The global shea butter market size was estimated at USD 2,412.4 million in 2024 and is projected to reach USD 3,748.0 million by 2030, expanding at a CAGR of 7.9% from 2025 to 2030. This growth is primarily fueled by the increasing demand for natural and organic skincare solutions, with shea butter gaining popularity due to its moisturizing, anti-inflammatory, and antioxidant properties.

A key driver of the market is the beauty and personal care industry, where consumer preference is shifting toward eco-friendly and sustainable ingredients. Furthermore, the market is supported by the expansion of production facilities, particularly in West Africa, which remains the primary sourcing region for shea butter. Initiatives aimed at improving the sustainability and traceability of the supply chain are also playing a vital role in market development.

Regulatory support and international collaborations are critical in shaping the industry's future. In the United States, the market is regulated by the FDA and USDA, which ensure the safety, purity, and labeling accuracy of shea butter products. These standards help prevent adulteration and maintain consumer confidence. The American Shea Butter Institute classifies imported shea butter into specific grades, underscoring the importance of high-quality, unrefined shea for maximum efficacy.

Collaborative efforts between U.S. companies and African partners are further bolstering the market. One notable initiative, “Shea Gets Greener!”, involving The Savannah Fruits Company, Sundial Brands, and USAID, aims to support 21,000 women across Ghana, Cote d’Ivoire, and Mali. With an investment of USD 9.3 million, the project enhances production efficiency while advocating eco-conscious practices, thereby securing a stable supply of premium shea butter and responding to the growing global demand for sustainable and ethical personal care ingredients.

The market also saw a key development in 2017 when China approved shea butter as a novel food ingredient. This has extended its use beyond cosmetics into food applications such as chocolates, bakery goods, and ice cream, although its use in baby food remains restricted due to safety standards. The integration of shea butter in food products has introduced new consumer segments and fostered additional market expansion in China.

India, too, has seen a surge in demand, particularly in the cosmetics and personal care segments. Shea butter's hydration and nourishing qualities are increasingly preferred by Indian manufacturers for skincare and haircare product formulations. In 2021, the Food Safety and Standards Authority of India (FSSAI) approved its use in food, prompting a rise in imports from West African nations like Ghana and enabling new product innovations in the confectionery space.

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Key Market Trends & Insights

• Europe accounted for over 30% of global shea butter revenue in 2024.

• The U.S. market is forecast to grow at a CAGR of 8.2% from 2025 to 2030.

• Raw/unrefined shea butter held a 62.64% market share in 2024.

• Over 80% of global sales in 2024 came from cosmetic and personal care applications.

Market Size & Forecast

• 2024 Market Size: USD 2,412.4 Million

• 2030 Market Size Projection: USD 3,748.0 Million

• CAGR (2025–2030): 7.9%

• Europe: Largest regional market in 2024

Key Shea Butter Company Insights

The shea butter industry remains fragmented, comprising a mix of established global entities and emerging market players. These companies are actively pursuing acquisitions and promotional strategies to strengthen their customer reach and brand presence. Leading suppliers—such as The Savannah Fruits Company, Bunge Loders Croklaan, and Olam International—are notable for their focus on sustainable sourcing and the empowerment of female producers in West Africa, resonating with consumers' ethical purchasing values.

Major Shea Butter Companies

• BASF SE
• Olvea Group
• Sophim S.A.
• Cargill, Inc.
• Suru Chemicals
• Ghana Nuts Company Ltd.
• Croda International Plc
• Agrobotanicals, LLC
• Clariant AG
• AAK AB

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Conclusion

The global shea butter market is experiencing steady and promising growth, driven by heightened consumer awareness of natural ingredients and increasing applications across cosmetics, personal care, and food industries. Regulatory advancements and strategic international collaborations continue to enhance product quality, supply reliability, and ethical sourcing. With strong market traction in regions like Europe, the U.S., China, and India, and a focus on sustainability and innovation, the shea butter market is well-positioned for long-term expansion and diversification.