Shea Butter Market
Report ID: SQMIG30L2170
Shea Butter Market Size, Share, Growth Analysis, By Type(Refined and ultra-refined and raw and unrefined), By Application(Food and cosmetics), By Nature(Organic, Conventional), By Distribution Channel(Specialty Stores, Online Stores, Supermarket, Convenience Stores), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG30L2170 |
Region:
Global |
Published Date: February, 2024
Pages:
242
|Tables:
115
|Figures:
77
Shea Butter Market Insights
Shea Butter Market size was valued at USD 2.07 billion in 2019 and is poised to grow from USD 2.21 billion in 2023 to USD 4 billion by 2031, growing at a CAGR of 6.8% in the forecast period (2024-2031).
Shea butter is primarily produced in West, Central, and East African nations like Nigeria, Burkina Faso, Cameroon, the Central African Republic, Ethiopia, Eritrea, Ghana, Guinea Bissau, the Ivory Coast, Mali, Niger, and Nigeria. The market has become appealing to Europe, North America, and Asia Pacific. The European Union and the United States are important markets for shea butter purchasing since they use it primarily to make cosmetics and chocolate confections.
Shea butter contains a number of vitamins, including vitamins A, E, F, and K, which can nourish the skin and hair. The product is a potent moisturizer that also preserves the suppleness of skin because it contains the majority of fatty acids. It can be applied every day as a pure moisturizer or as a barrier against damaging and abrasive elements.
Due to busy and stressful lifestyles, particularly in developing countries like Asia Pacific, there will be an increase in the consumption of ready-to-eat or packaged food products, which will spur industrial expansion. In the coming years, it is anticipated that favorable government rules relating to the use of shea butter in pharmaceuticals and food goods would present profitable prospects.
The business has been transformed by all of the aforementioned reasons over time, and the shea butter market is anticipated to expand at a CAGR of 7.7% between 2022 and 2032. The grade A or unrefined type of shea butter dominates the market. Shea butter use in the cosmetics business is probably going to show a positive revenue growth forecast.
US Shea Butter Market is poised to grow at a sustainable CAGR for the next forecast year.
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Shea Butter Market Segmental Analysis
Global shea butter market is divided into type, application, nature, distribution channel, and region. On the basis of type, the market is divided into refined and ultra-refined and raw and unrefined. On the basis of nature, the market is divided into organic and conventional. Based on distribution channel, the market is segmented into specialty stores, online stores, supermarket, convenience stores, hypermarket, others. On the basis of application, the market is divided into fod and cosmetics. On the basis of region, it is categorized into North America, Europe, Asia-Pacific, and LAMEA.
Shea Butter Market Analysis by Type
The raw & unrefined segment dominated the global shea butter market. Due to the numerous advantages of unrefined or cold pressed oils, consumer demand for less processed oils is rising. For instance, unrefined shea butter promotes the production of collagen in the skin and keeps the skin young by stimulating the tissues. Additionally, it has calming, hydrating, and nourishing qualities that make it appropriate for dry, damaged skin and hair. The raw & unrefined shea butter is an alternative to many cosmetic items that contain chemicals and reduce irritation. This property makes raw, unrefined shea butter beneficial for curing rashes, stretch marks, frostbite, psoriasis, dry, itchy skin, chapped lips, acne, anti-aging, and sunburn.
Shea Butter Market Analysis by Application
The food segment dominates the global shea butter market in terms of application. Shea butter has higher nutritional value and functional qualities, which increase its demand in the food business. Shea butter, for instance, can be utilized as a food additive, natural antioxidant, trans-fat-free edible oil, and functional food ingredient. It has nutrients like vitamins A, E, and F that support healthy skin cell growth and circulation. As shea butter may substitute dairy butter in many food products, whether used alone or combined with other nut fats like almond or palm stearin, its demand in the food industry is anticipated to increase over the projected period.
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Shea Butter Market Regional Insights
By 2028, the North American shea butter market is anticipated to reach more than USD 390 million. The production of cosmetics using potent cocoa butter alternatives has a wide range of natural features, which should spur market expansion. The substance is smooth and odorless, making it suitable for usage in a range of products like cosmetics, medications, and occasionally even food and beverages.
The shea butter market in the United States is expected to reach a value of around USD 240 million in 2022 and expand at a CAGR of 7%. The demand for FDA-approved, premium-quality shea butter is rising in the United States. The soft fraction of shea butter has been given FDA approval and may produce high stability and premium quality products for use in snacks, baked goods, sauces, spreads, desserts, frozen meals, dairy, and other products. Shea butter market expansion would be aided by rising demand for facial makeup products like BB and CC creams in the US due to its many benefits. These lotions offer hydration, antioxidant defense, pore reduction, and sunscreen.
In 2021, the shea butter market in Europe generated USD 338.369 billion in sales and by 2030, it is anticipated to generate USD 978.920 billion. Because of the region's well-established confectionery industries, where shea butter is frequently used as a substitute for cocoa butter in the production of chocolates, shea butter market share growth is concentrated in Europe. Additionally, there are many cosmetic firms in the region that employ shea butter as a base ingredient in their creations. These elements are probably going to fuel the shea butter market going forward.
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Shea Butter Market Dynamics
Shea Butter Market Drivers
- Shea butter market size is anticipated to rise due to millennials' increasingly use of shea butter goods including body lotion, soap bars, and lip balm due to their preference for vegan cosmetics made from plant-based ingredients. Shea butter has become popular in cosmetic goods over the past several years due to its various benefits, including its high moisturizing effect and capacity to nurture and treat damaged skin. It has various health advantages, such as reducing skin allergies and protecting the skin from any inflammatory feelings. As a result, it is frequently utilized to make skin ointments in the pharmaceutical industry. Thus, it is anticipated that these factors will lead to a growth in shea butter market share in the next years.
- Future market expansion is anticipated to be boosted by ongoing innovation and the introduction of new shea butter products. To meet consumer demand and launch shea butter-based natural cosmetics, shea butter manufacturing enterprises invest a significant portion of their budgets in research and development. For instance, Faber-Castell Cosmetics, a German company, has introduced a new range of airtight wood pencils containing natural ingredients like shea butter which offer natural textures in makeup, according to a news article published on Premium Beauty News, an online news portal, on October 15, 2021. Such elements are probably going to accelerate market expansion in the future.
- Shea butter is utilized as a primary ingredient in the production of margarine and shortening, which are used to make a variety of baked goods like dough, puff pastries, croissants, and others. Margarine is nothing more than a replica of butter manufactured from vegetable oil and water; vegetable oil has been hydrogenated by producers to make it harder. Unsaturated fatty acids, which are produced as a result of hydrogenating vegetable oil, are harmful to cardiovascular health. Nowadays, producers are being pushed to process shortenings and margarines with shea butter. As a result, it is anticipated that the expanding baking sector would increase demand for shea butter
Shea Butter Market Restraints
- Although shea butter is becoming more and more popular in the confectionery sector for the production of chocolates, its high price is predicted to restrain the market's expansion in the years to come. Shea butter is an extremely expensive ingredient because it is mostly exported from Africa at a high tax rate and because the technologies used to prepare it are also very expensive. It is further projected that the market expansion for shea butter will be constrained by the availability of numerous low-cost shea butter substitutes like palm butter.
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Shea Butter Market Competitive Landscape
The global shea butter market is incredibly fragmented due to large number of medium and large size manufacturers. All of them heavily invested on their research and development to provide the best product. To increase their market share, boost profitability and maintain competition the companies in the global shea butter market have employed a variety of development activities. These practises are expected to continue in the near future due to rising demand in both Food as well as cosmetic industry in several nations.
Top Players in Global Shea Butter Market
- BASF SE
- Shea Radiance
- The Savannah Fruits Company
- Ghana Nuts Company Limited
- Bunge Loders Croklaan Group B.V.
- IOI Loders Croklaan Group BV
- AAK AB
- Croda International Plc
- The HallStar Company
- Olvea Group
- Clariant AG
- The Hershey Company
- Archer Daniels Midland Company
- Cargill, Incorporated
- Juka's Organic Co.
- Shea Yeleen Health & Beauty
- Baraka Shea Butter
- Akoma Cooperative Multipurpose Society
- Star Shea Ltd.
- L'Occitane International SA
Shea Butter Market Recent Developments
- On June 1, 2021, Fuji Oil Holdings, Inc. declared that it will source shea kernels responsibly, with the goal of protecting shea tree green spaces with little to no deforestation to support the sustained growth of the sector.
- On September 8, 2020, Bunge Loders Croklaan (BLC) made an official announcement about building a cutting-edge shea butter processing facility in Tema, Ghana, as part of the initiative "Where Life Grows," to honor the company's efforts to create an enduring and reliable shea butter supply chain in Africa.
- On November 27, 2017, Unilever announced the purchase of Sundial Brands, which includes Nubian Heritage and SheaMoisture, in order to benefit from market expansion with financial advancement and to diversify its ownership ranks.
Shea Butter Key Market Trends
- Rapidly Developing Online Retail to Increase Shea Butter's Presence in Cosmetics
Online shopping is attributed with making cosmetic shea butter items like lotions, creams, hair products, and others easily accessible. It is also credited with making it simple to compare the costs of various cosmetic products on the same platform. Shea butter is becoming more widely available to customers as a result of this. The industry for shea butter cosmetic products is also anticipated to increase as a result of the growing market penetration of shea butter products through online retailing.
Shea Butter Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, global shea butter market is estimated to grow at 14.1% CAGR by 2030. It is anticipated that the raw and unrefined segment accounted for the largest market share by type and will grow at a CAGR of for 13.4% during the forecast period. On the basis of application, the food segment will dominate the global shea butter market. Also the cosmetic sector will exhibit the largest CAGR in 2021. The shea butter market in Europe generated a revenue of USD 338.369 billion in sales. The North America shea butter market is anticipated to generate more than USD 390 million. As customer awareness about the use of shea butter and consciousness about health is increasing, the demand and consumption for the product are likely to increase during the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in 2019 | USD 2.07 billion |
| Market size value in 2031 | USD 4 billion |
| Growth Rate | 6.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Shea Butter Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Shea Butter Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Shea Butter Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Shea Butter Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Shea Butter Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Shea Butter Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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