Shea Butter Market Size, Share & Trends Analysis Report By Product (Raw & Unrefined, Refined), By Application (Cosmetics & Personal Care, Food), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global shea butter market size was valued at USD 2.07 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030. Increasing demand for cocoa butter substitutes and rising consumption of cocoa and bakery products are expected to drive the growth of the market over the forecast period. According to an article published by Dairy Reporter, in October 2021, shea butter is regarded as a healthier alternative to cocoa butter. In addition, said product is widely used in various food applications as a substitute for edible vegetable fats and oils, which is further expected to boost the scope of the market.

The outbreak of COVID-19 negatively impacted the market owing to the disruption of the supply of raw materials to the manufacturing units due to a strict lockdown. Additionally, businesses and shops were closed, which further reduced the sales of the product made from shea butter. According to an article published by National Center for Biotechnology Information (NCBI), in November 2021, the usage of shea butter in soap products was reduced by 25%. Furthermore, the global economic recession compelled people to save and spend money with caution, affecting the market.

In recent years, the cosmetics industry has begun diversifying the use of shea butter due to the growing consumers' desire to purchase products that provide multiple benefits and nourishment. In addition, it is used in skin products, hair products, color cosmetics, baby oil, lotions, and other products. Shea butter has a wide range of uses, which is expected to boost the growth of the market in the next seven years. For instance, in June 2022, Beurre Shea Butter Skincare launched a line of products that are meant to protect and soothe skin with the usage of shea butter as the key ingredient.

The growing demand for confectionary and baked goods, as well as the need for cocoa butter substitutes, is likely to increase the demand for the market in the years to come. Shea butter is utilized as a raw ingredient, in baked goods such as puff pastry, biscuits, and chocolates, among others. For instance, in December 2020, Bunge Loders Croklaan launched shea-based butter to advance its level of chocolate confectionary which meets consumer needs for sustainable food options. These factors are projected to fuel the segment's market expansion throughout the forecast period.

Increased awareness of shea butter's therapeutic advantages for skin, such as anti-aging capabilities, extra moisturizing properties, and healing impact, is predicted to boost market revenue in the approaching years. Furthermore, the growing preference of individuals, particularly women and young people, for natural ingredient-based cosmetic products is expected to support the expansion of the market in the future. According to an article published by National Programs, in March 2022, approximately 85% of consumers across the world prefer skin care products with natural ingredients such as shea butter.

Furthermore, the increasing number of product launches in the cosmetics & personal care segment is expected to boost the growth of the market in the timeframe considered. For instance, in February 2022, Byrdie launched a new line of skincare-Karité. The brand offers a range of essentials-including body cream, hand cream, and lip balm-made with pure shea butter and palm oil from their West African homeland. The products have antioxidants and anti-inflammatory properties and are available across various retail and beauty stores in the U.S. and Canada.

Product Insights

The raw and unrefined shea butter segment held the larger market share of 62.3% in 2021 and is expected to maintain dominance over the forecast period. Consumers are becoming more interested in less processed oils as a result of benefits such as boosting skin moisture, healing cuts and scrapes, and helping fight breakouts. For instance, in march 2020, Karite Shea Butter launched Crème Corps Body Cream which is a natural, body care brand that provides the benefits of raw and unrefined making it safe for the skin. Such launches are expected to support the positive market growth trend.

The refined segment is projected to register the second-fastest growth during the forecast period with a CAGR of 6.5% from 2022 to 2030. The trend of using refined is increasing among consumers owing to the longer shelf life of the product. Furthermore, the refining process removes the scent and color of the product which is expected to increase its scope in skin care products by manufacturers while developing anti-sensitive products. For instance, in May 2021, Crafters Choice introduced personal care products such as body lotion and soap formulation using ultra-refined pure shea butter.

Application Insights

The food segment is projected to register the fastest growth during the forecast period with a CAGR of 7.4% from 2022 to 2030. Increased premiumization of food and beverages is boosting the use of shea butter for the above-mentioned segment. Furthermore, due to the ever-growing chocolate market's proliferating demand, it is expected to see a proportionate increase in demand as the product is used to enhance the consistency, texture, and other properties of chocolate. According to an article published by Tastewise, an AI-powered data platform for food & beverage, in October 2021, shea butter witnessed a total consumption with a yearly growth rate of 8.63%.

The cosmetics & personal care segment accounted for the largest market share in 2021. Growing consumer interest in cosmetic shea butter as an alternative ingredient in creams, lotions, color cosmetics, soaps, and toiletries, is expected to support the growth of the segment. According to an article published by Wonderflow, in January 2022, about 24% of U.S. adults are customers of natural skincare products. Hence, increasing health and beauty awareness among consumers, as well as the growing importance of sustainability among product developers, has resulted in a steady increase in demand for organic and natural cosmetics, which is expected to open up opportunities for key players to develop new products.

Regional Insights

Europe accounted for the largest share of the global market in 2021. Shea butter is extensively used for manufacturing products like body lotions, moisturizers, and chocolates in the European region because of the large number of cosmetics and pharmaceutical industries that are found there. According to an article published by the Centre for the Promotion of Imports (CBI), in March 2022, approximately Europe accounts for 25% of major consumption of the above-mentioned ingredient in form of varied products. Furthermore, it is anticipated that this growth will continue due to the availability of abundant raw material supplies in the region from Sub-Saharan countries.

Asia Pacific is expected to witness a CAGR of 7.7% in the forecast period. A large part of this can be attributed to the large population, which is primarily contributed by India and China. As per United Nations statistics, in December 2021, Asia Pacific is home to more than half of the world's population. Such preliminary data on population would help manufacturers understand their market size and develop new products. For instance, in January 2019, Shilla DF launched a limited-edition L'Occitane hand cream in China, to cater to the demand of consumers in the country.

Key Companies & Market Share Insights

The global shea butter market is fragmented with the presence of many established global players and many emerging key market entrants. These players are engaging in the major acquisition and promotional activities to increase their customer base and brand loyalty. Some of the initiatives by the key players in the market are:

• For instance, in September 2021, Shea Radiance launched six new body care products in 520 Whole Foods Stores in Virginia, U.S.

• In December 2020, Bunge Loders Croklaan launched its shea butter equivalent for chocolate ranges

• In November 2019, BLC introduced a new shea-based margarine

Some prominent players in the global shea butter market include:

• BASF SE

• Olvea Group

• Sophim S.A.

• Cargill, Inc.

• Suru Chemicals

• Ghana Nuts Company Ltd.

• Croda International Plc

• Agrobotanicals, LLC

• Clariant AG

• AAK AB

Shea Butter Market Report Scope

Global Shea Butter Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the shea butter market report based on product, application, and region.

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Raw And Unrefined

  • Refined

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Cosmetics & Personal Care

  • Food

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Malaysia

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa