Squalene Market

Updated on : October 10, 2024

Squalene Market

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Squalene Market Dynamics

Driver: Growing demand for cosmetic products

The cosmetics industry has been evolving to be more inclusive and diverse. Brands are expanding their shade ranges for makeup products to cater to a wider range of skin tones, reflecting the demand for products that cater to all ethnicities. The convenience of online shopping has led to a significant increase in cosmetic sales through e-commerce platforms. Consumers can easily browse and purchase products online, which has expanded market access. Personalized and customizable cosmetics are also gaining popularity. Consumers appreciate the ability to tailor products to their specific needs and preferences. All these factor drive the market for squalene used in cosmetic products.

Restraints: Consumer skepticism about animal-sourced products and limitations on shark killing

The traditional source of squalene, shark liver oil, has faced restrictions due to concerns about overfishing and the conservation of shark populations. Some regions have imposed bans or limitations on the extraction of squalene from shark liver oil. Several regulatory bodies such as the General Fisheries Commission of the Mediterranean, Northeast Atlantic Fisheries Commission (NEAFC), Commission for Conservation of Antarctic Marine Living Resources, and North Atlantic Fisheries Organization (NAFO) have imposed restrictions such as fixed quotas for shark fishing, which, in turn, has resulted in supply shortage of shark liver and, thereby squalene.  This is expected to restrict the market for animal sourced squalene during the forecast period.

Opportunities: New renewable sources for production  

With the restrictions and concern about shark liver oil sourced from sharks and low concentration of squalene in vegetable oils, the supply is volatile, and the prices are fluctuating. Due to various regulations imposed on shark killing the supply of squalene is majorly affected across various regions. The squalene content vegetable oils is very low, and therefore, tons of olives and amaranth are required to produce a small quantity of squalene. This  has led to high squalene retail prices. This creates new opportunity for the players to come up with new technologies to develop squalene from alternative sources. Sugarcane and other sugar-containing biomaterials are identified as the sources of producing squalane (hydrogenated squalene).

Challenges: Fluctuating costs of raw materials

With the increasing regulations introduced by various governing bodies, there has been a decline in the shark fishing activities in various regions over the past years. This has resulted in the decline of the supply of shark livers and shark fins over the years. Due to this scenario, companies are trying to shift to vegetable-sourced squalene. Europe leads the market for squalene which is sourced from vegetable oils. For the past few years, there has been an irregular supply of olives in Europe. All these factors are affecting the raw material availability for squalene production, thereby resulting in fluctuation of prices. The raw materials are subject to continuously varying prices, which affect the overall squalene market. This volatility is expected to harm the industry growth, thereby leading to the development of alternative products and challenging the squalene market.

Squalene Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of squalene. These companies have been in business for a while and have a broad range of products, cutting-edge technologies, and robust international sales and marketing networks. Prominent companies in this market include 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), and Oleicfat s.l. (Spain).

Based on source, biosynthetic is projected to register highest CAGR, in terms of value, during the forecast period.

Biosynthetic production allows for better control over the quality and purity of squalene. Manufacturers can ensure that the product meets specific quality standards, making it attractive to industries like cosmetics and pharmaceuticals. Biosynthetic squalene is highly stable and pure, which makes it suitable for use in various industries, including cosmetics, skincare, and pharmaceuticals. The growth of biosynthetic squalene is expected to continue, especially as more industries recognize the benefits of sustainable and high-quality squalene sourced through biotechnological methods.

Based on end-use industry, cosmetics was the largest segment for squalene market, in terms of value, in 2022.

Cosmetics end-use industry dominated the squalene market, in terms of both value and volume, in 2022. Antioxidant properties of squalene can aid in shielding the skin from oxidative stress and free radical harm. This makes it a valuable ingredient in anti-aging skincare products, as it can help reduce the appearance of fine lines and wrinkles.  Squalene is adaptable and can be blended with other substances in skincare products to increase its potency. It can be found in skincare products that address particular skin issues including hydration, brightness, or acne avoidance. Increasing demand for cosmetic products drives the market for squalene.

“Europe accounted for the largest market share for squalene market, in terms of value, in 2022”

The pharmaceutical industry in Europe may use squalene in the production of vaccines, immunotherapies, and pharmaceutical formulations. The demand for squalene can increase if there is a focus on vaccine development, immunotherapy research, or the use of squalene as an adjuvant in vaccines.The European Union (EU) is home to several pharmaceutical companies and vaccine manufacturers. The development and production of vaccines, especially in response to emerging infectious diseases, can lead to a higher demand for squalene-based adjuvants. Also, the consumers are often well-informed and health-conscious. They may seek products that include squalene for its potential health and skincare benefits, further driving demand in cosmetics end-use industry. All these factors are driving the market for squalene in Europe region majorly in cosmetics and pharmaceutical end-use industries.

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Squalene Market Players

The key players profiled in the report include 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), and Oleicfat s.l. (Spain).among others, these are the key manufacturers that secured major market share in the last few years.

Squalene Market Report Scope

This report categorizes the global squalene market based on type, application, and region.

On the basis of source, the squalene market has been segmented as follows:

• Vegetable
• Animal
• Biosynthetic

On the basis of end-use industry, the squalene market has been segmented as follows:

• Cosmetics
• Food
• Pharmaceuticals
• Others

On the basis of region, the squalene market has been segmented as follows:

• Asia Pacific
• North America
• Europe
• Middle East & Arica
• South America

Recent Developments

• In August 2021, Amyris, Inc. launched Rose Inc., a clean color cosmetics brand. The products’ non-comedogenic formulas are developed with proprietary bioengineered and sustainably-sourced ingredients, including squalene and hemisqualane.
• In April 2020, Amyris, Inc. launched the squalene-based hand sanitizer named Pipette under its No Compromise Pipette baby care branded products. The hand sanitizer contains 65% USP plant-based ethyl alcohol, glycerin, and Amyris, Inc.’s sugarcane-derived squalene (for moisturizing benefit).
• In May 2023, Amyris, Inc. signed an exclusive license agreement with British specialty chemicals company Croda International Plc, ("Croda") for the supply of sustainable squalene.
• In July 2023, SOPHIM launched a moisturizing and soothing massage oil. It helps in restoring the skin’s lipidic film, creating a protective barrier that preserves your epidermis from external aggression.
• In June 2023, SOPHIM launched a moisturizing foot mask. The ingredients in this formulation restores the lipid barrier for long-lasting protection against external aggressors and dryness.

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