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Shea Butter Market Forecasted to Hit US$ 1,827.5 Mn by 2032 Driven by Rising Demand in Natural Skincare and Cosmetic Formulations

03-31-2025 10:59 AM CET | Food & Beverage

Press release from: Persistence Market Research

Shea Butter Market Forecasted to Hit US$ 1,827.5 Mn by 2032 Driven

Shea butter, often dubbed "Women's Gold," has evolved from its traditional African roots into a globally coveted ingredient across personal care, food, and pharmaceutical industries. The global shea butter market is projected to attain a value of US$ 1,114.7 million by 2025, growing at a CAGR of 7.3% through 2032 to reach US$ 1,827.5 million. This impressive growth is propelled by surging demand for clean-label ingredients, especially in cosmetics and food applications. Shea butter's high vitamin and fatty acid content renders it an excellent emollient, aiding in skin conditioning, moisturizing, and healing. Additionally, its potential use as a substitute for trans fats in food products makes it an attractive ingredient for health-conscious consumers.

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Among various product segments, raw/unrefined shea butter is expected to dominate, accounting for 63.7% market share in 2025, primarily due to its retention of natural nutrients. In terms of application, the cosmetics and personal care sector will lead with a projected 62.5% share, driven by increasing utilization in anti-aging and moisturizing formulations. Geographically, Europe is set to take the lead, estimated to capture 31.2% of the global market in 2025, fueled by the product's integration in organic confectionery and as a dairy alternative in baked goods.

Key Highlights from the Report

➤ Global shea butter market to reach US$ 1,827.5 Mn by 2032, growing at a CAGR of 7.3%.
➤ Raw/unrefined shea butter to dominate with 63.7% share in 2025 due to nutrient preservation.
➤ Cosmetics and personal care segment projected to hold 62.5% share in 2025.
➤ Europe anticipated to lead with 31.2% share by 2025, backed by demand in bakery and cosmetics.
➤ Partnerships like 'Shea Gets Greener!' expected to empower 21,000 women across West Africa.
➤ Shea butter adoption rising in pharmaceutical ointments for dermatitis and psoriasis treatment.

Market Segmentation

The product type segment of the shea butter market is broadly categorized into raw/unrefined and refined shea butter. Raw shea butter preserves its natural vitamins and fatty acids, making it ideal for skincare and haircare applications that emphasize natural formulation. Refined shea butter, though stripped of some nutrients during processing, offers better shelf stability and neutral scent, favoring large-scale cosmetics manufacturing.

On the basis of application, the market spans across cosmetics and personal care, food, and others, including pharmaceuticals. Cosmetics and personal care remain the largest application area, as shea butter's skin-nourishing properties are utilized in creams, lotions, and balms. In the food sector, shea butter is increasingly used as a cocoa butter equivalent (CBE) in chocolate production and as a sustainable fat alternative in margarine and baked goods.

Regional Insights

Middle East and Africa
Africa, especially the West African Shea Belt (including Ghana, Nigeria, Mali, and Burkina Faso), remains the cornerstone of global shea butter supply. These countries benefit from abundant shea trees and a workforce of over 20 million women involved in production. Ghana, in particular, exports high volumes of shea butter for use in both cosmetics and confectionery. Government-led initiatives to promote sustainable practices and infrastructure development are further propelling the region's contribution to global markets.

North America
The U.S. shea butter market is gaining momentum due to rising consumer demand for natural and organic personal care and food products. Ingredient suppliers are seeking regulatory approvals to expand applications. For instance, AAK USA Inc. received GRAS approval from the FDA for its shea stearin, enabling its use in various food categories. The U.S. is also playing a pivotal role in financial and technological collaborations with African nations to boost sustainable production.

Europe
Europe's shea butter demand is strongly driven by the bakery and confectionery industry, with countries like the U.K., Germany, and France replacing traditional dairy butter and palm oil with shea butter in bakery products. Regulatory support allows for the use of CBEs in chocolates with a limit of 5% non-cocoa butter fats, encouraging broader use of shea butter in food applications. Cosmetics brands in Europe also prefer shea butter for its sustainability and deep moisturizing benefits.

Market Drivers

Global awareness surrounding sustainable and ethical sourcing has significantly increased, making shea butter a highly sought-after ingredient. Regulatory frameworks by bodies such as the FDA and USDA enforce stringent quality control, bolstering consumer trust. Collaborations between organizations like USAID, Sundial Brands, and The Savannah Fruits Company have introduced initiatives like 'Shea Gets Greener!', promoting environmental conservation and supporting economic empowerment of women in Africa. Such efforts enhance product credibility while ensuring a stable and traceable supply chain, thereby fostering long-term market growth.

Market Restraints

Despite its booming popularity, the shea butter industry faces challenges, especially related to environmental degradation and land-use change in West Africa. In Ghana, mechanization and cropping have reduced fallow periods essential for shea tree regeneration. With no young saplings replacing aging trees, the long-term sustainability of the shea supply is under threat. Urbanization and agricultural expansion also result in shea trees being cut down to make way for crops like cotton. Without robust conservation strategies, the industry may experience supply shortages in the future.

Market Opportunities

One of the most promising opportunities lies in the formation of cooperatives to eliminate middlemen and provide fair compensation to female shea producers. Programs such as Birds, Bees and Business, launched by Cordaid and Vogelbescherming, aim to plant over 440,000 trees, including shea, across Burkina Faso, helping prevent desertification and biodiversity loss. These cooperatives also provide training for sustainable shea butter production and connect women directly with global buyers. As more companies commit to sustainable sourcing and social impact, such initiatives are poised to unlock new avenues for market expansion.

Reasons to Buy the Report

✔ Gain in-depth insights into market dynamics and growth trajectories through 2032.
✔ Understand evolving consumer trends shaping the cosmetics and food industries.
✔ Identify lucrative investment opportunities and strategic expansion zones.
✔ Benchmark key players and assess their market share, product innovation, and strategies.
✔ Leverage detailed segmentation and regional analysis for informed decision-making.

Frequently Asked Questions (FAQs)

◆ How Big is the Shea Butter Market in 2025 and what is its growth potential through 2032?
◆ Who are the Key Players in the Global Shea Butter Market?
◆ What is the Projected Growth Rate of the Shea Butter Market during the Forecast Period?
◆ What is the Market Forecast for Shea Butter up to 2032?
◆ Which Region is Estimated to Dominate the Shea Butter Industry through the Forecast Period?

Company Insights

• BASF SE
• Olvea Group
• Sophim S.A.
• Cargill, Inc.
• Suru Chemicals
• Ghana Nuts Company Ltd.
• Croda International Plc
• Agrobotanicals, LLC
• Clariant AG
• AAK AB

Recent Developments:

• In March 2025, the Tree Crops Development Authority (TCDA) initiated a strategic engagement with stakeholders to uplift women in Ghana's shea butter sector through policy advocacy and technical training.

• In December 2024, Uganda's Natural Chemotherapeutics Research Institute launched an innovative shea butter processing machine that reduces processing time and enhances efficiency, bolstering Uganda's role in the global market.

Conclusion

The global shea butter market stands at the intersection of tradition, sustainability, and modern consumer demand. Its ascent is not merely due to its functional benefits in cosmetics and food, but also because it represents a significant socioeconomic and environmental opportunity, particularly for women in Africa. As clean-label trends and health-conscious choices continue to influence consumer behavior, the demand for ethically sourced, nutrient-rich shea butter is set to skyrocket. Market players that align themselves with sustainability, technological innovation, and ethical sourcing will not only gain a competitive edge but also drive lasting impact in the global marketplace.

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Web: https://www.persistencemarketresearch.com

About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 25.92, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

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