What is the Historical Analysis of the Shea Butter Market Size?
The shea butter market has seen considerable growth due to a variety of factors.
•The shea butter industry has seen robust growth in recent times. The market is set to expand from $2.14 billion in 2024 to $2.29 billion in 2025, with a compound annual growth rate (CAGR) of 6.8%.
The historic growth is a result of its conventional use in beauty and skincare products, preference for natural and organic ingredients, expansion of the beauty and personal care sector, heightened consciousness of the benefits of shea butter, and its usage in traditional medicine.
What is the Forecasted Growth of the Shea Butter Market Size?
The shea butter market is expected to maintain its strong growth trajectory in upcoming years.
• Growth in the shea butter market size is predicted to be significant in the following few years with its value expected to reach $3.02 billion in 2029, at a compound annual growth rate (CAGR) of 7.1%.
The projected surge during this period is due to multiple factors such as expansion of the food sector, a rising demand for plant derived ingredients, employment in functional foods and nutraceuticals, an increased utilization in hair care commodities, growth in online shopping and e-commerce, and an increasing trend of DIY beauty and skincare with shea. Emerging trends anticipated during this phase include the creation of shea butter derivatives and innovations, the launch of shea butter-infused clothing and textiles, advancements in shea processing technology, the use of shea butter in eco-friendly packaging, and a collaborative approach particularly for research and development in the shea industry.
What Are The Key Drivers Fueling Growth In The Shea Butter Market?
The expanding application of cosmetics is believed to escalate the development of the shea butter market. Cosmetics encompasses a multitude of products used on various parts of the body including the face, hair and nails to improve or change how they look. Shea butter, with its moisturizing, nourishing, and anti-inflammatory properties, is a popular choice in cosmetics since it foster healthier and more hydrated skin and hair. For example, per the British Beauty Council, a non-profit organization based in the UK, in March 2021, an astounding 56,000 organic beauty and wellbeing products and ingredients was honored with the COSMOS certification for 2022. This signifies a 22% increase from the previous year. Consequently, the rising cosmetics usage is stimulating the development of the shea butter market.
What Are The Principal Market Segments In The Global Shea Butter Industry?
The shea butter market covered in this report is segmented –
1) By Product: Raw And Unrefined Shea Butter, Refined Shea Butter
2) By Nature: Organic, Conventional
3) By Application: Food Processing, Cosmetics And Personal Care, Pharmaceuticals, Other Applications
Subsegments:
1) By Raw And Unrefined Shea Butter: Organic Raw Shea Butter, Non-Organic Raw Shea Butter
2) By Refined Shea Butter: Deodorized Refined Shea Butter, Bleached Refined Shea Butter
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Which Emerging Market Trends Are Altering The Shea Butter Sector?
Leaders in the shea butter market are introducing novel products, like those infused with shea butter, to cater to a larger audience, boost sales, and escalate revenue. Shea butter-incorporated skincare products can be categorized as cosmetics or personal care commodities, with shea butter being a primary component. One example is Salve Pharmaceuticals Pvt. Ltd, an Indian dermatology firm, which in September 2022, unveiled Ultra, a series of skincare commodities. The standout attribute of the Ultra series is its formula designed for regular use, delivering 72-hour moisturization. Constituted with ingredients like almond oil, vitamin E, shea butter, and hibiscus extracts, it guarantees sustained nourishment for skin cells. The collection comprises two products: Parasoft Ultra Hydrating and Protecting Cream, and Parasoft Ultra Daily Moisturizing Body and Face Lotion. Importantly, both items are free from parabens, and their non-oily application heightens customer ease of use.
Who Are the Key Players in the Shea Butter Market?
Major companies operating in the shea butter market include:
• BASF SE
• Bunge Limited
• Wilmar Africa Limited
• Clariant AG
• AAK AB
• Fuji Oil Holdings Inc.
• Croda International plc
• L'Occitane en Provence
• NOW Foods
• 3F Industries Limited
• Anderson International Corp.
• OLVEA Group
• Bulk Apothecary
• International Oils & Fats Limited
• Akoma International Ltd.
• Manorama Industries Limited
• Sophim S.A.
• The Savannah Fruits Company
• Green Leaf Naturals
• Makers Ingredients Limited
• Ghana Nuts Company Limited
• Shea Radiance
• Better Butter Company
• Zoic Cosmetics
• Shebu Industries
• Jiangxi Hualong Plant Spice Co. Ltd.
• Suru Chemicals & Pharmaceuticals Pvt. Ltd.
• Purenso Select
What are the Regional Insights into the Shea Butter Market?
North America was the largest region in the shea butter market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the shea butter market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
