Global Shea Butter Market Size By 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

Industry Trends

Global Shea Butter Market size was valued at over USD 1.40 billion in 2018 and is anticipated to rise over 10.5% CAGR up to 2025.
 

Get more details on this report - Request Free Sample PDF
 

Shifting consumer attitude towards natural and healthy food products with changing food industry landscape is projected to fuel shea butter market growth. 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 growth over the forecasted 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 health care industry expenditures are anticipated to rise as at a growth rate surpassing 5.4 percent by 2025 and market size of nearly USD 11 trillion by 2025. Growing awareness over the medicinal benefits of shea butter will commence 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 shea butter industry growth by 2025.
 

Global cosmetics market 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.
 

Request 15% Free Customization on this Report
 

Shea Butter Market, By Product

Raw and unrefined shea butter is amongst the most potential segment and anticipated to witness over 7% gains in the global market. 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 growth.
 

Europe Shea Butter Market, By Product, 2018, (USD Million)

Get more details on this report - Request Free Sample PDF
 

Shea Butter Market, By End-Use Industry

Pharmaceutical application is witnessing over 8% gains 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 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.
 

Shea Butter Market, By Region

Asia Pacific led by Japan, India and China is expected to witness a growth of more than 11% by 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, 2025 (USD Million)

Get more details on this report - Request Free Sample PDF
 

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 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 market 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 has 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 in coming decade.