Shea Butter Market Size, Share, and COVID-19 Impact Analysis, By Type (Raw and Unrefined, and Refined), BY Nature (Organic and Conventional), By Application (Food Processing, Pharmaceuticals, and Personal Care and Cosmetics), and Regional Forecast, 2024-2032

Shea butter is a natural vegetable fat that is light yellowish in color and derived from the African tree nut Vitellaria paradoxa. It has emerged as a valuable and versatile ingredient which is used in several industries, such as food processing, cosmetics, pharmaceuticals, and others. The demand for shea butter has steadily increased due to the rising consumer preference for natural and organic products. Moreover, the increasing demand for cocoa butter substitutes is expected to drive the market's growth. According to the Dairy Reporter, a dairy news agency, 2021, shea butter is viewed as a healthier option over cocoa butter and is frequently utilized in various food applications as a replacement for edible vegetable fats and oils which helps in expanding the market's potential.

Efforts are taken to ensure shea butter production benefits the local communities and promotes environmental conservation. There is an increasing focus on sustainable and fair trade practices in the shea butter industry. Various certification programs, such as Fairtrade and organic certifications, have been established to ensure ethical sourcing and production. Several players in the market have been collaborating with such organizations to provide sustainable products to the consumers which will improve their livelihoods and resilience of people across supply chains. For instance, in July 2022, Primark Stores Limited, an Irish multinational fast fashion retailer, partnered with Fairtrade by launching a range of products, including body butter, bath oil, face cream, and others made using Fairtrade-certified shea butter and olive oil.

Impact of COVID-19 on the Global Shea Butter Market

The COVID-19 pandemic significantly impacted various industries globally, including the shea butter industry. The production of shea butter relies heavily on the availability of raw shea nuts; however, restrictions such as lockdowns and travel limitations have disrupted the supply chain resulting in supply shortages and a decrease in butter production. Furthermore, the pandemic caused changes in consumer behavior and preferences. Some of the shea butter products used in cosmetics and personal care experienced a decline in demand as consumers prioritized essential commodities during the pandemic. According to National Center for Biotechnology Information (NCBI), in November 2021, shea butter usage in soap products was reduced by 25%.

Key Insights

The report will cover the following key insights:

• Overview of the Shea Butter Market


• New Entrants in the Market


• Recent Developments in the Shea Butter Market


• Drivers, Restraints, and Opportunities


• Impact of COVID-19 on the Global Shea Butter Market

Analysis by Type

The raw and unrefined segment is expected to hold a major share in the global market. The consumer demand for less or minimally-processed oils is increasing owing to their benefits such as stimulating the muscles by keeping the skin young, providing moisturizing and restoring properties, healing cuts and scrapes, and helps in fighting breakouts. Furthermore, consumers' growing interest in seeking alternatives to synthetic ingredients further propels the market growth.

The refined segment is expected to grow at a high CAGR in the forecast period due to increasing consumers demand owing to its longer shelf life. Furthermore, refining reduces the product's color as well as fragrance which further increases its scope in skin care products.

Analysis by Nature

The organic segment is expected to grow at a higher CAGR in the forecast period. The demand for organic shea butter has been steadily increasing over the years due to its numerous benefits ad growing awareness among consumers about the importance of using sustainable and natural products.

Analysis by Application

The food processing sector is expected to hold a significant share of the global market. In recent years, there has been an increasing demand for shea butter in the food industry. Shea butter is extensively used as a cooking oil, a replacement for cocoa butter in chocolate production, and as an ingredient in confectioneries, bakery products, dips, spreads, and others. The nutritional properties and potential health benefits associated with shea butter have significantly increased usage in the food sector. The key market players strive to expand their reach with new product launches, strategic partnerships, and others to fulfill the evolving consumer demand. For instance, in December 2020, Bunge Loders Croklaan, a Netherlands-based specialist oils and fats group, launched Karibon, a 100% shea-based premium Cocoa Butter Equivalent (CBE). The new ingredient helps advance standards in chocolate confectionery and fuels market growth across the food industry.

The personal care and cosmetics segment is expected to grow at a high CAGR in the forecast period. Shea butter is used in various products such as creams, soaps, lotions, lip balms, and haircare products. The product's rich moisturizing properties and potential benefits for skin health has contributed to its popularity in the personal care and cosmetics segment.

Analysis by Region

Europe is expected to hold a significant share of the global shea butter market. The shea butter market in Europe has experienced significant growth in recent years. The region has a strong demand for sustainable and natural products, including shea butter, which leads to increased consumption and market expansion. Furthermore, the region has stringent regulations for cosmetic products. Compliance with the European Cosmetics Regulations (EC) No. 1223/2009 is crucial for accessing the European market, propelling the market expansion of certified cosmetics products in which shea butter is used. In the region, shea butter is regulated under various laws and regulations to ensure its safety, quality, and compliance with market standards. According to the Global Shea Alliance, around 300,000 metric tonnes of shea were estimated to be imported into Europe in 2020. Most shea, imports to Europe are kernels further processed in the region by leading vegetable oils processors, such as Bunge Loders Croklaan, Fuji Oil Europe, and AAK.

Key Market Players

Key players include BASF SE, Olvea Group, Sophim S.A., Cargill, Inc., Ghana Nuts Company Ltd., Bunge Loders Croklaan (BLC), Croda International Plc, Clariant AG, AAK AB, Suru Chemicals, and others.

Segmentation

Key Developments

• In June 2022, Samisha Organic, one of India's leading skincare brands, launched four new products infused with shea butter, carrot seed oil, almond oil, and others.


• In September 2020, Bunge Loders Croklaan (BLC) unveiled its first shea processing plant in Africa, which is a fully automated solvent fractionation plant that processes raw shea butter made from locally collected and crushed shea nuts.