The global shea butter products market was valued at USD 8.2 billion in 2021 and is projected to expand at a CAGR of 8.1% from 2022 to 2030. Shea butter is a natural oil extracted from the shea tree found in the savannahs of West and Central Africa. It is known for its hydrating and moisturizing properties, and has been used for centuries in Africa for skin care, hair care, and medicinal applications.

The rising demand for natural and organic products across the globe is expected to fuel the demand for shea butter products. Moreover, manufacturers are introducing products that are rich in vitamins, minerals, and fatty acids, which are beneficial for skin and hair care. For instance, in January 2021, Sundial Brands, a manufacturer of beauty and personal care products, launched its SheaMoisture collection, which includes shea butter-based body lotions, hair masques, and hand creams. Furthermore, the increasing prevalence of skin and hair-related issues, such as acne, premature aging, and hair loss, is expected to bolster the demand for shea butter products.

The introduction of different types of shea butter products and the emergence of innovative product forms are expected to further drive the market. For instance, in March 2021, Plant Apothecary, a manufacturer of natural and organic personal care products, launched its new line of shea butter-based body care products, including body lotions and body scrubs. Moreover, the growing trend of multipurpose products, such as moisturizers and lip balms, is expected to boost the demand for shea butter products.

Furthermore, the use of shea butter in the spa and salon industry is expected to drive the market growth. The increasing number of spas and salons offering shea butter-based treatments, such as hair and body wraps and facial masks, is expected to fuel the demand for shea butter products. Moreover, the growing trend of aromatherapy and massage therapies is expected to further fuel the demand for shea butter products.

In addition, the increasing demand for shea butter products in the cosmetics and personal care industry is expected to support the growth of the market. The growing demand for natural and organic ingredients in cosmetics and personal care products is expected to create opportunities for shea butter-based products. Furthermore, manufacturers are introducing products that are organic, sustainable, and cruelty-free, which is expected to drive the demand for shea butter products.

The body care segment led the market and accounted for a share of around 42.5% in 2022. Increasing awareness among consumers regarding health benefits associated with shea butter products has been driving the demand for body care products over the years. According to an article published by the International Trade Centre, in April 2020, shea butter provides deep hydration to the skin and helps in reducing wrinkles and age spots. Furthermore, macro-level factors such as rising disposable income among consumers and the availability of various brands of shea butter body care products are bolstering the demand for shea butter body care products worldwide.

The hair care segment is anticipated to expand at the fastest CAGR of 8.2% over the forecast period. Growing adoption of organic hair care products, rising trends for natural hair care, and the emergence of various shea butter hair care products are some of the key factors driving the hair care market growth revenue. According to an article published by the National Center for Biotechnology Information, in June 2018, shea butter is a rich source of fatty acids and vitamins that nourish and moisturize the scalp and hair. In addition, increasing consumer demand for natural hair care products is another factor driving the growth of the market.

The supermarkets and hypermarkets segment dominated the shea butter products market share in 2020 and is expected to maintain its dominance over the forecast period. The segment is expected to experience growth due to the rising trend of convenience shopping among consumers. Supermarkets and hypermarkets provide a wide range of shea butter products under one roof and offer attractive discounts and discounts on bulk purchases, which is expected to drive segment growth.

The online segment is expected to expand at the highest CAGR of 8.2% over the forecast period. Growing internet penetration and the increasing influence of social media have encouraged the adoption of shea butter products, especially among millennials. The availability of a wide range of shea butter products on e-commerce websites has also encouraged customers to purchase them. Moreover, the increasing availability of organic and natural products on e-commerce websites is expected to further fuel segment growth.

The unrefined segment dominated the shea butter market with a revenue share of 68.5% in 2020. Unrefined shea butter is derived from shea nuts without undergoing processing or any physical or chemical alteration. It has a natural color, smell, and taste. This segment has seen an increase in usage in cosmetics and skincare products, owing to its natural composition and moisturizing properties. For instance, according to the Shea Butter Industry Association, shea butter contains vitamin A and E, which helps in promoting cell regeneration, anti-aging, and deep moisturization.

The refined segment is expected to register the highest CAGR of 6.6% over the forecast period. Refined shea butter is processed and refined to remove impurities, making it a better choice for topical applications. It has a white color, neutral smell, and consistency. Refined shea butter is used in the production of various cosmetic and personal care products such as body and lip balms, creams, lotions, soaps, and hair care products.

Africa is projected to be the largest regional market for shea butter products, accounting for over 45.2% of the global revenue share in 2022. This growth is mainly attributed to the growing popularity of shea butter products in the region. The region has a huge population of shea nut collectors, processors, and farmers, which is why it has become a major producer of shea butter products. In addition, the increasing adoption of natural and organic products is further driving the demand for shea butter products in the region.

Europe is expected to witness the second-fastest growth in the coming years. Increasing demand for organic and natural products is a key factor driving the growth of the market in the region. Moreover, the increasing presence of key players in the region, such as L’Occitane International and The Body Shop, is also contributing to the growth of the market in Europe. Additionally, the rising awareness about the benefits of shea butter is further boosting the market growth in the region.

In this part of the Shea Butter Products business plan, we will provide a detailed breakdown of all income and expense categories for the business. These forecasts include cash flow projections and capital requirements for your Shea Butter Products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a Shea Butter Products business comes from the sale of products. Here you will find a list with a description of the different types of products the business will offer and any other possible sources of profit.

Projecting Expenses
In this section, all the regular expenses related to keeping the Shea Butter Products business running will be described, such as costs related to product development, raw materials, wages, marketing, and other operating expenses. Additionally, expenses related to taxes, insurance policies, and advertising should be taken into account.

Some of the key companies operating in the shea butter products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In October 2022, L’Occitane en Provence launched a new range of shea butter-based products, including body lotion, body wash, and face cream.

– In November 2022, The Body Shop launched a new range of shea butter-based products, including body lotion, body wash, and face cream.

– In December 2022, Shea Brand launched a new range of shea butter-based products, including body lotion, body wash, and face cream.

Some of the prominent players in the shea butter products market include:

– L’Occitane en Provence
– The Body Shop
– Shea Brand
– Plant Guru
– Savannah Fruits
– Sundial Brands LLC
– Butters n’ Bars
– Nubian Heritage
– Shea Terra Organics
– NaturOli Soap/Beauty LLC

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global shea butter products market based on product type, end-use, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Shea Butter Body Care
– Shea Butter Hair Care
– Shea Butter Skin Care
– Others

2. End-use Outlook (Revenue, USD Million, 2017 – 2030)

– Pharmaceuticals
– Cosmetics
– Food Products
– Others

3. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Specialty Stores
– Online
– Others

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is Shea Butter?
[A]: Shea butter is a fatty substance derived from the nuts of the African shea tree. It is widely used in cosmetics and skin care products for its moisturizing and anti-inflammatory properties. It is also used in various food and medicinal products due to its high vitamin and mineral content.

[Q]: What are the Applications of Shea Butter?
[A]: Shea butter is used in a variety of applications, including skin care, hair care, and food products. It is widely used in the production of soaps, lotions, creams, and other cosmetics due to its moisturizing and anti-inflammatory properties. It is also used as a food ingredient, such as in chocolate and ice cream, due to its high vitamin and mineral content.

[Q]: How is Shea Butter Market Segmented?
[A]: The global Shea Butter Market is segmented by product type, application, and geography. By product type, the market is divided into organic and conventional shea butter. By application, the market is divided into cosmetics, foods, and medicines. By geography, the market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

[Q]: What are the Key Drivers of the Shea Butter Market?
[A]: The key drivers of the Shea Butter Market include the rising demand for natural and organic products, increasing consumer awareness of the health benefits of shea butter, and the growing popularity of shea butter-based product formulations.

[Q]: Who are the Major Players in the Shea Butter Market?
[A]: Major players in the Shea Butter Market include L’Occitane International SA, BASF SE, The Body Shop International Limited, The Organic Shea Butter Company, Natura Siberica, and The Savannah Fruits Company.