Global Shea butter Market by Application (Food & Beverages, Cosmetics, Medicines & Others), By Species (Vitellaria Paradoxa & Vitellaria Nilotica), By Certified (Certified & Non- Certified), By Region (North America, Europe, Asia Pacific, Rest of World); Trend Analysis, Competitive Market Share & Forecast, 2016-2026.
- Published Date: October 2020
- Report ID: BWC20149
- Available Format: PDF
- Page: 252
Global Shea butter Market size- Industry Trends & Forecast Report 2026
The Global Shea butter Market has gained momentum in recent years with a CAGR of 7.1%, in value terms, over the forecast period 2020-2026, and is expected to reach USD 1,693.13 Million by 2026. The growing demand for Shea butter in the food & beverage industry and cosmetics Industry are vital factors expected to encourage the growth of the global Shea butter market in the upcoming period. Also, growing trends towards the application of shea butter in the bakery &confectionery industry as an alternative for cocoa butter due to high prices of cocoa as a result of limited supply are other factors estimated to accelerate the growth of the market in the next few years.
Global Shea butter Market Overview:
Shea butter is fat which is derived from shea tree nuts. At warm temperatures it is solid and it has an off-white or ivory color. Shea trees are native to West Africa, and the majority of shea butter is still coming from this area. For decades, shea butter has been used as a cosmetic ingredient. Its high vitamin and fatty acid content — combined with its easy-to-spread consistency — make it a perfect product for smoothing, relaxing, and healing skin. Shea butter is used in skin, hair, and food items of different kinds, and has many healing properties. Major driving factors of the market are various governments are restricting the usage of Shea butter in products such as chocolate, increasing disposable incomes, and growing concerns regarding fitness. and properties. Consumers worldwide prefer items made from shea butter. Extracting shea butter from nut requires different processes such as splitting, crushing, roasting, grinding, extracting the oils, and collecting and forming.
Global Shea butter Market Forecast and Trends
Increasing Chocolate Consumption
Owing to their Western region, chocolate consumption meets dichotomy in world regions. While some regions have timid demand for chocolate, the recent past has seen growing economies and globalization increase their consumption. About 50% of chocolate consumption is in Europe and about 20% in the United States. Asian countries are emerging as important consumers of chocolate because of changing socio-economic demographics. The rising demand for chocolate is driving demand for sources of fat such as shea butter. Shea butter is used to provide and improve the texture, consistency, and other properties of chocolate and is therefore expected to see proliferating demand in the ever-growing market for chocolate.
Rising consumer inclination towards natural products
The key growth drivers driving the global shea butter market are increasing consumer inclination toward natural products and consumer awareness. In addition, the increase in the use of shea butter in cosmetic products is driving market development. Furthermore, in the forecast period favorable government policies are expected to boost the market. Growing the consumption of eatable products consisting of shea butter, such as chocolates, is also likely to be the main driver of growth during the forecast era.
Lack of Skilled labor
Lack of knowledge on how to operate and maintain the machine: This is common in places where the equipment was provided. The knowledge on how to operate and maintain the machines becomes another issue. The processors lack expertise on how to operate and maintain the equipment. For example, in the focus group discussion conducted in the Wawa community of Borgu Local government area of Niger State, the processors have stopped using the equipment because the operator has gone to school, and the equipment has a fault and no person can. Repair them in the area except it is taken far into the city for repair. They, therefore, need operators and technicians to operate and maintain the equipment. Hiring this personnel also has adversely affected their income.
Impact of COVID-19 in industry
The World Health Organization now considers the novel coronavirus (COVID-19) to be a pandemic. As the virus spreads and cases mount, and measures stiffen to control the spread of the virus, there are numerous ways the payment system at all levels will be impacted in the coming weeks and months. Developing countries are particularly at risk as COVID-19 due to a reduction in the labor force, affect economies and livelihoods as well as a reduction in production operations.
The Food & beverage industry has been observing the devastating effects of the COVID-19 pandemic. The Shea butter industry plays an important role in the Food, Pharmaceuticals & Cosmetics, pharmaceuticals &other industries. With the widespread of the coronavirus, many production facilities of several end-user industries have been halted. With this, the demand for Shea butter used in these facilities has been declined.
Global Shea butter Market: By Application:
Based on Application, Shea butter Market comprises of Food & Beverages, Cosmetics, Medicines & Others. Cosmetics has a significant market owing to the higher product demand in this segment. However, cosmetics firms are investing more in R&D activity to introduce novel and effective products comprising shea butter. This will led to propel segmental growth. Rising demand for anti-aging &skin conditioning products will further propel the segmental growth. Food and beverages are the rapid-growing application segment due to the rising demand for bakery and confectionery products is the major factor propelling the segmental growth.
Global Shea butter Market: By Certified
Based on the certified type, the Shea butter market has been segmented into certified & Non- Certified. In which the demand for the Certified Shea Butter is mostly owing to its usage in cosmetics and food& beverages, which requires highly standardized butter. Hence the increasing utilization of the shea butter in these sectors is boosting the product demand.
Global Shea butter Market: By Species Type
Based on Species type, the Shea butter market has been segmented into Stellaria Paradoxa&Vitellaria Nilotica.In which Vitellaria Paradoxa is majorly used as the plant is self-fertile& suitable for sandy, loamy, and clay soil, that can even grow in nutritionally poor soil. Even it can grow in semi-shade (no shade& prefers dry or moist soil. Thus, these advantages are boosting product demand. Seed kernel comprises of fat, also known as shea butter, that is white, odorless, and is of high quality. Also, it is an excellent replacement for cocoa butter. It is widely used in cosmetic products. Thus, all these advantages led to the fueling of product demand.
Global Shea Butter Market: Regional insights
The Middle East & Africa was a significant market in the year 2019 and accelerate further at a slower CAGR from 2020 to 2026 due to the rising disposable income range& rapid urbanization. The growth is favored by the higher production of shea butter due to the abundant raw material supply and accessibility of cheap labor in this region. Led by the United Kingdom, Europe is witnessed to be the rapidly-growing regional market during the gauge period. This is majorly due to the rising demand for cosmetics products&personal care. Europe is the dominating region in the global cosmetics industry. Additionally, the increase in consumption rates of chocolate &bakery products in this region will further propel the product demand.
Source: BlueWeave Consulting
Companies such as Bunge Limited, Cargill, Inc, The Hershey Company, The Savannah Fruits Company, Vink Chemicals GMBH & CO. KG, Ghana Nuts Limited, Barry Callebaut Group, Churchwin Trading, Shebu Industries, Timiniya Tuma Company Ltd., the Pure company are the key players in the manufacturing of Shea butter.
In June 2019, Karite Shea Butter declared its Creme Mains Hand Cream & Creme Corps Body Cream. Creme Corps Body Cream is a dermatologist-developed, luxurious, hypoallergenic moisturizer that comprises around 30% of raw i.e. unrefined shea butter derived from Ghana, sunflower seed oil, organic unrefined coconut oil, and an antioxidant botanical extract. Additionally, The Creme Corps Body Cream was developed for assisting to smooth&repair, sensitive skin used in eczema and psoriasis disorders.
In 2018, Ghana Nuts Limited declared its business plans for expanding the capacity &setting up of the refinery in Tema to expand its export facilities & trading with European cosmetic companies. The 3000 metric to the facility is responsible for the refining of shea crude&soybean and exporting it to Europe based companies.
Scope of the Report
Ø Historical data – 2016-2019
Ø Base Year – 2019
Ø Forecast – 2020 – 2026
Ø Revenue in USD Million
Ø U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, South Korea UAE, South Africa, Saudi Arabia.
Ø By Species, By Certification, By Application, and By Region
Ø Bunge Limited, Cargill, Inc, The Hershey Company, The Savannah Fruits Company, Vink Chemicals GMBH & CO. KG, Ghana Nuts Limited, Barry Callebaut Group, Churchwin Trading, Shebu Industries, Timiniya Tuma Company Ltd.
Scope of the Report
Ø Vitellaria Paradoxa
Ø Vitellaria Nilotica
Ø Non- Certified
Ø Food & Beverages
Ø Asia Pacific
Ø North America
Ø Middle East & Africa
Ø Latin America
The objective of the Study:
Ø To analyze and forecast the global Shea butter market size of the market, in terms of value.
Ø To examine the careful market segmentation and forecast the market size, in terms of value, based on the region by segmenting the Global Shea butter market into five regions, namely, North America, Europe, Asia Pacific, Rest of the World(Latin America and the Middle East & Africa) and their leading countries.
Ø To outline, categorized, and forecast the global Shea butter market based on the Application, Certified, Species, and Region.
Ø To examine competitive developments like technological advancement, services, and regulative framework within the global Shea butter market.
Ø To highlight the impact analysis of the factors, affecting the market dynamics such as drivers, restraints, opportunities, and challenges.
Ø To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.
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