The shea butter market has been gaining significant traction over the past decade owing to rising applications of shea butter in cosmetics as well as personal care products. Shea butter is extracted from shea nuts through a process involving sorting, drying, and manual pounding or milling. It is widely used in moisturizing creams and lotions due to its nourishing properties. Shea butter contains beneficial fatty acids like oleic acid and stearic acid that help retain the skin’s moisture levels. It also possesses anti-inflammatory and healing benefits which aid in treating skin conditions like eczema. Owing to these advantages, demand for shea butter from the cosmetic industry has been increasing considerably.
The global shea butter market is estimated to be valued at US$ 2.68 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the shea butter market are Verizon Communications Inc., AT&T Inc., TomTom N.V., MiX Telematics Limited, OnStar Corporation, Bayerische Motoren Werke AG (BMW), Trimble Inc., Zonar Systems, Inc., Omnitracs LLC, Inseego Corporation, AirIQ Inc., Bridgestone Corporation, General Motors Company (GM), Geotab Inc., Michelin Group, Octo Telematics S.p.A., Omnitracs, LLC, Bell Atlantic Corporation, Continental AG. The rising demand for organic and natural personal care products represents a key opportunity for players in the shea butter market. Major companies are investing in R&D to develop new product formulations using shea butter to cater to the rapidly growing demand in Asia Pacific and Middle East & Africa regions.
The global expansion of the shea butter market is driven by growing international trade. Countries in West Africa collectively account for over 80% of the global production of shea nuts. Leading manufacturers are focusing on setting up sourcing and procurement operations across major shea nut producing countries to ensure steady supply chains. Additionally, new regions including South America and parts of Asia are increasingly cultivating shea trees, which is supporting the global supply network.
Market drivers
The key driver boosting growth of the Shea Butter Market Size is the rising popularity of natural ingredients in the cosmetic industry. Growing consumer awareness about the use of chemicals in personal care is prompting a shift toward organic and natural ingredients like shea butter. Manufacturers are emphasizing the ingredient’s natural properties to market shea butter-based products. This is strengthening demand from environment-conscious consumers globally.
PEST Analysis
Political: The shea butter market is significantly impacted by trade relations and political stability in Africa where shea trees are predominantly grown. Changes in import/export policies and regulations can influence supply availability.
Economic: Factors such as global economic growth, disposable incomes, and demand from end-use industries determine the commercial viability of shea butter production and sales. Fluctuations in key economies can impact market trends.
Social: Growing awareness about the nutritional and skin benefits of shea butter is driving its usage in cosmetics and personal care products. Changes in lifestyle and consumption patterns augment social acceptability.
Technological: Advanced processing and refining techniques help enhance the quality and efficiency of shea butter extraction from kernels. New applications in industries like pharmaceuticals rely on innovative technological developments.
The market in terms of value is concentrated majorly in West Africa, primarily Ghana, Burkina Faso, Benin, Cote d’Ivoire and Nigeria, where majority of commercial shea trees are grown and kernels collected. Over 80% of global shea supply originates from these countries.
The fastest growing regional market for shea butter is North America. Increased awareness due to effective marketing campaigns by cosmetic companies and rising health-consciousness among consumers have boosted demand for shea butter based personal care and cosmetic products in USA and Canada. This trend is expected to continue driving higher growth in the North American region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
