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.
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
- U.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
Grand View Research has segmented the global shea butter market on the basis of application and region:
Shea Butter Application Outlook (Revenue, USD Million, 2015–2025)
- Personal Care & Cosmetics
- Food & Beverage
- Others
