Increased Indian appetite for shea and coconut oils noted
India's Increasing Interest in Ghana's Shea Butter and Coconut Oil
India's interest in two key Ghanaian commodities - shea butter and coconut oil - is escalating, with growing market demand. This revelation comes from the Ghana-India Trade Advisory Chamber (GITAC), as reported by Business & Financial Times (B&FT) during their 5th anniversary media lunch.
The chamber's President, Dominic Oduro-Antwi, stated that though cashew remains India's leading import, nearly 80% of which hails from Ghana, the limelight has shifted towards shea butter and coconut oil in recent years. He mentioned that Ghana's quality shea butter, renowned throughout Africa, makes it an attractive choice for Indian traders.
In 2018, Ghana exported approximately US$90million worth of shea butter and its derivatives to 24 countries, with Malaysia serving as the largest market for the commodity. However, India—traditionally not a significant shea butter importer from Ghana—presents a substantial opportunity for Small and Medium Enterprises (SMEs) eager to expand their export portfolio.
With the global shea butter market projected to reach US$2.9 billion by 2025, the European market cornering more than a quarter share, it's crucial that Ghanaian SMEs capitalize on the recent Indian interest. Moreover, GITAC is collaborating with local manufacturers to create coconut-oil extractors and facilitate deeper medical tourism collaborations between the nations.
Established in 2018, GITAC boasts branches in 18 countries, providing opportunities for Ghanaian and Indian diaspora worldwide to engage in business. Additionally, the Chamber contributes to the empowerment of young people in various sectors such as Information Technology (IT), education, and agribusiness.
Significant events commemorating GITAC’s 5th anniversary include a media engagement on Ghana-India bilateral relations, an educational fair featuring top Indian universities, the launch of the Global Africa Trade Advisory Chamber in Dubai, targeted economic sector trips to India, a networking event in May, a Health Fair in June, and numerous other activities throughout the year.
Although Ghana is a significant player in the global shea butter market, India is not yet a major destination for shea butter exports. As India's cosmetics industry grows, there's potential for Ghanaian exporters if they can scale up production and improve product quality to meet Indian market demands. For coconut oil, information on recent exports to India is scarce, but given the global demand for this versatile product, there could be opportunities if production can be increased and global standards met.
- The growing demand for shea butter and coconut oil in India is presenting a significant opportunity for Small and Medium Enterprises (SMEs) in Ghana to expand their export portfolio.
- With the global shea butter market projected to reach US$2.9 billion by 2025, it's crucial that Ghanaian SMEs capitalize on the recent Indian interest to stay competitive.
- The Ghana-India Trade Advisory Chamber (GITAC) is collaborating with local manufacturers to create coconut-oil extractors and facilitate deeper medical tourism collaborations between the nations.
- Besides shea butter and coconut oil, the global economy sees potential in Ghanaian exporters if they can scale up production and improve product quality to meet Indian market demands in the cosmetics industry.
- Established in 2018, GITAC contributes to the empowerment of young people in various sectors such as Information Technology (IT), education, and agribusiness, in addition to providing opportunities for Ghanaian and Indian diaspora worldwide to engage in business.
- As India's interest in Ghanaian commodities broadens, there could be opportunities in food-and-drink, education-and-self-development, and other industries for both nations to collaborate and thrive in the ever-evolving global marketplace.
