The global squalene market was valued at approximately USD 149.4 million in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 10.9% from 2024 to 2030. A significant driver of this growth is the increasing use of natural ingredients within the personal care and cosmetics industry. Squalene’s transparency, low odor, and moisturizing properties make it highly valued as an emollient. Due to its non-toxic nature, squalene is one of the most widely used ingredients in personal care products. Additionally, squalene oil is utilized in cosmetics to neutralize free radicals that can damage skin and contribute to aging.
In cosmetics and personal care, squalene serves as a moisturizing and cleansing agent in a variety of products, including lotions, hair conditioners, bath oils, lipsticks, creams, and foundations. The demand for natural and organic ingredients is increasing, which positively impacts the squalene market. Beyond cosmetics, the rising demand for squalene in vaccines also contributes to market growth. Squalene plays a crucial role in vaccines, such as those developed for COVID-19, due to its efficacy in enhancing immune response.
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Squalene used in vaccines and pharmaceuticals is traditionally derived from fish oil, specifically sourced from sharks. However, a report by the International Trade of Endangered Species highlights that five shark species face extinction, which has led to a reduction in the use of animal-based sources. Consequently, this shift is encouraging the development and adoption of plant-based and synthetic squalene alternatives. Alongside this, the growing interest in nutritional supplements, the expanding cosmetics industry, and the increasing prevalence of conditions like cancer and cardiovascular disorders are also contributing to the demand for squalene. Innovations in renewable sourcing, as well as attractive marketing and packaging strategies, provide market players with additional opportunities.
In North America, the United States is the leading producer and consumer of squalene. The U.S. market is anticipated to grow significantly, driven by the booming cosmetics industry. This growth can be attributed to high levels of engagement with global cosmetic brands and rising demand for beauty products and services, especially with the increase in the working women population in the country.
End-use Segmentation Insights:
The personal care and cosmetics segment dominated the squalene market in 2023, holding over 70.1% of the revenue share. This growth is mainly due to squalene’s widespread use in various cosmetic products designed for skin and hair care. Squalene is commonly found in products for sun protection, skincare, and hair care, with approximately 70-80% of global squalene production going to the cosmetics industry.
Many multinational cosmetics companies, including L’Oréal, Unilever, and St. Botanica, have already started transitioning from shark liver oil-based squalene to plant-based alternatives due to their effectiveness and reduced environmental impact. For instance, in 2021, L’Oréal acquired the U.S.-based skincare brand Youth to the People, which has operations in the U.S., Canada, Australia, and parts of Europe. Youth to the People produces skincare products using plant extracts, allowing L’Oréal to incorporate more plant-based ingredients into its cosmetics, decreasing reliance on shark-derived sources.
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