TAGS: Skin Care Hair Care Toiletries Decorative Cosmetic
According to Grand View Research, the global shea butter market size was valued at USD 2.07 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030. Increasing demand for cocoa butter substitutes is expected to drive the growth of the market over the forecast period.
Factors Driving the Market
The outbreak of COVID-19 negatively impacted the market owing to the disruption of the supply of raw materials to the manufacturing units due to a strict lockdown. Additionally, businesses and shops were closed, which further reduced the sales of the product made from shea butter.
In recent years, the cosmetics industry has begun diversifying the use of shea butter due to the growing consumers' desire to purchase products that provide multiple benefits and nourishment. In addition, it is used in skin products, hair products, color cosmetics, baby oil, lotions, and other products. Shea butter has a wide range of uses, which is expected to boost the growth of the market in the next seven years. For instance, in June 2022, Beurre Shea Butter Skincare launched a line of products that are meant to protect and soothe skin with the usage of shea butter as the key ingredient.
Increased awareness of shea butter's therapeutic advantages for skin, such as anti-aging capabilities, extra moisturizing properties, and healing impact, is predicted to boost market revenue in the approaching years. Furthermore, the growing preference of individuals, particularly women and young people, for natural ingredient-based cosmetic products is expected to support the expansion of the market in the future.
Furthermore, the increasing number of product launches in the cosmetics & personal care segment is expected to boost the growth of the market in the timeframe considered. For instance, in February 2022, Byrdie launched a new line of skincare-Karité. The brand offers a range of essentials-including body cream, hand cream, and lip balm-made with pure shea butter and palm oil from their West African homeland. The products have antioxidants and anti-inflammatory properties and are available across various retail and beauty stores in the U.S. and Canada.
Product Insights
The raw and unrefined shea butter segment held the larger market share of 62.3% in 2021 and is expected to maintain dominance over the forecast period. Consumers are becoming more interested in less processed oils as a result of benefits such as boosting skin moisture, healing cuts and scrapes, and helping fight breakouts.
For instance, in march 2020, Karite Shea Butter launched Crème Corps Body Cream which is a natural, body care brand that provides the benefits of raw and unrefined making it safe for the skin. Such launches are expected to support the positive market growth trend.
The refined segment is projected to register the second-fastest growth during the forecast period with a CAGR of 6.5% from 2022 to 2030. The trend of using refined is increasing among consumers owing to the longer shelf life of the product.
Furthermore, the refining process removes the scent and color of the product which is expected to increase its scope in skin care products by manufacturers while developing anti-sensitive products. For instance, in May 2021, Crafters Choice introduced personal care products such as body lotion and soap formulation using ultra-refined pure shea butter.
Application & Regional Insights
The cosmetics & personal care segment accounted for the largest market share in 2021. Growing consumer interest in cosmetic shea butter as an alternative ingredient in creams, lotions, color cosmetics, soaps, and toiletries, is expected to support the growth of the segment.
Increasing health and beauty awareness among consumers, as well as the growing importance of sustainability among product developers, has resulted in a steady increase in demand for organic and natural cosmetics, which is expected to open up opportunities for key players to develop new products.
Europe accounted for the largest share of the global market in 2021. Shea butter is extensively used for manufacturing products like body lotions, moisturizers, and chocolates in the European region because of the large number of cosmetics and pharmaceutical industries that are found there.
Asia Pacific is expected to witness a CAGR of 7.7% in the forecast period. A large part of this can be attributed to the large population, which is primarily contributed by India and China. As per United Nations statistics, in December 2021, Asia Pacific is home to more than half of the world's population.
Such preliminary data on population would help manufacturers understand their market size and develop new products. For instance, in January 2019, Shilla DF launched a limited-edition L'Occitane hand cream in China, to cater to the demand of consumers in the country.
Source: Grand View Research
