Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Shea Butter market.
Trusted Business Insights presents an updated and Latest Study on Shea Butter Market. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Shea Butter market during the forecast period.
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: Shea Butter Market
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 2021 to 2026. 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.
Application Insights of Shea Butter Market
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.
Regional Insights of Shea Butter Market
Middle East and Africa was the largest market in the year 2018 and will expand further at a steady CAGR from 2021 to 2026 owing to rapid urbanization and increasing disposable income levels. This growth can be attributed to the high production of shea butter as a result of abundant raw material supply and availability of cheap labor in the region.
Led by U.K., Europe is estimated to be the fastest-growing regional market at a CAGR of 7.5% over the forecast years. This is mainly due to increasing demand for personal care and cosmetics products. Europe is the leading region in the global cosmetics industry. In addition, high consumption of chocolate and bakery products in the region will fuel the product demand.
Market Share Insights of Shea Butter Market
Some of the key companies in this 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. These companies have undertaken several competitive strategies, such as increasing production capacities, product and technological innovation, and establishing tie-ups with online e-commerce firms, to boost their sales.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Shea Butter Market Research Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global shea butter market report on the basis of application and region:
Application Outlook (Revenue, USD Million, 2019 – 2030)
Personal Care & Cosmetics
Food & Beverage
Quick Read Table of Contents of this Report @ Shea Butter Market Size, Share & Trends, Global Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)
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