Global Shea Butter Market By Form (Raw Shea Butter, Refined Shea Butter, Deodorized Shea Butter, Liquid Shea Butter), By Application (Cosmetics and Personal Care, Food Beverages, Pharmaceuticals, Nutraceuticals, Others), By Distribution Channel (Direct Sales, Indirect Sales) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Shea Butter Market size is expected to be worth around USD 4.9 Billion by 2034, from USD 2.4 Billion in 2024, growing at a CAGR of 7.3% during the forecast period from 2025 to 2034.

Shea butter, derived from the nuts of the Vitellaria paradoxa tree, is a versatile fat predominantly produced in West and East Africa. Renowned for its applications in cosmetics, pharmaceuticals, and the food industry, shea butter’s significance extends beyond its commercial value to its role in rural economies, particularly in sub-Saharan Africa.

The shea butter industry is a vital component of the agricultural sector in several African nations. Nigeria stands as the largest producer, accounting for approximately 69.8% of global production. Other notable producers include Ghana, Mali, and Burkina Faso. In 2006, the demand for shea butter in Europe was estimated at 60,000 tonnes, with 95% utilized in the chocolate industry . Despite the substantial production, much of the shea butter faces challenges in meeting international market standards, affecting its export potential.

Government initiatives and international collaborations are playing a pivotal role in shaping the future of the shea butter industry. In Ghana, the “Women in Shea Initiative” aims to build a responsible shea supply chain by supporting 13,000 women collectors and processors. Similarly, the Global Shea Alliance, a non-profit industry association, promotes sustainability and quality standards through public-private partnerships. These efforts are instrumental in enhancing the livelihoods of rural women and ensuring environmental stewardship.

Key Takeaways

• Shea Butter Market size is expected to be worth around USD 4.9 Billion by 2034, from USD 2.4 Billion in 2024, growing at a CAGR of 7.3%.
• Raw Shea Butter held a dominant market position, capturing more than a 65.1% share.
• Cosmetics & Personal Care held a dominant market position, capturing more than a 63.4% share.
• Indirect Sales held a dominant market position, capturing more than a 71.2% share.
• North America emerged as a leading region in the global shea butter market, holding a substantial 31.2% share, equivalent to approximately USD 700 million.

By Form

Raw Shea Butter dominates with 65.1% due to its natural appeal and wide skincare use.

In 2024, Raw Shea Butter held a dominant market position, capturing more than a 65.1% share in the global shea butter market by form. The high preference for raw shea butter is mainly driven by its unrefined and organic nature, which appeals strongly to both cosmetic manufacturers and conscious consumers. It retains all the natural vitamins, fatty acids, and healing properties, making it a go-to choice for skin moisturizers, hair conditioners, and natural body care solutions. Many users also favor it for its minimal processing, believing it to be purer and more sustainable.

As consumer interest in clean and chemical-free products rises, raw shea butter continues to find increasing demand across both personal and therapeutic care segments. The form is especially prominent in African and European markets, where traditional usage and growing awareness about skin health fuel consistent growth. This ongoing shift toward simple, plant-based products positions raw shea butter for steady traction in 2025 as well.

By Application

Cosmetics & Personal Care leads with 63.4% driven by demand for natural skincare solutions.

In 2024, Cosmetics & Personal Care held a dominant market position, capturing more than a 63.4% share in the shea butter market by application. This strong hold is largely fueled by the increasing consumer shift toward organic and plant-based beauty products. Shea butter’s rich moisturizing properties, along with its anti-inflammatory and healing benefits, make it a staple ingredient in lotions, lip balms, shampoos, and facial creams. Its natural origin and skin-soothing abilities resonate well with brands promoting clean beauty.

The rising awareness about skin health, combined with growing concerns over chemical-laden alternatives, continues to push the demand for shea-based cosmetics. Regions such as Europe and North America have shown significant traction, with consumers favoring ethical and sustainable sourcing. Moving into 2025, this segment is expected to maintain its leading position as more personal care companies reformulate their products using raw, minimally processed shea butter to align with evolving consumer expectations.

By Distribution Channel

Indirect Sales leads with 71.2% owing to strong retail and online network reach.

In 2024, Indirect Sales held a dominant market position, capturing more than a 71.2% share in the shea butter market by distribution channel. This dominance is mainly supported by the presence of large-scale retailers, supermarkets, specialty stores, and expanding e-commerce platforms that make shea butter products widely accessible to both consumers and businesses. Many cosmetic and skincare brands rely on established distribution chains to reach global markets efficiently.

Online platforms, in particular, have played a major role in promoting natural and organic shea butter to health-conscious buyers, especially in regions like North America and Europe. These indirect channels help build brand visibility and enable bulk and small-volume purchases alike. As consumer behavior continues to favor convenience and doorstep delivery, indirect sales channels are expected to strengthen further in 2025, maintaining their dominant share through omnichannel growth strategies and global product availability.

Key Market Segments

By Form

• Raw Shea Butter
• Refined Shea Butter
• Deodorized Shea Butter
• Liquid Shea Butter

By Application

• Cosmetics & Personal Care
• Food Beverages
• Pharmaceuticals
• Nutraceuticals
• Others

By Distribution Channel

• Direct Sales
• Indirect Sales

Drivers

Empowering Women Through Shea Butter Production

One of the major driving factors for the shea butter market is the empowerment of women in rural communities, particularly in West Africa. In countries like Ghana, Nigeria, and Burkina Faso, women are at the forefront of shea butter production, from harvesting shea nuts to processing and selling the final product. This involvement not only provides them with a source of income but also enhances their social and economic status within their communities.

According to the Food and Agriculture Organization (FAO), Nigeria produced approximately 348.9 million kilograms of shea nuts in 2022, making it the top producer globally. Mali and Burkina Faso followed with 215.7 million kg and 105.7 million kg, respectively. These figures highlight the significant role that West African countries play in the global shea butter market.

Government initiatives have been instrumental in supporting women involved in shea butter production. For instance, the Ghanaian government has implemented programs to provide training, improve processing techniques, and facilitate access to markets for women cooperatives. These efforts aim to enhance the quality of shea butter and increase its competitiveness in international markets.

Moreover, international organizations have partnered with local communities to promote sustainable shea butter production. The United Nations Development Programme (UNDP) has supported projects that focus on building processing plants and establishing integrated production systems. These initiatives not only improve the efficiency of shea butter production but also create employment opportunities and contribute to the economic development of rural areas.

Restraints

Lack of Modern Processing Infrastructure: A Major Challenge in the Shea Butter Market

One of the significant challenges facing the shea butter market is the lack of modern processing infrastructure, particularly in key producing countries like Nigeria. This deficiency hampers the ability of producers to process shea nuts efficiently and produce high-quality shea butter, thereby affecting their competitiveness in the global market.

According to a report by the Food and Agriculture Organization (FAO), Nigeria’s shea nut production between 2017 and 2021 has been substantial. However, the absence of adequate processing facilities has led to a decline in the quality of shea butter produced, impacting its market share globally. The report highlights that many rural communities lack the necessary resources and infrastructure to process shea nuts effectively, resulting in lower-quality products.

This infrastructural gap not only affects the quality of the product but also limits the income potential for small-scale producers, many of whom are women. The shea butter industry in Nigeria is highly fragmented, with numerous small-scale producers lacking access to standardized production practices, markets, and capital. This fragmentation makes it challenging for Nigerian producers to compete in the global shea butter market.

To address these challenges, it is crucial to focus on improving access to modern processing infrastructure and standardizing production practices. Providing structural support for small-scale producers through access to capital, markets, and training can enhance the quality and competitiveness of Nigerian shea butter in the global market. Such initiatives would not only improve the livelihoods of producers but also strengthen Nigeria’s position in the global shea butter industry.

Opportunity

Expanding Use of Shea Butter in Food Industry Offers Significant Growth Potential

One major growth opportunity for the shea butter market lies in its expanding application within the food industry. Traditionally known for its use in cosmetics and skincare, shea butter is now gaining traction as a valuable ingredient in various food products. Its unique composition, rich in stearic and oleic acids, makes it an excellent alternative to cocoa butter and other vegetable fats.

In Europe, for instance, shea butter is increasingly utilized in the confectionery sector. According to the Ministry of Foreign Affairs of the Netherlands, approximately 90% of the shea exported to Europe is used in the food industry, particularly in chocolate and bakery products. This trend is driven by the demand for sustainable and ethically sourced ingredients, as well as the functional properties of shea butter that enhance texture and shelf life in food items.

Furthermore, the U.S. Food and Drug Administration (FDA) has recognized shea butter as a Generally Recognized As Safe (GRAS) substance for use in food, opening doors for its incorporation into a variety of edible products. This regulatory approval has encouraged food manufacturers to explore shea butter as a healthier fat alternative, especially in the production of margarine, spreads, and frying oils.

Government initiatives in shea-producing countries also support this growth trajectory. In Ghana, the Ghana Export Promotion Authority (GEPA) has been promoting the use of shea butter in food applications, highlighting its potential to boost exports and provide economic benefits to local communities. These efforts aim to diversify the market for shea butter and enhance its value chain.

Trends

Rising Demand for Natural and Organic Products

A significant trend shaping the shea butter market is the increasing consumer preference for natural and organic products. Shea butter, known for its moisturizing and healing properties, aligns well with this demand, leading to its widespread adoption in various industries.

In the cosmetics and personal care sector, shea butter’s emollient qualities have made it a staple ingredient in products like lotions, creams, and lip balms. Consumers are increasingly seeking products free from synthetic chemicals, and shea butter offers a natural alternative that meets this criterion. This shift towards clean beauty has propelled the growth of shea butter-infused products in the market.

The food industry is also witnessing a surge in the use of shea butter, particularly as a substitute for cocoa butter in chocolate and confectionery products. Its similar fat composition and melting properties make it an ideal alternative, especially in regions where cocoa butter is scarce or expensive. This substitution not only addresses supply chain challenges but also caters to consumers’ desire for sustainable and ethically sourced ingredients.

Government initiatives and collaborations with international organizations are supporting the sustainable production and fair trade of shea butter. These efforts aim to empower local communities, particularly women, who are predominantly involved in shea nut harvesting and butter production. By promoting ethical sourcing and providing training, these programs enhance the quality and marketability of shea butter on a global scale.

Regional Analysis

In 2024, North America emerged as a leading region in the global shea butter market, holding a substantial 31.2% share, equivalent to approximately USD 700 million. This dominance is primarily driven by the region’s robust demand for natural and organic personal care products, where shea butter is a key ingredient due to its moisturizing and healing properties. Major American brands, such as The Body Shop and L’Occitane, have expanded their product lines to include shea butter-based offerings, catering to consumers’ growing preference for clean-label cosmetics.

Additionally, the North American market benefits from a well-established e-commerce infrastructure, facilitating the distribution and accessibility of shea butter products to a broad consumer base. The region’s inclination towards sustainable and ethically sourced ingredients also aligns with the shea butter industry’s emphasis on community-based production, particularly empowering women in West African countries involved in shea nut harvesting and processing.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Sankofa Shea is a women-led cooperative based in Ghana, specializing in hand-crafted, raw shea butter production. The company emphasizes ethical sourcing, fair trade practices, and empowering rural women. Their products are widely exported to North America and Europe, serving cosmetics and natural skincare sectors. Sankofa Shea supports sustainability by adopting eco-friendly harvesting and processing methods. They have built a strong reputation for transparency and social impact, making them a recognized name in community-based shea production.

AAK AB, a Swedish company, is one of the leading global suppliers of specialty vegetable oils and fats, including shea butter. The company processes shea kernels at its West African facilities and integrates shea derivatives into food, personal care, and chocolate industries. AAK promotes sustainable sourcing through its Kolo Nafaso program, which engaged over 350,000 women in West Africa as of 2023. Their vertical integration and investment in traceability systems enhance supply chain transparency and long-term raw material availability.

AOS Products is a manufacturer and exporter of essential oils, carrier oils, and butter, including refined and unrefined shea butter. The company caters primarily to cosmetic, pharmaceutical, and food industries worldwide. Their shea butter is valued for its purity and adherence to international quality standards. AOS focuses on clean manufacturing practices, ensuring non-GMO, vegan, and cruelty-free products. With a strong distribution network, the company supports bulk and customized supply requirements across several regions.

Top Key Players in the Market

• Sankofa Shea
• AAK AB
• AOS Products
• BASF SE
• Cargill, Inc.
• Clariant AG
• Croda International Plc
• Dukaan
• Ghana Nuts Company Ltd.
• Olvea Group
• Owen Owen
• Shea Radiance
• Sophim S.A.
• Suru Chemicals
• The Jojoba Company

Recent Developments

In 2024, AAK AB, a Swedish company specializing in plant-based oils and fats, continued to strengthen its position in the shea butter market through its sustainable sourcing and innovative product development. The company has been sourcing shea kernels from West Africa for over 60 years and engages more than 240,000 women in its Kolo Nafaso program, which focuses on direct sourcing from women who collect and process shea kernels, contributing to poverty alleviation and women’s empowerment.

Cargill’s refined shea butter products are integral to various personal care formulations, aligning with the growing consumer demand for natural and ethically sourced ingredients. Their shea butter is 100% nature-derived, readily biodegradable, vegan suitable, and COSMOS approved, available in refined and organic grades.

Report Scope