The Shea Butter Market Anticipated to Generate a Revenue of $2,281,864.90 thousand in 2021 to 2028 TimeframeDownload Sample Reports Overview
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%.
COVID-19 Impact on the Shea Butter Market
The COVID-19 pandemic had a negative impact on the shea butter market. Due to strict lockdown, the supply of raw material for shea butter product manufacturing was unable to reach the manufacturing units, due to which the product manufacturing was delayed. This factor has decreased the shea butter market growth. Also, the stores and shops were closed that has negatively impacted the sales of shea butter. These factor are likely to impede the market growth in the future.
Shea Butter Market Analysis
Rising awareness about the medicinal properties of shea butter for skin such as anti-aging properties, extra moisturizing properties, and healing effect is expected to increase the shea butter market revenue in the coming years. Also, inclination of people, majorly women and youth population, towards natural ingredients based cosmetic products is further anticipated to flourish the shea butte market growth in the future.
Shea butter is quite expensive, and the products manufactured from it are also high in price. Therefore, not many people can afford to use it regularly. Also, many cheap alternatives of shea butter are available in the market like palm butter. These factors are anticipated to restrain the shea butter market growth in the forecast time period.
As the shea butter is produced in Africa, the shea butter industry provides huge employment opportunities to the native people, especially women of the region. Therefore, the government in Africa has introduced various policies to support and promote the shea butter industry there. This factor is likely to boost the shea butter market size in the next few years. Also, new product launches by many cosmetic industries are further anticipated to grow the shea butter market share, considerably. For instance, according to an article published in Beauty Packaging, an online magazine, on September 29, 2021, Monat Global Corporation, an American based cosmetic company, has launched 5 new products including a lip balm and a body lotion which contain high concentration of shea butter due to its anti-aging and skin healing properties.
Shea Butter Market, Segmentation
The shea butter market is segmented based on type, application, and region.
Based on type, the market has been divided into unrefined and refined shea butter. Among these, 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. The growth is due to rising demand for unrefined shea butter for manufacturing different types of cosmetic and personal care products like lip balm and body lotion in cosmetic industries. As unrefined shea butter has high concentration of essential nutrients like beta carotene and fatty acids, it is widely used in the cosmetic industry.
Based on the application, the market is divided into cosmetics & personal care, food & beverages, and pharmaceuticals. The food & beverages sub-segment of market is projected to have the highest share and reach $2,022,945.20 thousand by 2028 in a time frame of 2021-2028. This growth is attributed to the use of shea butter as a cocoa butter substitute in the confectionery industry for marking chocolates. As cocoa butter is very expensive due to its limited availability, the companies have now started using cocoa butter alternatives like palm butter, mango butter, and shea butter for producing different products.
On the basis of region, 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 regional growth is observed because Europe region has a large number of cosmetic and pharmaceutical industries where shea butter is extensively used for manufacturing products like body lotion, moisturizer, and food products like chocolates.
Top 10 Major Key Players in the shea butter market are -
- Empower Village LLC.
- Bulk Apothecary
- Baraka Shea Butter
- Vink Chemicals GmbH & Co. KG
- The Savannah Fruits
- Jedwards International, Inc.
- Akoma Cooperative Multipurpose Society
- Ghana Nuts Company Limited
- The Organic Shea Butter Company.
Porter’s Five Forces Analysis for the Shea Butter Market
- Bargaining Power of Suppliers: Due to high shea butter demand, suppliers have choices to set shea butter prices according to their preference.
Hence, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: Since the industry is emerging and expanding, the buyers have a variety of options available in the products.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: Due to its fast growth, there is a lot of scope for profits for small scale industries in shea butter industries.
As a result, the threat of the new entrants is high.
- Threat of Substitutes: Many manufacturing companies are introducing alternatives to shea butter as it is costly.
Therefore, the threat of substitutes is high.
- Competitive Rivalry in the Market: The manufacturing companies are launching their products with alternative strategies and less harmful products.
Therefore, competitive rivalry in the market is high.