Feasibility Study of Shea Butter Oil Processing Plant in Africa

Market Overview and Demand Analysis

African Shea Butter is a key raw material for the global cosmetics and food industries, with an annual market growth of 8%-10%. Key demand drivers include:

• Cosmetics Applications: Over 60% natural moisturizing content; demand for organic skincare products in Europe and the U.S. continues to rise.

• Food Substitute Value: Can replace cocoa butter in chocolate production, reducing costs by 20%-30%.

• Health Trend: Rich in oleic and linoleic acids, helping lower cholesterol and meeting consumer health trends.

West Africa (Ghana, Burkina Faso, Nigeria) supplies approximately 80% of global raw shea nuts, but local processing is below 20%, creating a significant market gap for high-quality refined shea butter. The global demand is expected to remain strong over the next five years, presenting substantial investment opportunities for a modern shea butter oil production line.

Raw Material Supply System and Risks

• Distribution: Across the “Shea Belt” from West to East Africa; Ghana, Nigeria, and Burkina Faso account for 70% of global production.

• Harvesting: Handpicked from wild trees; community cooperative purchasing is well-established.

• Seasonality: Peak season is May-August; storage facilities are needed to ensure year-round production.

• Quality Variations: Moisture content ranges 15%-30%; drying and pre-treatment equipment are required for stable quality.

• Supply Risks: Climate change, political instability, and raw material price fluctuations may affect steady supply. Long-term contracts and inventory management can mitigate these risks.

Core Processing Flow and Equipment Solutions

1. Pre-treatment

• Process: Cleaning → Magnetic separation → Crushing → Roasting & Conditioning

• Purpose: Improve pressing efficiency and oil quality

• Recommended Equipment: QIE Gravity Destoner + Drum Roaster (precise 110°C temperature control)

2. Pressing and Extraction

• Recommended Equipment: QIE screw oil press, capacity 10–500TPD, with three-phase centrifuge separation for reduced impurities.

3. Refining and Packaging

• Four-step refining: Degumming → Neutralization → Bleaching (activated clay) → Deodorization (240°C vacuum)

• Packaging: Cosmetic-grade in light-proof sterile containers; food-grade compliant with ISO 22000 standards

• Recommended Equipment: Continuous deodorization tower + plate-and-frame filter, achieving pharmaceutical-grade purity

Key Equipment Selection (QIE Group Solution)

• Raw Material Processing: Washer, sheller, crusher, cooking/roasting kettle

• Pressing Equipment: Screw oil press, hydraulic press

• Solvent Extraction: Extractor, evaporator, condenser

• Refining Equipment: Degumming machine, neutralizer, bleaching unit, deodorizer

QIE Group provides a full EPC turnkey solution for shea butter oil processing, covering the entire process from raw material handling to refining, with 100+ successful international projects.

Investment Cost and Return Analysis

Initial Investment (for 200 TPD capacity reference):

• Equipment: approx. $1–1.8 million

• Plant and Infrastructure: approx. $0.3–0.5 million

Operating Cost and Revenue Potential

• Processing cost: approx. USD 700–900/ton for crude shea butter (including raw material, energy, labor, and maintenance).

• Product selling price:

  • Food-grade refined shea butter: USD 2,000–2,800/ton

  • Cosmetic-grade refined shea butter: USD 3,500–5,000/ton

👉 Actual selling prices vary depending on export markets, certification (organic/fair trade), and customer channels.

Investment Return Analysis

Taking a  200 TPD plant as an example:

• If focusing mainly on food-grade oil, net profit margin can be around 15%–25%.

• If targeting the high-value cosmetic-grade segment, net profit margin may reach 30%–40%.

• Typical payback period: 2.5–4 years under 70% capacity utilization.

• Small-scale plants may take 4–5 years to break even due to limited output.

• Large-scale plants, benefiting from economies of scale and secured export contracts, may achieve payback within ~3 years.

Policy and Trade Opportunities

• Local Policies: Countries like Ghana and Nigeria offer 5year tax exemptions for processing plants

• Export Advantages:

  • EU market: Shea butter listed as “eco-friendly product,” lower tariffs

  • North America: FDA certification allows entry into premium food and health product markets

• China Cooperation: “Belt and Road” China-Africa capacity cooperation fund supports equipment export financing

• Certification Process: ISO, HACCP, FDA certification typically requires 6–12 months

Recommendations

1. Plant Location: Prioritize Ghana or Nigeria near raw material hubs to reduce logistics costs

2. Construction Strategy: Phase construction — start with pressing workshop, later expand refining line

3. Equipment Selection: QIE Group provides a full set of turnkey solutions from shea butter oil extraction to refinery

Take Action Now: Contact QIE professional team to receive a tailored shea butter oil processing plant solution. Maximize your investment efficiency and produce high-quality shea butter at low cost!