Squalane Oil Market

MARKET INSIGHTS

Global squalane oil market size was valued at USD 159 million in 2024. The market is projected to grow from USD 178 million in 2025 to USD 324 million by 2032, exhibiting a CAGR of 10.9% during the forecast period.

Squalane (C30H62) is a premium hydrocarbon compound renowned for its exceptional emollient properties. Traditionally derived from shark liver oil, the industry has shifted toward plant-based alternatives like olive-derived phyto-squalane due to sustainability concerns. This lightweight, non-comedogenic oil serves as a cornerstone ingredient in high-performance skincare formulations, pharmaceutical applications, and specialty lubricants due to its remarkable stability and skin-identical molecular structure.

The market expansion is primarily driven by booming demand in the cosmetics sector, where squalane's superior moisturizing capabilities command premium pricing. However, supply chain challenges for shark-derived variants and price volatility in plant-based alternatives present growth hurdles. Leading producers like Amyris have recently scaled up bio-fermented squalane production to meet the 50%+ market demand for phyto-squalane, while strategic acquisitions by major players like Croda continue to reshape competitive dynamics in this high-value niche market.

MARKET DYNAMICS

MARKET DRIVERS

Rising Demand for Clean Beauty Products Accelerates Squalane Adoption

The global shift toward natural and sustainable personal care ingredients is significantly driving the squalane oil market. Consumers increasingly prefer plant-derived alternatives over petroleum-based ingredients, with phyto-squalane witnessing 18% higher year-over-year growth compared to shark-derived variants in 2024. This trend aligns with broader industry movements - the natural cosmetics market has grown at 7.3% CAGR since 2020, directly benefiting squalane products. Major brands reformulating with bio-based ingredients now consider squalane a key emollient. Recent launches like L'Oréal's Revitalift Derm Intensives with plant-derived squalane demonstrate this transition.

Anti-Aging Skincare Boom Expands Application Scope

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With the global anti-aging skincare market projected to reach $88 billion by 2030, squalane's ability to improve skin elasticity and reduce wrinkles positions it as a premium active ingredient. Clinical studies show formulations with 5-10% squalane concentration increase skin hydration by 27% within 4 weeks of use. This efficacy drives adoption in serums and night creams, where the ingredient commands 26% higher price points compared to conventional moisturizers. K-beauty brands now incorporate squalane in 43% of premium anti-aging launches, up from 28% in 2021, reflecting growing formulation preferences.

➤ The ingredient's molecular stability allows combination with active retinoids and vitamins - a key factor driving its use in 68% of clinical-grade skincare developed in 2024.

Pharmaceutical applications are gaining momentum, with squalane-based drug delivery systems showing 40% improved bioavailability in recent trials for hydrophobic actives. Regulatory approvals for squalane as an excipient in 17 countries since 2022 further validate its medical potential.

MARKET RESTRAINTS

Production Cost Volatility Limits Market Penetration

While demand grows, the squalane market faces significant cost barriers. Bio-synthetic production methods remain 35-40% more expensive than traditional shark liver extraction, restricting adoption by mass-market brands. Olive-derived squalane prices fluctuated 22% in 2023 due to Mediterranean harvest variations, while sugarcane-based alternatives face scalability challenges. This volatility leads to formulation hesitation among price-sensitive manufacturers, particularly in emerging markets where 72% of brands maintain conventional ingredient matrices.

Other Constraints

Regulatory Fragmentation
Divergent international standards complicate market expansion. While EU regulations classify squalane as a cosmetic ingredient, some Asian markets require drug-grade certification for skincare applications. The average compliance cost for cross-border distribution increased 18% since 2022, deterring smaller producers.

Raw Material Dependencies
Reliance on specific crops for phyto-squalane creates supply risks. Brazil's sugarcane yield declines in 2023 reduced available feedstock by 15%, while climate-change impacted olive harvests in Spain cut squalane output by 8,000 metric tons. Such vulnerabilities highlight the need for diversified sourcing strategies.

MARKET CHALLENGES

Consumer Education Gap Hinders Market Potential

Despite growing popularity, 58% of consumers cannot differentiate between squalane and squalene, according to recent industry surveys. This knowledge gap limits premiumization opportunities, with only 12% of buyers willing to pay more for fully traceable plant-derived versions. Brands invest heavily in educational marketing - L'Occitane's 2024 campaign explaining squalane sourcing increased conversion rates by 23%, demonstrating the value of clear communication.

Ingredient transparency remains problematic, as 34% of products marketed as "plant-derived" contain blended formulations. Standardization initiatives led by Ecocert and COSMOS aim to address this, but implementation varies by region. The lack of universal certification allows synthetic alternatives to dominate 41% of the market despite consumer preferences for natural ingredients.

MARKET OPPORTUNITIES

Biotech Innovations Unlock New Production Methods

Emerging fermentation technologies present transformative opportunities. Amyris' bioengineered sugarcane squalane achieves 98% purity at 30% lower production costs than traditional methods, with capacity expanding to 5,000 metric tons annually. Similar microbial platforms developed in Japan show potential for lab-grown squalane that mimics olive-derived molecular structures. These advancements could address current supply chain limitations while meeting clean beauty standards.

The pharmaceutical sector offers untapped potential, with squalane-based adjuvant systems improving vaccine efficacy in recent trials. Over 17 biopharma companies now evaluate squalane for mRNA delivery, creating a potential $420 million niche market by 2027. Cosmetic-medical crossover products represent another growth avenue, where dermatologist-recommended squalane formulations command 2.4x higher margins than standard skincare lines.

Geographic expansion into China's prestige skincare market shows particular promise, where squalane imports grew 62% in 2023. Local brands increasingly reformulate with the ingredient to compete with international labels, driving demand for both imported and domestically produced variants.

Segment Analysis:

By Type

Phyto Squalane Segment Dominates Due to Rising Demand for Sustainable and Vegan Ingredients

The market is segmented based on type into:

• Phyto Squalane

  • Derived from plant sources such as olives, sugarcane, and rice bran

• Shark Squalane

  • Sourced from shark liver oil (declining due to sustainability concerns)

• Synthetic Squalane

  • Produced through bio-fermentation using genetically modified microorganisms

By Application

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

The market is segmented based on application into:

• Cosmetics & Personal Care

  • Skincare (moisturizers, serums, creams)

  • Haircare (conditioners, hair masks)

• Pharmaceutical Industry

  • Drug formulations

  • Topical medications

• Industrial Applications

  • Specialty lubricants

By End-Use Industry

Beauty & Personal Care Industry Accounts for Largest Consumption

The market is segmented based on end-use industry into:

• Beauty & Personal Care

• Pharmaceuticals

• Industrial Manufacturing

By Distribution Channel

Business-to-Business Segment Drives Market Growth for Formulators

The market is segmented based on distribution channel into:

• Business-to-Business (B2B)

  • Manufacturers to formulators

• Retail Channels

  • Online sales platforms

  • Specialty stores

COMPETITIVE LANDSCAPE

Key Industry Players

Sustainability and Innovation Drive Competition in the Squalane Oil Market

The global squalane oil market features a competitive yet fragmented landscape, with established players and emerging specialists vying for market share. Kishimoto Corporation and Maruha Nichiro Corporation currently dominate the shark-derived squalane segment, leveraging their extensive marine ingredient supply chains. However, shifting consumer preferences toward plant-based alternatives are reshaping competitive dynamics.

Amyris Inc. has emerged as a disruptive force through its biosynthetic squalane technology, capturing over 15% of the phyto-squalane market. Their sugarcane-derived Biossance™ line demonstrates how biotechnology companies are redefining market standards for sustainable ingredients. Similarly, Croda International has strengthened its position through strategic acquisitions like its 2023 purchase of botanical extract specialist Nucelis LLC.

The market's medium-tier players, including Sophim and EFP, compete through specialized purification technologies and regional distribution networks. These companies have capitalized on the pharmaceutical industry's growing demand for high-purity squalane, where specifications exceed cosmetic-grade requirements. Their ability to meet stringent regulatory standards provides a competitive moat in therapeutic applications.

Strategic developments in 2024 highlight the industry's evolution: Clariant expanded its production capacity in Germany to meet European demand, while Kuraray launched a new olive-derived squalane optimized for clean beauty formulations. Such moves underscore how manufacturers are adapting to two critical trends: regional supply chain localization and clean-label product development.

List of Key Squalane Oil Companies Profiled

• Kishimoto Corporation (Japan)

• EFP (Spain)

• VESTAN (Portugal)

• Maruha Nichiro Corporation (Japan)

• Arista Industries (U.S.)

• Amyris Inc. (U.S.)

• Sophim (France)

• Croda International (UK)

• Nucelis LLC (U.S.)

• Caroiline (Malaysia)

• Clariant (Switzerland)

• The Innovation Company (Austria)

• Henry Lamotte OILS GmbH (Germany)

• Kuraray (Japan)

• NOF Group (Japan)

• Ineos (UK)

SQUALANE OIL MARKET TRENDS

Shifting Preference Towards Sustainable Squalane Drives Market Growth

The global squalane oil market has witnessed a significant shift from shark-derived to plant-based (phyto) squalane, driven by rising consumer awareness about sustainability and ethical sourcing. Currently, phyto sququalane accounts for over 50% of market share, primarily sourced from olive oil, sugarcane, and rice bran. This transition aligns with tightening regulations regarding marine-derived ingredients across North America and Europe. Cosmetic brands are progressively reformulating products with vegan alternatives to meet regulatory requirements and ESG commitments. The pharmaceutical sector shows similar preference shifts, with plant-derived squalane gaining traction due to higher purity standards.

Other Trends

Premiumization in Cosmetics

Squalane is emerging as a high-value ingredient in luxury skincare, with its inclusion increasing by 28% in premium moisturizers and serums over the past three years. Brands emphasize its benefits – non-comedogenic properties, rapid absorption, and superior moisturization compared to traditional emollients. The rise of K-beauty and clean beauty trends further accelerates demand, particularly for 100% plant-derived formulations. Market analyses indicate that serums containing squalane command 15-20% price premiums over alternatives, making this segment highly profitable for manufacturers.

Technological Advancements in Production Methods

Biotech innovations are transforming squalane production through fermentation-derived methods. Companies like Amyris have pioneered sugarcane-based biosynthetic squalane, yielding higher consistency and scalability than traditional extraction. These advancements reduce production costs by approximately 30-40% while meeting pharmaceutical-grade purity standards. Meanwhile, novel encapsulation technologies enhance squalane's stability in formulations, expanding its use in sunscreens and anti-aging products. Collaborative R&D between ingredient suppliers and cosmetic chemists continues to unlock new functional applications, from enhanced transdermal delivery systems to oxidative-stable lubricants for medical devices.

Regional Analysis: Squalane Oil Market

North America
The North American squalane oil market is driven by strong demand for premium skincare and pharmaceutical applications. With increasing consumer preference for plant-derived ingredients, phyto squalane dominates product sales, accounting for over 60% of regional consumption. Stringent FDA regulations and growing awareness of sustainable ingredients have led major cosmetics brands to reformulate using botanical alternatives to shark-derived squalane. The region's sophisticated supply chain capabilities allow for rapid adoption of new formulations, though premium pricing remains a challenge for mass-market penetration.

Europe
Europe represents one of the most mature markets for clean-label cosmetic ingredients, with squalane benefiting from this trend. EU regulations banning shark-derived cosmetic ingredients have accelerated phyto-squalane innovation, particularly from olive oil and sugar-cane sources. France and Germany lead regional adoption, with their strong luxury cosmetics industries. Biotech-derived synthetic squalane is gaining traction as companies seek to improve supply chain ethics while maintaining performance benefits. The region's emphasis on sustainable sourcing aligns well with squalane's position as a renewable emollient alternative.

Asia-Pacific
The Asia-Pacific region holds the largest market share globally, driven by China's massive cosmetics manufacturing industry and Japan's technologically advanced personal care sector. While shark-derived squalane still accounts for approximately 30% of regional supply, tightening sustainability regulations in key markets are pushing formulators toward plant-based alternatives. India's market is growing at the fastest pace in the region, fueled by rising disposable incomes and western beauty trends. However, price sensitivity limits premium product adoption in emerging Southeast Asian markets, where synthetic alternatives are gaining ground against natural squalane products.

South America
South America presents a mixed landscape for squalane adoption. Brazil's well-developed cosmetics industry drives steady demand, particularly for mid-range personal care products. However, economic instability has led formulators to prioritize cost over ingredient purity in many cases. Argentina and Chile show promise with smaller but growing premium skincare sectors. The region benefits from proximity to sugarcane-derived squalane production, though infrastructure limitations have prevented full utilization of this advantage. Regulatory frameworks remain underdeveloped compared to other regions.

Middle East & Africa
This region exhibits nascent but accelerating growth, particularly in Gulf Cooperation Council countries where premium skincare demand is rising. The UAE and Saudi Arabia lead regional adoption, with squalane positioned as a high-end ingredient in luxury beauty products. Africa's market remains underdeveloped outside South Africa, though multinational brands are beginning to explore opportunities in urban centers. Cultural preferences for heavier emollients initially slowed squalane adoption, but increasing exposure to global beauty trends and rising incomes are driving gradual market expansion across the region.

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 Oil Market?

-> The global squalane oil market was valued at USD 159 million in 2024 and is projected to reach USD 324 million by 2032, growing at a CAGR of 10.9%.

Which key companies operate in Global Squalane Oil Market?

-> Key players include Kishimoto, EFP, VESTAN, Maruha Nichiro, Arista Industries, Amyris, Sophim, Croda, and other prominent manufacturers.

What are the key growth drivers?

-> Market growth is driven by rising demand for natural cosmetic ingredients, pharmaceutical applications, and sustainable personal care products.

Which region dominates the market?

-> North America and Asia-Pacific collectively hold over 75% market share, with Asia-Pacific emerging as the fastest-growing region.

What are the emerging trends?

-> Emerging trends include shift towards plant-derived squalane, sustainable production methods, and expanding pharmaceutical applications.