by Shea butter has numerous advantages such as skin moisturizing, calming inflammation and promoting healing. It is widely used in cosmetics such as lotions, creams and lip balms due to its hydrating and skin conditioning properties. The demand for shea butter is rising across cosmetics, personal care and pharmaceutical industries owing to growing inclination towards natural ingredients.
The global Shea Butter Market is estimated to be valued at US$ 2.68 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the shea butter market are Verizon Communications Inc., AT&T Inc., TomTom N.V., MiX Telematics Limited, OnStar Corporation, Bayerische Motoren Werke AG (BMW), Trimble Inc., Zonar Systems, Inc., Omnitracs LLC, Inseego Corporation, AirIQ Inc., Bridgestone Corporation, General Motors Company (GM), Geotab Inc., Michelin Group, Octo Telematics S.p.A., Omnitracs, LLC, Bell Atlantic Corporation, Continental AG.
The growing demand for natural cosmetic products is propelling the shea butter market growth. Cosmetic manufacturers are increasingly utilizing shea butter in moisturizers, lotions and lip care products owing to its moisturizing and healing properties.
The shea butter market is also expansion globally with rising exports from Africa region. Major shea butter producing companies have started establishing production bases in Asia Pacific and Latin America to tap growing demand.
Market key trends
One of the key trends witnessed in the shea butter market is the increasing demand for organic and fair trade products. Consumers are willing to pay premium prices for shea butter sourced through sustainable and fair trade practices. This has incentivized market players to ensure ethical supply chain and source shea nuts from women-led collectives. Several companies offer organic and fair trade certified shea butter to appeal to environment conscious customers. The shea butter market dynamics is evolving with sustainable and ethical sourcing gaining larger traction.
Porter’s Analysis
Threat of new entrants: The market has moderate threat due to high level of brand loyalty among customers. However, low investment and ease of market entry make the barrier low.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, unique properties of Shea butter make it difficult to replace entirely.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to presence of many suppliers. Suppliers are dependent on buyers for selling their products.
Threat of new substitutes: Threat of substitutes is low to moderate. While coconut and palm oil provide alternatives, Shea butter has unique moisturizing properties difficult to substitute.
Competitive rivalry: The market has high competitive rivalry due to presence of many regional and international players competing on pricing and quality.
Geographical Regions
Africa leads the Shea Butter Market Size in terms of value, accounting for around 80% of global production. West African countries such as Ghana, Burkina Faso, Mali, Ivory Coast and Nigeria are the major producers. Ghana alone contributes around 60% of global shea butter production.
Europe is the fastest growing region for the shea butter market owing to increasing demand for natural cosmetic ingredients. France, Germany, United Kingdom and Italy dominate the European market and import a large share of shea butter from West Africa. With rising health awareness, the demand in Europe is expected to increase at a higher pace during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
