Squalene as a Skincare Powerhouse: A Look at Its Market Demand and Global Expansion

[Animesh Rao]

The global squalene market is experiencing significant growth, driven by the increasing consumption of natural ingredients in the personal care and cosmetics sector, alongside rising demand in pharmaceuticals and nutrition. As consumers become more health-conscious and environmentally aware, the preference for natural and organic products is reshaping industry dynamics. This article explores the current trends, applications, and future growth potential of the squalene market. The global squalene market size was USD 141 million in 2022 and is projected to reach USD 202 million by 2028, at a CAGR of 6.3%, between 2023 and 2028. This report provides an in-depth evaluation of the market, focusing on squalene market size, trends, drivers, challenges, competitive landscape, and future growth potential.

Understanding Squalene

Squalene is a naturally occurring compound primarily derived from shark liver oil, olive oil, and other plant sources such as rice bran and amaranth. It is a colorless, odorless liquid known for its excellent moisturizing and emollient properties, making it a popular ingredient in a wide range of personal care products. Its effectiveness in combating free radicals and boosting skin health has led to its widespread use in cosmetics, including lotions, hair conditioners, bath oils, lipsticks, and foundations.

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Cosmetics allow individuals to express themselves and enhance their appearance, which is a fundamental driver of demand. People use cosmetics to feel confident and present themselves in a way that aligns with their personal style and cultural norms. Skincare companies are continually innovating and formulating new products to meet evolving consumer needs. Squalene is often incorporated into various formulations, including creams, serums, oils, and masks. These factors drive the demand for squalene in cosmetics end-use industry.

Key Market Drivers

Natural Ingredient Demand: The increasing preference for natural and organic ingredients in personal care products is a primary driver of squalene demand. Consumers are increasingly aware of the potential harm caused by synthetic ingredients and are seeking safer alternatives, propelling squalene's popularity.
Vaccine Production: Squalene's role as an adjuvant in vaccines has also contributed to market growth. Its ability to enhance immune responses makes it an essential ingredient in many vaccines, including those developed for COVID-19. This growing utilization in the pharmaceutical sector opens new avenues for squalene's application.
Sustainability Concerns: With growing awareness about environmental sustainability and the ethical treatment of marine life, there is a push towards plant- and synthetic-based sources of squalene. Regulations, such as the European Union's ban on shark oil in cosmetics, have accelerated this shift, leading manufacturers to explore alternative extraction methods.
Squalene Sources

Historically, squalene was primarily extracted from shark liver oil, which contains high concentrations of the compound. However, due to declining shark populations and increased regulations protecting these species, there has been a marked shift towards plant-based and synthetic sources.

Plant-Based Squalene: The plant segment dominated the squalene market with a revenue share exceeding 82.3% in 2023. Key sources include olive oil, amaranth, and rice bran. Olive oil, in particular, is a major source due to its high squalene content and the sustainability of its production. The International Olive Council reports that olive oil production is expected to increase, supporting this trend.
Synthetic Squalene: Advances in technology have also enabled the development of synthetic squalene, providing a viable alternative that meets the growing demand for cruelty-free and sustainable products.
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Market Applications

Personal Care and Cosmetics: The personal care and cosmetics sector remains the largest consumer of squalene, accounting for over 70.1% of the market share in 2023. Squalene's unique properties enhance the efficacy of skincare and hair care products, making it a preferred ingredient among leading brands. Companies like L’Oréal and Unilever are increasingly sourcing plant-based squalene to align with consumer preferences and sustainability goals.
Pharmaceuticals: In addition to its cosmetic applications, squalene is vital in the pharmaceutical industry as an adjuvant in vaccines. Its ability to enhance immune responses has been recognized for over two decades, making it a critical component in vaccine formulation. Notably, companies like GlaxoSmithKline are actively incorporating squalene into their vaccine development processes.
Nutraceuticals and Food & Beverages: The demand for squalene is also growing in the nutraceutical and food sectors, where it is valued for its health benefits, including antioxidant properties and immune system support.
Regional Insights

North America: The U.S. is the largest producer and consumer of squalene, driven by the robust growth of the cosmetics industry. The market's expansion is supported by a rising population of working women and a high penetration rate of global beauty brands.
Europe: Europe holds a significant market share, accounting for over 32.8% in 2023. The region's focus on sustainability has led to increased olive oil production, positioning Europe as a leader in plant-based squalene extraction. Countries like Italy, France, and Spain are at the forefront of this trend.
Asia Pacific: The Asia Pacific region is witnessing rapid growth due to its abundant raw materials and expanding personal care and pharmaceutical industries. The region's low production costs and easy access to essential ingredients further bolster market expansion.
Future Growth and Trends

The squalene market is poised for robust growth as the demand for natural and sustainable ingredients continues to rise. Several factors are expected to drive future growth:

Innovation in Extraction Techniques: Advances in extraction technology will enable more efficient and sustainable production methods, increasing the availability of plant-based squalene.
Regulatory Support: Ongoing regulatory initiatives aimed at protecting marine species will likely accelerate the shift towards sustainable sourcing of squalene.
Health and Wellness Trends: The growing focus on health and wellness will drive demand for squalene in both personal care and nutraceutical applications, as consumers seek products that offer additional health benefits.
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Squalene Market Key Players

⇛ Amyris, Inc (US)

⇛ SOPHIM (France)

⇛ Merck KGaA (Germany)

⇛ Kishimoto Special Liver Oil Co., Ltd. (Japan)

⇛ Empresa Figueirense De Pesca (Portugal)

⇛ Arbee (India)

⇛ Cibus (US)

⇛ Otto Chemie Pvt. Ltd. (India)

⇛ Arista Industries (US)

⇛ Oleicfat s.l. (Spain)

Conclusion

The squalene market is at a transformative juncture, characterized by a shift towards sustainable and plant-based sources amid growing consumer awareness and regulatory pressures. As industries adapt to these changes, squalene's versatility and benefits will ensure its continued relevance across various applications. With the increasing integration of squalene into cosmetics, pharmaceuticals, and nutraceuticals, the market is expected to flourish in the coming years, driven by innovation and a commitment to sustainability.