The Company will engage in the production and local and international sales of well refined Shea Butter. Currently, Shea is undergoing renewed demand from the high value confectioneries (chocolate producing), pharmaceutical and cosmetic industries. Shea butter has become by volume, the single biggest base raw material for the global cosmetic industry, especially the skin care category which accounts for 20% of the over $382 billion cosmetic industry which continues to grow at the rate of 3% per annum.

The Company will leverage on the enormous opportunity to create wealth in the Shea sector in Nigeria. Conversion of about 100,000mt of Shea kernels into 50,000mt of Shea butter for export can generate about $75 million and economically sustain about 600,000 rural women. Recent reports indicate that the current global demand for Shea butter is projected to grow from about $10 billion to more than $30 billion per annum by 2020. There are three principal end users for Shea: the chocolate, cosmetics, and natural products industries. The largest market segment for Shea and the one of principal interest to West African suppliers because of the potential for direct sourcing is the chocolate industry in Europe and the United States. Shea has equally become a popular additive in soaps, lotions, shampoos, and creams because of its inherent skin-healing properties. This segment will have the best prospects for growth as consumers become more familiar with these properties and demand increases.

Europe remains the largest market worldwide for Shea imports, with the Netherlands and France dominating imports, much of which is then re-exported. European trade statistics group Shea imports in a category with other tropical vegetable fats and oils. The growing market volume for chocolate and other confectionery products present good business potential for Shea derivatives in Nigeria. The retail value of chocolate confectionery in Nigeria has grown 8.9% between 2012 and 2017. During the forecast 2017-to-2022 period, the market is expected to grow at 5.2% with absolute value of $51 million (Euromonitor Retail Report 2020). The current per-capita consumption of 1.35Kg of confectionery is expected to grow to 1.59kg in 2025 (Statista 2020) The absolute market volume of 279,000 tons of confectionery could absorb about 18,355 tons (5% of chocolate volume, NAFDAC 2019) of Shea butter (Author’s Calculation) to process Shea stearin for CBE/CBI annually.

Until recently, the Shea Market has been categorized into 90% Confectionery and 10% Cosmetics (USAID Report 2018), however the recent innovations in the Bakery sector has revealed a burgeoning market potential for the Shea Industry. An innovative formulation with Cocoa Butter, Coconut Oil and Shea stearin has disrupted the classical Margarine/Bakery Fats industry with enormous Health and Cost benefits. The Company will be fully committed to supplying Shea Butter from Nigeria to various international markets in Asia, Europe and North America.