Shea Butter Market Research Report - Global Forecast till 2030

Global Shea Butter Market: Information By Type (Refined, Unrefined/Raw), By Category (Conventional, Organic), By Application (Food & Beverages, Personal Care and Pharmaceuticals) and Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast till 2030

ID: MRFR/F-B & N/4702-CR | | Region: Global | 100 pages         

Shea Butter Market

The Shea Butter market share is expected to reach USD 1.68 billion by 2030, with a compound annual growth rate of 6.89% during the period of forecast.

Segmentation

By Type Refined Unrefined/Raw
By Category Conventional Organic
By Application Food & Beverages Personal Care Pharmaceuticals
By Region North America Europe Asia-Pacific Rest of the World

Key Players

  • BASF SE (Germany)
  • Bunge Ltd (US)
  • Cargill Incorporated (US)
  • AAK AB (Sweden)
  • Vink Chemicals GmbH & Co. KG (Germany)
  • Sophim S.A (France)
  • Ghana Nuts Company Limited (Ghana)
  • Shea Radiance (US)
  • The Organic Shea Butter Company (US)
  • The Savannah Fruits Company (Ghana)

Drivers

  • Increasing Use in Cosmetics
  • Chocolate Industry
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Shea Butter Market Overview


The Shea Butter market share is expected to reach USD 1.68 billion by 2030, with a compound annual growth rate of 6.89% during the forecast 2022-2030. Shea butter is also known as GALAM or KARITE butter is a fatty triglyceride that is extracted from the nuts of VITELLARIA PARADOXA plants mainly composed of oleic acid and stearic acid. The fractionation process is performed to extract it and after the completion of it, refining is done so that it can be used as an equivalent of cocoa butter.


Shea butter is also known as GALAM or KARITE butter is a fatty triglyceride that is extracted from the nuts of VITELLARIA PARADOXA plants mainly composed of oleic acid and stearic acid. The fractionation process is performed to extract it and after the completion of it, refining is done so that it can be used as an equivalent of cocoa butter.


COVID -19 Analysis


The coronavirus pandemic has given a very hard time to most of the manufacturing, developing, production, and logistic units of the market. Due to this pandemic situation, restrictions were imposed by the government of different countries. The supply chain of raw material needed to secure the manufacturing, packaging, and distribution process of Shea butter was affected drastically. The restrictions imposed on cross-border transportation of raw materials and commodities made the manufacturers of this sector depend on the local or domestic suppliers increasing the negotiating power of suppliers. Also, with the closure of supermarkets and hypermarkets the market of Shea butter has been severely affected. But there is a ray of hope that with the lifting up of restrictions this industry will make a powerful comeback and have a long-lasting impact on the Shea Butter market of the alternative product.


Shea Butter Market Dynamics


DRIVERS


Shea kinds of butter are known for their moisturizing and conditioning properties due to the presence of fatty acids in them such as stearic and oleic acids and also unsaponifiable such as sterols and phenols. Also due to such elements, it has better absorption than cocoa butter, there is a rapid increase in the demand for it in the personal care and cosmetics industry which is one of the major factors responsible for the growth of this Shea Butter market. Also the rising prices of cocoa butter which is due to its limited supply there is a need for a better alternative to being used in the manufacture of bakery and confectionery products and Shea butter is considered to be one of them. This is another factor boosting the growth of this Shea Butter market. In addition to these factors, changing lifestyle, rise in awareness about the benefits derived from using Shea butter, and increase in urbanization and per capita, disposable income are other certain factors responsible for the expansion of this Shea Butter market during the forecast period.


Restraints


The imposition of strict rules and regulations by the governments of certain countries about the usage of Shea butter in different end-use industries is one of the major factors that may hinder the growth of this Shea Butter market during the assessment period. Also, the calm availability of alternatives such as mango butter, Shea oil, avocado butter, and CUPUACU butter which also has a lower price than Shea butter is another factor that may act as a barrier to the way of the growth of this industry.


Technology Analysis


With the help of recent technological advancements, Shea butter can now be used as an alternative source in place of cocoa butter. Also in the making of the dough, puff pastries, croissants, and margarine which is almost a copy of butter made from vegetable oil and water, Shea butter is used as a raw material. With further studies coming up about the nature of Shea butter has multiple functionalities such as being used as bioactive, emollient, and surfactant in the manufacture of various personal care and cosmetics products. For instance, in November 2017, a contract to purchase sundial brands, a New York-based Personal Care Product Company was signed by UNILEVER due to the usage of high quality and authentic ingredients in its products.


Study Objectives



  • To consider the viewpoint of various industry experts and leaders and predict compound annual growth rate and Shea Butter market growth rate by the end of the global forecast in 2023.

  • To highlight a competitive market outlook and examine the yield models of key market players, worldwide. 

  • To observe the various Shea Butter market dynamics like trends, drivers, and restraints that are most probable to play a role in helping the market and its different segments growing in the domestic as well as international market.


Global Shea Butter Market Revenue, By Type, 2018-2026 (USD Million)
Shea Butter Market


Sources: MRFR Analysis


Shea Butter Market Segment Overview


Shea Butter market share is anticipated to witness significant growth owing to the performance of different market segments. Among these segments, the refined segment will be the fastest-growing and also contribute towards this market growth more than any other segment. The refined form of Shea butter is a very high-quality butter and is gently processed through raw materials. By following the process of mechanical extractions and using the solvents partly, Shea butter is extracted and with the help of machines, the removal of fragrances, coloring, and ingredients is done. Unrefined Shea butter is preferred over the refined form as vitamins and fatty acids are being destroyed during the refining of Shea butter. Also, the refined segment will register the highest CAGR of 13% during the forecast period. For an amplifying use the market has been segmented into the following on different bases:


Based on the type of flavor, it has refined and unrefined (raw).


Based on category, it has conventional and organic.


Based on application, it has personal care, pharmaceuticals, and food & beverages industry.  


Global Shea Butter Market Share, By Region, 2019 (%)
Shea Butter Market


Sources: MRFR Analysis


Shea Butter Market Regional Analysis


The SHEA BUTTER industry movements are remarkably working in 6 major regions of the world that is North America, Asia Pacific, Africa, Europe, the Middle East, and Latin America. Among all these regions, the European region will dominate this market, and the reason attributed to it is the increasing inclination of consumers towards baked products and confectionery and the usage of Shea butter is rapidly increasing over the past few years in bakery products. Also the prime confectionery companies such as Ferrero Group, Nestlé SA, CHOCOLADENFABRIKEN LINDT & SPRÜNGLI AG, and PLADIS. Being present in this region is another factor responsible for the significant growth of the market in this region. The rising demand for personal care and cosmetics products in this region is also contributing to the growth of this Shea Butter market. The Middle East and African region will hold the second largest market share due to the rapid increase in per capita disposable income of people and urbanization. Asia Pacific region will also witness notable growth during the assessment period due to the availability of plentiful raw materials and cheap labor in this region.


Shea Butter Market Competitive Landscape


To get a detailed and profound idea about the SHEA BUTTER market insights, it is very important to create a competitive environment amongst the different key players at different Shea Butter market locations all around the country. All the market players are competing with each other globally in the international markets by implementing various types of strategies such as product launches and upgrades, mergers and acquisitions, partnerships, etc. The prime players of this Shea Butter market include:-



  • AGROBOTANICALS, LLC

  • CRODA INTERNATIONAL PLC

  • BASF SE (GERMANY)

  • BUNGE LTD (US)

  • CARGILL, INCORPORATED (US)

  • AAK AB (SWEDEN)

  • VINK CHEMICALS GMBH & CO. KG (GERMANY)

  • SOPHIM S.A (FRANCE)

  • GHANA NUTS COMPANY LIMITED (GHANA)

  • SHEA RADIANCE (US)

  • THE ORGANIC SHEA BUTTER COMPANY (US) 

  • THE SAVANNAH FRUITS COMPANY (GHANA)

  • OLVEA GROUP

  • Baraka Shea Butter


Recent Developments 


In 2016, the incorporation of Shea butter in non-chocolate products such as Crème and cookies was a cocoa butter equivalent by the company named Hershey’s. The rising demand for the ready-to-eat baked product will be responsible for the growth of this Shea Butter market.


In March 2018, the acquisition of IOI LOADERS CROKLAAN was completed with BUNGE limited made with the purpose of processing Shea butter.


In November 2018, the construction of the Shea butter processing plant was started to strengthen the domestic production of Shea butter by the government of Ghana in the Bongo district.


In November 2017, sundial brands which is one of the largest personal care product companies that make use of Shea butter in the manufacture of their products was acquired by UNILEVER.


In August 2019, a massive investment to improve Shea production activities in each sector was made in NAASAKALO by PALLADIUM.


Intended Audience



  • Shea Butter manufacturers

  • Raw material suppliers

  • End users (food industry)

  • Retailers and wholesalers

  • E-commerce companies

  • Traders, importers, and exporters


Shea Butter Market Report Overview


The SHEA BUTTER industry report presents a shift analysis that includes market drivers, opportunities, and restraints that are available in the global Shea Butter market. The report discusses the impact of covid-19 on the key players of this market. The report also tells about the Shea Butter market segmentation on a different basis and how a competitive environment is developed among the key players around the globe. At last, the report presents some recent developments in this industry.



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 1.68 billion
  CAGR   CAGR 6.89%
  Base Year   2021
  Forecast Period   2022- 2030
  Historical Data   2020
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   BASF SE (Germany) Bunge Ltd (US) Cargill Incorporated (US) AAK AB (Sweden) Vink Chemicals GmbH & Co. KG (Germany) Sophim S.A (France) Ghana Nuts Company Limited (Ghana) Shea Radiance (US) The Organic Shea Butter Company (US) The Savannah Fruits Company (Ghana)
  Key Market Opportunities   The growing demand for natural ingredients products is expected to offer numerous profitable
  Key Market Drivers   rising prices of cocoa butter which is due to its limited suppl


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Frequently Asked Questions (FAQ) :

Leading players profiled in the shea butter market include Barry Callebaut Group, Churchwin Trading, Shea Radiance, Shea Therapy Ltd., Star Shea Ltd., The Hershey Company, Ghana Nuts Limited, The Savannah Fruits Company, The Organic Shea Butter Company, and VINK CHEMICALS GMBH & CO. KG.

The Middle East and Africa is expected to dominate the shea butter market.

Food segment will have the largest share in the shea butter market.

Growing awareness about its benefits and increasing use in cosmetics and chocolate industry are the key factors driving the shea butter market growth.

Stringent regulations and concerns of safety are the factors that may limit the shea butter market growth.