The global Shea Butter market size is worth over $1.1B and expected to grow at a rate of 6.6% per annum by 2026.
What is Shea Butter
Shea butter is obtained from the nuts of the Shea tree and used for many different applications due to its highly desirable content of vitamins, protein, magnesium, potassium and other micro elements. Shea butter is also rich in fatty acids such as oleic acids, sterols and phenols, which have strong moisturising and conditioning properties.
One of the main shea butter applications is in cosmetics manufacturing, with food coming in as a close second, where shea butter is used as a substitute for cocoa butter.
Regional Segmentation
Europe is one of the biggest markets for Shea butter, with the UK being one of the main consumers. Together, they account for over 37% of the global demand.
North America and Africa hold significant shares as well, with the smallest market for this commodity being Central & South America
Quality Segmentation
Unrefined Shea Butter – Grade A: this is shea butter in its most natural and unrefined form. Extracted and prepared without the use of any chemicals or preservatives, as per the traditional African methods. Unrefined shea butter retains all of the vitamins, protein and micro elements which confer it its desirable properties.
Refined Shea Butter – Grade B: Grad B shea butter is still essentially at the raw state. However, preservatives have added to the finished product in order to make it more durable and extend its shelf life. Still very good content of vitamins and micro elements.
Highly Refined Shea Butter – Grade C, D & E: highly refined and extracted using solvents such as hexane, antioxidants and preservatives. Due to the chemicals used in the process, some vitamins such as A and E may be lost.
Price Trends
As demand for shea butter keeps increasing – at a rate of 6-7% per annum – we are witnessing a constant increase in price, related to the relatively limited supply capacity of the fields and farms in West Africa, which are the main producers.
Main drivers are its increased use not only in cosmetics but also as a food substitute to cocoa. This is linked to the high price of cocoa and as long as this continue growing, so will the demand for shea butter as a viable substitute.
In general terms, UK wholesale prices are in the average of $5.50 to $9 per kg, with retail prices shooting as high as £30/kg.
European rates are on the $9000/MT mark, followed by $6840/MT in the APAC region.
Where to buy Shea Butter
Online retailers or wholesalers – avg. price $14.50/kg
On BLK – $2/kg
Through BLK, you can buy directly from the farmers in Africa, with the quality assurance and the peace of mind that each seller has been pre-vetted and independently assessed with our rating method (looking at Quality – Cost – Service Delivery).
Check out our shea butter range now or contact us for any question.