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, Application Potential, Price Trend, Covid-19 Impact Analysis, Competitive Market Share & Forecast, 2021– 2027

Industry Overview

Shea Butter Market size exceeded USD 1.7 billion in 2020 and is estimated to grow at a CAGR of over 7.5% from 2021 to 2027 owing to the rise in consumer spending power on food & beverages and personal care products especially in developing regions.
 

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The food and beverages industry uses shea butter as a replacement of vegetable or animal-based fats in convenience food products especially bakery & confectionery. It improves the taste & texture, shelf life and reduces bloom formation in the final product thus used in chocolates. It is easily available and due to its enhanced nutritional profile; it has been included into regular diet. Growing awareness about the health benefits offered by shea butter, low cost, and widespread use in bakery, confectionery and other food products will drive the shea butter market share in the food processing industry.
 

Increased consumption of ready to eat or packaged food products due to busy & hectic lifestyles especially in developing regions such as Asia Pacific will stimulate industrial growth. Favorable government regulations related to the use of shea butter into food products & pharmaceuticals is expected to offer lucrative opportunities in the upcoming years.
 

Growing demand for organic and clean label ingredients is accelerating the demand for raw or unrefined shea butter

Raw or unrefined shea butter market size surpassed USD 430 million in 2020 and is projected to grow at a CAGR of around 8% during the forecast period. Raw and unrefined shea butter is used in foods, beverages, and cosmetics due to its purity and high nutritional content. Growing demand for organic and clean label ingredients is accelerating the demand for raw or unrefined shea butter.
 

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It is free of artificial additives and preservatives and is rich in vitamins, minerals such as potassium, magnesium, and other nutrients. It also contains vitamins A, F and E and are used as an alternative to hardened fats such as vegetable oils and animal-derived fats in foods and beverages. Due to its excellent moisturizing, healing and hydrating properties, it is also used in cosmetics such as moisturizers, sunscreens, creams and lotions as an alternative to coconut oil, butter and olive oil. Increased demand for natural ingredients is expected to drive demand for raw and unrefined shea butter market over the forecast period.
 

Escalating demand of beauty and grooming products due to increasing focus towards physical appearance will stimulate the shea butter market growth from personal care & cosmetics industry

Shea butter market from personal care & cosmetics exceeded USD 530 million in 2020. Shea works as an emollient that softens and smoothens the skin on its application. Busy & hectic lifestyles and increasing pollution led to rise in skin diseases and problems has increased the adoption of skincare products. Shea butter is widely used in toners, moisturizing creams and lotions as an anti-aging and anti-rooting agent for treating acne and blemishes, moisturizing dry skin, restoring skin elasticity.
 

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Moreover, the manufacturers operating in personal care & cosmetics industry engaged in introduction of new products considering customer specific need and requirements. For instance, in December 2018, Native Deodorant launched its latest products named Native Bar Soap and Native Body Wash which are made from shea butter and coconut oil and contains no sulfates, parabens and phthalates.
 

Shifting consumer preference towards organic products in the U.S. will spur the business in North America region.

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North America shea butter market size is expected to exceed USD 390 million by 2027. The natural properties and strong range in the manufacture of cosmetics with effective cocoa butter substitutes should accelerate market growth. The product is odor-free and smoothed for use in a variety of applications such as cosmetics, pharmaceuticals and, in some cases, food and beverages.
 

Shea butter contains vitamins A and E that nourish the skin and hair. Growing consumer spending on personal care & cosmetic products especially millennials along with the growth of ecommerce should drive demand for shea butter products during the forecast period. Rising awareness related to the harmful effects of synthetic ingredients has encouraged the consumers to adopt natural and organic products driving the shea butter market growth.
 

In 2020, the shea butter market for the U.S. was valued around USD 240 million and is anticipated to grow approximately at a CAGR of 7%. Increasing demand for facial makeup products such as BB and CC creams in US due to its versatile benefits will support the growth of the shea butter market. These creams provide moisture, antioxidant protection, pore reduction and sunscreen.
 

Consumers are looking for value-added products made from natural ingredients. Mineral-based sunscreens and oil-based conditioners are attractive to domestic consumers. Other vitamin-rich bath additives that have a moisturizing effect will boost the demand for shea butter during the forecast period. Shifting consumer focus towards the use of organic and natural ingredients in personal grooming and cosmetic products is expected to spur the growth of shea butter in the U.S.
 

Mergers & Acquisition and Growing Investments in R&D activities remain key business strategies incorporated by major market players

The global shea butter industry includes key players such as BASF SE, International Oils & Fats Limited, AAK AB, Croda International, OLVEA, Akoma International Ltd, Bunge Limited, The Savannah Fruits Company, Ghana Nuts Company Limited, Agrobotanicals LLC, Cargill Incorporated, Clariant and SOPHIM.
 

Key market players are engaged in several activities such as mergers & acquisition, product development & innovations and investment in R&D activities and others. These strategies help these companies to gain competitive edge in the global shea butter market.

The shea butter market report includes in-depth coverage of the industry with estimates & forecast in terms of volume (Kilo Tons) and revenue in USD (Million) from 2016 to 2027 for the following segments:

By Product

• Raw and Unrefined Shea Butter
• Refined Shea Butter

By Application

• Food & Beverage
• Personal Care & Cosmetics
• Pharmaceutical

The above information has been provided for the following regions:

By Region

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