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

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.