The Global Shea Butter Market size is expected to reach $3 billion by 2028, rising at a market growth of 7.0% CAGR during the forecast period.
Fats accumulated from the shea tree nuts are known as shea butter. The butter is a native product of the West Africa region and is usually solid at room temperature. The color of this butter varies from ivory or off-white to grayish-yellow. It is ivory in its raw state and yellow when dyed with palm oil or borututu root. For centuries, the people of the African peninsula have used shea butter as a cosmetic ingredient, mostly as a lotion, salve, or moisturizer.
The high vitamin and fatty acid concentrations of the butter make it an exceptional product for conditioning, soothing and smoothing the skin. Additionally, since the butter is edible, it is also used as a cooking oil and supplement. Many African countries have been traditionally using shea butter in food preparation, and presently, the butter is used in the food industry in products that need consistency or texture enhancement.
Generally, two prominent varieties of shea nuts are used for the preparation of shea butter. The West African variety, Vitellaria paradoxa, and the east African variety, Vitellaria nilotica produce shea butter that differs slightly in texture, nutrient content, and consistency. Shea butter prepared from the paradoxa variety is denser, while those crafted from nilotica tend to be more liquid.
Additionally, the east African variety of shea butter is considered to be more luxurious and is scarcely available because of the limited supply of the product. It also spreads more easily and suits many skin types and problems like sensitive skin, bruised skin, dry & peeling skin, wounds, burns, aging skin, and baby skin. On the other hand, the West African variety of shea butter is generally used for stretch marks, blemishes, wrinkles, and scars owing to its high vitamin A content.
COVID-19 Impact Analysis
The COVID-19 pandemic had a severely negative impact on the shea butter market. The period emerged as a difficult time for the manufacturing, developing, and logistics companies associated with this market. Since restrictions were placed in many nations by the governments, it disrupted the supply chain of the market. The most negative impact was faced by companies that dealt with the procurement and distribution of shea butter as a raw material since the pandemic led to the closure of international borders.
Market Growth Factors
Increasing Awareness of the Benefits of Shea Butter
Shea butter is widely known as an excellent emollient that smoothens and softens the skin. The rich amount of oil present in it rapidly soaks into the skin, creating a soft moisture-sealing barrier. Additionally, in the last few years, the other benefits of shea butter have been glorified intensely. The butter has healing and anti-inflammatory properties that help in managing swelling and redness on the face. It also promotes collagen production. All properties of shea butter emerge from the presence of fats in the nut.
Rising Demand for Anti-Aging Skincare and Cosmetic Products
The hectic lifestyles of the present day have resulted in an increase in demand for high-performance and time-efficient products in general. The same demand is also made in the personal care industry. Additionally, hectic lifestyles have also led to the consumption of foods and beverages that are high in sugar or preservatives, which are responsible for the deterioration of skin and magnify wrinkles. As a result, the demand for antioxidant-rich products has intensified as antioxidants readily help in minimizing the effects of aging on the skin.
Market Restraining Factors
Risks and Limitations Associated With the Use of Shea Butter
Shea butter is known as a low-risk topical compound for use, and the chances of allergic reactions from using it are rare but possible. Researchers believe that the low presence of a specific tree nut protein is mainly accountable for triggering allergies. While the low allergy-causing factor projects the product as suitable for all, it might not be the case. For many users, shea butter may clog pores and aggravate acne problems.
Based on product, the shea butter market is categorized into raw & unrefined and refined. The refined segment procured a considerable growth rate in the shea butter market in 2021. Processed or refined products elongate the shelf life of products. More people now demand refined shea butter as the refining process removes any scent and color of the product, which is especially good for sensitive people. The removal of color and scent also increases the applicability of shea butter to be mixed with other ingredients.
On the basis of application, the shea butter market is divided into cosmetics & personal care, food, and others. The cosmetic and personal care segment acquired the largest revenue share in the shea butter market in 2021. The increasing use of shea butter in lotions, creams, soaps, toiletries, and color cosmetics is helping in the expansion of the segment. This demand is propelled by growing consumer inclination towards organic and natural beauty and skin care products. Additionally, the rising influence of sustainability is steadily increasing the demand for organic products.
Based on region, the shea butter market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region garnered the maximum revenue share in the shea butter market in 2021. The use of shea butter is increasing in products like moisturizers, body lotions, and chocolates in this region owing to the presence of numerous pharmaceutical and cosmetics industries. The proximity of the region to the African subcontinent also ensures a steady supply of shea butter.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include AAK AB, Bunge Limited, BASF SE, Archer-Daniels-Midland Company, Clariant AG, Croda International PLC, Cargill, Incorporated, Stern-Wywiol Gruppe GmbH & Co. KG, OLVEA Group, 3F Industries Ltd.
Scope of the Study
Market Segments covered in the Report:
• Raw & Unrefined
• Cosmetics & Personal Care
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• AAK AB
• Bunge Limited
• BASF SE
• Archer-Daniels-Midland Company
• Clariant AG
• Croda International PLC
• Cargill, Incorporated
• Stern-Wywiol Gruppe GmbH & Co. KG
• OLVEA Group
• 3F Industries Ltd.
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