ID: MRFR/F-B & N/4702-CR | | Region: Global | 100 pages
Global Shea Butter Market is expected to register a CAGR of 5.40% to reach USD 1,048.2 Million by 2026. Shea butter is also known as Galam butter or Karite butter. It is a fatty triglyceride extracted from the nut of plant Vitellaria paradoxa composed mainly of stearic acid and oleic acid. Fractionation is performed to produce shea butter. After the fractionation step, refining needs to be done before it can be used as a cocoa butter equivalent. Shea butter is widely used in cosmetics, health products, and in the confectionery and chocolate industry. Both, shea butter and its fractions, can replace edible vegetable oils or fats used for different food applications.
Declining production of cocoa beans and the escalating demand for cocoa beans alternative support the growth of the global shea butter market. With the decreasing production of cocoa beans, manufacturers are moving towards cocoa butter alternatives that generate higher revenue. Lower production of cocoa beans has highly affected their prices and has reduced their profitability. Hence, manufacturers are opting for cocoa butter alternatives that are not only derived from natural ingredients but also draw greater margins and higher profits.
The pandemic, COVID-19, has created a global crisis. The pandemic has created an economic backdrop worldwide and a chaotic environment, resulting in global rescission. With the increasing cases rapidly, the global shea butter market is affected in many ways. COVID-19 has impacted the supply chain of the global shea butter market. COVID-19 has disrupted the global supply chain and the entire value chain from raw material procurement to the manufacturing, packaging, and distribution processes. Several manufacturers have the required stocks of raw materials and end products. COVID-19 has impacted the production of the shea butter market. The production of shea butter starts with the procurement of raw materials. With barriers to the cross-border transportation of the commodities due to the pandemic, the shea butter manufacturers have become dependent on the local raw material suppliers increasing the bargaining power of suppliers. Mandatory closures of supermarkets and hypermarkets have affected the sales of shea butter across the globe.
Global Shea Butter Market is expected to register a notable growth rate during the forecast period. Manufacturers are opting for cocoa butter alternatives that are not only derived from natural ingredients but also draw greater margins and higher profits. Declining production of cocoa beans and the escalating demand for cocoa beans alternative support the growth of the global shea butter market. The potential demand for shea butter from various industries such as personal care, food & beverage, and pharmaceuticals is another factor supporting the growth of the global shea butter market. The growing demand for natural ingredients products is expected to offer numerous profitable growth opportunities to the market players during the upcoming years. Furthermore, stringent regulatory frameworks imposed by certain countries/regions hinder the growth of the global shea butter market.
Global Shea Butter Market Revenue, By Type, 2018-2026 (USD Million)
Sources: MRFR Analysis
The refined segment accounted for the major share in 2019 and is expected to expand at a substantial CAGR and reach USD 702.50 million by the end of 2026. Refined shea butter is a high-quality butter and is gently processed with raw material. It is extracted using mechanical extraction, partly using solvents. In refined shea butter, fragrances, ingredients, and coloring are removed with the help of a machine. As compared to unrefined shea butter, healthy vitamins and fatty acids are destroyed in refined shea butter. The refined segment is projected to exhibit the highest CAGR during the forecast period.
Global Shea Butter Market Share, By Region, 2019 (%)
Sources: MRFR Analysis
Europe accounted for the largest share of 37.13% of the global shea butter market in 2019. The growth of the shea butter market in Europe is attributed to several factors. One of the major factors for the rising growth of the market is the rising consumer inclination towards baked products and confectionery. The usage of shea butter is increasing rapidly over the last few years in bakery and confectionery products. The Europe region’s notable market share can be attributed to prominent confectionery companies in the region such as the Ferrero Group, Nestlé SA, Chocoladenfabriken Lindt & Sprüngli AG, and Pladis.
The Prominent Players operating in the Global Shea Butter Market include 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) and The Savannah Fruits Company (Ghana). The players operating in the global shea butter market focus on acquisitions, product launches, and expansions to strengthen their market position and capture a large customer base.
Global Shea Butter Market, By Flavor
Global Shea Butter Market, By Category
Global Shea Butter Market, By Application
Global Shea butter Market, By Region
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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.