The global shea butter market was valued at USD 2,412.4 million in 2024 and is forecast to reach USD 3,748.0 million by 2030, expanding at a CAGR of 7.9% from 2025 to 2030. Market growth is primarily supported by rising consumer preference for natural and organic ingredients, particularly in skincare and personal care products. Shea butter’s well-established moisturizing, anti-inflammatory, and antioxidant properties continue to strengthen its adoption across premium beauty formulations.

Major Market Highlights

  • Strong demand from the cosmetics and personal care industry, accounting for over 80% of global consumption in 2024
  • Europe remained the leading regional market, contributing more than 30% of global revenue in 2024
  • Raw or unrefined shea butter dominated product demand due to its high nutrient retention
  • Increasing focus on ethical sourcing, sustainability, and women-led production networks in West Africa
  • Regulatory oversight and international partnerships supporting quality assurance and supply chain transparency

Market Size and CAGR

  • 2024 Market Size: USD 2,412.4 million
  • 2030 Projected Market Size: USD 3,748.0 million
  • CAGR (2025–2030): 7.9%
  • Largest Market (2024): Europe

Key Market Trends & Insights

Europe accounted for over 30% of global shea butter revenue in 2024, driven by strong consumer demand for clean-label and sustainably sourced cosmetic ingredients. The U.S. market is projected to grow at a CAGR of 8.2% from 2025 to 2030, supported by expanding applications in skincare, haircare, and wellness products. By product type, raw or unrefined shea butter held a 62.64% share in 2024, reflecting increasing preference for minimally processed ingredients. In terms of application, cosmetics and personal care represented more than 80% of total global sales, reinforcing the sector’s role as the primary demand driver.

The beauty and personal care industry remains the core consumer of shea butter, fueled by heightened awareness of eco-friendly, sustainable, and ethically sourced ingredients. Market expansion is further supported by enhanced production capabilities in West Africa, the primary sourcing region, alongside initiatives aimed at improving traceability and sustainability across the supply chain.

In the U.S., shea butter products are subject to strict FDA and USDA regulations that ensure safety, prevent adulteration, and mandate accurate labeling. These frameworks are critical for maintaining consumer trust, particularly as product purity remains a key concern. The American Shea Butter Institute classifies imported shea butter into quality grades, reinforcing the importance of high-grade, unadulterated material for functional efficacy.

Collaborations between U.S. organizations and African producers are playing a vital role in strengthening the global shea butter ecosystem. The “Shea Gets Greener!” initiative, supported by The Savannah Fruits Company, Sundial Brands, and USAID, represents a USD 9.3 million investment aimed at empowering 21,000 women across Ghana, Côte d’Ivoire, and Mali. These programs enhance production efficiency, promote environmentally responsible practices, and ensure a consistent supply of high-quality shea butter to meet rising global demand.

China’s approval of shea butter as a novel food ingredient in 2017 marked an important milestone, extending its use beyond cosmetics into food products such as chocolates, ice cream, and baked goods. While its use in baby food remains restricted due to safety regulations, this approval has opened new growth avenues by appealing to Chinese consumers seeking diverse and international ingredients. The gradual expansion of food-grade applications is expected to contribute positively to long-term market growth in the region.

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Key Shea Butter Company Insights

The shea butter market is fragmented, with a mix of established global players and emerging participants. Companies are actively pursuing acquisitions, partnerships, and promotional strategies to strengthen market presence and brand loyalty. Leading suppliers such as The Savannah Fruits Company, Bunge Loders Croklaan, and Olam International focus heavily on sustainable sourcing and women empowerment in West Africa, aligning closely with evolving consumer expectations.

Key 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

Conclusion

The global shea butter market is positioned for steady growth through 2030, driven by strong demand from cosmetics and personal care, expanding regulatory support, and rising emphasis on sustainability and ethical sourcing. Strategic collaborations, improved production practices in West Africa, and the gradual expansion into food applications, particularly in China, are expected to reinforce supply stability and unlock new demand opportunities. Together, these factors support a positive long-term outlook for the shea butter industry.

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