The Shea Butter Market has been valued at $1.12 billion in the year 2023, and it is estimated to reach $2.9 billion by 2028, with a CAGR of 6.6% from 2023 to 2028

Shea butter is obtained from a seed fat that comes from the shea tree. Shea butter is a form of fat with varied healing characteristics utilised in various hair and skin care products. Shea butter is made up of stearic acid and oleic acid and contains no artificial additives. Shea butter is also utilized in various sectors, including the culinary and healthcare industries.Shea butter is applied topically to treat a variety of skin issues. It functions as an emollient. It helps in softening of dry skin. Additionally, shea butter includes ingredients that might lessen skin swelling. This could aid in the treatment of skin ailments like eczema.
Shea butter's market share will grow as shea butter goods will replace those made with cocoa butter or palm oil. Shea butter has an advantage over cocoa and palm oil due to its lower fat content and improved therapeutic properties. Shea butter products are also potent antioxidants that repair damaged hair and skin. Cinnamic acid, another component of shea butter, protects the skin from UV radiation. Shea butter is adaptable and can be utilized in other healing processes of skin, hair, and lip.

Shea Butter Market Drivers and Restraints:

The market is anticipated to be led by rising demand for cocoa butter substitutes and rising chocolate and bakery product consumption. Demand will also be boosted by the widespread use of shea butter in various food applications. Due to the scarcity of cocoa and its expensive cost, it is frequently used as a substitute for cocoa butter by bakeries and confectionery manufacturers. In addition, the robust demand for goods in the personal care and cosmetics sectors will foster market expansion. Demand is rising in the personal care and beauty industries, and it is excellent for all skin types and has a better absorption rate than coconut butter. Demand in this market will also be fueled by substantial R&D by cosmetic makers to produce cutting-edge and alluring products based on shea butter. Therefore, it is anticipated that personal care and cosmetic applications will be the largest category during the outlook period. It is also believed that the confectionery business accounts for over 80% of the demand for shea butter. Shea butter is a flavourful substitute for cocoa butter for those who make chocolate, and it's also used in toast and pancakes.

One major factor holding back the expansion of the global shea butter market is the high price of shea butter products. Another critical factor that is thought to be limiting the growth of the worldwide shea butter market during the forecast period is the availability of a variety of substitute products that are affordable and easily accessible to consumers. Additionally, the lack of minimum quality requirements and the poor industrial organization are significant obstacles to expanding the shea butter industry globally. Trans unsaturated fatty acids are created when vegetable oil is hydrogenated, and they are harmful to cardiovascular health. As a result, producers are turning to margarine and butter processing.

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The report is segmented as follows:

The Shea Butter Market is segmented based on Type; the Market is segmented based on Application:
By Type (Unrefined shea butter, Refined shea butter)
By Application (Cosmetics, Personal care, Food, Medical, and others)

Geographical Segmentation:

Asia-Pacific is anticipated to grow at a CAGR of more than 11%. China, Japan, and India will primarily drive growth in this region. Consumer preferences have changed drastically, and people are more aware of the superior skin care and health care products available in the market. Strong economic growth in countries like South Korea, China, and India helped the product gain traction in this region.

Europe has more than 25% of the shea butter market globally. The concept of high-end, high-quality foods with claimed health benefits will likely grow, supporting the segment's expansion. Consumers now have to pay a premium price for essential health items packed with natural components due to shifting socioeconomic factors and rising purchasing power. In addition, stringent EU regulations requiring a minimum of 5% shea butter in chocolate products predict a considerable increase in shea butter consumption in the European region by 2027.

Burkina Faso and Nigeria will lead the Middle East and Africa shea butter market. The region's market is expected to grow faster than 10% CAGR during the forecasted period. Karate shea nuts are harvested and processed in the sub-Saharan African belt, after which they are sold to Asian food and European beauty industries.

Impact of COVID-19 on the Market

During the COVID-19 pandemic, the supply chain for raw materials required for producing and distributing shea butter was significantly hampered. The market for shea butter has suffered as a result of supermarket closures. With the loosening of rules and long-term effects on the market for shea butter alternatives, there is optimism that this industry can produce a healthy resurgence.
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