The Animal-Sourced Squalene Market: Key Developments and Insights for 2024
Squalene, a naturally occurring lipid, has long been a critical ingredient in industries ranging from cosmetics and pharmaceuticals to nutraceuticals and food supplements. Derived from sources such as shark liver oil and, more recently, plants like olives and amaranth, squalene’s market trajectory reflects both its utility and the evolving regulatory and ethical landscapes surrounding its extraction.
Overview of the Market
The global animal-sourced squalene market is undergoing significant transformation due to shifts in consumer preferences, technological advancements, and regulatory changes. Traditionally, shark liver oil was the primary source of squalene. However, concerns about the ecological impact of overfishing and the sustainability of this source have prompted many producers to seek plant-based alternatives. Despite this shift, animal-sourced squalene remains vital, particularly in regions where traditional practices and cost considerations dominate production.
Applications and End-Use Industries
- Cosmetics and Personal Care:
Squalene’s exceptional moisturizing properties and biocompatibility make it a sought-after ingredient in skincare and cosmetic products. Approximately 70–80% of squalene production serves this sector, featuring in moisturizers, anti-aging creams, and hair care formulations. The push for natural and organic ingredients has further fueled demand, especially in developed markets like North America and Europe【7】【9】. - Pharmaceuticals:
Squalene plays a crucial role as an adjuvant in vaccine formulations, enhancing their efficacy. Its wound-healing and immune-boosting properties have made it indispensable in various therapeutic products. Pharmaceutical-grade squalene production is witnessing advancements, as seen in Amyris’ partnership with Croda International to scale production【9】. - Food and Dietary Supplements:
Squalene is also used in dietary supplements for its antioxidant properties, promoting heart health and skin vitality. However, this segment constitutes a smaller share of the market compared to cosmetics and pharmaceuticals【7】【8】.
Regional Market Insights
- North America: This region leads the market, driven by a robust industrial base and increasing consumer demand for sustainable and effective ingredients. The U.S. dominates with significant innovation in plant-based alternatives, although animal-sourced products remain prevalent in specific niches【8】【9】.
- Europe: As a major olive oil producer, Europe has been transitioning towards plant-based squalene. The shift aligns with stringent environmental regulations and consumer awareness about sustainability. Germany and France, in particular, are key players due to their focus on pharmaceutical applications【9】.
- Asia Pacific: This region remains a significant producer of animal-sourced squalene, especially in countries like Japan and China, where shark liver oil is more readily available. However, increasing regulatory scrutiny and consumer pressure are encouraging a pivot towards more sustainable practices【9】.
Challenges and Restraints
- Ethical and Environmental Concerns:
The reliance on shark liver oil has led to overfishing, endangering several shark species. This has resulted in strict regulations in regions like Europe and India, which have banned the trade of certain shark-derived products【9】. - Production Costs:
High purification and manufacturing costs, along with the volatility of raw material availability, continue to pose challenges for producers. This is particularly true for small enterprises, which struggle to compete with larger players who have access to advanced technologies【7】【9】. - Competition from Plant-Based Alternatives:
The rise of plant-based squalene, derived from sources like olives and amaranth, is reshaping the market. These alternatives offer a sustainable and ethically sound option, albeit at a higher price point【9】.
Key Players and Competitive Landscape
The market is highly fragmented, with major players like Amyris, Arista Industries, and Seadragon leading innovation in sustainable sourcing and production technologies. These companies are leveraging partnerships and acquisitions to expand their reach and adapt to changing market demands【8】【9】.
Future Outlook
The animal-sourced squalene market is expected to grow steadily, although its share of the overall squalene market will likely decline as plant-based alternatives gain prominence. Innovations in extraction and production processes, coupled with increasing investment in research and development, will shape the industry’s future. Regulatory compliance and ethical sourcing will remain critical factors for success.
In summary, while animal-sourced squalene continues to play a vital role in various industries, its future is intertwined with the broader push for sustainability and ethical consumerism. Companies that adapt to these demands while leveraging the unique properties of squalene are well-positioned to thrive in this evolving market landscape.