Squalane Market Trends and Forecast
The future of the global squalane market looks promising with opportunities in the cosmetics & personal care and pharmaceutical markets. The global squalane market is expected to grow with a CAGR of 8.4% from 2025 to 2031. The major drivers for this market are the increasing demand for clean beauty, the rising awareness of skincare benefits, and the growing adoption of sustainable ingredients.
• Lucintel forecasts that, within the type category, phyto squalane is expected to witness the highest growth over the forecast period.
• Within the application category, cosmetics & personal care is expected to witness higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Squalane Market
The squalane market today is going through a time of change, mainly instigated by a worldwide shift towards ethical and sustainable sourcing. Increasing consumer awareness of environmental footprint and animal welfare is nudging manufacturers from the conventional shark-based squalane to plant-derived and bio-fermented options. This change is not just a trend but a basic rewriting of the supply chain, enabling innovation in production processes and affecting product formulation in the cosmetics, pharmaceutical, and nutraceutical industries. The industry is transforming at a fast pace to address these new demands.
• Plant-Based Squalane Shift: This trend identifies the massive shift away from shark liver oil toward plant-based sources such as olives, sugarcane, rice bran, and amaranth. This shift is prompted by ethical reasons regarding shark harvesting and growing consumer demand for vegan and cruelty-free goods. The result is an environmentally sustainable and healthier supply chain for squalane, in accordance with clean beauty initiatives and increased market availability for brands that promote ethical sourcing, opening squalane up to be a more commonly accepted product.
• Emergence of Biotechnologically Derived Squalane: Production of squalane via fermentation by yeast or other microorganisms is a dominant new trend. The process provides a very saleable, pure, and consistent supply, uninfluenced by agricultural crop yields or oceanic conditions. The effect is increased supply chain security, lower environmental impact than plant cultivation (in some instances), and the capacity to create pharmaceutical-grade squalane with purity under control, critical for vaccine adjuvants and other healthcare uses.
• Transparency in Sourcing and Clean Beauty: Consumers increasingly want transparency regarding ingredient origins and production processes. This trend compels brands to reveal their sources of squalane and opt for certified sustainable choices. The result is an increased focus on traceability, ethical certifications, and transparent labeling, which creates consumer confidence and a more responsible industry. Brands that embrace these methods have a competitive advantage in a market where consumers care about ethical consumption.
• Development towards Pharmaceutical Usage: Outside cosmetics, squalane is increasingly being used as a vital ingredient in the pharmaceutical sector, as an adjuvant in vaccines to stimulate immune response. The effect of this movement is a diversification of uses for squalane outside traditional beauty care, opening new high-value segments to the industry. This also establishes a demand for pharmaceutical-grade, high-purity squalane, promoting enhanced investment in research and development for medical applications.
• Tailored Skincare and Custom Formulations: Increased trends towards tailored skincare solutions observe squalane being added to custom formulations. Its versatile skin type compatibility and moisturizing, non-comedogenic attributes make it a great base ingredient for custom serums, creams, and oils. The effect is the rise in squalane-containing products variability, addressing individual consumer requirements and preferences, and extending market penetration beyond mass-market offerings.
These new trends are truly restructuring the squalane market by focusing on sustainability, ethical sourcing, and technology innovation. The movement away from animal-derived to plant-derived and biotechnology-made squalane reflects consumer values and regulatory forces directly. Also, its penetration into pharmaceutical uses and tailored skincare spaces indicates its adaptability and increasing significance in various industries, boosting overall market expansion and complexity.
Recent Development in the Squalane Market
The market for squalane has witnessed vibrant developments in recent years, driven considerably by a worldwide focus on sustainable sourcing and technological advancement. The sector is shifting from shark-derived squalane for ethical and environmental reasons, prompting a dramatic rise in the take-up of plant-based and bio-engineered substitutes. These developments not only change the supply chain but also expand the application area of squalane in sectors ranging from luxury cosmetics to essential pharmaceutical products. This development is revolutionizing the production, marketing, and use of squalane globally.
• Plant-Based Squalane Dominance: The key trend is the widespread dominance by plant-based squalane, mainly from olives and sugarcane. It is fueled by demand from consumers for cruelty-free and vegan products and concern for environmental degradation due to shark overfishing. The result is an ethically better and sustainable market with companies openly championing plant-based content, which increases consumer confidence and market share for such substitutes.
• Fermentation-Based Biosynthetic Squalane Growth: The emergence of biotech-synthesized squalane, usually via sugarcane yeast fermentation, is a breakthrough. This process provides an engineerable, reproducible, and very high-purity supply, mitigating the downsides of both animal and conventional plant origins. The effect is improved supply chain reliability and capabilities to supply high-purity demand for pharma uses, stimulating innovation in production technology and guaranteeing product stability.
• Augmented Use in Vaccine Adjuvants: Squalane has experienced a remarkable surge in its application as an adjuvant in vaccine products, especially brought to the fore through recent worldwide health emergencies. Its immunostimulatory capability renders it an essential component in vaccine effectiveness. The result is a large new market opportunity for high-purity, pharmaceutical-grade squalane, and strong investment in research and development to provide strong and sterile supply chains for medical applications.
• Integration into the Clean Beauty Movement: The global "clean beauty" movement has had a deep impact on the squalane market, as shoppers seek out products that are chemical-free and environmentally sustainable. Squalane, particularly of plant or bio-fermented origin, fits seamlessly with these values. This increases demand for squalane in natural and organic skin care products and results in its use in an expanding range of beauty products and greater marketing of its natural benefits.
• New Extraction and Purification Technologies: Some of the recent advancements include new techniques in the extraction and purification of squalane derived from plants, enhanced yield, purity, and cost savings. Some of the examples include state-of-the-art filtration and enzymatic processes. The effect is higher-quality squalane with fewer impurities, which is more attractive for high-end cosmetic and pharmaceutical use, and potentially lower production costs and higher total market availability for varied uses.
These advancements are deeply influencing the squalane industry by radically changing its production, sourcing, and application landscape. The industry is transitioning to more sustainable and technologically superior solutions, minimizing dependence on conventional, less eco-friendly sources. This shift is creating a more diversified and resilient industry, with squalane emerging as an ever-more popular ingredient in a broader array of high-value sectors because of its purity, performance, and sustainable source.
Strategic Growth Opportunities in the Squalane Market
The market for squalane is rife with opportunities for strategic growth in multiple major applications due to its multifaced properties as an emollient, antioxidant, and immune booster. The current trend towards sustainable and natural ingredients further boosts these prospects, with the world’s industries hunting for high-performance substitutes that balance consumer concerns and regulatory requirements. Pinpointing these application-specific growth opportunities is essential for market participants to formulate targeted strategies, innovate in product formulation, and capture growing market share in an environment that rewards efficacy as well as ethical sourcing.
• Cosmetics and Personal Care (Skincare Focus): This continues to be the greatest opportunity for growth. Squalane is well sought after for its superior moisturizing, non-greasy texture, and affinity for natural skin lipids. Growth is fueled by consumers’ needs for anti-aging, hydration, and barrier-repair products, along with the clean beauty movement. Formulation opportunities lie in creating serums, creams, facial oils, and cleansers, particularly those for sensitive or dry skin, taking advantage of squalane’s mild yet powerful qualities to demand high prices.
• Hair Care Products: Squalane is increasingly popular in hair care due to its capacity to impart shine, smooth out frizz, and shield hair from damage without leaving it heavy. Opportunities for growth include creating shampoos, conditioners, hair oils, and styling treatments. Its light texture and moisturizing properties make it suitable for most hair types, especially dry or damaged hair, as a natural substitute for synthetic silicones, and it attracts consumers who look for healthier hair solutions.
• Pharmaceutical Applications (Vaccine Adjuvants): Squalane as a vaccine adjuvant is a major emerging growth area, especially following its pivotal role in augmenting the immune response of some COVID-19 vaccines. High-purity, sterile squalane is required for this application. Opportunities include the development of increased production capacities of pharmaceutical-grade squalane and partnerships with vaccine manufacturers, setting up long-term supply contracts, and research investments in new therapeutic applications, with strict quality and regulatory assurances.
• Dietary Supplements and Nutraceuticals: Squalane, when orally ingested, has been shown to possess antioxidant and immune-modulating properties. Opportunities for growth lie in the development of soft gels, capsules, and functional foods. With greater awareness among consumers regarding preventative health care and natural supplements, squalane may be promoted for its cardiovascular benefits, detoxification, and wellness potential, targeting a health-aware consumer base in need of natural nutritional interventions.
• Specialized Industrial Lubricants and Oils: Though a specialty use, squalane’s high oxidative stability and lubricity qualify it for high-performance industrial lubricants in sensitive equipment or harsh environments where biodegradable oils would be desirable. The potential exists in serving specialized machinery, precise instruments, and non-toxic, environmentally friendly lubricant uses where performance and environmental accountability are priorities.
These growth opportunities of a strategic nature are heavily influencing the squalane market through specialization and innovation in various applications. The growing demand from all sectors is triggering R&D, which has resulted in the development of specialty squalane products with defined purity grades and functions. This multi-dimensional development is growing the total market size, promoting ecologically sound production practices, and solidifying the position of squalane as an extremely flexible and indispensable commodity in a broad range of consumer and industrial applications.
Squalane Market Driver and Challenges
The squalane market is influenced by a multifaceted interplay of different technological, economic, and regulatory factors. These factors realize themselves as both major drivers fueling market growth and significant challenges that call for creative solutions. Understanding these forces is key for stakeholders to successfully navigate the changing landscape. From the inexorable advance of consumer demand for natural ingredients and digital openness to the uncertainty of raw material supply and the mounting pressure for ethical sourcing, the market is constantly shifting, requiring flexibility and visionary approaches from all players.
The factors responsible for driving the squalane market include:
1. Shift toward Natural and Sustainable Ingredients: One of the key drivers is the growing consumer interest in natural, clean-label, and sustainably sourced ingredients for cosmetics, personal care, and nutraceuticals. Squalane from plant sources such as olives and sugarcane closely fits this trend with its moisturizing and antioxidant benefits. This is driving manufacturers to shift away from animal-derived sources, leading to tremendous market growth for ethical substitutes.
2. Increasing Squalane Benefit Awareness: Greater consumer and industry recognition of squalane’s highly versatile benefits for skin well-being, including hydration, anti-aging, and barrier repair, is a driving factor. Its hypoallergenic and non-comedogenic properties render it ideal for use on sensitive skin. Awareness, boosted by social media and beauty influencers, results in increased product take-up and incorporation into more products across various price points.
3. Production Technology Innovations: Advances in biotechnology, especially fermentation technologies for the manufacture of squalane from renewable feedstocks such as sugarcane, are majorly propelling the market. These innovations provide high purity, scalability, and reliable supply, bypassing the limitations in conventional and even plant-based extractions. This technological breakthrough guarantees a quality and ethical supply chain, which is essential in fulfilling increasing global demand.
4. Pharmaceutical and Healthcare Expansion Applications: Squalane’s function as a vaccine adjuvant, especially illustrated in recent pandemics, has created a major new market segment. Its ability to enhance the immune system is exceptionally desirable. This use fuels demand for pharmaceutical-grade squalane, with research and development into new medical treatments, improving the value proposition of the market over its use in cosmetics.
5. Stringent Regulatory Oversight of Animal-Derived Ingredients: Growing regulatory pressure and consumer activism against shark liver oil usage in cosmetic and pharmaceutical products is pressurizing manufacturers to shift towards alternative sources. Such a regulatory environment, particularly in markets such as Europe and North America, effectively propels the market towards synthetic and plant-based squalane, aligning with compliance and ethical consumer preferences.
Challenges in the squalane market are:
1. Excessive Production Cost of Sustainable Options: Although plant-based and biosynthetic squalane are more ethically sound, their manufacture may, at times, entail greater initial capital expenditure and operating costs than conventionally derived squalane. This can, in turn, mean increased costs for the final product, which can deter wider use in cost-conscious markets and pose difficulty for small-scale manufacturers to compete favorably.
2. Raw Material Supply Volatility (for Plant-Based): Plant-based sources of squalane, such as olive oil, may result in volatile yields and prices due to seasonality, climate change, and crop diseases. Such supply volatility can increase the inconsistency of production, as well as its cost-inclusiveness for manufacturers dependent on these natural materials, and result in a threat to supply chain reliability, thus necessitating diversification of supply practices.
3. Alternative Emollient Competition: The market is competing with a variety of other emollients and moisturizing actives, natural or synthetic, that may provide comparable benefits at lower price levels or with existing market pull. Informing consumers and formulators about squalane’s exceptional characteristics and superior performance is essential in distinguishing it in a competitive marketplace and keeping it ahead of the competition.
Overall, the squalane market is being aggressively propelled by demand from consumers for natural and sustainable ingredients, as well as huge production technological developments, especially in biotechnology. The range extension into high-value pharmaceutical applications only supports its position in the market further. Yet, the fact that sustainable options carry higher production costs, volatility of raw material supply may pose risks, and competitive pressure from other emollients requires ongoing innovation, long-term investment in research and development, and clear communication of squalane’s intrinsic value to drive continuing growth and leadership in the market.
List of Squalane Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies squalane companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the squalane companies profiled in this report include-
• Kishimoto
• EFP
• VESTAN
• Maruha Nichiro
• Arista Industries
• Amyris
• Sophim
• Croda
• Nucelis
• Caroiline
Squalane Market by Segment
The study includes a forecast for the global squalane market by type, application, and region.
Squalane Market by Type [Value from 2019 to 2031]:
• Phyto Squalane
• Shark Squalane
• Synthetic Squalane
Squalane Market by Application [Value from 2019 to 2031]:
• Cosmetics & Personal Care
• Pharmaceutical
• Others
Squalane Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Squalane Market
The international squalane industry is undergoing dramatic change, led in large part by a transition to sustainable and ethically sourced alternatives to conventional shark-derived squalane. Increased consumer education regarding clean beauty, natural ingredients, and sustainability is driving demand for plant-derived and biotechnologically created squalane. This shift is altering supply chains, spurring innovation in production and extraction, and creating new application opportunities across industries. Large industrial economies lead the way with these trends, each one complementing the market’s dynamic diversification and growth in a distinctive manner.
• United States: The US squalane market is dominated by a strong consumer interest in natural, vegan, and cruelty-free personal care products. As a result, there is a high demand for squalane derived from plants, especially sugarcane and olives, and also biotechnologically sourced squalane. Regulatory forces against animal-derived ingredients further speed this transition. The pharmaceutical industry also uses high-purity squalene increasingly as a vaccine adjuvant, which propels heavy research and development spending on sustainable sourcing and scalable manufacturing processes.
• China: China is a fast-growing market for squalane, being driven by a developing middle class with growing disposable incomes and an enhanced awareness of natural and sustainable ingredients. The demand for squalane in personal care and cosmetics is strong, with local players and global players launching products using plant-derived squalane. There is also a strong trend towards synthetic squalane to provide a stable supply and minimize dependence on natural origins, in line with the country’s wider clean beauty trend.
• Germany: Germany is a dominant force in the European squalane market with high demand for high-quality, sustainably sourced materials. Plant-based and biosynthetic squalane is the prevalent market, driven by the strict European Union regulations on animal welfare as well as consumer demand for ethical products. German producers are investing heavily in high-tech biotechnological processes for ensuring purity and consistent supply, especially for high-value end uses in the cosmetics and pharmaceutical industries, such as vaccine formulations.
• India: The Indian squalane market is growing fast, primarily with the booming personal care and cosmetics sector and the awareness of natural and organic products among consumers. Cost-effectiveness continues to be key, though, and there is a trend towards naturally sourced squalane. Domestic players are increasingly adding squalane to skincare and haircare products, and the growing demand for nutraceuticals is also driving market growth as people look for health-improving natural ingredients.
• Japan: Japan has a robust demand for high-grade squalane, mainly in its established cosmetics and pharmaceutical sectors. Although historically a market for squalane from sharks, it is increasingly shifting to plant-derived alternatives such as olive and sugarcane squalane due to sustainability issues and consumer demand for natural products. Advancements in extraction and production technologies are making these sustainable alternatives more readily available and affordable, propelling market transformation.
Features of the Global Squalane Market
Market Size Estimates: Squalane market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Squalane market size by type, application, and region in terms of value ($B).
Regional Analysis: Squalane market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the squalane market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the squalane market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for squalane market?
Answer: The global squalane market is expected to grow with a CAGR of 8.4% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the squalane market?
Answer: The major drivers for this market are the increasing demand for clean beauty, the rising awareness of skincare benefits, and the growing adoption of sustainable ingredients.
Q3. What are the major segments for squalane market?
Answer: The future of the squalane market looks promising with opportunities in the cosmetics & personal care and pharmaceutical markets.
Q4. Who are the key squalane market companies?
Answer: Some of the key squalane companies are as follows:
• Kishimoto
• EFP
• VESTAN
• Maruha Nichiro
• Arista Industries
• Amyris
• Sophim
• Croda
• Nucelis
• Caroiline
Q5. Which squalane market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, phyto squalane is expected to witness the highest growth over the forecast period.
Q6. In squalane market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the squalane market by type (phyto squalane, shark squalane, and synthetic squalane), application (cosmetics & personal care, pharmaceutical, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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