The global squalene market size is estimated to grow by $62.9 million from 2024-2028, according to the analysts at Technavio.

The market is estimated to grow at a CAGR of over 6.79% during the forecast period. Increasing acceptance of UVA/B filters in sunscreens and sun protection cosmetics is driving market growth, with a trend towards squalene derived from renewable resources. However, stringent safety regulations on UV sun care products poses a challenge.

Key market players include Amyris Inc., Arista Industries, Bocsci Inc., Cibus, Croda International Plc, Evonik Industries AG, Gracefruit Ltd., Kishimoto Special Liver Oil Co. Ltd, Kuraray Co. Ltd, LBB Specialties LLC, MacroCare Tech Ltd., Majestic Mountain Sage Inc., Maruha Nichiro Corp., Maypro Group, Micro Capsule Technologies, New Zealand Green Health Ltd., Parchem Fine and Specialty Chemicals Inc., Seadragon, Sophim, and Vestan.

A Deep-Dive into the Skincare Benefits of Squalene

Squalene, a natural hydrocarbon, is increasingly derived from renewable sources such as vegetables and olives. Olive oil is a significant source due to its high squalene content. Renewable squalene production is expanding in countries with abundant olive cultivation, including Greece, Portugal, Italy, France, Spain, the US, Australia, Turkey and Austria.

Sugarcane is another source, yielding squalene of higher quality and purity. Squalene is used in skin treatments and personal care products derived from olive oil and sugarcane. Additionally, squalene is sourced from tobacco and a new yeast-like fungus, Pseudozyma, for commercial production. Genetic modification and metabolic changes have enhanced squalene production, leading to the development of industrial-scale, squalene-hyperproducing strains. This trend towards renewable squalene sources is anticipated to continue, positively impacting the global squalene market’s growth during the forecast period.

Squalene’s Usage in Personal Care Products

Squalene is a popular ingredient in the personal care industry, used in creams, serums, oils, and masks for its excellent moisturizing properties. Traditionally sourced from shark liver oil, concerns over animal welfare and sustainability have led to the exploration of renewable sources. Sugarcane and olive-derived squalene are now common alternatives. Vegetable-sourced squalene, also known as squalane, is gaining popularity due to its lower toxicity and compatibility with various formulations. Emollients in lotions, hair conditioners, bath oils, lipsticks, foundations and vaccines benefit from squalene’s ability to reduce the oxidation of other ingredients and enhance their efficacy. Squalene’s role in the cosmetics sector extends to cleansing ingredients in various personal care products. In the nutritional supplement market, fish and shark liver oils remain significant sources of squalene, contributing to immune response and vaccine development. Companies like GlaxoSmithKline, Sanofi S and CureVac N are investing in squalene research for its potential as an adjuvant in flu vaccinations, enhancing immunogenicity and antigen dosage sparing. However, the use of squalene in vaccines has raised concerns regarding its potential toxicity and heterologous antibody responses. The oncology segment is also exploring squalene for its potential role in cancer treatment. Overall, the versatility of squalene makes it an essential raw material in various industries, from personal care to pharmaceuticals.

Market Challenges

The global squalene market faces significant challenges due to increasing regulations on the manufacturing, packaging and distribution processes of products that contain squalene. Suncare products – which include cosmetics, personal care items and food supplements – are subject to stringent regulations under the US Federal Food, Drug and Cosmetic Act (FDCA). The FDCA governs processing, formulation, safety, manufacture, packaging, labeling, and distribution of these products. In the US, the Natural Cosmetics/Personal Care Goods Safety Act and the Federal Trade Commission (FTC) further regulate cosmetics and personal care products. Recent regulatory updates, such as the FDA’s proposed rule on OTC sunscreens, impose new requirements on sunscreen products, including broad-spectrum protection and SPF details. These regulations increase the complexity and cost of production, hindering market growth for UV sun care products and, consequently, the demand for squalene in this segment.

Other packaging restrictions also add to the challenges. Despite these hurdles, the market for squalene is expected to continue growing due to its wide range of applications and benefits.

While the Squalene market in the cosmetics sector is growing due to the demand for effective emollients in lotions, hair conditioners, bath oils, lipsticks, and foundations, challenges exist regarding the toxicity of squalene derived from sharks and fish oil, leading to the exploration of plant-based alternatives like olive oil, rice bran, Amaranth olive and terpene oils. Free radicals and the aging process are major concerns for skin health, making squalene an essential cleansing ingredient. In the pharmaceutical industry, squalene is used in vaccines as an adjuvant to enhance immunogenicity and reduce antigen dosage sparing. Companies like GlaxoSmithKline, Sanofi S, and CureVac N are investing in the oncology segment using squalene in anti-aging treatments. Nutraceutical firms also use squalene from tobacco crops and synthetic sources for nutritional supplements. The MMPA regulation may impact the market, but the demand for plant-based squalene continues to grow.