According to the report, the global shea butter industry generated $655.2 million in 2020 and is anticipated to generate $2.4 billion by 2030, witnessing a CAGR of 14.1% from 2021 to 2030.
Prime determinants of growth
The surge in consumer demand for plant-based ingredients in the cosmetic industry, rise in online sales in remote areas and increase in demand for shea butter in the cosmetic and food industries drive the growth of the global shea butter market. However, limited availability of the product in developed regions and availability of healthier substitutes hinder the market growth. On the other hand, extensive use of shea butter in various industry verticals, the rise in the vegan population, and the rapid growth of the retail sector present new opportunities in the coming years.
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Covid-19 Scenario
- The outbreak of the Covid-19 pandemic has had a negative impact on the global shea butter market.
- The pandemic disrupted the supply chain across the world, which in turn, led to difficulties for key players and vendors during the supply of goods.
- Trade restrictions imposed by several countries across the globe to curb the outbreak of COVID-19 significantly affected global logistics and transportation, thereby impacting the shea butter market negatively.
The raw & unrefined segment to maintain its leadership status throughout the forecast period
Based on type, the raw & unrefined segment held the highest market share in 2020, accounting for nearly four-fifths of the global shea butter market, and is estimated to maintain its leadership status throughout the forecast period, owing to multiple benefits associated with unrefined or cold pressed oils. However, the refined & ultra-refined segment is projected to manifest the highest CAGR of 16.3% from 2021 to 2030. This is because of its usage in the skincare market, as it is said to diminish the appearance of lines and wrinkles as well as aid in softening the skin and lighting the complexion.
The food segment to maintain its lead position during the forecast period
Based on application, the food segment accounted for the largest share in 2020, contributing more than four-fifths of the global shea butter market, and is projected to maintain its lead position during the forecast period. This is because shea butter exhibits functional and enhanced nutritional properties. Moreover, the cosmetics segment is expected to portray the largest CAGR of 16.4% from 2021 to 2030, owing to its usage in a broad range of cosmetic products, including skin care products such as creams, soaps, balms, body butter, lip balms, shaving creams, and hair care products.
North America to maintain its dominance by 2030
Based on region, North America held the highest market share in terms of revenue in 2020, accounting for more than one-third of the global shea butter market. This is due to the rise in the health-conscious population and improved lifestyles in the countries such as the U.S. However, the Asia-Pacific region is expected to witness the fastest CAGR of 16.4% from 2021 to 2030, owing to a rise in demand for plant-based food products and a growing vegan & flexitarian population.
Source: PR Newswire