The global squalene market is witnessing significant expansion as increasing demand for natural and sustainable cosmetic ingredients continues to drive growth. With applications ranging from personal care and cosmetics to pharmaceuticals and nutraceuticals, squalene—a naturally occurring triterpene—is gaining prominence for its emollient, antioxidant, and skin-replenishing properties.The global squalene market was valued at USD 145.35 million in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 10.5% throughout the forecast period.
Market Overview
Squalene, traditionally sourced from shark liver oil, has historically been used in cosmetics and pharmaceuticals due to its high efficacy as a skin moisturizer and antioxidant. However, environmental concerns and sustainability pressures have significantly reshaped the supply landscape. Today, olive-derived squalene and other plant-based alternatives are becoming the preferred choices among manufacturers and consumers alike.
The global shift toward plant-based and cruelty-free ingredients has catalyzed a broader transformation in the squalene industry. These transitions are particularly evident in the cosmetics and personal care segments, where brands are racing to formulate products using natural emollients that align with consumer values and global sustainability goals.
Key Market Growth Drivers
1. Rising Demand in the Cosmetics and Personal Care Industry
One of the primary drivers of the squalene market is its widespread use in skincare and cosmetic formulations. As a key cosmetic ingredient, squalene offers excellent moisturizing properties, enhances skin texture, and supports anti-aging benefits. With consumers increasingly favoring natural and organic formulations, squalene derived from olives and sugarcane is becoming more attractive to leading beauty brands.
Major cosmetics companies are now adopting squalene as a premium ingredient in facial oils, serums, lotions, and sunscreens, further reinforcing its growth trajectory. The clean beauty movement is encouraging industry players to innovate using ingredients that are both effective and environmentally responsible.
2. Health Benefits and Use in Pharmaceuticals
Squalene’s applications extend beyond cosmetic uses. It serves as an important adjuvant in vaccines and plays a role in promoting cardiovascular health, strengthening the immune system, and functioning as an antioxidant. These benefits are being explored across the pharmaceutical and nutraceutical sectors, contributing to an expanded and diversified demand base.
Notably, during the COVID-19 pandemic, squalene was utilized in vaccine adjuvants, highlighting its critical role in drug formulation. This experience has since raised awareness of the compound’s broader medical utility, spurring research and investment in squalene-based therapeutics.
3. Shift Toward Sustainable and Plant-Based Sources
With growing concern over marine biodiversity, especially the harvesting of sharks for shark liver oil, consumers and governments alike are pushing for sustainable alternatives. This ethical shift has prompted industry stakeholders to develop bio-based squalene using sugarcane, amaranth seeds, and olive oil. Olive-derived squalene is now one of the fastest-growing segments within the market, driven by Europe’s and North America's demand for sustainable ingredients.
Advances in biotechnology and green chemistry are also making plant-based squalene more cost-effective and scalable, enabling wider adoption across industries.
Market Challenges
1. High Cost of Plant-Based Squalene
Despite the shift toward sustainable sourcing, the high production cost of plant-based squalene remains a significant barrier to market penetration. The extraction process from olives or sugarcane requires substantial investment and yields lower quantities compared to animal-based sources. These costs are often passed on to consumers, limiting the use of squalene in price-sensitive markets.
2. Supply Chain Volatility
Squalene production is highly dependent on agricultural yields when derived from plants. Weather disruptions, farming inconsistencies, and geopolitical tensions can impact the availability and pricing of olive oil and other raw materials. This makes long-term supply planning a challenge for manufacturers.
3. Stringent Regulatory Requirements
The use of squalene in cosmetics and pharmaceuticals is regulated by several global health and safety standards. Meeting the purity, efficacy, and safety standards for applications, especially in vaccines or topical therapeutics, demands rigorous quality control. Companies often face hurdles during clinical validations and product approvals.
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Regional Analysis
North America
North America remains a stronghold for the squalene market due to robust demand from the personal care and pharmaceutical sectors. The region’s inclination toward cruelty-free and vegan beauty products is fueling the adoption of plant-based squalene. The U.S. in particular has seen an uptick in clean-label skincare brands using sustainably sourced ingredients, including natural emollients like squalene.
Europe
Europe is one of the most progressive regions in terms of sustainability and ethical sourcing. Regulatory frameworks in the EU have discouraged the use of animal-derived squalene, thereby accelerating the adoption of olive-derived squalene. Countries like France, Germany, and Italy are investing in green chemistry initiatives, and cosmetic manufacturers in these countries are leading the charge in using ethically sourced squalene.
Asia-Pacific
The Asia-Pacific region is emerging as a lucrative market, led by rising consumer spending on beauty and wellness products in countries such as China, Japan, and South Korea. Traditional medicine and herbal remedies have long played a role in this region, and squalene’s natural profile aligns well with cultural preferences. However, availability and cost of sustainable squalene remain constraints in rural and price-sensitive markets.
Latin America & Middle East
These regions are still in the early stages of squalene adoption, with growth primarily driven by the expansion of the cosmetics sector. Brazil is showing promise as a regional leader due to its thriving beauty market and growing awareness of organic and natural products.
Key Companies Operating in the Squalene Market
The competitive landscape of the squalene market includes a mix of established players and emerging biotechnology firms. Key companies include:
Amyris, Inc. – A pioneer in bio-based squalene production through fermentation using sugarcane. The company plays a pivotal role in providing sustainable alternatives for the beauty and pharmaceutical sectors.
Kishimoto Special Liver Oil Co. Ltd. – A traditional Japanese company known for its production of squalene from deep-sea shark liver oil.
Sophim – A France-based manufacturer specializing in olive-derived squalene, catering to high-end cosmetic and personal care brands.
Arista Industries Inc. – Offers a range of squalene types, including plant-based and animal-derived, serving diverse industry needs.
Nucelis – A biotechnology firm focused on producing high-purity squalene using microbial fermentation techniques.
Croda International Plc – Supplies squalene for pharmaceutical and cosmetic applications with a growing emphasis on sustainable sourcing.
These companies are focusing on product innovation, strategic partnerships, and sustainability to gain a competitive edge in this evolving market.
Conclusion
The global squalene market is entering a transformative phase marked by sustainability, innovation, and expanding applications across multiple industries. While challenges such as high costs and regulatory barriers persist, the market is well-positioned for long-term growth. Driven by consumer preference for natural emollients, ethical sourcing, and multifunctional health benefits, squalene is poised to remain a key ingredient in the next generation of skincare and health products.
As technological advances continue to improve extraction efficiency and reduce costs, the future of the squalene market looks increasingly plant-powered, ethical, and resilient.
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