The global shea butter market size is expected to reach USD 1.76 billion by 2025 expanding at a CAGR of 6.6%. Increasing demand for coco butter alternative and growing consumption of chocolate and bakery products are expected to drive the market. In addition, widespread usage of shea butter as a substitute for edible vegetable oils and fat in various food applications is likely to spur the demand.
The Beauty and Personal Care (BPC) industry has witnessed a decline in the wake of the Covid 19 pandemic, but the impact is not as severe as seen in other industries. Although discretionary spending has reduced, the BPC market has witnessed a consumer behavioral shift towards safe and reliable products. Products that have a lower risk of contamination owing to automation and longer shelf lives helping the rationing of consumer supplies are expected to stand out in the near future. Brands are also focusing on improving their supply lines in terms of strengthening their E-commerce channel along with offering at-home wellness products, which are highly suited in this volatile business environment. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.
Bakery and confectionery manufacturers widely use it as an alternative for cocoa butter due to high prices of cocoa as a result of limited supply. The product also contains essential fatty acids, such as stearic and oleic acids, and unsaponifiables, such as sterols and phenols, which have moisturizing and conditioning properties. It has a better absorption rate than coco butter and is suitable for all skin types, which increase its demand in personal care & cosmetics industry as well.
In addition, extensive R&D by cosmetics manufacturers to introduce innovative and more effective shea butter-based products will drive the product demand in this sector. Thus, high product demand in personal care & cosmetics industry will also boost the market growth.
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Further key findings from the study suggest:
The personal care & cosmetics application is expected to be the largest segment over the forecast period
However, food and beverage is projected to be the fastest-growing application segment at a CAGR of 6.5% from 2019 to 2025
Middle East and Africa is the largest regional market. On the other hand, Europe is estimated to register the fastest CAGR from 2019 to 2025
S., Germany, China, and South Africa are the major countries with lucrative markets for shea butter
Some of the key companies in the shea butter market are BASF SE; Olvea Group; Sophim S.A.; Cargill, Inc.; Suru Chemicals; Ghana Nuts Company Ltd.; Croda International Plc; Agrobotanicals, LLC; Clariant AG; and AAK AB
The global shea butter market size was valued at USD 1.12 billion in 2018 and is projected to expand at a CAGR of 6.6% over the forecast period. Shea butter is obtained from the nuts of Shea tree, which contain magnesium, potassium, and protein. Increasing demand for coco butter alternative and growing consumption of chocolate and bakery products are expected to drive the market. In addition, widespread usage of shea butter as a substitute for edible vegetable oils and fat in various food applications is likely to spur the demand.
Bakery and confectionery manufacturers widely use it as an alternative for cocoa butter due to high prices of cocoa as a result of limited supply. Moreover, high product demand in personal care & cosmetics industry will also boost the market growth. Shea butter contains essential fatty acids, such as stearic and oleic acids, and unsaponifiables, such as sterols and phenols, which have moisturizing and conditioning properties.
It has a better absorption rate than coco butter and is suitable for all skin types, which increase its demand in personal care & cosmetics industry as well. In addition, extensive R&D by cosmetics manufacturers to introduce innovative and more effective shea butter-based products will drive the demand in this sector. Thus, the personal care & cosmetics application is expected to be the largest segment over the forecast period.
However, food and beverage is projected to be the fastest-growing application segment from 2019 to 2025. Based on region, Middle East and Africa is the leading market due to high production as a result of abundant raw material supply and availability of cheap labor. However, easy availability of cheaper substitutes, such as mango butter, shea oil, avocado butter, and cupuacu butter, may act as a restraining factor for the overall market growth.
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On the basis of application, the shea butter market has been segmented into personal care & cosmetics, food & beverage, and others. Personal care & cosmetics is the largest segment. This growth is attributed to the high product demand in this sector. Moreover, cosmetics companies are investing more in R&D to introduce new and more effective products containing shea butter. This is also likely to have a positive impact on the segment growth. Increasing demand for anti-aging and skin conditioning products will boost the segment growth further.
Food and beverages is the fastest-growing application segment. Increasing demand for bakery and confectionery products is the key factor fueling the segment development. Moreover, demand for cocoa butter alternatives due to high costs of cocoa will also boost the segment growth. Shea butter is used as a raw material in the production of shortening and margarine for several bakery products like puff pastry. It is stable at room temperature and eliminates the process of hydrogenation, preventing the generation of trans unsaturated fatty acids, acting as a healthy alternative for margarine production.
Grand View Research has segmented the global shea butter market on the basis of application:
Shea Butter Application Outlook (Revenue, USD Million, 2015 - 2025)
Personal Care & Cosmetics
Food & Beverage
Others
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