The global squalene market was valued at USD 149.4 million in 2023, with an expected compound annual growth rate (CAGR) of 10.9% from 2024 to 2030. The rising demand for natural ingredients, particularly in the personal care and cosmetics industries, is a key driver of this growth. Squalene, a translucent substance with low odor and moisturizing properties, has become one of the most sought-after emollients globally. Its lack of toxicity has further enhanced its use in personal care products. Squalene is especially valued in the cosmetics industry for its ability to neutralize free radicals that cause skin damage and accelerate aging.
The product is widely used as a moisturizing and cleansing agent in various cosmetics and personal care products, including lotions, hair conditioners, bath oils, lipsticks, creams, and foundations. In addition to its growing use in the cosmetics sector, the increasing demand for natural and organic ingredients is expected to boost squalene consumption. Another important factor contributing to market growth is squalene’s role in vaccines. It is an essential ingredient in vaccines, including COVID-19 vaccines, due to its effectiveness in enhancing immune responses. The type of squalene used in vaccines and pharmaceuticals is a purified form of fish oil, primarily extracted from sharks. However, concerns about the endangered status of certain shark species, as highlighted by the International Trade of Endangered Species, have led to a shift away from animal-based sources. This shift has spurred interest in plant- and synthetic-based squalene alternatives.
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Source Segmentation Insights:
In 2023, the plant-based segment dominated the squalene market, accounting for over 82.3% of total revenue. This dominance is attributed to the declining population of sharks, increased awareness about animal welfare, and the regulatory frameworks implemented by governments to protect marine species. Plants have emerged as a sustainable alternative for squalene extraction, as they can be grown and harvested without threatening wildlife. For instance, the monkey jack tree (Artocarpus lakucha), native to Asia, can produce 10%-20% of its dry weight in squalene. High-purity squalene can also be extracted from the leaves of such plants.
According to the International Olive Council (IOC), global olive oil production is expected to reach 3.2 million tons, a 2.9% increase from the previous year, thanks to the widespread cultivation of olive trees. Squalene occurs naturally in olives, amaranth, and rice bran, with olives containing the highest concentrations, depending on the cultivar, extraction technology, and oil refining process. Extra virgin, unrefined olive oil contains higher amounts of squalene compared to refined oils, making it a preferred source for extraction.
Historically, shark squalene has been obtained from the liver oil of deep-sea sharks, which contain high concentrations of the substance. However, approximately 3,000 sharks are required to produce just one ton of squalene, leading to a significant decline in shark populations. It is estimated that 2.7 million deep-sea sharks are killed each year for their liver oil, driven by the demand in the cosmetics industry. Shark liver oil has been a primary natural source of squalene, valued for its wound-healing and infection-fighting properties, as it stimulates key innate immune cells involved in tissue repair and wound recovery.
To protect shark populations and encourage the use of plant-based squalene, various laws have been enacted. In India, for example, the extraction, possession, or trade of 10 species of elasmobranchs (sharks and rays) is strictly prohibited under the Wildlife (Protection) Act of 1972. These regulations, along with the growing availability of plant-based alternatives, are driving the transition away from shark-derived squalene and supporting the growth of the plant-based segment in the global market.
In conclusion, the global squalene market is poised for significant growth, driven by the increasing demand for natural ingredients in personal care and cosmetics, the rising use of squalene in vaccines and pharmaceuticals, and a shift toward sustainable, plant-based sources. The industry's future growth will likely be influenced by further technological advancements, regulatory changes, and consumer preferences for eco-friendly and ethical products.
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