Shea Butter Market Report
Shea Butter Market by Type (Unrefined and Refined), Application (Cosmetics & Personal Care, Food & Beverages, and Pharmaceuticals), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028
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Impact of covid-19 on Shea Butter Market
Shea Butter Market
The shea butter market is estimated to be valued at $2,281,864.90 thousand by 2028, surging from $ 799,928.40 thousand in 2020, at a noteworthy CAGR of 14.0%.
Inclination of millennials towards the use of vegan cosmetic products is expected to accelerate the shea butter market growth.
However, high cost of shea butter is likely to restrain the market growth.
According to the regional analysis of the market, the Europe shea butter market accounted $338,369.70 thousand in 2020 and is projected to register a revenue of $978,920.00 thousand by 2028.
Shea Butter Overview
Shea butter is extracted from shea nuts largely grown in shea tree. Shea butter is fatty component of the shea nuts and is widely used in various fields such as cosmetics, personal care, pharmaceuticals, and nutraceutical industries. Shea butter offers many benefits of using it as an ingredient in cosmetic products, like it provides extra miniaturization to the dry skin, and repairs the damages and dry skin. Also, it is used in confectionery industries for production of chocolates.
COVID-19 Impact on the Shea Butter Market
Prevalence of COVID-19 pandemic, since 2019, has had a negative impact on the growth of the shea butter products market. As the government of the countries, across the world, have imposed strict transportation restrictions, the shea butter manufactures were unable to procure shea nuts, a raw material for shea butter products manufacturing. This factor has decreased the shea butter market growth. Also, sales of shea butter products have been seriously affected as many shops and convenience stores were completely shut amid lockdown. Moreover, the companies were also shut down due to which the production of shea butter products decreased. This has further led to a major decline in the market shares of shea butter products.
Inclination of People towards Shea butter Products is Projected to Drive Shea Butter Market
Increasing use of shea butter products such as lip balm, soap bar, and body lotion among the millennials owing to inclination of people towards vegan, plant based cosmetic products is expected to drive the shea butter market size in the predicted timeframe. Trend of using shea butter in cosmetic products has increased in the past few years due to its many advantages like high moisturizing effect, and capability to heal and nourish dry skin. Also, shea butter offers many medicinal benefits like it helps protect the skin from any inflammatory sensations and reduces skin allergies. Thus, it is widely used in pharmaceutical industries for the manufacturing of skin ointments. Thus, these factors are expected to increase the shea butter market share in the forecast time period.
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High Cost of Shea Butter is Likely to Restrain the Market Growth
Although shea butter is gaining popularity in confectionery industry for the manufacturing of chocolates, its high cost is anticipated to hinder the market growth of shea butter in the coming years. Shea butter is very expensive ingredient as it is largely exported from Africa with high taxes and also its processing methods are very costly. Also, the presence of many cheap substitutes of shea butter in the market like palm butter is further anticipated to restrict the shea butter market growth.
Increasing Demand for New Shea Butter Products will Serve Various Opportunities for the Manufacturing Industries in the Market
Continuous innovation and launches of new shea butter products are expected to provide a boost to the growth of the market in the near future. Shea butter manufacturing companies are spending a lot of their budget on their research and development activities to meet the demands of their customers and introduce natural cosmetic products made from shea butter. For instance, according to a news published on Premium Beauty News, an online news portal, on October 15, 2021, Faber-Castell Cosmetics, Germany based company, has introduced a new range of airtight wood pencils containing natural ingredients like shea butter which offer natural textures in makeup. Such factors are likely to boost the market growth in the future.
To know more about Shea butter market opportunities, get in touch with our analysts here.
Shea Butter Market
By Product Type
Based on type, the market has been divided into Unrefined and refined shea butter of which Unrefined sub-segment is projected to generate both maximum revenue and fastest growth.
Source: Research Dive Analysis
The unrefined sub-segment is predicted to have the fastest growing market share in the global market and register a revenue of $1,680,499.60 thousand with an increase from $599,027.30 thousand in 2020. This growth is projected to increased demand for unrefined shea butter in the cosmetic industry for manufacturing high quality products like lotion, body cream, and lip balm. As unrefined shea butter is directly extracted from shea nuts and is not chemically processed, it contains large number of beneficial ingredients that help in preventing dry skin. Thus, this factor is likely to boost the shea butter market growth even further.
Shea Butter Market
Based on the application, the market is divided into cosmetics & personal care, food & beverages, and pharmaceuticals. Among the mentioned sub-segments, the cosmetics & personal care industry is predicted to show the fastest growth and food & beverages is projected to garner highest market share.
Source: Research Dive Analysis
The cosmetics & personal care sub-segment of market is projected to have the fastest growth and surpass $215,091.90 thousand by 2028, with an increase from $73,243.20 thousand in 2020. This growth is attributed to increased preference for using shea butter by the industry for manufacturing high quality and vegan cosmetic products. Shea butter has anti-aging properties that has attracted large number of people. Also, it has anti-inflammatory properties due to which it is widely used in lotions and body creams. These factors are likely to generate shea butter market growth.
The food & beverages sub-segment of market is projected to have the highest market share and it is projected to reach $2,022,945.20 thousand by 2028 in a time frame of 2021-2028. This growth is attributed the fact that, the shea butter is widely used in the confectionery industry for the manufacturing of chocolate. Cocoa butter is the most important ingredient in the chocolate industry. But due to its limited supply and high prices, industry players have switched to a less expensive shea butter alternative in place of cocoa butter.
Shea Butter Market
The shea butter market was investigated across North America, Europe, Asia-Pacific, and LAMEA.
Source: Research Dive Analysis
The Market for Shea Butter in Europe to be the Most Dominant
The Europe shea butter market accounted $338,369.70 thousand in 2020 and is projected to register a revenue of $978,920.00 thousand by 2028. The shea butter market share growth is in Europe region because the region has well established confectionery industries where shea butter is widely used as an alternative to cocoa butter for manufacturing chocolates. Also, the region has rich presence of cosmetic industries where shea butter is used as a base ingredient for product development. These factors are likely to drive the shea butter market in future.
The Market for Shea Butter in Asia-Pacific to have Fastest Growth
The Asia-Pacific shea butter market accounted $143,187.20 thousand in 2020 and is projected to register a revenue of $440,399.90 thousand by 2028. The regional growth is attributed to the presence of countries like Japan and China, where the demand for natural and vegan skin care products is high. Also, in developing countries like India, the demand for shea butter and its products is growing due to high beneficial effects of shea butter on skin and influence of western skin care routine on the women youth. Such factors are responsible for high growth of shea butter market in the region.
Competitive Scenario in the Shea Butter Market
Product launches and acquisitions are common strategies followed by major market players.
Source: Research Dive Analysis
The companies involved in the shea butter market are Empower Village LLC., Bulk Apothecary, Baraka Shea Butter, Vink Chemicals GmbH & Co. KG, The Savannah Fruits, Clariant, Jedwards International, Inc., Akoma Cooperative Multipurpose Society, Ghana Nuts Company Limited, and The Organic Shea Butter Company.
Porter’s Five Forces Analysis for the Global Shea Butter Market
- Bargaining Power of Suppliers: The suppliers in the shea butter market are high in number. Several companies are working on product innovation and development.
Thus, the bargaining power suppliers is high.
- Bargaining Power of Buyers: Buyers are high in number and have huge bargaining power, they demand best services at low prices. This increases the pressure on the manufacturing companies to offer the best service in a cost-effective way. Thus, buyers can freely choose the product that best fits their preference.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: New companies entering the market are adopting new shea butter product launches in the market in minimum time frame.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: Presence of many cheap alternatives in the market other than shea butter like palm butter is likely to shift the customer’s preference towards different products.
Thus, the threat of substitutes is high.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players. These companies are launching their new products in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Type
Segmentation by Application
Key Companies Profiled
Q1. Who are the leading players profiled in the shea butter market?
A. Empower Village LLC and Jedwards International, Inc. are the leading players in the shea butter market.
Q2. Which region is expected to dominate the shea butter market?
A. Europe region is expected to dominate the shea butter market.
Q3. What is the shea butter market size from 2021 to 2030?
A. The global shea butter market was valued at $799,928.4 thousand in 2020, and is projected to reach $2,281,864.9 thousand by 2028, registering a CAGR of 14.0%. It is expected that the market will grow even further till 2030.
Q4. What is the CAGR of shea butter market?
A. The CAGR of shea butter market is 14.0%.
Q5. How will the COVID-19 pandemic impact the shea butter market in 2021?
A. COVID-19 will have a negative impact on shea butter market due to decreased production of shea butter amid worldwide lockdowns.
1.1.2.Real-time insights and validation
1.1.4.Assumptions & forecast parameters
CHAPTER 2:EXECUTIVE SUMMARY
CHAPTER 3:MARKET OVERVIEW
3.1.Market definition and scope
3.2.1.Top investment pockets
3.3.Porter's five forces analysis
3.5.1.Rising awareness about the benefits of Shea butter to drive the market
3.5.1.Limited availability of Cocoa butter likely to accelerate the market growth
3.6.1.High prices of Shea butter to restrain the market growth
3.7.1.New Shea product launches by the companies likely to drive the market in future
3.9.Market value chain analysis
CHAPTER 4:IMPACT OF COVID19 ON SHEA BUTTER MARKET
4.2.COVID-19 health assessment
4.3.Impact of COVID-19 on the global economy
4.4.Impact of COVID-19 on Shea butter market
4.5.Shea Butter Market size and forecast, by region, 2021-2028
CHAPTER 5:GLOBAL SHEA BUTTER MARKET, BY TYPE
5.1.1.Market size and forecast, by type
5.2.1.Key market trends, growth factors and opportunities
5.2.2.Market size and forecast, by region
5.2.3.Market share analysis, by country
5.3.1.Key market trends, growth factors and opportunities
5.3.2.Market size and forecast, by region
5.3.3.Market share analysis, by country
CHAPTER 6:GLOBAL SHEA BUTTER MARKET, BY APPLICATION
6.1.1.Market size and forecast, by application
6.2.Cosmetics & Personal Care
6.2.1.Key market trends, growth factors and opportunities
6.2.2.Market size and forecast, by region
6.2.3.Market share analysis, by country
6.3.Food & Beverages
6.3.1.Key market trends, growth factors and opportunities
6.3.2.Market size and forecast, by region
6.3.3.Market share analysis, by country
6.4.1.Key market trends, growth factors and opportunities
6.4.2.Market size and forecast, by region
6.4.3.Market share analysis, by country
CHAPTER 7:GLOBAL SHEA BUTTER MARKET, BY REGION
7.1.1.Market size and forecast, by region
7.2.1.Key market trends, growth factors, and opportunities
7.2.2.Market size and forecast, by type
7.2.3.Market size and forecast, by application
7.2.4.Market size and forecast, by country
126.96.36.199.Market size and forecast, by type
188.8.131.52.Market size and forecast, by application
184.108.40.206.Market size and forecast, by type
220.127.116.11.Market size and forecast, by application
18.104.22.168.Market size and forecast, by type
22.214.171.124.Market size and forecast, by application
7.3.1.Key market trends, growth factors, and opportunities
7.3.2.Market size and forecast, by type
7.3.3.Market size and forecast, by application
7.3.4.Market size and forecast, by country
126.96.36.199.Market size and forecast, by type
188.8.131.52.Market size and forecast, by application
184.108.40.206.Market size and forecast, by type
220.127.116.11.Market size and forecast, by application
18.104.22.168.Market size and forecast, by type
22.214.171.124.Market size and forecast, by application
126.96.36.199.Market size and forecast, by type
188.8.131.52.Market size and forecast, by application
184.108.40.206.Market size and forecast, by type
220.127.116.11.Market size and forecast, by application
7.3.10.Rest of Europe
18.104.22.168.Market size and forecast, by type
22.214.171.124.Market size and forecast, by application
7.4.1.Key market trends, growth factors, and opportunities
7.4.2.Market size and forecast, by type
7.4.3.Market size and forecast, by application
7.4.4.Market size and forecast, by country
126.96.36.199.Market size and forecast, by type
188.8.131.52.Market size and forecast, by application
184.108.40.206.Market size and forecast, by type
220.127.116.11.Market size and forecast, by application
18.104.22.168.Market size and forecast, by type
22.214.171.124.Market size and forecast, by application
126.96.36.199.Market size and forecast, by type
188.8.131.52.Market size and forecast, by application
184.108.40.206.Market size and forecast, by type
220.127.116.11.Market size and forecast, by application
7.4.10.Rest of Asia-Pacific
18.104.22.168.Market size and forecast, by type
22.214.171.124.Market size and forecast, by application
7.5.1.Key market trends, growth factors, and opportunities
7.5.2.Market size and forecast, by type
7.5.3.Market size and forecast, by application
7.5.4.Market size and forecast, by country
126.96.36.199.Market size and forecast, by type
188.8.131.52.Market size and forecast, by application
184.108.40.206.Market size and forecast, by type
220.127.116.11.Market size and forecast, by application
18.104.22.168.Market size and forecast, by type
22.214.171.124.Market size and forecast, by application
CHAPTER 8:COMPANY PROFILES
8.1.Empower Village LLC
8.2.Baraka Shea Butter
8.3.Ghana Nuts Company Ltd.
8.4.The Shea Butter Market
8.5.Jedwards International, Inc.
8.6.AOS Products Private Limited
8.8.Akoma Cooperative Multipurpose Society
8.9.The Savannah Fruit Company
Shea butter is a fat that is extracted from shea nuts of the African shea tree. They are solid at warm temperatures and are ivory in color when raw. Shea butter is extensively used in various areas like cosmetics, pharmaceutical, personal care, nutraceutical, and food industries. Most prominently, shea butter is used in the personal and cosmetic industry to aid against skin problems like acne, burns, dryness, dandruff, eczema, and others.
Forecast Analysis of the Global Shea Butter Market
Rapid inclination towards organic or plant-based cosmetic products among people across the globe is expected to drive the growth of the shea butter market during the forecast period 2021-2028. In addition, wide variety of shea butter products like lip balm, moisturizing lotion, soap bar, and others coupled with the surging demand for new shea butter products in order to meet the demands of the customers is further expected to create immense opportunities for the growth of the market. However, high-cost shea butter is expected to impede the growth of the global shea butter market during the forecast period.
According to the report published by Research Dive, the global shea butter market is expected to generate a revenue of $2,281,864.90 thousand by 2028, growing rapidly at a CAGR of 14.0% during the forecast period 2021-2028. The major players of the market include Bulk Apothecary, Baraka Shea Butter, Clariant, Empower Village LLC, Jedwards International, Inc., Akoma Cooperative Multipurpose Society, Vink Chemicals GmbH & Co. KG, The Savannah Fruits, Ghana Nuts Company Limited, The Organic Shea Butter Company, and many more.
Key Developments of the Global shea butter market
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global shea butter market to grow exponentially.
For instance, in October 2020, Unilever, a British multinational consumer goods company, acquired Sundial Brands, one of the largest producers of hair and skincare products for African-American women, in order to maximize its presence in the global shea butter market by enhancing their brand portfolio.
In June 2021, AAK, a global Sweden-based company and producer of vegetable oils and fats, partnered with Mars, a global confectionery, food, and pet care company, in a ten-year sustainable shea initiative so as to improve the livelihoods of women working in Ghana’s shea supply chain.
In October 2021, ABC Funds, a top Canadian financial management company, invested about EUR1.6 million in two companies in the shea sector namely, Mali Shi, first operational industrial-scale shea butter processing plant in Mali and Bio Amandes, an industrial processor of shea butter in Côte d’Ivoire, involved in both locally sourcing and producing shea butter, in order to diversify their investments in the lucrative industry.
Most Profitable Region of the Market
The Asia-Pacific region is expected to have the fastest growth rate, and generate a revenue of $440,399.90 thousand during the forecast period. Increasing demand for natural and vegan skin care products in this region is expected to drive the growth of the market. In addition, prevalence of prominent players of the market in this region is further expected to bolster the growth of the market during the forecast period.
COVID-19 Impact on the Global shea butter market
The outbreak of coronavirus has had a negative impact on the growth of the global shea butter market, owing to the prevalence of lockdowns in various countries across the globe. Stringent travel restrictions on the import of raw materials during lockdowns curbed the production of shea butter. In addition, the manufacturing plants, shops and convenience stores were shut down during lockdowns which further decreased the demand for shea butter.
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