Shea Butter Market Outlook

According to the report by Expert Market Research (EMR), the global shea butter market size reached a value of USD 2.04 billion  in 2024. Fueled by the increasing demand for natural and organic personal care products, the rising popularity of plant-based ingredients in food, and the growing applications of shea butter across various industries, the market is expected to grow at a CAGR of 8.60% from 2025 to 2034, reaching a value of USD 4.3 billion by 2034.

Shea butter is a natural fat extracted from the nuts of the shea tree, native to West Africa. It is known for its rich, nourishing properties and is widely used in cosmetics, skincare, hair care, and food applications. Its high content of vitamins, fatty acids, and antioxidants makes it an essential ingredient for moisturization, anti-aging treatments, and overall skin and hair health. Beyond its cosmetic benefits, shea butter is also gaining traction in the food industry due to its health benefits and culinary uses. As a result, the Shea Butter Market is experiencing significant growth in both developed and emerging markets.

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Drivers of Market Growth

Several factors are driving the global Shea Butter Market, including the increasing consumer demand for natural and organic beauty products, the growth of the food and beverage industry, and the expanding adoption of shea butter in pharmaceuticals and other industrial sectors. Additionally, the increasing focus on sustainable and ethical sourcing of raw materials is contributing to the market’s development.

Rising Demand for Natural and Organic Personal Care Products: Consumers worldwide are becoming increasingly conscious of the ingredients used in their skincare and beauty products. This growing awareness is pushing the demand for natural, plant-based alternatives to synthetic chemicals in cosmetics. Shea butter, with its moisturizing, soothing, and anti-inflammatory properties, is widely considered a premium ingredient in natural skincare. Its ability to hydrate and protect the skin while being gentle on sensitive skin has contributed to its rising popularity in skincare products, including lotions, creams, balms, and lipsticks. The demand for organic products, free from harmful chemicals, is a significant driver of the Shea Butter Market’s growth.

Growth of Plant-Based and Clean Label Trends in the Food Industry: Alongside its prominent use in cosmetics, shea butter is also gaining popularity in the food and beverage industry. As consumers increasingly prefer plant-based alternatives and clean-label products, shea butter is being recognized for its health benefits. It is an ideal ingredient in food products such as spreads, confectionery, and cooking oils, providing a healthy alternative to animal fats and refined oils. Rich in essential fatty acids, shea butter is seen as a heart-healthy fat, and its use in food products aligns with the growing trend of plant-based and health-conscious eating.

Adoption of Shea Butter in Pharmaceuticals: In addition to its beauty and food applications, shea butter is being incorporated into pharmaceutical products for its anti-inflammatory and healing properties. Shea butter has been used for centuries in traditional medicine to treat a variety of skin conditions such as eczema, psoriasis, and burns. Its potential to support the healing of damaged skin and its soothing effects on irritated or dry skin make it an essential ingredient in topical pharmaceutical formulations. The growing use of shea butter in over-the-counter topical treatments further contributes to the market’s expansion.

Sustainability and Ethical Sourcing Practices: The increasing focus on sustainability and ethical sourcing of raw materials has also played a role in propelling the Shea Butter Market. Shea butter is a renewable, biodegradable product, and its production offers sustainable livelihoods for millions of women in rural African communities. Many global brands are now prioritizing sustainable and fair-trade practices when sourcing shea butter. The desire to support community development while ensuring ethical practices in sourcing has made shea butter an attractive ingredient for environmentally-conscious consumers and companies.

Key Applications of Shea Butter

The Shea Butter Market is driven by its diverse applications across various industries, including cosmetics, food, pharmaceuticals, and others. The cosmetic industry remains the largest consumer of shea butter, but the growing use in other sectors is helping to expand the market.

Cosmetics and Skincare: Shea butter is primarily used in the cosmetics industry, where it is valued for its moisturizing, anti-aging, and skin-healing properties. It is a common ingredient in a wide range of skincare products such as lotions, moisturizers, body butters, soaps, and lip balms. Shea butter helps to lock in moisture, improve skin elasticity, and provide nourishment, making it particularly beneficial for dry, sensitive, or aging skin. In recent years, the popularity of natural and organic skincare has led to an increase in the demand for shea butter-based formulations.

Food and Beverage: The food industry’s adoption of shea butter has been a significant driver of market growth. As a plant-based fat, shea butter is used as a substitute for animal fats in cooking and baking, offering a healthier alternative to products like butter and margarine. Shea butter is also used as an ingredient in chocolate and confectionery products, where it provides a smooth texture and helps improve the stability and shelf life of the products. Moreover, due to its high content of unsaturated fats, shea butter is being promoted as a heart-healthy fat, which is driving its incorporation into healthy food options.

Pharmaceuticals: The therapeutic benefits of shea butter are increasingly being recognized in the pharmaceutical industry. It is commonly used in ointments, creams, and balms for its ability to soothe and heal damaged or irritated skin. Shea butter is also used in the treatment of conditions like eczema, acne, and psoriasis. Its anti-inflammatory properties and high concentration of antioxidants make it effective in reducing the appearance of scars and stretch marks. As more consumers seek natural and holistic remedies, the pharmaceutical industry’s use of shea butter is expected to grow.

Hair Care: Shea butter is also widely used in hair care products, such as shampoos, conditioners, and hair masks, due to its ability to moisturize and nourish the scalp and hair. It helps to promote healthy hair growth, reduce dandruff, and improve hair texture. The growing awareness of the importance of natural hair care is driving the use of shea butter in products aimed at providing hydration and restoring hair health.

Other Industrial Uses: Beyond cosmetics, food, and pharmaceuticals, shea butter is also used in other industrial applications, such as the production of candles, lubricants, and soaps. Its versatility and natural properties make it an appealing ingredient for various manufacturing sectors, and its adoption in non-food and non-beauty applications continues to increase.

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Shea Butter Market Segmentation

The Shea Butter Market can be divided based on type, application, region.

Breakup by Type

• Raw and Unrefined
• Refined

Breakup by Application

• Food
• Cosmetics and Personal Care
• Pharmaceutical
• Others

 Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

 Some of the major players explored in the report by Expert Market Research are as follows:

• Fuji Oil Holdings Inc. 
• 3F Industries Limited 
• BASF SE 
• OLVEA Vegetable Oils SAS 
• Cargill, Incorporated 
• Croda International Plc 
• Ghana Nuts Company Ltd. 
• Sophim Iberia S.L. 
• AAK AB  
• Bunge Limited 
• Others

Challenges and Restraints

Despite the promising growth prospects, the Shea Butter Market faces certain challenges. One significant issue is the inconsistent supply of shea nuts, which can be affected by factors such as climate change, drought, and political instability in the regions where shea trees are grown. These challenges can lead to price fluctuations and supply chain disruptions, potentially limiting the market’s growth. Additionally, the rising demand for shea butter has created concerns about overharvesting and sustainability, particularly in regions where shea trees are increasingly under pressure from commercial agriculture.

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