Shea Butter Market Value and Growth Analysis:
Shea Butter Market was valued at USD 1.92 billion in 2021, and it is expected to reach USD 2.9 billion by the end of 2027, growing at a CAGR of roughly 6.6 per cent between 2022 and 2027.
Shea butter is a pale yellowish or ivory natural vegetable fat obtained from the African tree nut Vitellaria paradoxa. Saturated and unsaturated fatty acids, vitamins E, A, F, and carotene are all present in the nozzle. Vitamin E and A are believed to boost collagen production and soothe and hydrate the skin. Shea butter is an excellent base for moisturising hair and skin products. It’s often used in cosmetics as a moisturiser, salve, or lotion, and it’s known for its protective properties against environmental skin-damaging effects including dryness, rash, and others.
Shea butter is a form of fat with diverse healing characteristics that are utilized in a variety of hair and skin products. It’s made from the seeds of the Vitellaria Paradoxa (Shea) tree, which is mostly found in Africa. Shea butter is made up of stearic and oleic acids and has no artificial ingredients. It’s commonly found in skin moisturizers, hair conditioners, and lip glosses. Shea butter is also used in a variety of industries, including food and healthcare. These products are preferred by consumers across the world. Because of the rising usage of cosmetics among the young and elderly, the market for cosmetic shea butter is likely to grow over the forecast period.
Shea Butter Market Segmentation Analysis:
Based on Type:
- Unrefined shea butter
- Refined shea butter
Based on type, the shea butter market can be segmented into Unrefined shea butter and Refined shea butter. The raw & unrefined sector contributed the most to the market in 2021, with $515.6 million, and is expected to reach $1,186.2 million by 2027, with a CAGR of 11.4 per cent during the forecast period. Consumer desire for less processed oils is increasing, as unrefined or cold-pressed oils have numerous health benefits. Unrefined shea butter, for example, keeps the skin young by stimulating the tissues and assisting the skin in producing its collagen. It also has soothing, hydrating, and nourishing characteristics, making it appropriate for dry, damaged hair and skin. Shea butter, both raw and unrefined, is a chemical-free alternative to many cosmetic items and can help to reduce inflammation. Raw & unrefined shea butter can be used to treat acne, anti-ageing, dry & itchy skin, chapped lips, frostbite, psoriasis, rashes, stretch marks, and sunburn because of its capacity. As a result, all of these factors contribute to the expansion of the unrefined shea butter market.
Based on Application:
- Personal care
Based on application, the shea butter market can be bifurcated into Cosmetics, Personal care, Food, Medical and Others. According to shea butter market trends, the food segment accounts for the largest share of the worldwide product market. Shea butter sales are roughly 84.3 per cent in the food market. Shea butter has functional and nutritional benefits, which makes it popular in the culinary sector. Shea butter, for example, is a natural antioxidant, a trans-fat-free edible oil, a food enhancer, and a functional food ingredient. It contains vitamins A, E, and F, which support healthy skin cell growth and circulation.
- North America
North America dominated the product market in 2021, and it is likely to continue to do so throughout the forecast period for shea butter. The shea butter industry is growing due to an increase in health-conscious people and a better lifestyle. The sale of shea butter goods is boosted significantly by the increase in purchasing power in this region. Furthermore, customers are increasingly choosing natural and organic cosmetics and foods. Shea butter is a relatively new commodity in the market, hence the number of producers operating in the market is very modest. As a result, during the projected period, new entrants are expected to have a strong growth potential in North America.
Europe accounts for more than a quarter of the global market for shea butter. The expanding concept of premium, high-quality food products with health advantages is likely to drive the market forward. Consumers have been forced to pay a high price for basic health goods containing natural components due to changing socioeconomic dynamics and increased purchasing power. Furthermore, severe EU legislation requires a minimum of 5% shea butter in chocolate products, implying a major increase in shea butter production in Europe by 2027.
- Asia Pacific
By 2027, Asia-Pacific, headed by Japan, India, and China, is predicted to grow at a CAGR of more than 11%. Changes in consumer tastes and increasing awareness of the availability of superior skin and health care products in the market, followed by rapid growth in economies like India, China, and South Korea, are expected to boost the growth of the shea butter market in this region.
- The Middle East and Africa
Burkina Faso and Nigeria are expected to lead the Middle East and Africa shea butter market, with a CAGR of 10% expected through 2027. The karate shea nuts are harvested and processed in the Sub-Saharan African belt, and then sold to Asian and European cosmetic businesses. Shea butter is an important commercial product for the African economy, according to the Global Shea Alliance, with Burkina Faso, Mali, Ghana, Nigeria, Benin, Togo, and Guinea being the leading producers. The increasing reliance of African countries on shea butter exports is a key element driving the target market’s expansion.
- Latin America
Latest Industry Developments:
Wa — ActionAid, a non-governmental organisation (NGO) that works in collaboration with the European Union (EU), has inaugurated and given over Shea butter processing equipment to women groups in four districts in the Upper West African Region.
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