With regard to application, the food & beverages segment is poised to exceed USD 2.5 billion by 2032, attributed to its better heat stability and improved shelf life, suggests the study. Shea butter is also used as a cocoa butter equivalent (CBE) in the food & beverages sector due to its similar fat composition. The mounting demand for CBEs due to high prices of cocoa in the manufacturing of chocolate is escalating the demand for shea butter. Furthermore, growing chocolate consumption in Eastern Europe due to increasing disposable income is favouring segment expansion.

The North America shea butter industry is projected to exhibit a CAGR of 7.5% through 2032, on account of increasing R&D spending on the development of innovative shea butter applications across the cosmetics, pharmaceuticals, and food & beverage sectors. Moreover, the increasing demand for organic food products in the U.S. will bolster the demand for shea butter. Furthermore, the surging demand for natural and eco-friendly personal care products will support the market expansion.