The
Shea Butter Market is estimated to be valued at US$ $2.32 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period
2023 to 2030, as highlighted in a new report published by Coherent Market
Insights.
Market Overview:
Shea butter is a fat extracted from the nut of the African shea tree. It
has emollient properties and is used in skin care and cosmetics. Shea butter
contains fatty acids that moisturize and soothe the skin. It is commonly used
in lotions, creams, and balms to treat wrinkles, blemishes, eczema, and other
skin conditions.
Market key trends:
The increased demand for natural and organic ingredients in cosmetic and
personal care products is driving the growth of the shea butter market.
Consumers are increasingly preferring products containing natural ingredients
over chemical-laden creams and lotions. Shea butter's healing and moisturizing
properties make it a popular natural ingredient in cosmetic formulations. The
growing popularity of organic cosmetics is therefore generating high demand for
shea butter. Furthermore, shea butter has anti-aging properties that help
reduce signs of aging like fine lines and wrinkles. The rising aging population
demanding anti-aging skin care is another factor fueling market growth.
Continuous promotional activities by key players regarding the benefits of shea
butter are also boosting the market.
Porter's Analysis
Threat of new entrants: The shea butter market requires high initial
investments and established distribution channels, limiting threat of new
entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes
like cocoa and mango butter.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to seasonal availability
of raw shea nuts.
Threat of new substitutes: Substitutes
like cocoa and mango butter pose moderate threat. Competitive rivalry: Intense
competition exists among existing players.
SWOT Analysis
Strengths: Superior moisturizing
properties and extended shelf life of shea butter make it popular in cosmetics.
Weaknesses:
Seasonal availability of raw materials leads to fluctuating supplies.
Dependency on weather conditions increases production uncertainties.
Opportunities:
Increasing demand for natural ingredients in cosmetics and personal care
products offers significant growth opportunities.
Threats: Local political instability and
uncertain climatic conditions in producing countries pose threats to steady
supplies.
Key Takeaways
The global
Shea
Butter Market Demand is expected to witness high growth, exhibiting
CAGR of 7.1% over the forecast period,
due to increasing demand for natural and organic personal care products.
Africa
dominates the global production of shea butter, with Ghana and Burkina Faso
contributing over 80% to global supplies. The European market accounted for the
largest share in 2023 and is expected to retain dominance until 2030 due to
extensive use of shea butter in personal care and chocolate industries.
Key
players operating in the shea butter market are IOI Loders Croklaan, Ghana Nuts
Company Ltd., and The Savannah Fruits Company. IOI Loders Croklaan is a major
supplier in Europe with integrated sourcing and refining operations. Ghana Nuts
processes over 30,000 tons of shea nuts annually and exports to Europe and
Asia. The Savannah Fruits Company focuses on empowering women collectors in
northern Uganda through sustainable sourcing and fair trade practices.
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