Shea Butter: A Global Commodity with Growing Demand in China

If you’ve ever used skincare or haircare products, there’s a good chance you’ve encountered shea butter, even if you didn’t know it. This versatile ingredient, whether in its raw form or as part of various beauty products, has become a key player in the global food and cosmetics industries.

Let’s dive into the history, benefits, and market potential of shea butter, especially as it gains popularity in China.

What is Shea Butter?

Shea butter, also known as karité butter, is a vegetable fat extracted from the nuts of the shea tree (Vitellaria paradoxa). Native to Africa, these trees thrive across 17 West African countries, as well as in regions of Uganda and South Sudan.

There are two main types of shea butter: Vitellaria paradoxa, the more widely used variety, and Vitellaria nilotica, which is primarily found in Northern Uganda and South Sudan. The majority of shea butter is produced by countries in the “Shea Belt” (see Figure 1) (Ghana, Mali, Nigeria, Burkina Faso, Côte d'Ivoire, and others), with Ghana leading the export market.

Figure 1 - Geographical Location of the "Shea Belt" [Source: CBI Ministry of Foreign Affairs]

Shea Butter’s Growing Popularity

For centuries, shea butter has been an essential part of African culture. Queen Cleopatra famously used it in her skincare routine, and it has long been used for cooking in Africa due to its high nutritional value. Today, shea butter is in high demand worldwide, particularly in the food and cosmetic sectors.

• In Food: Around 90% of shea butter produced in Africa is used in the food industry, particularly in confectionery, where it serves as a cholesterol-free alternative to cocoa butter.

  
  

• In Cosmetics: The remaining 10% is used in cosmetics, where shea butter’s emollient properties make it a favourite ingredient for skin moisturizers, haircare products, and even baby care. Its high concentration of fatty acids and antioxidants is particularly effective for soothing and nourishing the skin.

The Global Shea Butter Market

The global shea butter market is currently valued at approximately US$2.75 billion, with projections estimating it will reach US$5.58 billion by 2033.

Growth in Asia, particularly in China, is one of the key drivers of this boom. The Asian shea butter market is predicted to grow at a CAGR of 8.53% from 2024 to 2029, with the market size expected to increase from US$0.35 billion in 2024 to US$0.53 billion by 2029.

China is rapidly becoming a significant player in the shea butter market, driven by increasing demand for its anti-inflammatory, moisturizing, and skin-nourishing properties. This presents a unique opportunity for suppliers looking to expand into the Chinese market.

Why China?

The Chinese shea butter market generated USD 218.8 million in 2022 and is expected to reach USD 390.6 million by 2030. Raw and unrefined shea butter, known for its natural benefits, is the fastest-growing segment in the market.

China accounted for 10.1% of the global shea butter market in 2022, and its demand is expected to increase as more Chinese consumers seek natural, sustainable beauty products and health supplements.

Shea Butter in Ghana

While Nigeria is the world’s largest producer of shea butter, Ghana leads in exports, shipping around 60,000 metric tons annually and accounting for 60% of the global supply. In 2022 alone, Ghana’s shea butter exports were worth US$92.6 million.

Traditionally, Ghana has focused on European markets, but the shift toward Asia, particularly China, offers immense potential for growth. Ghana’s position as a top exporter places it at the heart of this expanding market.

Health and Cosmetic Benefits of Shea Butter

• For Food: Shea butter is rich in monounsaturated fats and polyunsaturated fats, offering anti-inflammatory properties that promote heart health and overall wellness.

  
  

• For Cosmetics: Containing over 95% triglycerides, shea butter is a powerful moisturizer that promotes skin softness. It also has a high concentration of unsaponifiables (5-7%), which deliver potent antioxidant and soothing effects for the skin.

  
  

Shea butter is found in a wide range of cosmetic products, including:

• Skincare: Lotions, creams, moisturizers, and lip balms.

• Haircare: Shampoos, conditioners, and hair treatments.

• Toiletries: Soaps and cleansers.

Environmental Impact of Shea Butter

Unlike the environmentally damaging palm oil industry, the shea butter industry is beneficial for the environment. Shea trees help prevent desertification, promote biodiversity, and act as carbon sinks, capturing carbon from the atmosphere. These trees thrive in smallholder agroforestry systems, making them an eco-friendly alternative to other crops.

The Sahel region of Africa (Figure 1) is home to over 2 billion shea trees, which play a vital role in supporting local ecosystems and farming communities.

Get Involved in the Shea Butter Market Today!

As the shea butter industry continues to grow, China presents a lucrative opportunity for expansion. We offer reliable, personal, and local connections in this rapidly expanding market.

Ready to venture into the Chinese shea butter market? Contact us now to start your journey!