According to Future Market Insights, the worldwide shea butter market is expected to develop at a CAGR of 7.7% and reach a size of US$ 5.5 billion by 2032. (FMI). Increased consumption of chocolates and confectionery items, as well as binge eating, has prompted producers to create alternate solutions, such as shea butter as an ingredient, which is nutritious for human health. It is now widely accepted that eating foods high in trans-fatty acids has serious effects on one’s cardiovascular health.
This has resulted in volunteer initiatives and governmental actions in some countries, including the United Kingdom, to restrict the consumption of food products containing such components. Key market players, such as Cargill, are launching shea butter as a cocoa butter substitute in the food industry to capitalize on this trend. Shea butter demand has increased as a result of several factors associated with cocoa butter products, such as supply uncertainty, premium pricing, quality unpredictability, and other issues.
Shea butter’s demand is rising as a result of its widespread use in a variety of confectionary goods, including snacks, candies and jelly, toffees, chocolate, and others. The global shea butter market will rise steadily over the projected period, thanks to the notion of premiumization, which includes a superior mouthful experience and a far-fetched quality of such end products.
Competitive Landscape
Key shea butter producers are focusing on long-term product development and are planning to invest in cutting-edge processing facilities to help the industry grow even further.
- On September 8, 2020, Bunge Loders Croklaan (BLC) announced the opening of a state-of-the-art shea butter processing facility in Tema, Ghana, as part of the ‘Where Life Grows’ campaign to honor the company’s efforts to construct a sustainable and resilient shea butter supply chain in Africa.
- Fuji Oil Holdings, Inc. established the ‘Tebma-Kandu’ shea sustainability program in north Ghana on March 11, 2021, to support women empowerment through activities such as reforestation and local value generation.