With reference to the latest market forecast report published by Transparency Market Research, titled ‘Shea Butter Market: Global Industry Analysis and Opportunity Assessment 2018-2028’, revenue generated from the global shea butter market has been estimated to be valued around US$ 2,144.6 Mn in 2018, which is estimated to increase at a CAGR of 5.2% to US$ 3,566.1 Mn by 2028
Shea butter is known as a superfood for modern cosmetic and personal care products, and a potential alternative to vegetable oil in the food processing industry. Shea butter is the fat source obtained from the kernels of Vitellaria paradoxa, commonly known as the shea tree. The butter extracted from the nuts of the shea fruit is used as margarine in bakery products, an alternative to vegetable oil for application in chocolate and confectioneries, potential skin soothing and healing ingredient in cosmetic and personal care products, base ingredient in pharmaceuticals, and in households for culinary applications.
Target Segments for the Shea Butter Market
The global shea butter market is segmented on the basis of grade, nature, end use, and region. On the basis of end use, the global shea butter market is categorized into food processing, cosmetics and personal care, pharmaceuticals, and retail. The cosmetics and personal care segment is anticipated to be a prominent segment in the shea butter market, with a market share of 52.9%, followed by the food processing segment, with a value share of 32.9% in the year 2018.
Shea butter finds application in cosmetics and personal care products such as lotions, creams, hair care products, oil, color cosmetics, and others, owing to its high content of stearic acid, palmitic acid, and arachidic non saponifiable fatty acids, which provide shea butter its moisturizing, skin smoothing, and anti-inflammatory properties.
Shea butter is also expected to gain substantial transaction in the food processing segment, with a market value of US$ 710.3 Mn in the year 2018. Based on the grade of shea butter, the shea butter market is categorized into grade A, grade B, and grade C, out of which, the grade B shea butter segment is expected to dominate the market, with a market value of US$ 1,631.4 Mn in the year 2018.
Target Geographies for Shea Butter
The shea butter market has been segmented into North America, Asia Pacific (APAC), Europe, Latin America, and the Middle East & Africa (MEA). Shea butter is expected to witness proliferating demand in both, developed and developing economies, over the forecast year. Europe is expected to constitute 47.8% of the market share for shea butter in the year 2018. The region is anticipated to register a significant CAGR of 5.4% over the forecast period, owing to the increasing consumption and demand for natural cosmetics and personal care products, and the rapidly growing cosmetics industry.
Moreover, Europe is witnessing growing demand for cocoa butter equivalents and replacers such as shea butter for application in the food processing industry, which is fuelling the growth of the shea butter market in the region. The Asia Pacific region is estimated to offer maximum growth opportunities in the shea butter market, with a CAGR of 6.2% over the forecast period, due to to increasing urbanization, per capita disposable income of consumers, and improving standards of living. The rapidly growing food processing industry, increasing demand for bakery and confectioneries, and increasing market for cosmetics and personal care products in Asia Pacific are driving the growth of the shea butter market in this region.
Global Shea Butter Market: Competitive Assessment
Transparency Market Research has outlined the most important companies that are players in the global shea butter market, such as Bunge Limited, Olvea Group, AAK AB, Cargill, Sophim S.A., Incorporated, Archer Daniels Midland Company, Clariant AG, BASF SE, AOS Products Private Limited, Ghana Nuts Company Ltd, Croda International Plc, Ojoba Collective, Agrobotanicals, LLC, The Savannah Fruits Company, The HallStar Company, and others.
Manufacturers of shea butter are focusing on developing high quality, organic, unrefined cosmetic shea butter, owing to the increasing demand for specialized chemical-free cosmetics and personal care products. Besides, manufacturers are also trying to replace cocoa butter with shea butter for application in chocolates and confectioneries, due to supply constraints and the increasing prices of cocoa butter.