Shea Butter Market
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Shea Butter Market size surpassed USD 2 billion in 2022 and is anticipated to grow at a 6% CAGR from 2023 to 2032. Driven by the increasing consumption of confectionary and bakery items in Europe.
According to the U.S. Trade Commission, around 90% of shea demand comes from chocolate and confectionary products. Thus, the increasing demand for high-quality and premium chocolates in European nations such as Italy, Belgium, and France may significantly enhance the market performance. Estimations by the CBI Ministry of Foreign Affairs suggest that Europe is the major export hub for shea products. Around 250,000-300,000 tonnes of shea products are exported to the region yearly, making it the world’s largest chocolate producer and consumer
These optimistic scenarios, in tandem with the increasing usage of shea butter as an alternative to cocoa butter in a range of confectionary items due to its high prices. Due to its emollient properties, shea butter also finds huge applications in the cosmetic industry. Many European cosmetic companies use it as a moisturizing body butter. The growing demand for natural and organic cosmetic products in the region is expected to drive appreciable gains to the market through 2032.
| Report Attribute | Details |
|---|---|
| Base Year: | 2022 |
| Shea Butter Market size in 2022: | USD 2 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 - 2032 CAGR: | 6 |
| 2023 Value Projection: | USD 4 Billion |
| Historical Data for: | 2018 to 2022 |
| No of Pages: | 400 |
| Tables, Charts & Figures: | 248 |
| Segments Covered: | Type, Application and Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Despite various application avenues for the product, the shea butter market faces a major challenge due to the availability of many substitutes such as avocado butter, palm oil, and cupuacu butter. In fact, the cupuacu butter depicts better moisturizing properties than shea butter. The high prices of raw shea nuts is also a major factor restraining the industry growth. Furthermore, the lower product demand across the low and middle-income economies due to limited disposable income may further affect the market dynamics.
The refined shea butter segment is poised to be worth USD 2.9 billion by 2032. A noticeable surge in refined shea butter exports across European economies due to its growing usage in cosmetics and food industry applications will propel segment gains. Refined shea butter is used in several cosmetic formulations, given its rejuvenating properties and longer shelf life. Thus, the increasing adoption of cosmetics amongst millennials to reduce aging symptoms and enhance their appearance will bolster product sales during the estimation period.
With regard to application, the food & beverages segment is poised to exceed USD 2.5 billion by 2032, attributed to its better heat stability and improved shelf life, suggests the study. Shea butter is also used as a cocoa butter equivalent (CBE) in the food & beverages sector due to its similar fat composition. The mounting demand for CBEs due to high prices of cocoa in the manufacturing of chocolate is escalating the demand for shea butter. Furthermore, growing chocolate consumption in Eastern Europe due to increasing disposable income is favouring segment expansion.
The North America shea butter industry is projected to exhibit a CAGR of 7.5% through 2032, on account of increasing R&D spending on the development of innovative shea butter applications across the cosmetics, pharmaceuticals, and food & beverage sectors. Moreover, the increasing demand for organic food products in the U.S. will bolster the demand for shea butter. Furthermore, the surging demand for natural and eco-friendly personal care products will support the market expansion.
Some of the leading companies operating in the shea butter market include
Many of these companies are focusing on expansion strategies to enhance their market position.
For instance, in September 2020, Bunge Limited, an American food company, inaugurated its new shea butter processing unit in Tema, Ghana followed by the launch of its Where Life Grows program for celebrating its efforts in building a sustainable shea supply chain in Africa.
The COVID-19 pandemic had a negative impact on the industry due to unprecedented export-import halts and supply chain disruptions. The pandemic affected the food and beverages sector. However, the industry is expected to rollback to normalcy in the post the lockdowns due to resumed business activities and growing government support for shea-producing nations. For example, in April 2021, the U.S. ambassador announced additional funds to empower over 400,000 women involved in shea production in West Africa.
Market Size, By Product
Market Size, By Application
The above information has been provided for the following regions and countries:
The market of shea butter recorded a valuation of USD 2 billion in 2022 and is poised to witness over 6% CAGR from 2023 to 2032, given the rising bakery and confectionary consumption in Europe.
The major industry players include names such as Ghana Nuts Company Limited, AAK AB, OLVEA, Bunge Limited, and The Savannah Fruits Company.
The refined shea butter market revenue is expected to reach USD 2.9 billion by 2032, attributed to increasing shea butter exports in Europe for cosmetic applications.
North America market is set to expand at 7.5% CAGR through 2032, owing to surging demand for eco-friendly and natural personal care products in the region.