Shea Butter Market

Shea Butter Market - Global Industry
Insights, Trends, 2018-2026
Shea Butter is an extracted product, which is a vegetable oil or fat containing
triglycerides. It is ivory or off-white colored compound which is extracted from the nut of
Vitellaria paradoxa (African Shea tree). Shea butter is a sustainable source of edible fat,
and is used as a vegetal source of stearic acid in cosmetics and chocolate industry.
According to the Food and Drug Administration (FDA), in 2015, the natural cosmetics
sale in Europe witnessed a growth of 6% while the growth in North America was 7% as
compared to the overall growth of the global natural cosmetics which was 2.5%.
According to the United States Agency for International Development (USAID), along
with other companies a classification system was suggested for Shea butter untying it
into five grades which are: A (raw or unrefined, extracted using water), B (refined), C
(highly refined and extracted with solvents such as hexane), D (lowest uncontaminated
grade), E (with contaminants).
Market Drivers
The Shea butter market is majorly driven by its adoption as a substitute to cocoa butter
in the chocolate industry. Different parts of the Shea tree such as roots, stems, leaves,
fruits and the bark are used for the treatment of various diseases and infections such as
wound infections, dysentery, skin diseases, diarrhea, and gastrointestinal tract
infections. Shea butter is used as a treatment for inflammation of the nasal congestion,
nostrils, cough, leprosy and rheumatism and in treatments of minor bone dislocation.
Shea butter is used as a raw material for the production of soap, margarine, candle, and
detergent. The low quality butter along with its by-products from the processed nuts are
tarnished on clay or mud walls, which acts as a waterproofing agent to protects the
walls during the rainy season. Shea butter is also used by the African pregnant women
for healing purpose after circumcision which helps to accelerate the process of healing
and prevents stretch marks. According to Global Shea Alliance (GSA) until 2014 no
reports were filed due to the consumption of Shea butter or its yields. According to
National Center for Biotechnology Information (NCBI), Shea butter is expected to gain
significant traction to its application in cosmetic, soap making, and traditional medicine
in rural areas. Also, it is projected to gain traction in international markets, owing to its
richness in food nutrients, which are utilized as a baking fat, margarine and in other fatty
spreads, confectionery and chocolate industry in Europe and Asia Pacific.
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According to USAID in 2014, Shea butter market has helped in the sustainability of the
west and east African countries. Global Shea Alliance (GSA) with USAID helped in
increasing the production capacity of the Shea butter production for international market
due to high usage as natural ingredient in cosmetics and medicines. In 2014, the GSA
launched its sustainability program named as Global Shea Alliance Sustainability
Program, and in June 2016, GSA and USAID signed an agreement over US$ 6.5 million
along with other 25 private sector sustainability partners. This collaboration has resulted
into 250 Shea warehouses, capacity building for 137,500 women Shea collectors and
processors and a 50 percent improvement in financial benefits to participating Shea
cooperatives.
Market Outlook
Utilization of Shea butter as a cosmetic ingredient is expected to be major driving factor
for growth of the Shea butter market over the forecast period. Shea butter has
application in cosmetics as a sun screening agent. Furthermore, it helps softening in of
the skin and tissue cell regeneration. Collagen and elastin present in Shea butter has
anti-aging properties. These factors are expected to fuel growth of the personal care
segment in Shea butter market during the forecast period.
Africa is expected to gain major traction in Shea butter market, over the forecast period
(2018 - 2025). The Shea tree is found in the western and eastern regions of Africa,
which are namely Ghana, Benin, Chad, Cameroon, Burkina Faso, Ethiopia, Central
African Republic, Mali, Cote D’Ivoire, Guinea Bissau, Senegal, Nigeria, Sierra Leone,
Niger, Togo, Sudan, Guinea, Uganda, and Zaire. According to USAID, the Shea
industry in West Africa is rapidly expanding. Demand for Shea butter produced in the
region has nearly doubled in the past ten years, and it is an important ingredient in food
and cosmetic products worldwide. More than 16 million rural women in Africa work in a
Shea extraction factories where the Shea butter is extracted from the nut by grinding,
crushing, cracking, roasting, separating oils and shaping. Major players such as Shea
Radiance, Star Shea Ltd. and others are investing in market due to wide availability of
raw materials for the Shea butter and low labor cost.
Asia Pacific is expected to be the fastest growing region in the Shea butter market
during the forecast period. The high stearic acid content of Shea butter helps to prevent
or maintain the cholesterol level, which reduce the low density lipoprotein, high density
lipoprotein, and the total cholesterol. According to World Health Organization (WHO),
every 1 in 3 persons suffers from high cholesterol in Asia Pacific region. According to
the ASEAN Federation of Cardiology Congress, in 2016, around 60% population in
Myanmar was suffering from high cholesterol. Thus these factors are expected to drive
growth of the market, as Shea butter could be used as both medicinal purpose and also
as an edible product.
The major players in the shea butter market include, Star Shea Ltd., Bread For Life, All
Pure Nature Ltd. Lovinah Naturals Shea Radiance, Jedwards International, Inc., Maison
Karite Sociedad Limitada, Vink Chemicals Gmbh & Co. Kg, Shebu Industries, Shea
Therapy Ltd, and The Pure Company.
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Shea Butter Market report segments global market by grade (A, B, C, D, and E), by end-use industry (Personal Care, Pharmaceuticals, Food, and Others), and by distribution channel.

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