Shea Butter Market Report 2025

The shea butter market size has grown strongly in recent years. It will grow from $2.14 billion in 2024 to $2.29 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to traditional use in cosmetics and skincare, demand for natural and organic ingredients, growth in the beauty and personal care industry, increase in awareness of shea butter benefits, adoption in traditional medicine.

The shea butter market size is expected to see strong growth in the next few years. It will grow to $3.02 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to expansion of the food industry, rising demand for plant-based ingredients, incorporation in nutraceutical and functional foods, increased use in hair care products, growth in e-commerce and online sales, growing popularity of diy beauty and skincare with shea. Major trends in the forecast period include development of shea butter derivatives and innovations, introduction of shea butter-infused textile and apparel, technological improvements in shea processing, utilization of shea butter in sustainable packaging, collaboration for research and development in shea industry.

The rising use of cosmetics is expected to drive the growth of the shea butter market. Cosmetics encompass a wide range of products applied to the body, face, hair, or nails to enhance or alter appearance. Shea butter is frequently utilized in cosmetics for its moisturizing, nourishing, and anti-inflammatory properties, promoting healthier, more hydrated skin and hair. For example, in March 2021, the British Beauty Council, a UK-based non-profit organization, reported that in 2022, a notable 56,000 organic beauty and wellbeing products and ingredients received the COSMOS certification, indicating a 22% increase compared to the previous year. Thus, the increasing use of cosmetics is fueling the growth of the shea butter market.

The expanding e-commerce industry is expected to drive the growth of the shea butter market in the future. The e-commerce sector encompasses the electronic commerce industry, which includes online platforms and digital channels where businesses and consumers engage in the buying and selling of goods and services. E-commerce platforms have made shea butter more accessible to a global audience, allowing consumers to easily find and purchase shea butter from anywhere in the world. This accessibility has opened new markets for shea butter producers and contributed to an overall increase in demand for the product. For instance, in August 2024, the U.S. Census Bureau, a US-based government agency, reported that in the second quarter of 2024, U.S. retail e-commerce sales, adjusted for seasonal fluctuations but not for price changes, totaled $291.6 billion. This marks a 1.3 percent increase (± 0.7) compared to the first quarter of 2024.

Major companies in the shea butter market are focusing on innovative products, such as shea butter-infused skincare items to cater to expanding customer bases and drive sales and revenue. These products, featuring shea butter as a key ingredient, offer enhanced benefits to consumers. For example, in September 2022, Salve Pharmaceuticals Pvt. Ltd., an India-based dermatology company, launched the Ultra skincare range. This line includes the Parasoft Ultra Hydrating and Protecting Cream and the Parasoft Ultra Daily Moisturizing Body and Face Lotion, both formulated for daily use and providing 72-hour hydration with ingredients such as almond oil, vitamin E, shea butter, and hibiscus extracts. The emphasis on such innovative products aims to meet the evolving needs of consumers and drive market growth.

Major companies in the shea butter market are embracing a strategic partnership approach to enhance their product offerings and broaden their market reach. Strategic partnerships involve companies utilizing each other's strengths and resources to achieve mutual benefits and success. For example, in January 2024, SheaMoisture, a US-based personal care company, launched its first-ever deodorant range specifically formulated for melanin-rich skin, in collaboration with Grammy-nominated artist Coco Jones. This line includes six antiperspirants and two whole-body deodorants, all designed to provide effective odor and sweat protection while promoting an even skin tone and hydration. These products are free from parabens and mineral oils and feature a signature Coconut & Hibiscus fragrance, earning dermatologist approval.

Major companies in the shea butter market are concentrating on developing innovative solutions, such as shea butter nilotica, to enhance product quality and meet specific consumer needs. Shea butter nilotica is a distinct type of shea butter derived from the nuts of the Vitellaria nilotica tree. For example, in December 2022, Taste of South Sudan, a Sudan-based company that promotes South Sudanese food and culture, launched Shea Butter Nilotica, a 100% pure and unrefined moisturizer sourced from the Vitellaria nilotica tree, which is native to South Sudan and Uganda. This premium product is crafted by local women to help support their families and is available for purchase online and at their shop in Juba. Renowned for its creamy texture and rich content of vitamins A and E, as well as Omega 3 and 6 fatty acids, Shea Butter Nilotica effectively moisturizes and heals the skin.

Major companies operating in the shea butter market include BASF SE, Bunge Limited, Wilmar Africa Limited, Clariant AG, AAK AB, Fuji Oil Holdings Inc., Croda International plc, L'Occitane en Provence, NOW Foods, 3F Industries Limited, Anderson International Corp., OLVEA Group, Bulk Apothecary, International Oils & Fats Limited, Akoma International Ltd., Manorama Industries Limited, Sophim S.A., The Savannah Fruits Company, Green Leaf Naturals, Makers Ingredients Limited, Ghana Nuts Company Limited, Shea Radiance, Better Butter Company, Zoic Cosmetics, Shebu Industries, Jiangxi Hualong Plant Spice Co. Ltd., Suru Chemicals & Pharmaceuticals Pvt. Ltd., Purenso Select.

North America was the largest region in the shea butter market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the shea butter market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the shea butter market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Shea butter is a fat obtained from the nut of the African shea tree (Vitellaria paradoxa). In its raw state, it appears ivory, and it is often tinted yellow using borututu root or palm oil. Shea butter finds common usage in cosmetics as a moisturizer, salve, or lotion. Additionally, in some African countries, it is recognized as a nutritious substance and is employed in food preparation.

The primary types of shea butter products include raw and unrefined shea butter, as well as refined shea butter. Raw and unrefined shea butter represent the purest form, valued for its high content of vitamins, fatty acids, and other beneficial compounds, making it particularly suitable for cosmetic applications. These variants are available in both organic and conventional forms and find use in various applications, such as food processing, cosmetics and personal care products, pharmaceuticals, and more.

The shea butter market research report is one of a series of new reports that provides shea butter market statistics, including shea butter industry global market size, regional shares, competitors with a shea butter market share, detailed shea butter market segments, market trends and opportunities, and any further data you may need to thrive in the shea butter industry. This shea butter market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The shea butter market consists of sales of shea butter extract and shea tree seed fat. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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