We were emotionally moved by Abena's commitment to creating responsible, clean skin care products that are obtained from Ghanaian women directly, and we felt Ulta Beauty customers would find the brand to be just as fascinating.


With brand-new additions, mCaffeine, India's first caffeinated personal care brand, is prepared to strengthen its position in India's Favourite Body Care Range in 2022. The company has introduced four new products within its two primary product categories, Coffee Body Scrub and Body Butter with Almonds & Berries.


The four products are coffee body butter with almonds, coffee body butter with berries, and coffee body scrub with almonds. As the harsh winter months begin, consumers desiring soft, smooth, and moisturised skin will find the additional creamy and moisturising additions to be of great value.


A pioneer in inclusive haircare, Hairitage by Mindy McKnight is proud to announce its entry into new categories in 2023 with the release of the NEW Bath & Body Collection, which will be sold only at Walmart. This line has clean formulae and is infused with naturally derived components, continuing to highlight founder Mindy McKnight's belief that each person deserves a product that is customised to their specific needs. Six products in four different aromatherapy smell combinations, three of which are brand-new, are part of the Bath & Body Collection, which uses a variety of essential oils to deliver the best scent and care.


Shea Butter Key Market Players & Competitive Insights


Major market players are spending a lot of money on R&D to increase their product lines, which will help the shea butter market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the shea butter industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.


One of the primary business strategies adopted by manufacturers in the shea butter industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, shea butter industry has provided butter products with some of the most significant benefits. The shea butter market major player such as BASF SE (Germany), Bunge Ltd (US), Cargill Incorporated (US), AAK AB (Sweden), Vink Chemicals GmbH & Co. KG (Germany), Sophim S.A (France), Ghana Nuts Company Limited (Ghana), Shea Radiance (US), The Organic Shea Butter Company (US), The Savannah Fruits Company (Ghana), and others are working to expand the market demand by investing in research and development activities.


Chemical product providing is all BASF SE does. Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, Agricultural Solutions, and Other are the segments through which it works. The company's headquarters are in Ludwigshafen am Rhein, Germany, and it was established on April 6, 1865. for instance, in June 2022, using natural shea butter Cetiol SB 45, Cegesoft VP, Cutina PES, and an unique anhydrous formulation known as BASF Soothing Cleansing Butter.


Also, American agribusiness and food corporation Bunge Limited was founded in Bermuda and has its main office in St. Louis, Missouri. It engages in grain trade, food processing, fertiliser production, and exporting soybeans internationally. It faces off against Archer Daniels Midland and Cargill. Furthermore, Shea butter, also referred to as "women's gold," encourages female empowerment, helps a number of Sustainable Development Goals (SDGs), improves the supply chain, and aids the development of Southeastern Ghana into a self-sufficient region. Bunge Loders Croklaan (BLC), "the speciality oils and fats business of [U.S.-based] Bunge Limited," opened Africa's first and largest shea butter facility in Ghana in 2019 to make the most of this useful nut.


Key Companies in the shea butter market includes



  • BASF SE (Germany)

  • Bunge Ltd (US)

  • Cargill Incorporated (US)

  • AAK AB (Sweden)

  • Vink Chemicals GmbH & Co. KG (Germany)

  • Sophim S.A (France)

  • Ghana Nuts Company Limited (Ghana)

  • Shea Radiance (US)

  • The Organic Shea Butter Company (US)

  • The Savannah Fruits Company (Ghana), among others


Shea Butter Industry Developments


In 2023: AAK and Cargill, Invested in programs that promote sustainable sourcing practices and empower shea nut-collecting communities, particularly women, in West Africa


September 2021: Six new body care products by Shea Radiance were introduced in 520 Whole Foods stores in Virginia, United States.


December 2020: For its chocolate lines, Bunge Loders Croklaan introduced its shea butter substitute.


November 2019: A new shea-based margarine was released by BLC.


Shea Butter Market Segmentation


Shea Butter Type Outlook



  • Refined

  • Unrefined/Raw


Shea Butter Category Outlook



  • Conventional

  • Organic


Shea Butter Application Outlook



  • Food & Beverages

  • Personal Care

  • Pharmaceuticals


Shea Butter Regional Outlook




  • North America

    • US

    • Canada




  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe




  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

    • Rest of the World




  • Middle East

    • Africa

    • Latin America



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