Squalene Market Outlook

The global squalene market is anticipated to reach approximately USD 1.1 billion by 2035, growing at a CAGR of around 4.5% during the forecast period from 2025 to 2035. This growth can be attributed to the increasing demand for high-quality cosmetic products, the rising trend of natural and organic ingredients in various applications, and the growing awareness of squalene's health benefits, particularly in pharmaceuticals. Furthermore, the expanding usage of squalene in the food and beverage industry, alongside the increasing consumer preference for plant-based and sustainable products, is expected to propel market growth. Additionally, advancements in extraction techniques and the development of synthetic alternatives are further enhancing the market landscape, leading to a promising future for the squalene market.

Growth Factor of the Market

One of the primary growth factors for the squalene market is the escalating demand for squalene in the cosmetics sector, where it is extensively utilized for its moisturizing and skin-replenishing properties. As consumers increasingly prefer products that contain plant-derived ingredients, the market for vegetable-derived squalene is expected to witness significant growth. Additionally, the pharmaceutical industry's rising interest in squalene, particularly in vaccine formulations and immuno-adjuvants, is anticipated to drive demand, especially in light of recent global health concerns. The burgeoning trend of clean-label products in the food and beverage industry is also propelling market expansion, as squalene is recognized for its potential health benefits. Furthermore, the rise of e-commerce platforms is facilitating broader access to squalene products, thereby enhancing market growth opportunities.

Key Highlights of the Market

• The global squalene market is projected to reach USD 1.1 billion by 2035.
• Growing demand in cosmetics and personal care products is a significant growth driver.
• The increasing popularity of plant-based and sustainable ingredients is influencing market trends.
• Rising application of squalene in pharmaceuticals and health supplements is expanding market opportunities.
• Advancements in extraction technologies are enhancing the availability of squalene from various sources.

By Product Type

Animal-derived Squalene:

Animal-derived squalene, primarily sourced from shark liver oil, has been a traditional form of squalene used in various applications. Despite its effectiveness in cosmetics and pharmaceuticals, the usage of animal-derived squalene is witnessing a decline due to rising concerns over sustainability and the ethical implications of using animal products. However, it still holds a substantial market share because of its high purity and efficacy in formulations. Companies are focusing on sustainable sourcing practices to mitigate environmental impacts, but the regulatory pressures are pushing the market towards alternative sources.

Vegetable-derived Squalene:

Vegetable-derived squalene, extracted from sources like olives and sugarcane, is gaining significant traction in the market as consumers increasingly seek sustainable and cruelty-free options in their products. This type of squalene is celebrated for its skin-enhancing properties, which make it particularly popular in the cosmetics and personal care industries. The rising trend of clean beauty is driving brands to formulate products with vegetable-derived squalene, which not only meets consumer demand but also aligns with environmentally friendly practices. The market for vegetable-derived squalene is projected to grow substantially, fueled by consumer awareness and regulatory support for natural ingredients.

Synthetic Squalene:

Synthetic squalene is an emerging segment within the squalene market, created through chemical synthesis processes that mimic the structure of naturally occurring squalene. This form is gaining popularity due to its consistent quality and potentially lower production costs. Synthetic squalene presents a viable alternative for brands aiming to offer vegan products without compromising on performance. The development of synthetic squalene is also helping to alleviate the pressures faced by sourcing animal-derived squalene, thus promoting sustainability. As research continues to improve production methods and reduce costs, synthetic squalene's market presence is likely to expand significantly.

By Application

Cosmetics:

The cosmetics segment represents one of the largest applications for squalene, where it is primarily utilized as a moisturizer and skin-conditioning agent. Its ability to mimic the natural oils produced by the skin makes it an ideal ingredient in a variety of beauty products, including creams, serums, and oils. The growing trend towards natural and organic cosmetics is driving the demand for squalene, especially vegetable-derived options, as consumers are becoming more conscious about the ingredients in their beauty routines. Additionally, the rise of clean beauty brands has led to an increased focus on formulations that are free from harmful chemicals, further propelling the adoption of squalene in cosmetic products.

Pharmaceuticals:

In the pharmaceutical sector, squalene is mainly used as an adjuvant in vaccine formulations due to its immune-stimulating properties. This has gained immense importance in the context of global health crises, where effective vaccine development is critical. Furthermore, squalene is being explored in various therapeutic applications, including anti-inflammatory and anti-cancer formulations. The increasing recognition of squalene's health benefits and its role in enhancing drug delivery systems is propelling its use in pharmaceuticals. As healthcare needs evolve and more effective formulations are being developed, the pharmaceutical application of squalene is expected to witness substantial growth.

Food Supplements:

Squalene is increasingly being recognized for its potential health benefits, leading to its incorporation into food supplements. As consumers become more health-conscious, the demand for dietary supplements containing squalene is on the rise. Its antioxidant properties are believed to support overall health, and it is often marketed as a natural alternative for boosting immunity and skin health. The growing trend of preventive healthcare and wellness is further driving the demand for squalene in the food supplement sector. This segment is expected to see a healthy growth rate as more consumers seek to incorporate beneficial ingredients into their diets.

Vaccines:

The use of squalene in vaccines, particularly as an adjuvant, has gained notable attention in recent years. Adjuvants like squalene enhance the immune response to vaccines, making them more effective in providing immunity against diseases. The global health landscape has underscored the importance of developing effective vaccines, leading pharmaceutical companies to explore squaleneÔÇÖs potential. With the ongoing focus on vaccine development and the urgent need for innovative solutions in public health, the application of squalene in vaccines is poised for significant growth, further contributing to the overall market expansion.

Others:

In addition to the aforementioned applications, squalene finds its use in various other sectors, including personal care, food products, and even pet care. These diverse applications highlight the versatility of squalene as an ingredient. In personal care, squalene is utilized to enhance the texture and stability of formulations, while in food products, it is often included for its nutritional benefits. The versatility of squalene allows it to cater to a broad spectrum of industries, which is key to its sustained growth and market penetration across multiple sectors. This segment is expected to expand as manufacturers continue to innovate and explore new applications for squalene.

By Distribution Channel

Online Stores:

The online distribution channel is rapidly gaining popularity within the squalene market, driven by the convenience and accessibility it offers to consumers. As e-commerce continues to flourish globally, an increasing number of consumers are turning to online platforms for their shopping needs, including health and beauty products. Online stores provide a wider range of squalene products, often at competitive prices, which appeals to informed consumers looking for specific ingredients. Additionally, the ability to compare products and read reviews boosts consumer confidence in purchasing online. As the trend towards online shopping persists, this distribution channel is expected to expand significantly, influencing the overall growth of the squalene market.

Specialty Stores:

Specialty stores play a crucial role in the distribution of squalene products, particularly in the cosmetics and health supplement sectors. These stores focus on niche markets and offer a curated selection of high-quality products, which appeals to discerning consumers interested in specific benefits and ingredients. The knowledgeable staff in specialty stores often provide personalized recommendations, enhancing the shopping experience for health-conscious customers. As consumers increasingly seek out specialized products, the growth of specialty stores is likely to continue, further driving demand for squalene across various applications. This channel is particularly significant for brands emphasizing quality and unique formulations.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets serve as essential distribution channels for squalene, providing consumers with easy access to a wide variety of products. These large retail environments cater to a mass audience and often feature dedicated sections for health and beauty products, including those containing squalene. The convenience of shopping in one location for multiple needs drives patrons to these stores, making them a significant player in the squalene market. Furthermore, promotional strategies and bulk purchasing options in these retail formats can encourage larger sales volumes, contributing positively to the market dynamics. The ongoing expansion of supermarket chains is expected to boost the availability and sales of squalene products.

Others:

Other distribution channels for squalene include pharmacies, beauty supply stores, and direct sales. Pharmacies, in particular, offer health-focused consumers a trusted environment to purchase squalene-containing supplements and topical products. Beauty supply stores cater specifically to the cosmetics market and often highlight products that utilize squalene for its beneficial properties. Direct sales models, through representatives or brand-owned stores, allow for tailored customer interactions and personalized recommendations, which resonate well with consumers seeking specific product benefits. As diverse retail formats continue to evolve, the reach and availability of squalene products will likely increase, supporting overall market growth.

By Source

Shark Liver Oil:

Shark liver oil remains a traditional and significant source of squalene, particularly due to its high concentration levels of this compound. Although it has provided a reliable supply for many years, the increasing regulatory restrictions and ethical concerns surrounding shark hunting and conservation have led to a decline in its popularity. Despite these challenges, shark liver oil still plays a role in the market, particularly among niche products that cater to specific consumer needs. Companies utilizing shark liver oil are increasingly focusing on sustainable sourcing practices to alleviate environmental impacts and align with consumer values. However, the long-term outlook may depend on the industry's ability to pivot towards more sustainable alternatives.

Olive Oil:

Olive oil is a prominent plant-based source of squalene, widely recognized for its numerous health benefits. The increasing popularity of Mediterranean diets and the clean-label trend has driven demand for squalene derived from olive oil, especially in cosmetic and supplement formulations. Olive-derived squalene is valued for its moisturizing properties and is often marketed as a natural alternative to synthetic ingredients. Moreover, the growth of organic and natural beauty products has further enhanced the appeal of olive squalene, as consumers aim to incorporate more sustainable options into their routines. The positive market reception of olive oil-derived squalene is expected to continue, bolstered by consumer preferences for plant-based ingredients.

Amaranth Seed:

Amaranth seed has emerged as a viable source of squalene, particularly as consumers increasingly seek alternatives that cater to vegan and sustainable lifestyles. This seed is celebrated not only for its nutritional benefits but also for its rich squalene content. As the demand for plant-derived and organic products grows, squalene extracted from amaranth seeds is gaining traction in various applications, including cosmetics and dietary supplements. The potential for amaranth-derived squalene to appeal to health-conscious consumers positions it favorably within the market, as brands continue to explore innovative and sustainable sourcing options.

Rice Bran:

Rice bran is another plant-based source of squalene that is gaining momentum in the market. Known for its antioxidant properties, rice bran squalene is increasingly featured in cosmetic formulations due to its ability to hydrate and nourish the skin. The rise of clean beauty products has opened opportunities for rice bran squalene to be marketed as a natural, safe ingredient. Additionally, as more brands aim to diversify their sourcing strategies and meet consumer demand for sustainable practices, rice bran squalene presents an attractive option. Its growing recognition and applications across various sectors indicate that rice bran-derived squalene will continue to gain market share.

Sugarcane:

Sugarcane has emerged as a sustainable source of squalene, offering a plant-based option that aligns with the rising demand for eco-friendly ingredients. Squalene derived from sugarcane is celebrated for its excellent emollient properties, making it a desirable addition in cosmetic formulations. As consumers become more aware of sustainability issues, brands incorporating sugarcane-derived squalene are likely to enhance their appeal to environmentally conscious shoppers. Furthermore, sugarcane squalene supports the clean-label trend and can play a significant role in the ongoing shift towards plant-based and cruelty-free products. The growth potential for sugarcane-derived squalene is substantial, driven by evolving consumer preferences and regulatory support for sustainable sourcing.

By Region

In the Asia Pacific region, the squalene market is poised for substantial growth, driven by the increasing demand for cosmetics and personal care products infused with natural ingredients. Countries like Japan, South Korea, and China are leading the way, as consumers gravitate towards products containing squalene for its moisturizing and skin-enhancing properties. The region is expected to witness a CAGR of around 5.0% during the forecast period, bolstered by rising disposable incomes and growing awareness regarding the benefits of squalene in various applications. This trend is further supported by the expanding e-commerce landscape, which is enhancing product accessibility and driving sales across the region.

North America is another significant market for squalene, characterized by a strong demand across the cosmetics and pharmaceutical sectors. The growing consumer preference for natural and organic products is set to propel the market forward, with squalene finding its way into an increasing number of formulations. As health concerns continue to drive demand for effective supplements and vaccines, the pharmaceutical application of squalene is expected to gain traction. The North American squalene market is anticipated to grow steadily, contributing significantly to the global market size and reflecting the region's commitment to sustainability and innovation in product development.

Opportunities

The squalene market is ripe with opportunities, particularly as consumers increasingly prioritize sustainability and ethical sourcing in their purchasing decisions. This trend provides a distinct advantage for vegetable-derived and synthetic sources of squalene, which align with consumer preferences for cruelty-free and environmentally friendly products. Companies that focus on developing innovative extraction methods and cultivating sustainable supply chains can harness this demand, potentially gaining a competitive edge in the market. Additionally, the rising popularity of e-commerce platforms presents an opportunity for brands to reach a broader audience, enabling them to showcase the benefits of squalene and its diverse applications across multiple sectors.

Moreover, ongoing research and development efforts aimed at enhancing the functionality of squalene in various applications present further opportunities for market growth. For instance, the exploration of squalene's potential in new therapeutic applications within pharmaceuticals can open new revenue streams for manufacturers. As consumer awareness of health and wellness continues to rise, the demand for dietary supplements containing squalene is also expected to grow, offering additional avenues for brands to capitalize on this trend. The evolving landscape of health-conscious consumers combined with a focus on natural ingredients creates a favorable environment for companies looking to expand their presence in the squalene market.

Threats

One of the primary threats to the squalene market stems from the regulatory challenges associated with the harvesting of animal-derived sources, particularly shark liver oil. As conservation efforts become more stringent, it may become increasingly difficult for companies to source squalene from these traditional channels, which could lead to supply shortages and increased costs. Furthermore, negative publicity surrounding the use of animal products can deter consumers, driving them towards plant-based alternatives and synthetic options. This shift in consumer sentiment poses a threat to the market share of animal-derived squalene, compelling companies to adapt their sourcing strategies and product offerings accordingly.

Additionally, the proliferation of counterfeit products in the market poses a significant risk to reputable brands and consumer trust. As the demand for squalene products grows, so does the potential for fraudulent products that do not contain authentic squalene or are misrepresented in terms of quality. This situation can lead to consumer skepticism and damage the overall reputation of squalene as a beneficial ingredient. Companies must remain vigilant in ensuring product quality and authenticity to maintain consumer confidence and safeguard their market positions. Implementing robust quality control measures and transparent supply chains will be essential in combatting these threats.

Competitor Outlook

• Aphios Corporation
• Amaranth Bio
• Horizon BioScience, Inc.
• Alfa Aesar
• Merck KGaA
• Squalene Oil Co. Ltd.
• Jiangxi Duyuan Biotechnology Co., Ltd.
• Marinova Pty Ltd
• Seppic SA
• Squalene Co. Inc.
• Yasoo Health, Inc.
• Sabinsa Corporation
• Cargill, Incorporated
• FMC Corporation
• Botanicals Plus, Inc.

The competitive landscape of the squalene market is characterized by a diverse array of players, ranging from large multinational corporations to niche manufacturers. Key companies are strategically positioning themselves by investing in research and development to innovate and enhance the applications of squalene in their products. Additionally, many players are focusing on sustainable and ethical sourcing practices to align with evolving consumer preferences, thereby creating a competitive advantage in the market. The increasing emphasis on natural ingredients across various industries has prompted companies to expand their product portfolios and explore new applications for squalene, further intensifying competition.

Companies like Merck KGaA and Cargill, Incorporated are leading the charge in the squalene market, leveraging their extensive resources and expertise to develop high-quality products. Merck KGaA, for instance, has established a strong foothold in the pharmaceuticals sector, particularly in vaccine formulations, while CargillÔÇÖs commitment to sustainability is positioning it favorably within the food and supplement markets. Similarly, niche players such as Aphios Corporation and Amaranth Bio focus on innovative formulations that cater to specific consumer needs, emphasizing the importance of quality and efficacy. As market dynamics shift, collaboration among companies and cross-industry partnerships are also expected to play a pivotal role in driving growth and enhancing market competitiveness.

Moreover, companies that prioritize transparency in their sourcing and manufacturing processes are likely to gain consumer trust and loyalty. Players such as Horizon BioScience and Marinova Pty Ltd are making strides in educating consumers about the benefits of squalene and the importance of ethical sourcing, which can drive brand loyalty and repeat purchases. As the squalene market evolves, organizations that remain agile and responsive to consumer trends while emphasizing quality and sustainability will be well-positioned to thrive. Competitors must continue to adapt to the changing landscape, ensuring they meet the demands of health-conscious consumers while fostering an environment of innovation and growth in the squalene market.