Squalane Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

The global Squalane market size was valued at USD 131 million in 2024 and is projected to grow from USD 138 million in 2025 to USD 198 million by 2032, exhibiting a CAGR of 6.3% during the forecast period. North America currently dominates the market with a 40% share, while the top three manufacturers—Amyris, NOF Group, and Ineos—collectively hold 57% of global production capacity.

Squalane is a saturated hydrocarbon derived from squalene, primarily used as an emollient and moisturizer in cosmetic formulations. This versatile compound occurs naturally in shark liver oil (animal-derived), plant sources like olive oil and sugarcane (phyto-based), and can also be synthetically produced. The market is segmented into Phyto Squalane (70% share), Shark Squalane, and Synthetic Squalane, with cosmetic applications dominating 97% of total consumption due to its excellent skin compatibility and oxidative stability.

The market growth is driven by increasing demand for clean-label skincare products and the shift toward plant-based alternatives, particularly in Europe and North America. However, regulatory restrictions on shark-derived squalane and fluctuating raw material costs pose challenges. Recent developments include Amyris expanding its biosynthetic squalane production in 2023 to meet growing demand for sustainable ingredients, reflecting the industry's focus on eco-friendly alternatives.

MARKET DYNAMICS

MARKET DRIVERS

Rising Demand for Clean Beauty Products Accelerates Squalane Adoption

The global shift toward clean, sustainable, and natural beauty products is significantly propelling the squalane market. Consumers increasingly prioritize ingredients with plant-based origins, pushing cosmetic manufacturers to reformulate products with ethically sourced alternatives. Phyto squalane, derived from sugarcane or olives, claims over 70% market share due to its biodegradability and compatibility with vegan formulations. This trend aligns with stricter regulations banning shark-derived squalane in the EU and North America, further driving demand for plant-based variants. Recent launches like Amyris' Biossance skincare line demonstrate how brands leverage squalane's moisturizing properties to meet clean beauty standards.

Expansion of Anti-Aging Skincare Segment Fuels Growth

Squalane's exceptional emollient and oxidative stability make it a cornerstone ingredient in anti-aging formulations, which represent a $60 billion global market. The compound mimics human sebum, enhancing skin barrier function and reducing transepidermal water loss by up to 30% in clinical studies. With aging populations in Japan, Europe, and North America spending more on preventative skincare, premium brands incorporate squalane in serums and creams. L'Oréal’s 2023 acquisition of a minority stake in a biotech squalane producer underscores the ingredient's strategic value in addressing wrinkle reduction and elasticity concerns.

➤ Korean beauty brands report 22% higher consumer retention rates for squalane-infused products compared to traditional moisturizers, per industry benchmarks.

MARKET RESTRAINTS

Price Volatility of Feedstock Impacts Production Economics

While sugarcane-derived squalane dominates the market, its production costs fluctuate with agricultural commodity prices and seasonal yield variations. Droughts in Brazil (a key sugarcane producer) led to a 17% price hike in 2023, squeezing profit margins for manufacturers. Synthetic alternatives, though more stable, face consumer skepticism despite achieving 99% purity. This cost-pressure bottleneck limits small-scale producers' ability to compete with established players like NOF Group, who vertically integrate supply chains to mitigate risks.

Regulatory Divergence Creates Market Fragmentation

Diverging global regulations complicate market access. The EU’s Cosmetic Regulation (EC) No 1223/2009 mandates stringent documentation for bioengineered squalane, while ASEAN markets permit shark-derived variants with fewer restrictions. Such disparities force manufacturers to maintain multiple production lines, increasing operational overheads by an estimated 12-15%. Recent FDA guidance on biotech-derived ingredients, though clarifying U.S. compliance, adds another layer of complexity for exporters.

MARKET OPPORTUNITIES

Pharmaceutical Applications Open New Revenue Streams

Beyond cosmetics, squalane's drug delivery enhancement properties present untapped potential. Early-stage research indicates up to 40% improvement in transdermal absorption for dermatological drugs when combined with squalane carriers. Companies like Croda actively invest in clinical trials to validate its use in psoriasis and eczema treatments. With the global topical drug market projected to reach $130 billion by 2027, pharmaceutical-grade squalane could diversify revenue beyond its current 97% reliance on beauty applications.

Emerging Markets Offer Expansion Potential

While North America leads with a 40% market share, Southeast Asia's beauty industry grows at 9.2% CAGR—twice the global average. Local brands like Indonesia's Nucelis actively formulate affordable squalane products, leveraging regional sugarcane supplies. Strategic partnerships, such as Ineos’ 2023 joint venture with a Thai distributor, demonstrate how global players can capitalize on these high-growth regions while navigating tariff structures.

MARKET CHALLENGES

Consumer Education Gap Hinders Premiumization

Despite squalane's efficacy, 48% of consumers in emerging markets conflate it with cheaper silicones or mineral oils, per recent surveys. This perception challenge limits price premiums, especially when competing with established hydrating agents like hyaluronic acid. Brands must invest in digital education campaigns—Sephora’s 2024 "Ingredient Watch" series saw a 31% lift in squalane product sales post-campaign, proving knowledge drives conversion.

Other Challenges

Supply Chain Vulnerabilities
Geopolitical tensions disrupt olive oil supplies from the Mediterranean, a key phyto-squalane source. The 2023 Turkish export restrictions caused a 3-month shortage, prompting brands to reformulate with less stable alternatives.

Greenwashing Scrutiny
Some "vegan" squalane products contain petroleum-derived slip agents, triggering lawsuits under FTC Green Guides. This erodes trust in sustainable claims industry-wide.

Segment Analysis:

By Type

Phyto Squalane Segment Dominates the Market Due to Rising Demand for Sustainable Ingredients

The market is segmented based on type into:

• Phyto Squalane

• Shark Squalane

• Synthetic Squalane

By Application

Cosmetics & Personal Care Segment Leads Due to Extensive Use in Skincare Formulations

The market is segmented based on application into:

• Cosmetics & Personal Care

• Pharmaceutical Industry

• Others

By End User

Skincare Product Manufacturers Drive Demand for High-Quality Squalane

The market is segmented based on end user into:

• Skincare Product Manufacturers

• Haircare Product Manufacturers

• Pharmaceutical Companies

By Price Point

Premium Squalane Products Gain Traction Among Luxury Skincare Brands

The market is segmented based on price point into:

• Premium

• Mid-range

• Economy

COMPETITIVE LANDSCAPE

Key Industry Players

Market Leaders Focus on Sustainable Sourcing and Product Innovation Amid Rising Demand

The global squalane market demonstrates a moderately consolidated structure, with three dominant players collectively controlling 57% of the market share. Amyris has emerged as the category leader through its proprietary biofermentation technology for plant-derived squalane, particularly for cosmetics applications where it holds significant formulation expertise. Their 2023 partnership with a major European beauty conglomerate further strengthened their distribution network across luxury skincare segments.

NOF Group and Ineos follow closely, leveraging their established chemical manufacturing infrastructure to scale production while maintaining competitive pricing. Both companies have been actively expanding their phyto-squalane portfolios, which currently account for 70% of total market volume, responding to growing consumer preference for plant-based ingredients over shark-derived alternatives.

The market sees increasing competition from mid-sized specialists like Sophim and Kuraray, who differentiate through ultra-pure grade squalane for pharmaceutical applications. These players invest heavily in purification technologies to meet stringent pharmacopoeia standards, creating niche revenue streams beyond the dominant cosmetics sector.

Recent developments indicate a strategic shift toward vertical integration, with Croda International acquiring olive oil processing facilities in 2023 to secure raw material supply for its squalane production. This mirrors broader industry efforts to stabilize feedstock availability amid volatile agricultural commodity markets.

List of Key Squalane Producers Profiled

• Amyris (U.S.)

• NOF Group (Japan)

• Ineos (UK)

• Sophim (France)

• Kishimoto Special Liver Oil Co. (Japan)

• Croda International (UK)

• Maruha Nichiro Corporation (Japan)

• Clariant (Switzerland)

• Kuraray (Japan)

• YiChun Dahaigui Life Science (China)

Regional dynamics play a crucial role in competition, with North American and European manufacturers emphasizing sustainability certifications to justify premium pricing, while Asian producers compete primarily on cost efficiencies. This divergence is creating distinct market segments where innovation leaders and low-cost specialists can coexist by serving different value chains.

SQUALANE MARKET TRENDS

Shift Toward Plant-Based Squalane in Cosmetics Drives Market Growth

The global demand for plant-derived (phyto) squalane has surged due to increasing consumer preference for vegan and sustainable beauty products. Representing approximately 70% of the total squalane market, phyto squalane is rapidly replacing shark-derived variants as major brands reformulate products to meet ethical sourcing standards. The cosmetics industry’s emphasis on clean-label ingredients has accelerated adoption, with premium skincare brands leveraging squalane’s superior moisturizing properties and oxidative stability in serums, creams, and suncare products. Furthermore, regulatory pressures in regions like the EU banning animal-derived squalane in cosmetics have reinforced this transition.

Other Trends

Expansion in Anti-Aging and Premium Skincare

Squalane’s compatibility with sensitive skin and ability to mimic natural skin lipids has made it a cornerstone ingredient in anti-aging formulations. With the global anti-aging market projected to exceed $120 billion by 2032, brands are innovating with squalane-infused products targeting collagen production and elasticity. Luxury skincare lines increasingly utilize high-purity squalane as a differentiating factor, capitalizing on its non-greasy absorption and long-term hydration benefits. Clinical studies validating its efficacy in reducing transepidermal water loss by up to 24% have further cemented its position in dermatologist-recommended products.

Technological Advancements in Production Methods

Bioengineering breakthroughs are revolutionizing squalane production, with companies like Amyris pioneering fermentation-derived squalane at industrial scales. This synthetic biology approach not only ensures consistent supply but also reduces reliance on olive oil feedstocks, mitigating price volatility. Recent innovations in enzymatic hydrolysis have improved yield efficiency by 15-20%, making plant-based squalane more cost-competitive. Additionally, emerging technologies for squalane encapsulation are enhancing its stability in water-based formulations, unlocking new applications in sprays and toners. These advancements align with the broader industry shift toward green chemistry principles in cosmetic ingredient manufacturing.

Regional Analysis: Squalane Market

North America
North America currently dominates the global squalane market with a 40% revenue share, driven by the well-established cosmetics and personal care industry. The U.S. leads regional demand, where consumers increasingly prefer plant-derived (phyto) squalane over shark-derived alternatives due to stringent regulations on animal-based ingredients and growing vegan beauty trends. Major manufacturers like Amyris and Nucelis LLC have strengthened their presence in the region by focusing on sustainable production methods. The market benefits from strong R&D investments in biotechnology to enhance squalane purity and efficacy. However, premium product pricing remains a challenge for broader adoption in cost-sensitive segments.

Europe
Europe is a mature market for squalane, characterized by rigorous regulatory standards under the EU Cosmetics Regulation (EC) No 1223/2009, which promotes clean-label and cruelty-free ingredients. Germany and France collectively account for over 50% of regional demand, with high consumption in luxury skincare and haircare formulations. The region shows a distinct preference for phyto squalane, which holds a 90% market share among local manufacturers such as Sophim and Clariant. Sustainability certifications like COSMOS and Ecocert further influence procurement decisions. While growth is steady, competition from alternative emollients and rising raw material costs pose moderate challenges.

Asia-Pacific
Asia-Pacific is the fastest-growing squalane market, projected to expand at a CAGR exceeding 7.5% through 2032, led by China’s booming cosmetics industry. Japan and South Korea also contribute significantly, driven by innovations in K-beauty formulations that incorporate squalane for its high moisturizing properties. While price sensitivity has historically favored synthetic squalane variants, increasing disposable income is shifting demand toward plant-based options. India presents untapped potential, though market education about squalane’s benefits remains a hurdle. Manufacturers are strategically increasing production capacity in the region to capitalize on lower operational costs and proximity to key consumer markets.

South America
South America’s squalane market is in the early growth phase, with Brazil accounting for nearly 60% of regional demand. The cosmetics industry’s gradual shift toward natural ingredients supports market expansion, though economic instability limits large-scale adoption. Shark-derived squalane still holds relevance in certain segments due to lower prices, but regulatory pressures are gradually incentivizing sustainable alternatives. Import dependency on high-grade phyto squalane constrains local manufacturers, though partnerships with global suppliers like Croda aim to improve supply-chain efficiencies. Long-term growth will depend on stabilizing economies and increased consumer awareness.

Middle East & Africa
The Middle East & Africa region shows nascent but promising growth, primarily supported by the UAE and Saudi Arabia’s luxury personal care markets. Rising beauty consciousness and increasing FDI in cosmetics manufacturing present opportunities for squalane suppliers. However, limited local production capabilities and reliance on imports result in higher product costs, slowing market penetration. Africa’s potential remains largely unexplored due to infrastructure gaps, though South Africa has begun incorporating squalane in locally produced skincare lines. Religious considerations regarding animal-derived ingredients further drive interest in plant-based variants, creating a niche for ethical suppliers.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Squalane Market?

-> Global Squalane market was valued at USD 131 million in 2024 and is projected to reach USD 198 million by 2032, growing at a CAGR of 6.3%.

Which key companies operate in Global Squalane Market?

-> Key players include Amyris, NOF Group, Ineos, Kishimoto, Croda, and Sophim, with the top 3 companies holding 57% market share.

What are the key growth drivers?

-> Key growth drivers include rising demand for natural cosmetics, increasing awareness of skincare benefits, and sustainability trends favoring plant-derived ingredients.

Which region dominates the market?

-> North America leads with 40% market share, while Asia-Pacific shows the fastest growth due to expanding beauty industries.

What are the emerging trends?

-> Emerging trends include vegan cosmetic formulations, biotechnology-derived squalane, and multifunctional skincare ingredients.