The global 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.
Shea butter is extracted from the nuts of Vitellaria paradoxa, commonly known as the shea tree. It is extensively used in cosmetics such as lotions, moisturizers, and hair care products. The demand for natural ingredients in cosmetics along with the nurturing properties of shea butter is driving its use in personal care industry.
Market key trends:
One of the key trends in the shea butter market is the increasing preference for natural ingredients. Consumers are increasingly opting for natural and organic personal care products made from plant and vegetable extracts over chemical-based alternatives. This is driving the demand for shea butter as its nourishing and moisturizing properties make it an ideal ingredient for natural cosmetic formulations. The manufacturing of organic and natural skin and hair care products using shea butter extract is expected to support the market growth over the forecast period.
Strength: Shea butter has high moisture retention and anti-inflammatory properties which make it suitable for skin and hair care products. It helps treat various skin conditions.
Weakness: Shea butter production highly depends on weather conditions. Adverse weather can negatively impact the production volumes.
Opportunity: Increasing consumer demand for natural and organic personal care products provides an opportunity to promote shea butter’s organic nature. Growing demand for anti-aging products also opens opportunities.
Threats: Substitutes like coconut and palm oil pose threat. Regulations related to deforestation can impact shea nuts supply.
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 for natural ingredients in cosmetic and personal care products. Shea butter is widely used in cosmetic formulations due to moisturizing properties.
Regional analysis: Africa dominates the global shea butter production, accounting for over 80% share. Ghana is the largest producer and exporter of shea kernels contributing over 60% to the global supply. Other major producing countries include Burkina Faso, Nigeria, Cote D’Ivoire, and Benin. Europe is the fastest growing and dominating regional market for shea butter owing to burgeoning cosmetic industry in the region.
Key players operating in the shea butter market are IOI Loders Croklaan, Ghana Nuts Company Ltd., and The Savannah Fruits Company. The rising export demand for shea kernels and shea butter has pushed these key players to increase their production and processing capacities.