Collaborations Like That of AAK Mars to Create Massive Opportunities for the Growth of the Global Shea Butter Market

Shea butter is a fat that is extracted from shea nuts of the African shea tree. They are solid at warm temperatures and are ivory in color when raw. Shea butter is extensively used in various areas like cosmetics, pharmaceutical, personal care, nutraceutical, and food industries. Most prominently, shea butter is used in the personal and cosmetic industry to aid against skin problems like acne, burns, dryness, dandruff, eczema, and others.

Forecast Analysis of the Global Shea Butter Market

Rapid inclination towards organic or plant-based cosmetic products among people across the globe is expected to drive the growth of the shea butter market during the forecast period 2021-2028. In addition, wide variety of shea butter products like lip balm, moisturizing lotion, soap bar, and others coupled with the surging demand for new shea butter products in order to meet the demands of the customers is further expected to create immense opportunities for the growth of the market. However, high-cost shea butter is expected to impede the growth of the global shea butter market during the forecast period.

According to the report published by Research Dive, the global shea butter market is expected to generate a revenue of $2,281,864.90 thousand by 2028, growing rapidly at a CAGR of 14.0% during the forecast period 2021-2028. The major players of the market include Bulk Apothecary, Baraka Shea Butter, Clariant, Empower Village LLC, Jedwards International, Inc., Akoma Cooperative Multipurpose Society, Vink Chemicals GmbH & Co. KG, The Savannah Fruits, Ghana Nuts Company Limited, The Organic Shea Butter Company, and many more.

Key Developments of the Global shea butter market

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global shea butter market to grow exponentially.

For instance, in October 2020, Unilever, a British multinational consumer goods company, acquired Sundial Brands, one of the largest producers of hair and skincare products for African-American women, in order to maximize its presence in the global shea butter market by enhancing their brand portfolio.

In June 2021, AAK, a global Sweden-based company and producer of vegetable oils and fats, partnered with Mars, a global confectionery, food, and pet care company, in a ten-year sustainable shea initiative so as to improve the livelihoods of women working in Ghana’s shea supply chain.

In October 2021, ABC Funds, a top Canadian financial management company, invested about EUR1.6 million in two companies in the shea sector namely, Mali Shi, first operational industrial-scale shea butter processing plant in Mali and Bio Amandes, an industrial processor of shea butter in Côte d’Ivoire, involved in both locally sourcing and producing shea butter, in order to diversify their investments in the lucrative industry.

Most Profitable Region of the Market

The Asia-Pacific region is expected to have the fastest growth rate, and generate a revenue of $440,399.90 thousand during the forecast period. Increasing demand for natural and vegan skin care products in this region is expected to drive the growth of the market. In addition, prevalence of prominent players of the market in this region is further expected to bolster the growth of the market during the forecast period.

COVID-19 Impact on the Global shea butter market

The outbreak of coronavirus has had a negative impact on the growth of the global shea butter market, owing to the prevalence of lockdowns in various countries across the globe. Stringent travel restrictions on the import of raw materials during lockdowns curbed the production of shea butter. In addition, the manufacturing plants, shops and convenience stores were shut down during lockdowns which further decreased the demand for shea butter.