As of 2023, the global shea butter market has successfully attained a significant valuation of USD 2.75 billion, reflecting its robust growth trajectory.
Projections suggest that the market is poised to maintain a steady pace of expansion, with an estimated CAGR of 7% from 2023 to 2033. The market is expected to culminate in an impressive value of USD 5.58 billion by the end of 2033.
The rising market trajectory is facilitated by the increasing consumer preference for natural and organic skincare products.
In recent years, there has been a noticeable shift in consumer behavior towards sustainable and eco-friendly choices in personal care. Therefore, the demand for shea butter is surging, being a natural ingredient known for its moisturizing, nourishing, and healing properties.
| Attribute | Details |
|---|---|
| Shea Butter Market Size Value in 2023 | USD 2.75 billion |
| Shea Butter Market Forecast Value in 2033 | USD 5.58 billion |
| Shea Butter Market Growth Rate (2023 to 2033) | 7% |
Apart from containing healthy fats and micronutrients, the product is also a skin-nourishing substance that can be applied to the skin in pure form. In mixed forms, it is used in lotions, soaps, shampoos, or creams.
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Demand for shea butter recorded a 2.9% CAGR between 2018 and 2022, according to Future Market Insights (FMI).
Shea butter found its way into an array of personal care products, including lotions, creams, soaps, lip balms, and hair care products. Its versatility and ability to address various skincare needs allowed it to cater to a broad consumer base, boosting its popularity and demand.
The emergence of shea butter as a coveted ingredient in the luxury skincare market has revolutionized the industry. The market is projected to move forward at a 7% CAGR from 2023 to 2033.
The application of shea butter in the cosmetics industry is likely to reflect an optimistic growth outlook in terms of revenue. According to the annual market analysis conducted by Future Market Insights.
Growing Demand for Natural Ingredients: Consumers in the cosmetics industry are increasingly seeking products with natural ingredients. Shea butter, being a natural and plant-based ingredient, aligns with this trend.
Rising Popularity of Clean Beauty: Clean beauty, which focuses on products free from harsh chemicals and additives, is gaining popularity. Shea butter, known for its purity and beneficial properties, is a preferred choice for clean beauty formulations, driving its sales in the cosmetics market.
Growth of Multi-cultural Beauty Market: As the beauty industry becomes more inclusive and diverse, there is a greater demand for products that cater to different skin and hair types. Shea butter, with its versatility and suitability for various ethnicities and hair textures, has gained popularity as a key ingredient in products targeting multicultural consumers.
In the European region, shea butter is widely used in the production of goods like body lotions, moisturizers, and chocolates. Due to the region's abundance of cosmetics and pharmaceutical companies.
Where Germany shea butter industry was predicted to retain a value share of 7.2% in 2022. The market in the United Kingdom is anticipated to progress at a rate of 9.1% from 2023 to 2033.
The clean beauty trend, emphasizing non-toxic and natural ingredients, has contributed to the growth of shea butter in the United Kingdom market. As it is perceived as a safe and effective skincare ingredient.
The Asia Pacific shea butter market is expected to grow at a rapid rate. According to United Nations figures, Asia Pacific become home to more than half of the world's population. These rudimentary population statistics might be useful to manufacturers in understanding their market and creating new products.
China shea butter market is likely to hold a significant portion, advancing at a 5.8% CAGR, and the India shea butter market is forecasted to move forward at a rate of 9.8% from 2023 to 2033.
Chinese and Indian consumers are increasingly seeking high-quality and sustainable skincare solutions. Making shea butter an appealing choice, and contributing to the market size.
Shea Butter has its base origin of production in Africa, more specifically in the African Shea Belt, which contains 21 countries. Including the Central African Republic, Ghana, Nigeria, Ethiopia, Cameroon, and others.
According to the study, quality sources of shea butter can be obtained from Nigeria, Ghana, and Uganda. It is obtained with two sub-species Vitellaria Nilotica from Uganda and Vitellaria Paradoxa from Ghana and Nigeria.
GCC countries have immense production opportunities due to the easy availability of sourced raw materials. This has resulted in a top yield of shea butter from pure, fresh, and quality shea nuts with years of experience, driving the demand in the market.
As per the study by FMI, the market for shea butter in the United States of America was projected to possess a value share of 18.2% in 2022.
The United States of America Food and Drug Administration (FDA) has approved the soft fraction of shea butter. This can deliver high stability and premium quality product with applications in snacks, baked foods, sauces, spreads, desserts, frozen foods, dairy, and others.
Key shea butter brands such as Bunge Loders Croklaan received a ‘no questions’ letter and GRAS (Generally Recognized as Safe) notice from the FDA for shea olein. It is a new shea ingredient offered by the company.
Shea olein, the soft fraction of shea butter, is the second product in GRAS approved shea ingredient list. Being a non-GMO product, it is expanding its market share gradually in the United States of America. As manufacturers are opting for the ingredient for preparing clean-label end products.
Organic shea butter has several benefits such as healing properties including the beige color and nutty scent it provides to the end products. Conventional production method chemically alters the raw shea butter which retains little or no natural healing properties.
It also removes the natural scent of the product and makes it bleach white. As a result, true and traditional organic shea butter production is gaining immense popularity across the globe.
As per FMI, organic shea butter was estimated to capture a 24.6% value share in 2022 on a global level.
Shea butter, which is used commercially, is classified into five grades, opines Future Market Insights. Grade A is the raw form or unrefined form of the product which is extracted only using water.
While grade B and grade C are refined and highly refined products respectively, which are extracted mainly with hexane solvents. Grade D is also an uncontaminated grade but with the lowest quality, and grade E contains contaminants in shea butter.
Among the grades of shea butter, grade A has the capability to retain the most natural vitamins. Such as vitamin A and vitamin E in their pure forms, being prepared and extracted without any use of preservatives or chemicals.
Only unrefined or grade-A shea butter can keep all of the natural healing properties. This is expected to boost the market share of the segment.
Attributed to all the above-mentioned factors, the grade A shea butter was to hold a 31.4% share globally in 2022.
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Key shea butter brands operating in the market are focusing on providing an extensive range of products in their portfolio to woo customers. They are also adopting strategies such as mergers and acquisitions to expand their consumer base.
Popular Strategies Employed by Players in the Market:
Recent Developments:
The shea butter market is likely to amass a revenue of USD 5.58 billion by 2033.
The market for shea butter is poised to expand at 7% CAGR through 2033.
From 2018 to 2022, the shea butter industry registered a 2.9%.
The United States of America shea butter market value share was gauged to be 18.2%.
Grade A sub-segment is expected to lead the market.
The market is valued at USD 2.75 billion in 2023.
From 2017 to 2022, the market registered a CAGR of 2.9%.
The market is estimated to reach USD 5.58 billion in 2033.
Europe is estimated to register a 9.1% CAGR until 2033.
Social media influences and growing beauty trends offer key opportunities.
| Market Value in 2024 | USD 5,470 million |
|---|---|
| Market Value in 2034 | USD 8,040.9 million |
| CAGR (2024 to 2034) | 3.9% |
| Market Size Value in 2023 | USD 2,870 million |
|---|---|
| Market Forecast Value in 2033 | USD 4,784.7 million |
| Market CAGR (2023 to 2033) | 5% |
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