North America Shea Butter Market

North America Shea Butter Market Size (2024 to 2029)

The shea butter market in North America is estimated to grow at a CAGR of 6.02% from 2024 to 2029 and the North American market size is anticipated to be worth USD 0.7 billion by 2029 from USD 0.52 billion in 2024.

Shea butter is extracted from the fruit of the Kartie tree, i.e., shea nuts. This tree is a native of Africa and possesses healing properties. It is mainly used to produce Shea butter. Shea butter has tremendous skin care, healing, and medicinal properties, marking its demand in the market by various industries. It is widely used as a substitute for cocoa and palm oil due to its low fat content. Shea butter is a seed fat extracted from the nuts of the shea tree. Shea butter works for healthy skin and is used in the Food & Beverages Industry. Shea butter has soothing and antiaging properties, which drives the shea butter market in the personal care industry. Shea butter is most widely used in manufacturing chocolate and confectionery products. Shea butter can be used as a replacement for cocoa butter if it is processed. Many chocolate manufacturers use shea butter as an alternative to cocoa butter as it costs less.

The continuously rising demand for cocoa equivalent products and growing chocolate consumption by the population of North American countries are majorly propelling the growth of the shea butter market in North America. A rise in the demand for natural products based on cosmetics and skin care products is becoming another market driver for Shea butter. There has been a rise in consumer awareness for hydrogenated oils containing trans-fat, which further drives the market.

Factors restraining market growth include Shea butter cost, which is higher than the substitute products palm oil and olive oil, used in soap and other skin care products.

This research report on the North American shea butter market has been segmented and sub-segmented into the following categories.

North America Shea Butter Market - By Type:

• Unrefined
• Refined

The unrefined segment accounts for a major share of the North American market during the forecast period.

North America Shea Butter Market - By Application:

• Cosmetics
• Personal Care
• Food
• Medicinal

The cosmetics segment is anticipated to account for the leading share of the North American market during the forecast period. There has been a rise in the demand for Shea butter in the cosmetic industry due to its inflammatory, skin care and moisturizing properties.

North America Shea Butter Market - By Country:

• The U.S.
• Canada
• Rest of North America

North America dominated the shea butter market in 2023. Shea butter is in high demand in North America due to its moisturizing and emollient properties.

The U.S holds the highest share of the North American market. According to the U.S. Trade Commission, around 90% of the demand for shea butter was from chocolate and confectionary products. The increasing demand for premium chocolates in developed countries enhanced the market value. Due to its soothing and antiaging properties, which also act as emollient, it drove the demand for shea butter in the cosmetic industry. The increasing demand for natural origin products among people was boosting the market value. Due to the high price of the cocoa butter, shea butter was replaced in the confectionary items. As the U.S was a prominent player in the Food & beverage industry, the market value for shea butter was more in the United States.

The shea butter market in Canada is projected to showcase prominent growth during the forecast period due to the increasing disposable income that makes them prefer organic products, though they are available at a premium price. People are aware of the composition of the products and they prefer natural ingredients to artificial and chemical additives and preservatives. Due to the growing demand for cosmetic products, the demand for products that offer healthy skin is increasing and this is contributing to the Canadian market growth. The increased consumption of chocolates in Canada and the U.S significantly boosted the Canadian market growth. People are giving importance to products that are manufactured naturally, sourced ethically and environmentally friendly.

KEY MARKET PLAYERS:

Companies such as Star Shea Ltd., Bread For Life, All Pure Nature Ltd., Shea Radiance, VINK CHEMICALS GMBH & CO. KG., Jedwards International, Inc., Lovinah Naturals, Maison Karite, Sociedad Limitada, Shebu Industries, Shea Therapy Ltd (formerly trading as AGC Ltd) and The Pure Company are playing a noteworthy role in the North American shea butter market.