Shea Butter Market size is anticipated to surpass USD 3 billion by 2027, according to a new research report by Global Market Insights Inc.
Consistently growing demand from food processing and beverage sectors owing to the growing consumption of convenience food products is projected to stimulate the market demand. Growing demand for snacks, bakery and confectionery products due to change in consumer dietary habits will surge in demand for shea butter.
Shea butter also called as KARITE butter is a natural fatty triglyceride which is derived from the nuts of VITELLARIA PARADOXA. It mainly composed of oleic acid and stearic acid along with carotene and vitamins A, E, and F. It has been widely used in ice-creams, chocolates, biscuits, along with several other bakery and confectionery products as a cocoa butter replacer owing to its fat composition and enhanced functional and nutritional properties.
Busy and hectic life schedules along with the changing dietary habits has raised the demand for bakery products and breakfast goods. Moreover, the rising working population in order to save cooking time has shifted their focus towards the adoption of ready to eat food products which further propels the demand for bakery and confectionery products thus driving the shea butter market demand.
Global shea butter industry is fragmented with the presence of numerous market players and manufacturers operating in the market are engaged in new product launches followed by rigorous marketing campaigns which helps them to create strong brand image thus driving the industry demand over the forecast timeframe.
Growing demand of natural ingredient will spur market expansion of raw and unrefined shea butter
Shea butter market from raw and unrefined exceeded USD 430 million in 2020. Raw and unrefined shea butter is utilized in food and beverages and cosmetics industries due to its high purity and less chemical content. It is free from any artificial additive, and it is a rich source of vitamins, minerals, and other nutrients thus used as an alternative to hydrogenated fats in foods and beverages.
Browse key industry insights spread across 165 pages with 210 market data tables and 10 figures & charts from the report, Shea Butter Market Forecasts, 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, Competitive Market Share & Forecast, 2021– 2027”, in detail along with the table of contents:
Rapid development of personal care and cosmetic industry is likely to boost the demand of shea butter during the forecast period
Shea butter market from personal care and cosmetics is anticipated to witness significant growth of around 7.5% during the forecast period. Shea butter is used as an ingredient in various cosmetic and personal care products. It has high concentration of fatty acids and vitamins along with superior moisturizing, antioxidant properties and easy-to-spread consistency making it suitable for skin nourishment products.
Shea butter has anti-inflammatory and healing properties, and it boosts collagen production thus help in soothing and rejuvenating the skin. Growing awareness about the benefits offered by shea butter has encouraged the manufacturers to utilize it in their products such as moisturizers, creams, sunscreens, facial and anti-aging products etc. which is expected to drive the market statistics.
In recent years, fractionated shea butter is gaining more traction and used as a substitute to animal-derived fats or vegetable oils in beauty and skin care product formulations. High content of oleic acid, non-saponifiables, and stearic acid resulting into exceptional moisturizing and healing properties has accelerated the adoption of fractionated shea butter by cosmetics manufacturers thereby driving the segment demand.
Europe accounted for the largest business share owing to increasing demand of premium chocolates around the globe
Europe shea butter market is anticipated to register around 7% CAGR through 2027. Europe is the world's largest chocolate producer and exporter and accounted for 40% of the global chocolate business. Shea butter has high fat content, and it is used as an alternative to cocoa butter in chocolates, confectionery, and bakery industry. It enhances the taste and texture of the final product thus specially used in chocolates.
Shea butter also improves the shelf life, heat stability, and reduces bloom formation of the chocolates. Better taste and functionality, improved shelf life and low price has made it a preferable choice for chocolates, confectionery, and bakery products.
Key manufacturers in the shea butter market are investing in several activities, such as product development, collaborations and partnerships, acquisitions and research & development, as the products find an array of applications in the various end use industries including building & construction, automotive, consumables & electronics and packaging. Some of the key players operating in the market are AAK AB, Akoma International Ltd, Bunge Limited, The Savannah Fruits Company, Croda International, OLVEA and others.