Market Scope
Rising preference for alternatives to coco butter coupled with the escalating intake of chocolates as well as bakery products are some of the key growth boosters in the global market. Increasing consumption of shea butter instead of edible vegetable oils as well as fat in a number of food applications will also favor the market in the ensuing years. Confectionery and bakery product manufacturers are increasingly replacing cocoa butter with shea butter, given the former’s significant costs due to limited supply.
The cosmetics and personal care sectors have emerged as significant end-use industries in the global market. Exhaustive RD activities being conducted by cosmetics firms to come up with effective and innovative shea butter-based products are helping draw in a greater number of consumers, which can be quite favorable for the global industry in the following years. Apart from this, supportive government policies in Europe as well as guidelines that encourage the use of naturally derived ingredients in products could create an optimistic outlook for the shea butter manufacturers during the assessment period.
Market Research Future (MRFR) expects the shea butter market size to record a growth rate of 6.89% between 2022 and 2030 (appraisal period). The market size can possibly touch USD 1.68 billion by the year 2030, adds MRFR.
Regional Insight
Geographically, the market for shea butter can be segmented with respect to Europe, Middle East Africa (MEA), North America and Asia Pacific (APAC).
Europe claimed the top position with the biggest share of 37.13% in 2021. Shea butter witness strong demand in the region on account of the surging consumer demand for confectionary and baked products. The thriving personal care and beauty industry in the region also has a significant role in the market growth. Also, the strong network established by confectionery firms in the region including Nestlé SA, the Ferrero Group, Pladis and Chocoladenfabriken Lindt Sprüngli AG also foster considerable business growth.
The APAC market benefits largely from the large-scale production of shea butter backed by the abundance of raw materials found in the region and also due to the availability of cheaper labor. The growing consumption of bakery products and chocolates in the region also fuels the demand for shea butter, while the increase in spending on premium cosmetic products, popularity of social networking sites and expanding middle-class population with rising interest in online shopping can bolster further market growth. Evolving consumer tastes along with the mounting awareness about skin care in India, South Korea and China also drive the application scope of shea butter in the region.
Segmental Review
With the aim to present exhaustive details of the shea butter market research report has considered a few segments, including type, category, and application.
Types of shea butter available in the market are either unrefined/raw or refined. Refined butter has been the top segment since 2021 and can even garner the highest CAGR to touch USD 702.50 million by 2030-end.
Categories covered in the MRFR market study include organic and conventional. Escalating awareness about the health benefits of natural and chemical-free products have led to increased sales of organic shea butter. Buyers are growing aware about the toxic effects of the chemicals present generally in various products and are therefore opting for organic shea butter, whether in food or personal care products among others. They are even willing to pay substantial amounts on premium products that have organic ingredients, which will mean striking growth for the organic shea butter segment.
Top applications of shea butter are food and beverage, pharmaceuticals and personal care. Moistening, anti-inflammatory and antiaging properties of raw shea butter heals scraps, cuts, burns and moistens chapped lips, dry skin on heels, elbow and knees. Growing consumer demand for products with excellent nourishing qualities for attaining smooth skin and body texture is likely to boost the overall market share.
Top Companies
Shea Radiance (US), Cargill Incorporated (US), The Savannah Fruits Company (Ghana), BASF SE (Germany), Ghana Nuts Company Limited (Ghana), The Organic Shea Butter Company (US), Bunge Ltd (US), Vink Chemicals GmbH Co. KG (Germany), AAK AB (Sweden), Sophim S.A (France), are some of the top manufacturers of shea butter worldwide.
Recent Updates
January 2021
BFA Industries has introduced 'Refreshments', which is a range of clean and vegan personal care products including body cream, face wipes, shaving cream and body wash, with the key ingredient being shea butter. For instance, one of the products, NEW! Pearly Body Wash is a creamy body wash that cleanses and moisturizes and its main ingredients are shea butter, olive oil and vitamin C.
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