Global Shea Butter Market Grows Steadily at a CAGR of 6.95%

Introduction

Shea butter is a natural fat derived from the nuts of the African shea tree (Vitellaria paradoxa). With a smooth, creamy consistency and an ivory to off-white color, it is packed with vitamins A, E, and F. Commonly found in skincare and cosmetic products, shea butter is known for its hydrating and anti-inflammatory qualities. It effectively relieves dry skin, diminishes the appearance of wrinkles, and aids in healing small wounds and burns. In hair care, it is prized for its ability to nourish and soften hair. Its appeal largely lies in its natural, chemical-free composition.

Market Dynamics

Growing awareness of health benefits drives the global market

Shea butter market is gaining prominence for its therapeutic benefits, contributing to its growing use in both personal care and pharmaceutical applications. Packed with vitamins A, E, and F, it supports skin hydration, soothes inflammation, and helps treat various skin conditions. Its natural anti-inflammatory and antioxidant properties make it appealing to health-conscious consumers seeking chemical-free alternatives.

• A recent randomized, double-blind study published in Dermatology Times in April 2025 revealed that a shea butter-based emollient performed on par with a petrolatum-based product in alleviating pediatric erythema linked to diaper dermatitis. Children treated with the shea butter formulation were more likely to experience relief from erythema than those who used non-emollient alternatives, with no side effects observed.

These results continue to reinforce consumer confidence in the therapeutic value of shea butter.

Innovation in product formulations creates tremendous opportunities

Ongoing innovation in shea butter-based product formulations is opening up new opportunities for growth in the global market. Consumers are increasingly drawn to multifunctional personal care products that blend natural ingredients with clinically backed skincare benefits. Thanks to its adaptability, shea butter is being combined with active ingredients to develop advanced skincare solutions. 

• For example, in January 2024, Big River Silk Skincare launched GlycoShea™ Facial & Neck Lotion and GlycoShea™ Hand & Body Lotion—dermatologist-developed products that pair glycolic acid, a well-known alpha-hydroxy acid that promotes exfoliation, with refined shea butter to boost hydration and improve skin elasticity. These formulations are designed to enhance overall skin tone and texture. 

Such product innovations are fueling consumer demand and helping brands establish a premium market presence. 

Regional Analysis

In Europe, the demand for shea butter is increasingly driven by the rising consumer preference for organic and natural ingredients in personal care and wellness products. The shift towards sustainable beauty is particularly evident in countries like Germany and France, where consumers are more conscious of ethical sourcing and eco-friendly packaging. Brands like L'Occitane and The Body Shop have successfully incorporated shea butter into their product lines, capitalizing on its skin-healing and moisturizing benefits.

Additionally, the surging awareness of the health benefits of shea butter has led to its incorporation into food products, such as confectionery and dairy substitutes, with brands offering healthier, plant-based alternatives. The European market presents extensive opportunity for shea butter-based products as sustainability continues to drive consumer decisions in the region.

Key Highlights

• The global shea butter market size was valued at USD 2.40 billion in 2024 and is estimated to grow from USD 2.56 billion in 2025 to reach USD 4.39 billion by 2033, growing at a CAGR of 6.95% during the forecast period (2025–2033).
• By product type, the global shea butter market is segmented into raw shea butter, refined shea butter, and fractionated shea butter. The raw shea butter segment dominated the market.
• By application, the market includes cosmetics and personal care, food and beverages, pharmaceuticals, and others. The cosmetics and personal care segment held the largest market share.
• By distribution channels, the market is segmented into online retail, supermarkets and hypermarkets, specialty stores, and direct sales.
• Europe is the highest shareholder in the global market.

Competitive Players

1. Olam International
2. The Hershey Company
3. Kraton Polymers
4. Cargill
5. Incorporated
6. Bunge Limited
7. AAK AB
8. StarShea
9. Shea Radiance
10. Clariant AG
11. L’Oréal Group
12. Eden BodyWorks
13. The Austrian Vegan Society

Recent Developments

• In March 2025 – SheaMoisture has unveiled two new offerings: Aluminum-Free Deodorant Sticks and Whole Body Deodorant Sprays. These products are crafted to deliver up to 72 hours of odor protection and are enriched with Fair Trade Shea Butter, according to the company.

Segmentation

1. By Product Type
   1. Raw Shea Butter
   2. Refined Shea Butter
   3. Fractionated Shea Butter
2. By Application
   1. Cosmetics and Personal Care
   2. Food and Beverages
   3. Pharmaceuticals
   4. Others
3. By Distribution Channel
   1. Online Retail
   2. Supermarkets and Hypermarkets
   3. Specialty Stores
   4. Direct Sales
4. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa