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Shea Butter Market size to reach $4 Bn by 2032
- Published Date: February 15, 2023
Shea Butter Market size is predicted to cross USD 4 billion by 2032, according to a new research report by Global Market Insights Inc.
As per the report, increasing consumer buying capacity coupled with changing living conditions in the Asia Pacific is a key driver behind the market growth. Due to the westernization of lifestyles and diets, increasing disposable incomes, and the expanding middle-class population, China’s bakery sector is depicting decent progression.
Additionally, the country’s flourishing cosmetic sector, aided by the high demand for premium products and the increasing working female population, is driving substantial impetus to the industry. As per the U.S. Department of Commerce, the country exported personal care and cosmetic products worth USD 838 million to China in 2020. Furthermore, the fast-paced industrialization and rising per capita income coupled with surging inclination towards premium and branded products in other developing economies such as India has augmented the growth for shea butter across various applications.
Raw & unrefined shea butter to gain traction due to its rich nutritional composition
Based on the product, the shea butter market from the raw & unrefined shea butter segment is estimated to witness over 5.5% CAGR from 2023 to 2032, owing to its high nutritional value. Raw & unrefined shea butter is processed less and retains the natural skin-regenerating benefits. Moreover, increasing consumer inclination towards the product over other substitutes due to its host of benefits, including anti-inflammatory, antioxidant, and nutrient retention properties.
Browse key industry insights spread across 400 pages with 231 market data tables and 17 figures & charts from the report, “Shea Butter Market Size By Product (Raw and Unrefined Shea Butter, Refined Shea Butter), By Application (Food & Beverage, Personal Care & Cosmetics and Pharmaceutical), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032” in detail along with the table of contents:
High demand for shea in the natural cosmetic sector to spur the personal care & cosmetics application segment growth
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With respect to application, the shea butter market share from the personal care & cosmetics segment is estimated to reach USD 1.2 billion by 2032, owing to the high demand for shea butter in the natural cosmetic sector. Particularly in North America, Europe, and Japan, shea butter is one of the sought-after ingredients due to its superior moisturizing and healing properties, driving its usage in personal care products such as lotions, salves, shampoos, soaps, and others. It forms an oil-like texture and is easily absorbed by the skin, which will further favor its adoption over the coming years.
Expanding natural cosmetic industry to strengthen market share in Europe
Europe shea butter market is expected to grow at 7.5% CAGR between 2023 and 2032, on account of rising consumer awareness about shea butter. The regional growth can also be credited to the presence of major vegetable oil processing companies. Moreover, the expanding natural and conventional cosmetic market in countries, such as Italy, France, and Germany may propel regional gains.
Furthermore, rising investment in R&D in the agricultural solutions segment is augmenting regional value. For example, in 2021, BASF, a European multinational chemical company, invested around €904 million in R&D in the agricultural solutions segment.
Partnerships to outline the competitive landscape for the market
Major players involved in the shea butter market include AAK AB, Croda International, The Savannah Fruits Company, Akoma International Ltd, OLVEA, Bunge Limited and Ghana Nuts Company Limited. Many of these companies are emphasizing partnerships to sustain their industry leadership.
Citing an instance, in December 2022, the Savannah Fruits Company, a Ghana-based shea butter manufacturer, partnered with Sundial Brands (maker of SheaMoisture), funded by USAID. This partnership aims to produce high-quality shea butter in large volumes while reducing the environmental impact of processing.