Shea Butter Market Size by Product (Raw and Unrefined Shea Butter, Refined Shea Butter), By Application (Food & Beverage, Personal Care & Cosmetics and Pharmaceutical), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Sep 2019  |  Report ID: GMI4342  |  Authors: Kunal Ahuja, Sonal Singh

Report Format: PDF   |   Pages: 250   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Global Shea Butter Market size was valued at over USD 1.40 billion in 2018 and is anticipated to register over 10.5% CAGR up to 2025. Shifting consumer attitude towards natural and healthy food products with changing food industry landscape is projected to fuel the global shea butter industry growth.
 

Global Shea Butter Market
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Strong demand for shea butter is attributed to its use as a cost-effective substitute in ice-creams, chocolates and biscuits owing to its similar fat composition as of cocoa butter replacers. Positive application outlook of fatty acids (oleic and stearic acid) in food processing industries will create lucrative growth opportunities for industry participants. Additionally, new product launches supported by rigorous marketing campaigns will accentuate the industry demand over the forecast timeframe.
 

Rising popularity among millennials for dietary-aid products manufactured through shea butter fractions will fuel the market development. Reduction in anti-diarrheal properties, cholesterol, and arthritis symptoms will increase shea butter demand in pharmaceutical sectors.
 

Global healthcare industry expenditure is expected witness over 5.4% CAGR through 2025 and may surpass the revenue of USD 11 trillion by the end of the forecast period. Growing awareness over the medicinal benefits of shea butter will provide lucrative opportunities to the drug manufacturers in the estimated timeframe.
 

Global bakery and confectionery industry surpassed USD 10 billion in 2018. Bakery and confectionery manufactures are incorporating shea butter due to better functionality, shelf life, flavor profile, low price and ability to modify melting curves in comparison to cocoa butter.
 

For instance, in 2016, Hershey’s started incorporating shea butter as key CBE (Cocoa Butter Equivalent) in non-chocolate products including Hershey’s Cookies and Creme. Growing trend of large-scale bakeries, confectionery plants, artesian bakeries and cafe chains with rise of ready to eat baked product will drive the global shea butter market growth by 2025.
 

Global cosmetics sector is spurred by the endless diversity in consumer aspirations and product innovation. Increasing shea butter demand for personal care and cosmetics sector will drive the overall product growth by 2025. Excellent melting characteristics, smooth spread ability and therapeutic features makes shea butter an excellent base for cosmetic products.
 

Rise in online beauty spending on premium and new cosmetic products, expansion of social networking sites and growth of middle-class income group will support business opportunities in the forecast timeframe.
 

Easy availability of cheaper substitute products including shea oil, mango butter, and avocado butter is projected to restrain the industry growth. Additionally, high latex content of shea butter lead to allergic symptoms among skin sensitivity consumers, which is likely to restrain the product growth in the estimated timeline.
 

Shea Butter Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 1.4 Billion (USD)
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Forecast Period 2019 to 2025 CAGR: 10.5% 2025 Value Projection: 2.9 Billion (USD)
Pages: 250 Tables, Charts & Figures: 233
Geographies covered (16): U.S., Canada, Mexico, Germany, UK, France, Spain, China, India, Japan, South Korea, Australia, Brazil, Burkina Faso, Nigeria, Saudi Arabia
Segments covered: Type and Application
Companies covered (13): Savanna Shea Industries, Croda International, Bunge Loders Croklaan, OLVEA GROUP, AAK AB, Cornelius Group plc, Ghana Nuts Co. Ltd, International Oils & Fats Limited, Akoma Cooperative Multipurpose Society Cargill Inc, SHEBU Industries Limited, Sophim and Baraka Shea Butter
Growth Drivers:
  • North America: Rapid development of cost-effective cosmetic shea products will drive the product growth
  • Europe: Growing consumption of bakery and confectionery products contributes to product demand
  • Asia Pacific: Changing living standards accompanied by rise in consumer purchasing power to support shea industry growth
Pitfalls & Challenges:
  • Presence of substitutes including palm oil avocado butter Cupuacu butter might restrain the shea butter demand

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By Product

Raw and unrefined shea butter is amongst the most potential segment of the market and anticipated to witness over 7% CAGR over the forecast time period. Presence of vitamins A and E and distinct odour makes it imperative for maintain skin’s elasticity and suppleness.
 

Moistening, anti-inflammatory and antiaging properties of raw shea butter heals scraps, cuts, burns and moistens chapped lips, dry skin on heels, elbow and knees. Growing consumer demand for products with excellent nourishing qualities for attaining smooth skin and body texture is likely to boost the overall market share.
 

Europe Shea Butter Market By Product

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By End-Use Industry

Pharmaceutical application segment of shea butter market is likely to witness over 8% CAGR during the foreseeable period owing to rising need for ointments and lotions among aging population especially in China and Japan. Shea butter is a key ingredient in ani-aging ointments and lotions which shield skin from extreme temperature conditions and provide moisturizing and anti-inflammatory effects and keep the skin hydrated.
 

High miscibility with moderate-polar drugs and non-polar drugs accelerates the shea butter application in both cosmetic and pharmaceutical industries, and this is likely to contribute towards the segment growth over the forecasted timeframe.   
 

Food application segment accounted for more than 60% share in the overall shea butter market. Rising consumption of chocolates and bakery products is projected to be a key factor behind the market development.
 

Lower saturated fat levels of shea butter improve flavour, texture, crunch, appearance of bakery products and resists stickiness in mouth. Exceptional functional & sensory shea characteristics accompanied by the reduced fat content will support shea butter food products demand among consumers.
 

By Region

Asia Pacific led by Japan, India and China is expected to witness more than 11% CAGR up to 2025. The changing consumer preferences and rising awareness over the availability of better skin care and healthcare products in market followed by high growth in economies including India, China, and South Korea are driving the product application scope in this region.
 

Asia Pacific Shea Butter Market By Country

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Middle East and Africa led by Burkina Faso and Nigeria shea butter market is poised surpass CAGR 10% up to 2025. Harvesting and processing of shea nuts from karate tree occurs in sub-Saharan Africa belt which are further traded to Asian food companies and European cosmetic companies.
 

As per the Global Shea Alliance, shea butter is a key trade commodity for the African economy, with Burkina Faso, Mali, Ghana, Nigeria, Benin, Togo, and Guinea are the main shea butter producers. Rising dependency on African countries for shea butter exports is key factor behind the massive market growth in this region. 
 

Europe accounted for more than 25% share in the overall shea butter market. Growing concept of premium and high-quality food products with promised health benefits is likely to support segment growth. Changing socio-economic dynamics, increasing purchasing power has forced consumers to pay premium price for basic dietary and natural ingredient laden products.
 

Additionally, stringent EU laws to include minimum 5% shea butter in chocolate products indicates massive growth of shea butter in European region by 2025.     
 

Competitive Market Share

Global shea butter market is highly competitive owing to the presence of large industry players operating comprehensively. Key industry players include Cornelius Group plc., International Oils & Fats Limited, AAK AB, Croda International, OLVEA GROUP, Akoma Cooperative Multipurpose Society, Bunge Ltd., Savanna Shea Industries, Ghana Nuts Co. Ltd, and Cargill Inc.
 

Mergers & acquisitions, product innovation and portfolio expansion are key strategies incorporated by industry participants for improving their market share. For instance, in 2018, Ghana Nuts announced its plans to increase the capacity and set up a refinery in Tema to expand its export trade to European cosmetic companies. The 3000 metric ton facility is dedicated to refining shea crude and soybean and export to Europe based companies.
 

Industry Background

Global shea butter industry is primarily driven by rapid product innovations and developments across the food and cosmetic companies. Shea butter is extracted from the seeds of Vitellaria paradoxa (Shea) tree, found in Africa. The industry is still in nascent stage since varying geopolitical scenario and consumer buying capacity have made it difficult for end-use food and cosmetics industries to benefit from market movements.
 

Development of fair-trade shea butter made from shea nuts is helping producers achieve reliable labour incomes, social benefits and appropriate work environments, is likely to boost the processing of shea nuts and drive global market trends in coming decade.  
 

Shea Butter market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons, and in USD Million from 2014 to 2025, for the following segments:

By Type

  • Raw and Unrefined Shea Butter
  • Refined Shea Butter

By Application

  • Food & Beverage
  • Cosmetics
  • Pharmaceutical

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
  • Latin America
    • Brazil
  • Middle East & Africa
    • Nigeria
    • Burkina Faso
    • Saudi Arabia

 

Frequently Asked Questions (FAQ) :

Increasing penetration of premium cosmetic brands based on natural ingredients will be a key driving factor for the global market growth.
Asia Pacific market, led by Japan, India and China is expected to register a CAGR of more than 11% through 2025, according to a new report published by Global Market Insights, Inc.
Major challenges likely to impact the global market size include availability of substitutes, including palm oil, Avocado Butter and Cupuacu Butter.

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Premium Report Details

  • Published Date: Sep 2019
  • Pages: 250
  • Tables: 212
  • Charts / Figures: 21
  • Companies covered: 13
  • Countries covered: 16

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