Shea Butter Market By Product (Raw/Unrefined, Refined), By Application (Cosmetics & Personal Care, Food & Beverage, Pharmaceutical), By Sales Channel (Specialty Stores, Online, Convenience Stores, Supermarkets/Hypermarkets, Others), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.23 Billion
CAGR (2026-2031)	7.45%
Fastest Growing Segment	Raw/Unrefined
Largest Market	Europe
Market Size (2031)	USD 4.97 Billion

Market Overview

The Global Shea Butter Market will grow from USD 3.23 Billion in 2025 to USD 4.97 Billion by 2031 at a 7.45% CAGR. Shea butter is a vegetable fat extracted from the nut of the African shea tree (Vitellaria paradoxa), widely utilized for its emollient properties and high saponifiable fraction. The market is primarily propelled by the food industry, where it serves as a crucial Cocoa Butter Equivalent (CBE) in chocolate and confectionery manufacturing, alongside a robust demand from the cosmetics sector for natural, plant-based skincare ingredients. These drivers are fundamentally supported by the product's versatility and the increasing consumer preference for clean-label, sustainable raw materials in personal care and edible products.

However, the industry faces a significant challenge regarding the sustainability of supply chains and the preservation of shea parklands against environmental degradation. According to the Global Shea Alliance, in 2023, annual shea nut exports reached approximately 500,000 metric tonnes, highlighting the massive scale of international demand. Despite this volume, the lack of organized farming and reliance on wild harvesting exposes the market to supply volatility caused by climate change and erratic weather patterns, which could impede future market expansion if preservation efforts are not sufficiently scaled.

Key Market Drivers

Escalating demand in the cosmetics and personal care industry is a primary force shaping the Global Shea Butter Market, driven by the clean label movement and consumer appetite for plant-based hydration. Major beauty conglomerates are reformulating product lines to feature shea butter as a hero ingredient, capitalizing on its rich profile of fatty acids and vitamins for anti-aging and moisturizing applications. This trend is evident in the financial performance of leading brands that prioritize natural formulations. According to L'Occitane International S.A., June 2024, in the 'Annual Results Announcement for the Year Ended 31 March 2024', the group achieved net sales of €2.54 billion, a growth largely attributed to the strong performance of flagship brands which heavily utilize shea butter in their product portfolios.

Concurrently, the market is experiencing a surge in the utilization of shea butter as a Cocoa Butter Equivalent (CBE) within the confectionery sector, necessitated by volatile cocoa prices and supply shortages. Manufacturers are increasingly adopting shea stearin to maintain production viability without compromising the texture or snap of chocolate products, significantly boosting the profitability of specialized fat suppliers. According to AAK, April 2024, in the 'Annual Report 2023', operating profit for the company's Chocolate & Confectionery Fats business area increased by 56% in the fourth quarter, reflecting the critical role of shea-based alternatives during periods of cocoa inflation. This industrial demand reinforces the export value for origin countries; according to the Ghana Export Promotion Authority (GEPA), in June 2024, the nation's non-traditional export earnings, a sector anchored by shea butter and processed oils, reached approximately $3.94 billion for the 2023 fiscal year.

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Key Market Challenges

The primary impediment to the growth of the Global Shea Butter Market is the critical sustainability crisis affecting its supply chain, which relies almost exclusively on wild-harvested nuts rather than organized farming. This dependence on natural parklands exposes the market to severe volatility driven by environmental degradation and erratic climate patterns. As rainfall becomes unpredictable and trees face stress from rising temperatures, harvest yields fluctuate sharply, causing price instability that disrupts the procurement strategies of major food and cosmetic manufacturers. Such uncertainty deters long-term contracts and encourages industrial buyers to seek more reliable synthetic alternatives or other plant-based fats, thereby stifling potential market expansion.

This challenge is compounded by the rapid depletion of the botanical resource base, which threatens to create a permanent structural deficit. The aggressive removal of trees for charcoal production and agricultural land clearance is shrinking the productive capacity of the shea belt. According to the Global Shea Alliance, in September 2024, the industry faced a severe threat to its raw material availability, with an estimated 8 million shea trees being lost annually to deforestation and encroachment. This alarming rate of resource destruction limits the volume of exportable kernels, directly restricting the market’s ability to scale up production to meet the rising international demand.

Key Market Trends

The Shift Toward Cold-Pressed and Mechanical Extraction Technologies is redefining the manufacturing landscape of the Global Shea Butter Market, as stakeholders move away from labor-intensive manual processing to industrial-scale operations. This transition is primarily necessitated by the need to standardize quality and retain higher value within origin countries, reducing the historical reliance on exporting raw nuts. Governments in West Africa are actively financing this industrialization to stabilize the supply of high-grade butter for global export. According to African Agribusiness, July 2025, in the 'Ghana to revive shea processing plant with US$4.6 million injection' article, the Ghanaian government allocated US$4.6 million to rehabilitate the PBC Shea Limited facility, aiming to process 200 tons of nuts daily into premium butter and oil.

Integration into Certified Vegan and Plant-Based Food Alternatives is emerging as a critical growth avenue, expanding the ingredient's utility beyond its traditional role in confectionery. Shea butter is increasingly sought after for its ability to mimic the texture and melting profile of dairy fats in vegan butters, cheeses, and spreads without requiring partial hydrogenation. This application allows manufacturers to achieve clean-label formulations that appeal to health-conscious consumers seeking sustainable plant-based nutrition. The commercial viability of this segment is robust; according to AAK, July 2025, in the 'Interim report for the second quarter 2025', the company's Food Ingredients business area, which develops plant-based oil solutions, recorded an operating profit of SEK 764 million, reflecting the strong market uptake of these specialized fat systems.

Segmental Insights

The Raw and Unrefined segment is emerging as the fastest-growing category in the Global Shea Butter Market, driven by increasing consumer demand for clean-label and minimally processed ingredients. This surge is largely attributed to the superior retention of bioactive nutrients, including vitamins A and E, which are preserved in their natural state unlike in refined alternatives. The establishment of rigorous quality standards, such as the Grade A classification by the Global Shea Alliance, further supports this trajectory by ensuring authenticity and purity, thereby encouraging premium personal care brands to prioritize this segment for high-efficacy formulations.

Regional Insights

Europe stands as the dominant region in the Global Shea Butter Market, driven by robust demand across both the food and cosmetic sectors. According to the Centre for the Promotion of Imports (CBI), the region accounts for a substantial share of global imports, primarily due to the extensive use of shea stearin as a Cocoa Butter Equivalent (CBE) in chocolate manufacturing. European Union regulations permitting the inclusion of specific vegetable fats in confectionery further bolster this demand. Additionally, the thriving personal care industry prioritizes natural, ethically sourced ingredients, cementing shea butter's status in premium skincare formulations.

Recent Developments

• In March 2025, Fuji Oil Europe strengthened its sustainable sourcing infrastructure by commissioning its largest-ever donated warehouse in Ghana as part of the "Tebma Kandu" program. This facility was established to support local women's cooperatives by providing a centralized location for aggregating shea nuts, which helps maintain kernel quality and reduces post-harvest losses. The investment underscores the company's commitment to vertical integration and community development, ensuring a traceable and high-quality supply of shea kernels for its global processing operations while improving the economic resilience of local collectors.
• In July 2024, AAK achieved a significant regulatory milestone by receiving a "No Questions Letter" from the U.S. Food and Drug Administration (FDA) regarding its Generally Recognized as Safe (GRAS) notification for shea stearin. This regulatory clearance marked the first expanded use of shea stearin in new food categories since 1998, allowing the ingredient to be utilized in a wider array of applications, including plant-based meat and dairy alternatives. The approval supports the company's strategy to provide functional, plant-based fat solutions to food manufacturers seeking sustainable alternatives to other solid fats.
• In June 2024, Bunge announced a new public-private partnership in Ghana aimed at empowering women in the shea value chain. Collaborating with Agriterra and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the company launched the "Women Shea Business Cooperative" project. This initiative focuses on establishing and professionalizing independent women's business cooperatives in northern Ghana. The project is designed to improve the livelihoods of thousands of shea collectors by enhancing their capacity to manage cooperatives effectively and access the market directly, thereby strengthening the sustainability and transparency of Bunge's supply chain.
• In March 2024, the Global Shea Alliance (GSA) convened its annual industry conference, Shea 2024, in Abuja, Nigeria, under the theme "Bridging the Gap." The event brought together key stakeholders, including major ingredient suppliers, cosmetic brands, and government representatives, to address critical challenges such as parkland management, resource conservation, and supply chain sustainability. The conference facilitated strategic discussions on closing the divide between the industry's visionary sustainability goals and the practical actions required to support the millions of women collectors in West Africa, fostering new collaborations to drive long-term market growth.

Key Market Players

• BASF SE
• Olvea Group
• Sophim S.A.
• Cargill, Inc.
• Suru Chemicals
• Ghana Nuts Company Ltd.
• Croda International Plc
• Agrobotanicals, LLC
• Clariant AG
• AAK AB

By Product	By Application	By Sales Channel	By Region
Raw/Unrefined Refined	Cosmetics & Personal Care Food & Beverage Pharmaceutical	Specialty Stores Online Convenience Stores Supermarkets/Hypermarkets Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Shea Butter Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Shea Butter Market, By Product:

• Raw/Unrefined
• Refined

• Shea Butter Market, By Application:

• Cosmetics & Personal Care
• Food & Beverage
• Pharmaceutical

• Shea Butter Market, By Sales Channel:

• Specialty Stores
• Online
• Convenience Stores
• Supermarkets/Hypermarkets
• Others

• Shea Butter Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE