Shea butter has a long history of use in many cultures around the world, but in recent years, it has gained increasing popularity in the beauty industry. This versatile ingredient has evolved over time, both in how it is produced and how it is used.
In this blog post, Organic Trade and Investments looks into the evolution of shea butter and its socioeconomic impact production on rural communities in West Africa, with an eye on Ghana, emphasizing the role this semi-finished raw ingredient plays in empowering women and promoting sustainable farming practices and the circular economy model.
Origins and Traditional Use
Shea butter comes from the nut of the shea tree, which is native to West Africa. For centuries, women in West Africa have been harvesting the nuts and processing them to extract the butter.
According to Grin.de, the annual yield of shea nut is about 600,000 tons in West Africa. About 58% of the raw nuts are exported, while just about 250,000 tons are processed and consumed locally. It is believed that the region could have increased the yield to one million tonnes, annually. Unfortunately, due to a lack of proper infrastructure, more than 50% of the nuts are left unpicked. These nuts are handpicked by the women of the communities. Processing the nuts into butter remains the main income activity of women in the Northern parts of Ghana.
Traditionally, shea butter was used for cooking or applied on the skin to prevent and treat dryness, as a natural sunscreen, and as a treatment for minor wounds in its raw form. In recent times, we have experienced a shift in the application of shea butter and an increased demand for the product on the international market. More and more cosmetic products integrate shea butter as a base ingredient for its rich and creamy texture. Additionally, the food industry recorded spectacular growth in the demand for shea butter in 2019.
Modern Use in Beauty Products
Indeed, in the last decades, shea butter has become one of the most popular natural ingredients in beauty products. This plant-based ingredient is often touted for its moisturizing, nourishing, and anti-inflammatory properties. In addition to being used in skin care products like lotions, creams, and soaps, it is also used in hair care products like shampoos and conditioners.
Future Market Insight's overview report reveals that the shea butter market is projected to grow at a CAGR of 7.7% between 2022 and 2032, surpassing US$ 5.5 Billion by 2032. The shea butter market value was estimated at US$ 2.6 Billion with a global shea butter demand registered year-on-year (Y-o-Y) growth of 8.2% in 2022.
Industrialization and Commercialization of Shea Butter
As an alternative to animal fat in food production, shea butter is being commercialized worldwide and widely used as a Cocoa Butter Equivalent (CBE). According to studies, the global shea butter market size in the food industry was valued at USD 2.07 billion in 2021.
Regrettably, industrialization is synonymous with mass production coupled with raking in a substantial amount of money without necessarily paying attention to the wellbeing of the customer and the environment.
With the advent of industrialization, shea butter production began to shift from small-scale, handmade processes to larger, commercial productions. This brought about changes in how the butter was processed, leading to the removal of some of the nut's natural substances, which can affect its efficacy. Refined shea butter is one of the types of shea butter this industrialization brought about.
Cosmetics brands in Western countries prefer using refined white shea butter instead of applying unrefined pure shea butter, which has all its natural properties. The refined shea butter segment is poised to be worth USD 2.9 billion by 2032. According to studies, refined and ultra-refined segments are expected to cross at 16.3% CAGR and to cite at 14.3% CAGR in North America region by 2032.
In recent years, there has been a push to use shea butter that is produced sustainably and ethically, without the use of harmful chemicals or practices that exploit workers. This has led to the development of Fair Trade and organic shea butter products, which are gaining in popularity.
Regardless of regulations being put in place to "sanitize" the industry and change customers' behaviors toward the products they are consuming, there is an emerging greenwash practice.
Future Trends
As consumers become increasingly aware of the environmental and social impacts of the products they use, there is likely to be continued growth in the demand for sustainable and ethically sourced shea butter. There are also many opportunities for innovation in shea butter products, such as incorporating it into makeup cosmetics or using it to create natural perfumes.
Organic Trade and Investments, who has made shea butter as one of its flagship products believes in the further evolution of shea butter.
shea butter has come a long way from its traditional roots in West Africa to its widespread use in modern beauty products. Its versatility and natural properties continue to make it a popular ingredient, with increasing focus on ethical and sustainable production methods.
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