The global Shea Butter Market is projected to grow at a CAGR of 7.8% from 2024 to 2031. The market size is expected to reach XX in 2024 and YY by 2031. Europe dominates the market, accounting for approximately 40% of the global market share. Key metrics include increasing demand for natural and organic personal care products, growing awareness of shea butter's health benefits, and expanding applications in the food industry.
The shea butter industry is expanding rapidly, driven by increased consumer demand for natural and sustainable ingredients in personal care and food items. Shea butter's varied features, such as moisturising, anti-inflammatory, and antioxidant capabilities, are driving its widespread use in a variety of industries.
Market Trend: Increasing Demand for Organic and Fair-Trade Shea Butter
The shea butter market is rapidly shifting towards organic and fair-trade certified products. This trend is being driven by increased consumer knowledge of sustainable sourcing techniques and the social impact of their shopping decisions. Organic shea butter, which is devoid of pesticides and chemical fertilisers, is becoming popular in the premium personal care and food industries.
According to a recent market survey, organic shea butter sales have increased by 25-30% yearly over the last three years. A poll of 1,000 consumers in key markets found that 65% are willing to pay a higher price for organic and fair-trade certified shea butter goods. According to industry experts, by 2026, organic and fair-trade shea butter might account for up to 40% of total market value in developed countries, thereby prompting significant changes in sourcing and production processes throughout the industry.
Market Driver: Expanding Applications in the Food and Beverage Industry
The increasing use of shea butter in the food and beverage industry is a major driver of market expansion. Shea butter is being more recognised as a healthier alternative to cocoa butter in confectionary, as well as a significant element in speciality fats and oils. Its excellent nutritional profile, which includes high quantities of vitamins A and E, makes it ideal for functional food applications.
According to industry statistics, the use of shea butter in food applications has increased by 15% per year over the last five years. Major candy producers have reported a 20-25% increase in shea butter use as a response to consumer demand for healthier, more sustainable ingredients.
Market Restraint: Supply Chain Challenges and Price Volatility
While the shea butter market is growing, it confronts problems such as supply chain complexity and price instability. Shea butter production is primarily centred in West Africa, where factors such as climate unpredictability, political instability, and infrastructure constraints can affect supply consistency and quality.
A thorough examination of shea butter pricing trends indicated that prices have changed by up to 30% each year over the last five years, driven by supply discrepancies and shifting demand patterns. This volatility can have a major influence on profit margins for producers and manufacturers who use shea butter as a component. Furthermore, the traditional harvesting and processing methods utilised in many shea-producing regions might result in quality discrepancies, providing issues for large-scale industrial customers. According to a survey of cosmetic firms, 45% of respondents prioritise supply chain stability and quality consistency when acquiring shea butter. These factors may restrict market expansion, particularly in price-sensitive segments and regions with stringent quality standards.
The Raw & Unrefined Shea Butter segment dominates the market, accounting for over 60% of the market share.
Raw and unrefined shea butter has emerged as the market leader due to its higher preservation of natural ingredients and rising consumer preference for minimally processed natural products. This segment's domination stems from the growing need for pure, authentic components in the personal care and cosmetics industries.
The Raw & Unrefined Shea Butter segment's strength is supported by market data. A survey of 300 personal care product formulators found that 70% chose raw and unrefined shea butter due to its superior moisturising characteristics and natural vitamin content.
The Refined Shea Butter category holds a sizable market share, particularly in food applications that require constant quality and neutral odour. According to our study estimates, the demand for refined shea butter in the food business has increased by 11.2% in the last four years, with the confectionery sector experiencing the greatest adoption rates.
Europe leads the global Shea Butter Market, with a market share of approximately 40%.
Europe's dominance in the shea butter market is due to the region's significant presence in the premium cosmetics and personal care industry, high consumer awareness of natural ingredients, and tight laws that favour natural and organic products. Countries such as France, Germany, and the United Kingdom are prominent users of shea butter in cosmetic compositions.
North America follows closely after Europe, accounting for approximately 30% of the market share. The region's market is distinguished by a growing desire for natural and organic personal care products, as well as increased knowledge of the health benefits of shea butter. Shea butter is in high demand in the United States, especially for cosmetic and food uses. Shea nut oil's use in the food business has increased since the Food and Drug Administration (FDA) recognised it as a safe food ingredient.
The Asia-Pacific region is developing as the fastest-growing shea butter market, with a projected 9.5% CAGR through 2031. Countries such as China, Japan, and South Korea are driving considerable development because to the increasing popularity of K-beauty and J-beauty trends, which frequently include natural ingredients such as shea butter. Increased disposable income and knowledge of personal care in countries such as India and Indonesia are also helping to drive regional market growth.
The shea butter market is distinguished by a combination of huge international corporations and smaller, specialised manufacturers. To strengthen their market positions, key firms are focussing on sustainable sourcing, product innovation, and distribution network expansion.
Leading firms in the industry, such as AAK AB and Bunge Limited, have developed strong positions through their extensive range of shea-based ingredients and global distribution capabilities. AAK AB reported 15% year-over-year growth in its shea-based product sector in 2023, owing to growing demand in both culinary and personal care applications.
Emerging players are making tremendous progress in creating speciality, value-added shea butter products. Savannah Fruits Company, for example, has gained traction with its organic and fair-trade certified shea butter, with sales to premium cosmetic manufacturers expected to climb by 35% in 2023. The company's emphasis on traceability and social impact has resonated strongly with consumers and marketers looking for ethically produced ingredients.
Vertical integration has also increased in the market, with some corporations establishing their own shea nut gathering and processing facilities in West Africa to maintain supply chain management and quality consistency. In 2023, over ten major sustainability initiatives and partnerships were launched in the shea butter business, with the goal of enhancing shea nut collectors' livelihoods and promoting sustainable harvesting practices.
The Shea Butter Market is expected to grow and evolve significantly in the next years, owing to rising consumer awareness of natural ingredients, increased demand for sustainable and ethically sourced products, and expanded uses across a wide range of industries. We believe that technical developments in shea butter processing and quality control will play an important role in addressing current supply chain difficulties and improving product consistency.
The beauty and personal care industry's move towards personalisation and custom formulas provides an exciting potential for shea butter producers to create specialised grades for certain applications or skin types. Furthermore, the potential for shea butter in nutraceuticals and functional meals remains virtually untapped, and it could represent a huge growth opportunity.
We anticipate an increasing emphasis on full value chain transparency and sustainability in the shea butter business. Companies who can demonstrate strong traceability mechanisms and positive social effect in shea-producing regions will certainly gain a competitive advantage in an increasingly conscientious consumer market.
AAK AB
Bunge Limited
Cargill, Incorporated
BASF SE
Clariant AG
Archer Daniels Midland Company
IOI Loders Croklaan
Ghana Nuts Ltd
Sophim S.A.
Savannah Fruits Company
October 2023: AAK AB introduces a new line of sustainably sourced, traceable shea butter products for the premium cosmetics market, with blockchain-based traceability from nut collection to finished product.
May 2024: Bunge Limited established a strategic agreement with a major West African cooperative to build a cutting-edge shea processing facility with the goal of improving quality consistency and increasing production capacity.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. AAK AB
5.2. Bunge Limited
5.3. Cargill, Incorporated
5.4. BASF SE
5.5. Clariant AG
5.6. Archer Daniels Midland Company
5.7. IOI Loders Croklaan
5.8. Ghana Nuts Ltd
5.9. Sophim S.A.
5.10. Savannah Fruits Company (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Increasing Demand for Organic and Fair-Trade Shea Butter
6.1.2. Growing use of shea butter in premium skincare products
6.1.3. Rising popularity of shea butter in hair care formulations
6.2. Market Drivers
6.2.1. Expanding Applications in the Food and Beverage Industry
6.2.2. Increasing consumer awareness of natural and sustainable ingredients
6.2.3. Growing demand for plant-based alternatives in personal care
6.3. Market Restraints
6.3.1. Supply Chain Challenges and Price Volatility
6.3.2. Competition from other natural oils and butters
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Raw & Unrefined Shea Butter
7.1.1. Grade A (highest quality)
7.1.2. Grade B (medium quality)
7.2. Refined Shea Butter
7.2.1. Conventionally refined
7.2.2. Organically refined
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Food
8.1.1. Confectionery
8.1.2. Bakery products
8.2. Personal Care & Cosmetics
8.2.1. Skincare
8.2.2. Haircare
8.3. Pharmaceuticals
8.3.1. Topical medications
8.3.2. Nutraceuticals
9. BY DISTRIBUTION CHANNEL (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Online
9.1.1. E-commerce platforms
9.1.2. Brand websites
9.2. Offline
9.2.1. Supermarkets and hypermarkets
9.2.2. Specialty stores
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Type:
Raw & Unrefined Shea Butter
Refined Shea Butter
By Application:
Food
Personal Care & Cosmetics
Pharmaceuticals
By Distribution Channel:
Online
Offline
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
We at Aurorawave Intellects Market Report gives total market analysis that suit our customer business need and permit decision maker to run organizations without any problem. We have accomplished greatness in giving start to finish market research arrangements. Our detachment of industry specialists accumulate key data and get ready substance that lines up with our customer's business/specialty.
We at aurorawaveintellects.com offer mainly 3 types of licenses:
• Single User: Research Report copy can be distributed to a single user only
• Multi User: Research Report distribution is restricted up to 5 users.
• Corporate License :Research Report can be distributed across the company.
Based on the nature of the topic or research, the formats vary. The different formats of the report are as following:
• Word Document
• PPT
Following modes are available for making the payment:
• Online Payment (Visa Card, Master Card, Stripe)
• Razorpay
• Net Banking
• Bank Wire Transfer
Our customer service and research specialist team are available by phone and by email. Customer service hours are 24X7 Indian Standard Time (IST). You may reach us at:
• Email: info@aurorawaveintellects.com
• United Kingdom: ++91 7382742511
