SHEA BUTTER MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics

The Shea butter market is majorly driven by its adoption as a substitute to cocoa butter in the chocolate industry. Different parts of the Shea tree such as roots, stems, leaves, fruits and the bark are used for the treatment of various diseases and infections such as wound infections, dysentery, skin diseases, diarrhea, and gastrointestinal tract infections. Shea butter is used as a treatment for inflammation of the nasal congestion, nostrils, cough, leprosy and rheumatism and in treatments of minor bone dislocation. Shea butter is used as a raw material for the production of soap, margarine, candle, and detergent. The low quality butter along with its by-products from the processed nuts are tarnished on clay or mud walls, which acts as a waterproofing agent to protects the walls during the rainy season. Shea butter is also used by the African pregnant women for healing purpose after circumcision which helps to accelerate the process of healing and prevents stretch marks. According to Global Shea Alliance (GSA) until 2014 no reports were filed due to the consumption of Shea butter or its yields. According to National Center for Biotechnology Information (NCBI), Shea butter is expected to gain significant traction to its application in cosmetic, soap making, and traditional medicine in rural areas. Also, it is projected to gain traction in international markets, owing to its richness in food nutrients, which are utilized as a baking fat, margarine and in other fatty spreads, confectionery and chocolate industry in Europe and Asia Pacific.

According to USAID in 2014, Shea butter market has helped in the sustainability of the west and east African countries. Global Shea Alliance (GSA) with USAID helped in increasing the production capacity of the Shea butter production for international market due to high usage as natural ingredient in cosmetics and medicines. In 2014, the GSA launched its sustainability program named as Global Shea Alliance Sustainability Program, and in June 2016, GSA and USAID signed an agreement over US$ 6.5 million along with other 25 private sector sustainability partners. This collaboration has resulted into 250 Shea warehouses, capacity building for 137,500 women Shea collectors and processors and a 50 percent improvement in financial benefits to participating Shea cooperatives.