Shea Body Butter Market Size was valued at USD 2.5 Billion in 2022. The shea body butter market industry is projected to grow from USD 2.68 Billion in 2023 to USD 4.793 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.50% during the forecast period (2024 - 2032). The need to address serious conditions, including rosacea, psoriasis, sunburns, and rashes, as well as the growing desire to soothe the skin, are the main market drivers propelling the expansion of the shea body butter market worldwide.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Shea body butter is preferred by customers because it conditions, soothes, and smoothes their skin. Because of its high nutritional content and purity, shea body butter is becoming more and more popular in cosmetic goods, which is driving the market CAGR. As a result, top cosmetic companies are creating new shea body butter-based products, including body soaps, hand creams, lip balms, and moisturizers. For instance, Amazon.com, Inc. introduced Amazon Aware, a product line of Amazon beauty products, on March 1, 2022. Two face cleansers, two moisturizers, two body creams, and a body cleanser with vitamin C, shea body butter, avocado oil, and dermatologist-tested ingredients are among the items in the beauty range. Furthermore, because shea body butter oil soothes dry and cracked skin and contains an essential fatty acid profile that closely resembles the lipids in the skin, customers gravitate to it. Additionally, it is a powerful moisturizer that does not clog pores and encourages skin to look healthier.
The market for shea body butter is anticipated to expand in the future due to the expanding e-commerce sector. The e-commerce industry, which includes digital channels and online marketplaces where buyers and sellers transact products and services, is referred to as the "e-commerce sector." Shea body butter is becoming more widely available due to e-commerce platforms. No matter where they are in the world, consumers can now readily locate and buy shea body butter. Because of this, producers of shea body butter now have access to new markets, which has raised the product's overall demand. For instance, e-commerce for consumer goods is predicted to account for almost 22% of retail sales in October 2021, expanding at an average pace of more than 1% by 2024, according to a research released by the International Trade Administration, a US-based body. Additionally, retail e-commerce sales indicate that overall worldwide retail e-commerce sales will rise by 8% over the long term, starting in 2024 and continuing until then. Thus, the market for shea body butter is expanding due to the expanding e-commerce sector.
The market for shea body butter is anticipated to expand due to the rising use of cosmetics. A wide variety of goods used on the face, body, hair, or nails to improve or change look are referred to as cosmetics. Because of its nourishing, anti-inflammatory, and moisturizing qualities, shea body butter is frequently used in cosmetics to support healthier, more moisturized skin and hair. For instance, the Soil Association, a UK-based nonprofit, reported in its annual organic beauty and wellbeing report for 2021 that sales of natural and organic beauty and wellbeing products certified by the Soil Association increased by 15% in the UK, to reach almost $170 million. In addition, Automat.ai, a Canadian provider of computer software, business services, and skincare products, reported in January 2021 that US skincare product sales had climbed by 13% and makeup sales by 1%, respectively. Furthermore, skincare accounted for the majority of the 24% growth in online beauty shops. Thus, the market for shea body butter is expanding as a result of people using cosmetics more frequently. Thus, driving the shea body butter market revenue.
The shea body butter market segmentation, based on product, includes Raw & Unrefined and Refined. The raw & unrefined segment dominated the market. The benefits of less-processed oils, such as keeping skin youthful and activating muscles, healing wounds and scrapes, and aiding in breakout prevention, have led to a rise in customer demand for them. The market is developing due in part to customers' increasing interest in finding natural substitutes for synthetic components.
The shea body butter market segmentation, based on nature, includes Organic and Conventional. The organic category generated the most income. Due to its many advantages and rising consumer awareness of the value of utilizing natural and sustainable products, there has been a steady increase in demand for organic shea body butter over time.
Figure 1: Shea Body Butter Market, by Nature, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The shea body butter market segmentation, based on distribution channel, includes Specialty Stores, Online Stores, Supermarket, Convenience Stores, and Others. The online stores category generated the most income. Online retailers are contributing to the increased availability of shea body butter. Customers may now easily find and purchase shea body butter wherever they are in the world. As a result, shea body butter producers can now reach new markets, increasing the demand for their products as a whole.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American shea body butter market area will dominate this market. Improved lifestyles and an increase in health-conscious consumers are the main drivers propelling the shea body butter market's expansion. The region's increased purchasing power has a significant positive impact on the sales of shea body butter products. Furthermore, a growing number of people are choosing natural and organic food and cosmetic products.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: SHEA BODY BUTTER MARKET SHARE BY REGION 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe shea body butter market accounts for the second-largest market share. The market in Europe is expanding quickly as a result of the numerous pharmaceutical and cosmetics companies operating there. In the European region, Shea Body Butter Market is widely utilized by businesses that produce body lotions, chocolates, and moisturizers. Further, the German shea body butter market held the largest market share, and the UK shea body butter market was the fastest growing market in the European region.
The Asia-Pacific Shea Body Butter Market is expected to grow at the fastest CAGR from 2024 to 2032 due to a rise in research and development expenditures for the creation of novel shea body butter uses in the food and beverage, pharmaceutical, and cosmetics industries. Shea body butter consumption will also be supported by the Asia Pacific region's growing need for organic food items. Moreover, China’s shea body butter market held the largest market share, and the Indian shea body butter market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the shea body butter market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the shea body butter industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the shea body butter industry to benefit clients and increase the market sector. In recent years, the shea body butter industry has offered some of the most significant advantages to medicine. Major players in the shea body butter market are attempting to increase market demand by investing in research and development operations, including BASF SE, Olvea Group, AAK AB, Sophim S.A., Cargill, Inc., Clariant AG, Suru Chemicals, Agrobotanicals, LLC, Croda International Plc, and Ghana Nuts Company Ltd.
Specialty vegetable oils and fats are manufactured and distributed by AAK AB (AAK). Applications for the company's goods include food service and retail, bakery, confectionery and chocolate, personal care, dairy, and animal nutrition. For the technical products sector, it provides glycerin and fatty acids; for the feed business, it provides proteins and lipids. North America, South America, Africa, the Middle East, Asia-Pacific, and Europe are all involved in the company's business operations. The headquarters of AAK are in Malmo, Sweden.
Specialty chemicals are produced and sold by the chemical business Croda International Plc (Croda). The company offers a range of products that are utilized in coatings and polymers, crop care, geo technology, home care, personal care, industrial chemicals, and lubricants, as well as cosmetic oils. It supplies goods to a number of industries, including industrial specialties, consumer care, personal care, and life sciences.
Shea Body Butter Industry Developments
January 2022: Byrdie unveiled Karité, a revolutionary line of skincare products. The company sells body lotion, hand cream, lip balm, and other needs made from pure shea body butter and palm oil from their home in West Africa. With anti-inflammatory and antioxidant properties, the products are available in a range of retail and beauty stores across the US and Canada.
September 2019: Love, Beauty, and Planet, a body care line from Unilever, was introduced to encourage the Middle East's sustainable beauty movement. The product line offers reasonably priced skincare, hair, and dental care products that are produced using fast-rinsing, water-saving formulas obtained responsibly. In addition to being vegan-friendly, these products contain a number of natural components, including coconut water, ylang-ylang, lavender, argan oil, shea body butter, and tea tree oil. In order to create a more sustainable and secure environment, the launch aims to spark a national movement that will minimize plastic waste and reduce carbon footprints.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2.5 Billion |
| Market Size 2023 | USD 2.68 Billion |
| Market Size 2032 | USD 4.793 Billion |
| Compound Annual Growth Rate (CAGR) | 7.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product, Nature, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF SE, Olvea Group, AAK AB, Sophim S.A., Cargill, Inc., Clariant AG, Suru Chemicals, Agrobotanicals, LLC, Croda International Plc, and Ghana Nuts Company Ltd. |
| Key Market Opportunities | More and more new items are being introduced in the personal care and cosmetics sectors |
| Key Market Dynamics | Rising consumer consciousness regarding the advantages of natural, organic, vegan, and eco-friendly makeup Numerous advantages linked to shea butter |
Frequently Asked Questions (FAQ) :
The shea body butter market size was valued at USD 2.68 Billion in 2023.
The market is projected to grow at a CAGR of 7.50% during the forecast period, 2024-2032.
North America had the largest share in the market
The key players in the market are BASF SE, Olvea Group, AAK AB, Sophim S.A., Cargill, Inc., Clariant AG, Suru Chemicals, Agrobotanicals, LLC, Croda International Plc, and Ghana Nuts Company Ltd.
The raw & unrefined category dominated the market in 2023.
The online stores category had the largest share in the market.
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