Shea butter is a fat extracted from the nut of the African shea tree and is widely used in different products such as personal care, cosmetics, bakery, and pharmaceuticals. Its high concentration of vitamins and fatty acids combined with its easy to spread consistency feature makes it a perfect product for smoothing and conditioning the skin. Shea butter contains oleic fatty acids, vitamins A, E & F, triglycerides, and cetyl esters, which helps in maintaining and locking the moisture of the skin. In addition to this, shea butter provides numerous benefits to health, such as repairs damaged hair, soothes muscle aches, reduces the level of cholesterol, protects against UV radiations, and is an excellent alternative to coconut oil or olive oil used in cooking.
The major factor contributing towards the growth of the Global Shea Butter market is the rising consumption of chocolate and bakery products across the globe. With the shift in the taste & preference, the consumers have started looking for alternatives of cocoa butter, edible vegetable oils, and fats. The bakery and confectionery manufacturers are widely using shea butter as an alternative for cocoa butter due to the high prices of cocoa. This widespread usage of shea butter as a substitute product will have a positive impact on the Global Shea Butter market over the coming years. Moreover, the increasing demand for personal care & cosmetics products all over the world will drive the growth of the market. Shea butter contains a high level of linoleic acid, oleic acid, and vitamin A and E, which protects and nourishes the skin from within. The cosmetics manufactures are mainly focusing on R&D to develop innovative shea butter-based products as per the growing customer’s need. On the other hand, the easy availability of cheaper substitutes such as mango butter, shea oil, avocado butter will intensely hamper the growth of the Global Shea Butter market during forecast period.
Based on the Product, the global Shea Butter market is segmented into Raw and Unrefined and Refined. The Raw and Unrefined segment is projected to grow at a higher CAGR over the forecast period owing to the increasing adoption of unrefined shea butter driven by its remarkable nutritional benefit including ample amount of vitamin A, vitamin E, and fatty acid.
Based on the Application, the global Shea Butter market is segmented into Personal Care & Cosmetics, Food & Beverage, Pharmaceuticals, and Others. The personal care & cosmetics segment is anticipated to lead the market over the forecast period due to the increasing demand for shea butter based personal care products followed by the changing customer’s preferences. Various multinational giants are hugely investing in R&D to develop more effective shea butter products. This continuous product development will have a positive impact on the demand of this segment. Moreover, the Food & Beverage segment is expected to grow at a higher CAGR during the forecast period due to the rising demand for bakery and confectionery products in the market. Shea butter is increasingly used as an alternative of cocoa butter in order to reduce the production cost.
Based on the Distribution Channel, the global Shea Butter market segmented into Hypermarket, Supermarket, Specialty Stores, Online Stores, Convenience Stores and Others. The Hypermarket segment is projected to grow at a higher CAGR during forecast period due to the easy availability of a vast range of products, particularly in personal care & cosmetics and food & beverages with attractive discount offers.
Based on the region, the GCC and African countries are expected to grow at a faster CAGR during the forecast period owing to the rising production of shea butter in these areas as a result of ample raw material supply and availability of cheap labour. Moreover, the rapid urbanization and high disposable income level will surge demand of the Global Shea Butter market over the coming years.
Various notable players operating in the market include Cargill, Incorporated, BASF SE, Sophim S.A., Olvea, Ghana Nuts Company Limited, Croda International Plc, Clariant, AAK.com, Bunge Limited, ADM among others.
- In 2019, Bunge Limited launched shea-based margarine that can be used for artisan bakery and industrial purposes. The main objective of shea-based margarine is to enhance the functionality of the product.
The Global Shea Butter market has been segmented based on Product, Application, Distribution Channel, and Region. Based on Product, the market is segmented into Raw and Unrefined and Refined. Based on the Application, the market is segmented into Personal Care & Cosmetics, Food & Beverage, Pharmaceuticals, and Others. Based on the Distribution Channel, the market is segmented into Hypermarkets/Supermarket, Specialty Stores, Online, Convenience Stores, and Others.
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