Shea Butter Market Size was valued at USD 1.1 billion in 2021. The shea butter market industry is projected to grow from USD 1.17 Billion in 2022 to USD 1.87 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.89% during the forecast period (2022 - 2030). Rising use in growing industries such as cosmetics, pharmaceuticals, and food & beverages, and increased use in skin treatment are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increased customer demand for goods that offer a variety of benefits and sustenance, the cosmetics sector has started to diversify its usage of shea butter. Additionally, it's a component of lotions, baby oil, skin care, hair care, colour cosmetics, and other goods. Shea butter has many applications, which will likely spur market expansion during the next seven years. For instance, Beurre Shea Butter Skincare debuted a line of products in June 2022 that use shea butter as their primary component and are designed to soothe and protect skin.
In the years to come, there will likely be an increase in demand for the market due to the rising demand for baked products and confectionery as well as the need for alternatives for cocoa butter. Puff pastry, cookies, and chocolates are just a few of the baked delicacies that use shea butter as a basic ingredient. For instance, Bunge Loders Croklaan introduced shea-based butter in December 2020 to raise the bar for its chocolate confections and satisfy consumer demand for sustainable food solutions. Throughout the forecast period, these factors are anticipated to drive the segment's market expansion.Figure 1: Growth of Shea Butter Industry from 2013-2026 (in $million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Additionally, in the coming years, market revenue is expected to increase as people become more aware of shea butter's therapeutic benefits for skin, including its anti-aging effects, additional moisturising characteristics, and healing effects. Additionally, the preference of people, particularly women and young people, for cosmetic goods made with natural ingredients is anticipated to promote market growth in the future. In March 2022, around 85% of consumers worldwide would favour skin care products with natural components like shea butter, according to a National Programs article. Therefore, such growing use of cosmetics products has enhanced the shea butter market CAGR across the globe in the recent years.
However, to cater the demand there has been significant advances in the technological innovations. For instance, a contract to buy sundial brands, a New York-based personal care product company, was signed by UNILEVER in November 2021 as a result of the company's use of premium and genuine ingredients in its goods which is another factor driving the growth of the shea butter market revenue.
The  shea butter market segmentation, based on product, includes refined and unrefined/raw. The undefined/raw shea butter segment held the majority share in 2021 contribution to around ~60-65% in respect to the  shea butter market revenue. This is primarily owing to the Less processed oils are gaining popularity among consumers because to their advantages, which include increasing skin hydration, mending scrapes and cuts, and preventing breakouts. For instance, Karite Shea Butter introduced Crème Corps Body Cream in March 2020. This natural body care line offers the advantages of raw and unprocessed ingredients, making it healthy for the skin. The successful market growth trend is anticipated to be supported by such launches.
May 2021: Crafters Choice introduced personal care items made with pure shea butter that are ultra-refined, such as body lotion and soap.
The shea butter market data has been bifurcated by application into food & beverage, personal care, and pharmaceuticals. The food & beverage segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. In addition, since the product is used to improve the consistency, texture, and other qualities of chocolate, it is anticipated to experience a commensurate rise in demand due to the market's burgeoning need for chocolate.Â
October 2021: Shea butter consumption saw an overall growth rate of 8.63%, according to a Tastewise article, an AI-powered data platform for food and beverage. This advancement has further broadened the growth opportunity for the shea butter industry.
Figure 2: Â Shea Butter Market, by Application, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In 2021, the cosmetics and personal care sector held the greatest market share. The segment's growth is anticipated to be aided by rising consumer interest in cosmetic shea butter as a substitute for other ingredients in creams, lotions, colour cosmetics, soaps, and toiletries. A Wonderflow article estimates that in January 2022, roughly 24% of American adults will use natural skincare products. As a result, there has been a steady rise in demand for organic and natural cosmetics, which is expected to present opportunities for key players to create new products. This demand has been fueled by consumers' growing awareness of health and beauty issues as well as product developers' growing emphasis on sustainability.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Shea Butter market accounted for USD 0.48 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the presence of many cosmetics and pharmaceutical companies across the region which drive the European shea butter market during the forecast period.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Â SHEA BUTTER MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America shea butter market accounts for the second-largest market share due to the availability of many manufacturers and rising adoption of Shea butter products. Further, the United States shea butter market held the largest market share, and the Canada shea butter market was the fastest growing market in the North American region.
The Asia-Pacific Shea Butter Market is expected to grow at the fastest CAGR from 2022 to 2030. According to United Nations figures, Asia and the Pacific will be home to more than half of the world's population in December 2021. These rudimentary population statistics might be useful to manufacturers in understanding their market and creating new products. For instance, to meet consumer demand, Shilla DF introduced a limited-edition L'Occitane hand cream in China in January 2019. Moreover, China shea butter market held the largest market share, and the India shea butter market was the fastest growing market in the Asia-Pacific region.
Recent Development
In 2023, Hanahana beauty will be included in Ulta's Sparked collection, which debuts new brands in-store. We were emotionally moved by Abena's commitment to creating responsible, clean skin care products that are obtained from Ghanaian women directly, and we felt Ulta Beauty customers would find the brand to be just as fascinating.
With brand-new additions, mCaffeine, India's first caffeinated personal care brand, is prepared to strengthen its position in India's Favourite Body Care Range in 2022. The company has introduced four new products within its two primary product categories, Coffee Body Scrub and Body Butter with Almonds & Berries.
The four products are coffee body butter with almonds, coffee body butter with berries, and coffee body scrub with almonds. As the harsh winter months begin, consumers desiring soft, smooth, and moisturised skin will find the additional creamy and moisturising additions to be of great value.
A pioneer in inclusive haircare, Hairitage by Mindy McKnight is proud to announce its entry into new categories in 2023 with the release of the NEW Bath & Body Collection, which will be sold only at Walmart. This line has clean formulae and is infused with naturally derived components, continuing to highlight founder Mindy McKnight's belief that each person deserves a product that is customised to their specific needs. Six products in four different aromatherapy smell combinations, three of which are brand-new, are part of the Bath & Body Collection, which uses a variety of essential oils to deliver the best scent and care.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the shea butter market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the shea butter industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the shea butter industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, shea butter industry has provided butter products with some of the most significant benefits. The shea butter market major player such as BASF SE (Germany), Bunge Ltd (US), Cargill Incorporated (US), AAK AB (Sweden), Vink Chemicals GmbH & Co. KG (Germany), Sophim S.A (France), Ghana Nuts Company Limited (Ghana), Shea Radiance (US), The Organic Shea Butter Company (US), The Savannah Fruits Company (Ghana), and others are working to expand the market demand by investing in research and development activities.
Chemical product providing is all BASF SE does. Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, Agricultural Solutions, and Other are the segments through which it works. The company's headquarters are in Ludwigshafen am Rhein, Germany, and it was established on April 6, 1865. for instance, in June 2022, using natural shea butter Cetiol SB 45, Cegesoft VP, Cutina PES, and an unique anhydrous formulation known as BASF Soothing Cleansing Butter.
Also, American agribusiness and food corporation Bunge Limited was founded in Bermuda and has its main office in St. Louis, Missouri. It engages in grain trade, food processing, fertiliser production, and exporting soybeans internationally. It faces off against Archer Daniels Midland and Cargill. Furthermore, Shea butter, also referred to as "women's gold," encourages female empowerment, helps a number of Sustainable Development Goals (SDGs), improves the supply chain, and aids the development of Southeastern Ghana into a self-sufficient region. Bunge Loders Croklaan (BLC), "the speciality oils and fats business of [U.S.-based] Bunge Limited," opened Africa's first and largest shea butter facility in Ghana in 2019 to make the most of this useful nut.
Shea Butter Industry Developments
In 2023: AAK and Cargill, Invested in programs that promote sustainable sourcing practices and empower shea nut-collecting communities, particularly women, in West Africa
September 2021: Six new body care products by Shea Radiance were introduced in 520 Whole Foods stores in Virginia, United States.
December 2020: For its chocolate lines, Bunge Loders Croklaan introduced its shea butter substitute.
November 2019: A new shea-based margarine was released by BLC.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 1.1 billion |
| Market Size 2022 | USD 1.17 billion |
| Market Size 2030 | USD 1.87 billion |
| Compound Annual Growth Rate (CAGR) | 6.89% (2022-2030) |
| Base Year | 2021 |
| Market Forecast Period | 2022-2030 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Category, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF SE (Germany), Bunge Ltd (US), Cargill Incorporated (US), AAK AB (Sweden), Vink Chemicals GmbH & Co. KG (Germany), Sophim S.A (France), Ghana Nuts Company Limited (Ghana), Shea Radiance (US), The Organic Shea Butter Company (US), The Savannah Fruits Company (Ghana) |
| Key Market Opportunities | Rising demand for cocoa butter alternatives |
| Key Market Dynamics | Rising demand for cocoa and bakery products in developing countries, Expansion of pharmaceutical industry |
Shea Butter Market Highlights:
Frequently Asked Questions (FAQ) :
The shea butter market size was valued at USD 1.1 Billion in 2021.
The market is projected to grow at a CAGR of 6.89% during the forecast period, 2022-2030.
Europe had the largest share in the market.
The key players in the market are BASF SE (Germany), Bunge Ltd (US), Cargill Incorporated (US), AAK AB (Sweden), Vink Chemicals GmbH & Co. KG (Germany), Sophim S.A (France), Ghana Nuts Company Limited (Ghana), Shea Radiance (US), The Organic Shea Butter Company (US), The Savannah Fruits Company (Ghana).
The undefined and raw shea butter category dominated the market in 2021.
The food and beverage application had the largest share in the market.
Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.Â
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