Shea butter Market Expected to reach $2,408.70 million by 2030 Allied Market Research

According to a new report published by Allied Market Research, titled, “Shea butter Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2021-2030,”

The shea butter market size is expected to reach $2,408.70 million by 2030, registering a CAGR of 14.1% from 2021 to 2030.

Shea butter is extracted from the nuts of the shea tree. It is off-white or ivory color. Shea trees are native to West Africa, and most shea butter still comes from that region. Nigeria, Mali, Burkina Faso, Ghana, Côte d'Ivoire, Benin and Togo are top shea nut producing countries. Shea butter has gained significant share in the cosmetic industry and is expected to sustain its share throughout the forecast period. This is majorly attributed to enormous benefits offered to skin such as it is safe for all types of skin, moisturizing effects, anti-inflammatory and it promotes strong antioxidant activity.

The market for shea butter is likely to grow at a significant rate, owing to their increasing consumption of plant-based food products through cheese and meat. US is the largest shea butter market in North America due to increase in demand from millennial and surge in marketing activities. In addition, improved distribution channels also drive the growth of the product market in North America.

Growth in vegan рорulаtіоn and іnсrеаѕe in рорulаrіtу оf рlаnt-bаѕеd рrоduсtѕ аmоng соnѕumеrѕ аrе mајоr fасtоrѕ driving the growth of the global shear butter mаrkеt. Іn аddіtіоn, іnсrеаѕe in аdорtіоn оf hеаlthу lіfеѕtуlе аnd growth in рrеfеrеnсе for vеgеtаrіаn dіеt, оwіng tо rіѕіng hеаlth соnѕсіоuѕnеѕѕ аrе аlѕо fасtоrѕ аntісіраtеd tо ѕuрроrt the growth of the global shea butter mаrkеt.

The outbreak of COVID-19 has negatively impacted shea butter market growth. The global COVID-19 pandemic has caused major disruptions in the trade of shea nuts. This development has affected prices and has led delay in deliveries of shea nuts to Europe and North America. Imports for shea nuts have grown at a double-digit growth rate in the last five years. Demand for shea butter is increasing in Europe especially for refined & ultra-refined shea butter. Although some traders in Europe and North America are experiencing decline in demand during the COVID-19 pandemic, this is anticipated to be temporary.

According to Roshan Deshmukh, Assistant Manager, Food and Beverages at Allied Market Research, “Changes in lifestyle & food habits and increase in purchase power has boosted the demand for plant based plant based ingredients and food products, which in turn, accelerate the growth of the market. Availability of healthier substitutes and lack storage and transport facility has been hampering the growth of the shea butter market.”

The shea butter market segmented into type, application and region. On the basis of type, the market is categorized into raw & unrefined and refined & ultra-refined. By application, market is categorized into, food and cosmetics. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East and Africa).

On the basis of type, the refined & ultra-refined segment is estimated to reach $622.6 million by 2030 at a CAGR of 16.3%.Refined & ultra-refined segment has gained 21.3% share of the shea butter market.

Refined & ultra-refined she butter is majorly used in cosmetic and pharmaceutical industry. The ingredient allantoin contained in shea butter has an anti-inflammatory effect. Therefore, it can provide relief for dry skin prone to eczema and skin diseases such as neurodermatitis or psoriasis. It also helps to level out scars. It is commonly used in the skin care market, as it is said to diminish the appearance of lines and wrinkles as well as aids in softening the skin and lightning the complexion, thereby making it an ideal solution for dry, damaged skin. Thus, multiple benefits offered by refined & ultra-refined shea butter notably contribute toward the growth of the global market                                   

According to the Shea butter industry trends, on the basis of application, the cosmetics segment is estimated to reach $464.0 million by 2030 at a CAGR of 16.4%. Oleic acid, stearic acid and linoleic acid are some of the main components of the shea butter.  Its moisturizing and healing properties prove beneficial for many skin issues. It also has anti-inflammatory and antimicrobial properties that can be used to treat many ailments. Growing awareness regarding the benefits of shea butter through cosmetics is likely to propel the growth of the product market during the forecast period.

 Region wise, Asia Pacific shea butter market is expected to witness highest growth at a CAGR of 16.4% during the forecast period. The Asia-Pacific vegan cheese market is estimated to register the CAGR of 16.9% during the forecast period, owing to rise in demand for plant-based food product and growing vegan &flexitatrian population. Moreover, the adoption of western lifestyle and rise in disposable income are anticipated to drive the growth of the market. Plant-based food ingredients including shea butter is majorly preferred by the millennial population, owing benefits such as it improves the health of digestive system so human body can absorb the nutrients from food that support immune system and reduce inflammation. Thus, the demand for plant-based food products is increasing in the emerging economies including China, India, and Indonesia and is further adding to the growth of the Asia-Pacific shea butter market demand during the forecast period.

The players operating in the shea butter industry have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include AAK AB, Bunge Ltd., FUJI OIL HOLDINGS INC, 3F Industries Ltd, ADM, Stern-Wywiol Gruppe GmbH & Co. KG, Akoma Cooperative, StarShea, Ghana Nuts Ltd and Shebu Industries '.

Key Findings Of The Study 

• The shea butter market was valued at $655.2 million in 2020, and is estimated to reach $2,408.70 million by 2030, registering a CAGR of 14.1% from 2021 to 2030. 
• By type, the raw & unrefined segment is estimated to witness the significant growth, registering a CAGR of 13.4% during the forecast period.
• In 2020, depending on application, the cosmetics segment was valued at $102.7 million, accounting for 84.3% of the global Shea butter market share.
• In 2020, the Canada was the most prominent market in North America, and is projected to reach $98.1 million by 2030, growing at a CAGR of 14.3% during the forecast period.