The Shea Butter Market can be outlined as the shea butter trade and manufacturing industry around the planet, which is based on the products of the nuts belonging to the Vitellaria paradoxa tree, which grows in Africa. It is consumed in food industry, cosmetics and personal care industries because of properties of being naturally moisturising and healing. In the market, the goal is to see sustainable sources and inclusion of natural ingredients in the mainstream product lines.
The growing demand of consumers directly interested in organic and plant based ingredients has seen shea butter used more as a desirable emollient in skin care and hair care. The cosmetic industry especially is using shea butter in lotions, balms, creams and anti-aged products. Fair trade and ethical sourcing are emerging to be a major force in the market.
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Market Drivers
With consumers moving to a more environmentally friendly and chemical-free product, the natural nature, and skin enhancing qualities of shea butter should make this a good basis of cosmetic formulation. Industry sources demonstrate that more than 65 per cent of new skin care launches in a number of emerging markets today feature natural oils with shea butter being amongst the most popular three.
Shea butter is a promising sustainable and fair-trade product whose sale is currently being sourced by brands in West Africa. This does not only lead to consistency in supply, but as well leads to women empowerment in the rural economics, which improves the image and the brand value in the market.
Product Type Segment Analysis : Raw Shea Butter
Raw shea butter is being demanded in its raw, nutritious composition having not had the fatty acids and vitamins removed, maintaining the complete mixture. It is commonly applied in home beauty preparations, as well as, smaller beauty companies which are focusing on clean beauty market segments.
Application Segment Analysis : Cosmetics
The largest application segment is that of cosmetics, and it captured more than 70 percent of the world market value. The growing consumption in moisturizers, lip balms, sunscreens and hair conditioners has made shea butter a major raw material in beauty industry.
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Regional Analysis: North America and Europe
North America is a very profitable market since the adoption of natural personal care, vegan beauty and wellness is high. The shea butter brand growth is experiencing an intense growth in specialty stores and online websites in the U.S.
Europe trails behind, it is spending time on ethical consumptions, sustainability and the inclusion of natural ingredients on EU cosmetic regulations. France and Germany are on top of the game selling high end shea butter skin care products and certified organic brands.
Competitive Landscape and Industry Players
Shea Butter market is moderately fragmented in the world. Its major players are putting investments in sustainability of the supply chain, product certifications (organic, fair trade) and Research and Development to enhance texture, purity and shelf life. Key Industry Players include:
The small and mid-sized African producers also are gaining access on the global markets by collaborating with beauty brands.
What are the benefits of using raw shea butter in natural cosmetic formulations?
Raw shea butter is valued with not refined purity because it contains all the necessary nutrients such as: the vitamins of A and E, and the fatty acids. The arrangement makes it suitable in natural skin care products since it moisturizes, repairs, and enhances elasticity of the skin without evoking any man-made components. It is also a natural sun protectant and barrier repairing agent, which gains popularity in clean-label formulas.
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