Global Shea Butter Market Size, Share, Growth Analysis, By Type, By Application, By Nature, By Distribution Channel - Industry Forecast 2023-2030

Shea Butter Market size was valued at USD 2.07 billion in 2021 and is poised to grow from USD 2.21 billion in 2022 to USD 4 billion by 2030, growing at a CAGR of 6.8% in the forecast period (2023-2030).

The global shea butter market is experiencing significant growth due to its diverse applications in cosmetics, pharmaceuticals, and food industries. Shea butter, derived from the nuts of the shea tree, is known for its moisturizing and healing properties. Increasing consumer demand for natural and organic products, coupled with its rising popularity in skincare and haircare products, is driving market expansion. Key factors contributing to market growth include expanding product portfolios, innovative packaging, and growing awareness of the benefits of shea butter.Top-down and bottom-up approaches were used to estimate and validate the size of Shea Butter In Manufacturing Industry and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Segments covered in this report:

Global shea butter market is divided into type, application, nature, distribution channel, and region. On the basis of type, the market is  divided into refined and ultra-refined and raw and unrefined. On the basis of nature, the market is divided into organic and conventional. Based on distribution channel, the market is segmented into specialty stores, online stores, supermarket, convenience stores, hypermarket, others.  On the basis of application, the market is divided into fod and cosmetics. On the basis of region, it is categorized into North America, Europe, Asia-Pacific, and LAMEA.

Driver

The market size of shea butter is expected to increase in the coming years, primarily because of the growing use of shea butter products by millennials who prefer vegan cosmetics made from plant-based ingredients. Shea butter has gained popularity in cosmetic products due to its numerous benefits such as its high moisturizing effect, ability to nourish and treat damaged skin, and health advantages including reducing skin allergies and protecting the skin from inflammation. Consequently, it is commonly used to produce skin ointments in the pharmaceutical industry. These factors are expected to contribute to the growth of the shea butter market in the foreseeable future.

Restrain

The increasing popularity of shea butter in the confectionery industry for chocolate production may face limitations in market expansion due to its high cost. Shea butter is an expensive ingredient due to its high tax rate as it is mainly exported from Africa. Additionally, the preparation technologies used for shea butter are also costly. Furthermore, the market expansion of shea butter may also be restricted by the availability of less expensive alternatives like palm butter.

Trends

Online shopping has made it easier for customers to access a wide variety of cosmetic shea butter products, including lotions, creams, and hair products. Additionally, it has simplified the process of comparing prices for various cosmetic items on a single platform. The availability of shea butter to consumers has increased as a result of this trend. This shift towards online retailing is expected to boost the shea butter cosmetic industry's growth and market penetration.