by The Shea Butter Market is estimated to be valued at US$ 2.32 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Shea butter is extracted from the nuts of Vitellaria paradoxa, commonly known as the Shea tree. It is native to the Sahel zone of Africa from Senegal to Sudan. Shea butter contains fatty acids and vitamins that provide moisturization and protection to the skin. It is widely used in cosmetic products such as lotions, creams and salves for its moisturizing properties. Shea butter also finds application in pharmaceuticals and food industries.
Market Dynamics:
Growing awareness about the skin benefits of natural and organic ingredients is driving the demand for Shea butter in the cosmetic industry. Shea butter contains compounds like antioxidants, vitamins A and E that have anti-aging properties and protect the skin from free radical damage. Additionally, rising vegan and gluten-free trends are also fueling the demand for Shea butter as it provides a suitable substitute for dairy products and other ingredients in cosmetic and food products. However, fluctuations in the price and supply of Shea nuts required for extraction of Shea butter can hamper the market growth over the forecast period.
Segment Analysis
The global shea butter market is dominated by the cosmetics & personal care segment. More than 60% of the total shea butter produced globally is used in cosmetics & personal care products owing to its moisturizing and skin soothing properties. Shea butter is widely used in formulations of lotions, creams, soaps, and other skin & hair care products. The growth of the cosmetic industry along with rising awareness about the benefits of natural ingredients is driving the demand for shea butter from this segment.
PEST Analysis
Political: The government policies in major shea butter producing regions such as West Africa support shea butter production through various subsidies and initiatives. This encourages local farmers and stabilizes supply.
Economic: The global beauty & personal care industry has been growing at a healthy pace boosting demand for shea butter. Lower manufacturing costs in Africa makes shea butter competitive against other vegetable butters.
Social: Rising consciousness among consumers about ingredients, their natural origins, and ethical sourcing is propelling the demand for native African products like shea butter.
Technological: Advanced extraction techniques allow for higher shea butter yields and quality extracts. This has improved global supply chains.
Key Takeaways
The global Shea Butter Market Demand is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing demand from the personal care industry.
Regionally, West Africa accounts for the largest production and export of shea butter globally. Countries like Ghana, Mali, Burkina Faso, and Ivory Coast contribute over 80% to global supplies. Rising agricultural yields and export push by local governments are supporting regional market growth.
Key players operating in the shea butter market are IOI Loders Croklaan, Ghana Nuts Company Ltd., and The Savannah Fruits Company. These industry giants focus on strategic collaborations with cosmetic brands and investments in sourcing infrastructure to ensure sustainable shea butter supplies.
