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Shea Butter Market, Size, Share, Opportunities and Forecast, 2020-2027


(Food-Beverage-News.Com, June 30, 2020 ) Market Overview
• The Global Shea Butter Market is expected to grow at a CAGR of 5.6% during the forecasting period (2020-2027).
• Shea butter is derived from Karite Tree which is extensively grown in Savannah regions of West Africa. The key health benefits associated with shea butter includes reduces Inflammations, Skin Smoothing, and high moisturizing content. The raw shea butter is used to rectify variety of skin conditions such as eczema, dermatitis, psoriasis, minor skin irritations, extreme dryness, stretch marks, burns, cuts, and many other similar conditions. The key shea butter producing regions in Africa includes Ghana, Benin, Togo, and Burkina Faso. Increasing establishments of corporative by the government & non-government organizations to support African domestic production of Shea and increasing consumption of shea butter by personal care industries are major factors driving the global shea butter market.

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Market Dynamics:
• Increasing utilization of shea butter as an ingredient in the production of cosmetics & personal care products and chocolates is the primary factor driving the global shea butter market. Increasing government/regulatory approvals towards human consumption of shea butter and presence of similar properties as palm oil is expected to boost food-related consumption of shea butter during forecast period. Increasing government regulations towards decrease the plantation and production of palm oil is further expected to boost huge demand for shea butter during forecast period. Shea butter evolved as an effective alternative for cocoa butter in the manufacturing of chocolate due to high presence of quality fat for confectionary industry. Moreover, increasing adoption of highly sustainable and cost-effective ingredients in the production of chocolates and other confectionary products is further expected to boost the consumption of shea butter globally during forecast period.
• However, minimal product availability, lack of presence of suitable environmental conditions for the production of shea trees and availability of alternatives are primary factors hindering the growth of shea butter market globally during forecast period.

Market Segmentation Analysis
• Global shea butter market is segmented on the basis of end-use industry into food, cosmetics and others.
• Food industry dominated the global shea butter market owing to growing usage of shea butter as a key ingredient in the production various confectionary and bakery products, & growing adoption of shea butter as a replacement for palm oil in food applications. Shea butter in the food industry is widely used as a replacement for cocoa butter in the production of ice-creams, chocolates, and biscuits due to its similar presence of fat content. Depleting plantation activities of cocoa due to rapid climate change, frequent plant disease associated with growing consumer demand for chocolate is predicted to boost huge demand for shea butter in food industry globally during forecast period.

Market Geographical Analysis
• By region, the global shea butter market is segmented into North America, South America, Europe, Asia-Pacific, Middle-east and America.
• Europe is the fastest growing market for shea butter owing to the presence of confectionary industry and growing adoption of shea butter in the production of various bakery and confectionary products. The major countries in Europe importing shea butter from African countries includes Belgium, Denmark, Netherlands, Sweden and United Kingdom. Additionally, increasing consumer demand for cosmetic products with natural ingredients which are safer and healthier than synthetic substitutes is contributing to the growth of shea butter in European region during forecast period.

Market Competitive Trends
• Global shea butter market is witnessing investments from food and personal care companies into African based shea butter cooperatives to boost the production activities. The rapid investment growth in co-operatives and farming communities in major shea producing region across the Africa is expected to boost the production of butter during forecast period.
• On 4th November 2019, The Ghana Government initiated the construction activities shea butter processing factory at Bogrigo in Bongo District to boost the domestic production and Shea butter in coming years.
• In August 2018, Palladium invested in female-owned shea butter manufacturing company Naasakale to boost the production activities of shea in their respective fields.
• Some of the key players in the global shea butters market includes Now Foods, The Organic Shea Butter Company, New England Shea Butter LLC, Sekaf Ghana Ltd, and many other companies.

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