Shea Butter Market Size & Share, by Product (Raw and Unrefined Shea Butter, Refined Shea Butter), Application (Food & Beverage, Personal Care & Cosmetics and Pharmaceutical), Regional Forecast, Industry Players, Growth Statistics Report 2024-2033

Market Outlook:

Shea Butter Market size exceeded USD 2.1 Billion in 2023 and is anticipated to cross USD 4.6 Billion by 2033, registering a CAGR of more than 6.6% during the forecast period. Due to rising customer desire for natural and organic skincare products, shea butter demand has been constantly rising. Shea butter is prized for its organic qualities and frequently seen in goods that claim to be devoid of synthetic additives and chemicals.

The cosmetics and personal care industries consume the majority of shea butter. It is frequently found in body creams, hair care items, lip balms, and moisturisers. Additionally, it is a component in candles and soaps. Europe and North America are the two biggest consumers of shea butter, which is distributed to numerous nations worldwide. A prominent market for shea butter goods is the United States in particular.

• Base Year Value (2023): USD 2.1 Billion
• CAGR (2024-2033): 6.6%
• Forecast Year Value (2033): USD 4.6 Billion
• Historical Data Period: 2019-2022
• Largest Region: North America
• Forecast Period: 2024-2033

Market Dynamics:

Growth Drivers and Opportunities:

Demand for affordable shea butter to drive the market growth

A wider spectrum of people can now afford shea butter, a natural product. Consumption and demand may rise as a result, particularly in price-sensitive sectors. Manufacturers can use shea butter in a greater variety of products as it becomes more widely available and less expensive. Cosmetics, skincare, haircare, and even food goods can fall under this category. The diversification of available products may spur market expansion. The desire for cost can spur innovation in the procedures used to make shea butter. This may result in enhanced extraction methods, novel packaging designs, and quality assurance procedures, all of which could further improve the market as a whole. Companies who can provide shea butter at a reasonable price may acquire a competitive edge in the market. This may encourage additional players to do the same.

Demand of bakery and confectionery products

The shea butter market may expand due to consumer demand for bakery and confectionery goods that use shea butter. The food sector values shea butter for its distinctive qualities, such as its creamy texture, mild flavour, and health advantages. Shea butter is suitable for vegan and dairy-free baked products and confections because it is a plant-based fat. The usage of shea butter as an ingredient might satisfy this expanding market segment as demand for vegan products continues to climb. Premium and artisanal baking and confectionery products can use shea butter. The market for shea butter has seen a rise in revenue as a result of the higher prices that these goods frequently fetch.

Report Scope

Report Coverage	Details
Segments Covered	Product, Application
Regions Covered	• North America (United States, Canada, Mexico)   • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe)   Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC)   • Latin America (Argentina, Brazil, Rest of South America)   • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Shebu Industries, 3F Industries Ltd, FUJI OIL HOLDINGS INC, Ghana Nuts Ltd, Stern-Wywiol Gruppe GmbH & Co. KG, Akoma Cooperative, ADM, AAK AB, Bunge Ltd., StarShea

 

Industry Restraints & Challenges

Availability of substitutes of shea butter to hamper the market growth

Some vegetable fats and oils can serve the same purposes as other types of fats and oils in products, such as providing moisture in cosmetics or acting as cooking oil. They might compete with shea butter if they provide equal functionality. If substitutes are more reasonably priced, manufacturers seeking to cut production costs may find them to be a more alluring alternative. Consumers and enterprises with high price sensitivity may select less expensive options. Shea butter is in direct competition with other all-natural substances found in foods and cosmetics including cocoa butter, coconut oil, and avocado oil. For some applications, these components can be used in their place.

Regional Forecast:

North American Market

North America is projected to achieve over 8.25% CAGR between 2024 to 2033. Shea butter is utilised in the food business in North America, though not as frequently as in cosmetics. Products containing it include chocolate, baked foods, and cooking oils. Its moderate flavour and potential health advantages are appreciated by certain customers. Natural and organic products are becoming more popular as the importance placed on health and wellness grows. Shea butter, an all-natural, unrefined substance with possible health advantages, fits in nicely with this trend. North American consumers are generally aware of ethical and environmentally friendly sourcing methods. Growing in popularity is shea butter that is supplied ethically and sustainably. North American customers have access to a wide range of shea butter-based goods because to the many brands and producers who make and market them.

Asia Pacific Market

Asia Pacific is witnessing the fastest market growth up to 2033. In Asia Pacific region, shea butter is a common ingredient in cosmetic and skincare products. It is valued for its skin-nourishing, anti-aging, and moisturising qualities. In their cosmetic products, consumers in nations like China, South Korea, and Japan are increasingly looking for natural and organic ingredients. Additionally, shea butter is a component in shampoos, conditioners, and hair treatments. There has been an increase in demand for shea butter-based products throughout Asia, where haircare is a major component of beauty regimens. Similar to other regions, Asia-Pacific is seeing a rise in demand for natural and organic ingredients. Shea butter fits in nicely with these trends and is valued for its sustainability and purity.

Segmentation Analysis:

Insights by Product

The refined shea butter segment market value will be over USD 3.34 billion by 2033. Due to its great moisturising qualities, mild odour, and creamy texture, refined shea butter is widely utilised in the cosmetic and skincare industries. It is frequently found in a variety of skincare products, including lip balms, body butters, lotions, and creams. The usage of refined shea butter in these products is a result of consumer desire for all-natural, skin-friendly components. Additionally, refined shea butter is a component of shampoos, conditioners, and hair treatments for use on the hair. With a neutral aroma that works with a variety of haircare products, it helps increase hair hydration and manageability. Refined shea butter is frequently used in beauty products made by worldwide beauty brands. These companies expand the market for products made with shea butter, which raises demand.

Insights by Application

The food and beverages segment will generate more than USD 2.88 billion through 2033. Chocolates and other confectionary items are made with shea butter. It contributes to a creamy and smooth mouthfeel and helps make chocolates feel better in terms of texture. The use of shea butter increases along with the demand for high-end chocolates and confections. To appeal to a worldwide audience, international food manufacturers have created shea butter-based products. The use of shea butter in the food and beverage sector has grown as a result of globalisation. Shea butter has been incorporated into these goods as a result of the development of functional foods, which provide unique health advantages beyond basic nutrition. For instance, it could be included in protein smoothies, energy bars, and dietary supplements.

Competitive Landscape:

Major players in the market

• Shebu Industries
• 3F Industries Ltd
• FUJI OIL HOLDINGS INC
• Ghana Nuts Ltd
• Stern-Wywiol Gruppe GmbH & Co. KG
• Akoma Cooperative
• ADM
• AAK AB
• Bunge Ltd.
• StarShea