Global shea butter market to reach $2.4b by 2030 – Report
A new report has projected the growth of the global shea butter market to reach $2.4 billion by 2030, largely driven by consumer demand for plant-based ingredients in the cosmetic industry.
The report copied to Ghana Business News, says the industry will register a Compound Annual Growth Rate (CAGR) of 14.1 per cent from 2021 to 2030.
The shea butter market size is expected to reach $2,408.70 million by 2030, registering a CAGR of 14.1% from 2021 to 2030.
The new report titled, “Shea butter Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2021-2030,” released b Allied Market Research says the surge in consumer demand for plant-based ingredients in the cosmetic industry, rise in online sales in remote areas, and increase in demand for shea butter in the cosmetic and food industries will drive the growth of the global shea butter market.
It however notes that, limited availability of the product in developed regions and availability of healthier substitutes hinder the market growth.
“On the other hand, extensive use of shea butter in various industry verticals, rise in vegan population, and rapid growth of the retail sector present new opportunities in the coming years,” it added.
The report cites market leaders including some Ghanaian companies: these are AAK AB, Bunge Ltd., FUJI OIL HOLDINGS INC, 3F Industries Ltd, ADM Stern-Wywiol Gruppe GmbH & Co., Akoma Cooperative, StarShea, Ghana Nuts Ltd and Shebu Industries.
Shea butter is produced from the seeds of the shea tree which grows mostly in the wild state. In Ghana, it grows in almost half of the country. It occurs over almost the entire area of Northern Ghana, covering land area of over 77,670 square kilometers in Western Dagomba, Southern Mamprusi, Western Gonja, Lawra, Tumu, Wa and Nanumba with Eastern Gonja having the densest stands. There is sparse shea tree cover found in Brong-Ahafo, Ashanti, and the Eastern and Volta regions in the south of the country.
Shea butter has a fat composition similar to cocoa butter, and is used as a substitute for lard or margarine because it makes a highly, pliable dough. Shea butter is also used in making soap and candles, and it is incorporated in margarine formulations.
According to the report, based on type, the raw and unrefined segment held the highest market share in 2020, accounting for nearly four-fifths of the global shea butter market, and is estimated to maintain its leadership status throughout the forecast period, owing to multiple benefits associated with unrefined or cold pressed oils.
However, it notes that, refined and the ultra-refined segment is projected to manifest the highest CAGR of 16.3 per cent from 2021 to 2030.
“This is because of its usage in the skin care market, as it is said to diminish the appearance of lines and wrinkles as well as aids in softening the skin and lightning the complexion,” it said.
Based on application, the report said the food segment accounted for the largest share in 2020, contributing more than four-fifths of the global shea butter market, and is projected to maintain its lead position during the forecast period.
“This is because shea butter exhibits functional and enhanced nutritional properties. Moreover, the cosmetics segment is expected to portray the largest CAGR of 16.4 per cent from 2021 to 2030, owing to its usage in a broad range of cosmetic products, including skin care products such as creams, soaps, balms, body butter, lip balms, shaving creams, and hair care products,” it said.
By Emmanuel K Dogbevi
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