The Global Shea Butter Market Growth Is Projected To Driven By Growing Cosmetic Industry
The shea butter market offers various benefits such as moisturizing and hydrating properties which makes it suitable for use in cosmetics such as lotions, creams, and sun protection products. Shea butter helps treat various skin conditions such as eczema, psoriasis, and aging skin. It contains fatty acids and vitamins A and E that nourish the skin and protect it from UV damage. The growing demand for natural and organic personal care products is expected to drive the growth of the shea butter market.
The Global Shea Butter Market is estimated to be valued at US$ 2.68 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the shea butter market are Verizon Communications Inc., AT&T Inc., TomTom N.V., MiX Telematics Limited, OnStar Corporation, Bayerische Motoren Werke AG (BMW), Trimble Inc., Zonar Systems, Inc., Omnitracs LLC, Inseego Corporation, AirIQ Inc., Bridgestone Corporation, General Motors Company (GM), Geotab Inc., Michelin Group, Octo Telematics S.p.A., Omnitracs, LLC, Bell Atlantic Corporation, Continental AG. The increasing focus of manufacturers towards natural cosmetic ingredients is expected to drive the demand for shea butter in the coming years.
The growing demand for shea butter in the cosmetic industry is expected to offer lucrative growth opportunities for players in the shea butter market. Shea butter is widely used in products such as lotions, creams, and sunscreens due to its hydrating and moisturizing properties. Moreover, rising consumer awareness about the skin and hair benefits of shea butter is also fueling its demand.
Globally, the Shea Butter Market Size is anticipated to witness significant growth with players increasingly focusing on expanding their presence in emerging markets of Asia Pacific and Latin America. The easy availability of raw materials along with lower manufacturing costs is encouraging manufacturers to set up production bases in developing countries. Additionally, the rising export of shea butter and its derivatives from African countries is augmenting the global market.
Market drivers
The increasing demand for natural and organic cosmetic products is a major factor driving the growth of the global shea butter market. Consumers are shifting their preferences towards cosmetic products containing natural ingredients due to growing health and environment concerns regarding chemical-based cosmetics. Shea butter is widely used as a natural moisturizing ingredient in cosmetic formulations such as lotions, creams, and sunscreens. The growing demand from the personal care industry is therefore expected to boost the sales of shea butter in the coming years.
The current geopolitical situation is impacting the growth of the Shea Butter market in different ways. Political instability and conflict in West African countries that are major producers of Shea nuts like Burkina Faso, Mali, and Nigeria is disrupting harvest and supply chains. Additionally, sanctions imposed on some countries due to political issues is affecting trade flow and availability of Shea butter in international markets. In 2022, inflation and rising costs have put pressure on Shea butter producers. Producers in the region are facing difficulties in securing fair prices for their output due to currency fluctuations and uncertainties arising from the geopolitical environment.
To sustain market growth in the future, producers and buyers need to develop strategies that make supply chains more resilient to geopolitical disruptions. Diversifying sourcing from multiple countries, stockpiling inventory during stable periods, and investing in infrastructure to improve harvest and post-harvest efficiency can help mitigate risks. Public-private partnerships to support farmers through credit, training and market linkages can enhance rural livelihoods and incomes. This will not only boost local production volumes but also ease political and social tensions that sometimes stem from poverty. Adopting sustainable and equitable trade practices can further strengthen cross-border cooperation essential for the Shea industry.
In terms of value, the Shea Butter market remains concentrated in West Africa, which accounts for over 80% of global production. Within the region, Ghana and Burkina Faso rank among the highest Shea butter producing nations. However, Asia Pacific has emerged as the fastest growing regional market for Shea butter. Rising health and beauty consciousness along with growth in natural ingredients-based cosmetics is driving demand across countries like China, India and Japan. Expanding sales channels, aggressive marketing by brand owners and improving shelf visibility have made Shea butter more accessible to Asian consumers.
For More Details On The Report, Read: https://www.newswirestats.com/shea-butter-market-is-estimated-to-witness-high-growth/
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