Squalene Market: Plant-Based Sourcing, Clean Beauty Trends & Growth Outlook

According to IMARC Group's latest research publication, The global squalene market size was valued at USD 154.98 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 263.04 Million by 2033, exhibiting a CAGR of 6.84% from 2025-2033.

How AI is Reshaping the Future of Squalene Market

• AI-Driven Metabolic Pathway Optimization: Machine learning studies the natural production pathways in cells to find bottlenecks and improve gene activity. Researchers use AI to engineer yeast strains that can produce more squalene, reaching over 51.2 grams per liter, much higher than traditional methods.
• Intelligent Fermentation Process Control: AI systems watch fermentation in real time, tracking temperature, pH, nutrients, and microbial growth. They automatically adjust conditions to maximize squalene production, with engineered strains reaching more than 1,267 milligrams per liter in bioreactors.
• Predictive Quality Assessment and Purity Analysis: Using computer vision and spectroscopy with AI, quality control is automated. These systems detect impurities, check molecular structures, and ensure pharmaceutical-grade quality, saving time while keeping high standards.

Access the Latest 2026 Market Data & Forecasts

Squalene Industry Overview:

The squalene industry is changing quickly because of stricter regulations and sustainability rules around the world. In the U.S., the FDA’s MoCRA requires cosmetic manufacturers to register their facilities, report adverse events, and provide safety documentation for all ingredients, including squalene, by December 2025. In Europe, regulations like EC No. 1223/2009 and the European Green Deal are encouraging companies to use plant- or algae-based squalene instead of traditional shark liver sources, which face increasing ethical and environmental concerns.

Squalene Market Trends & Drivers

Shift to Plant-Based and Synthetic Squalene: The move toward plant-based and synthetic squalene is changing supply chains in cosmetics and pharmaceuticals. Traditionally, about 90% of shark liver oil went to cosmetics, but conservation concerns and regulations are forcing companies to find alternatives. Biotechnology firms are making breakthroughs—Yarrowia lipolytica yeast can now produce over 51 grams per liter, while E. coli systems reach 1.3 grams per liter. Researchers at Michigan State University engineered poplar trees to make squalene, providing sustainable raw materials for cosmetics and biofuels. Plant sources like olive oil, amaranth seeds, and sugarcane bagasse are becoming practical, with costs falling as fermentation technologies improve and scale up.

Pharmaceutical Applications: Beyond cosmetics, squalene is in high demand for pharmaceuticals. It is used as an adjuvant in vaccines, helping improve immune responses. The U.S. government invested over USD 31.9 billion in mRNA COVID-19 vaccines using squalene. The European Medicines Agency has approved squalene adjuvants for flu and other vaccines, expanding demand. Squalene is also used in drug delivery systems, especially nanoparticles for cancer and infectious disease treatments. The global pharmaceutical market (excluding vaccines) is projected to reach USD 2,030 billion, creating strong opportunities for high-purity, pharmaceutical-grade squalene. Companies like Evonik Industries now supply GMP-quality plant-based squalene to meet both safety and sustainability standards.

Regulations and Clean Beauty Trends: Regulatory changes and clean beauty trends are reshaping products and strategies. California banned PFAS in personal care products from January 2025, and Washington will phase in similar restrictions through 2026. The FDA’s PFAS review due in December 2025 may bring further rules, encouraging companies to use cleaner ingredients. Over 9,528 cosmetic facilities are registered under MoCRA as of January 2025, showing strong compliance efforts. Europe’s strict traceability rules and ASEAN regulations create complex compliance needs, favoring suppliers with transparent sourcing and strong quality control. Studies show 43.35% of Europeans have skin issues, boosting demand for dermatologically-tested squalene-based moisturizers and emollients that meet both efficacy and regulatory standards.

Leading Companies Operating in the Global Squalene Industry:

• Amyris Inc.
• Arbee Agencies
• Arista Industries Inc.
• Empresa Figueirense De Pesca Lda
• Gracefruit Limited
• Kishimoto Special Liver Oil
• Maruha Nichiro Corporation
• Nucelis Inc. (Cibus Ltd.)
• SeaDragon Marine Oils Limited
• Sophim
• VESTAN Squalene Hydrogenation and Purification

Squalene Market Report Segmentation:

By Source Type:

• Animal
• Vegetable
• Synthetic

Animal-derived squalene represents the largest segment due to its high purity and proven efficacy in pharmaceutical and cosmetic applications.

By Application:

• Cosmetics
• Food
• Pharmaceuticals
• Others

Cosmetics leads with 73.4% market share, driven by squalene's exceptional emollient, antioxidant, and anti-aging properties in skincare formulations.

Regional Insights:

• North America (United States, Canada)
• Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Europe exhibits clear dominance with over 34.8% market share, propelled by strict cosmetic regulations, strong demand for natural ingredients, and advanced pharmaceutical infrastructure.

Recent News and Developments in Squalene Market

• October 2024: Evonik's plant-based squalene product, PhytoSquene®, which adheres to Good Manufacturing Practices (GMP), was recently recognized with the CPHI Pharma Award. This invention represents a rising movement in the pharmaceutical industry towards sustainable sourcing and a decrease in the use of chemicals obtained from animals.
• May 2023: Amyris Inc. announced that it signed an exclusive license agreement with Croda International Plc for the supply of sustainable squalene.
• October 2023: Sophim announced the completion of a Euro 20 Million funding round that will double the production capacity of the company at two industrial sites located in Peyruis and Almeria and double the production of plant-derived squalene.
• March 2022: Phylloceuticals and SynShark partnered strategically to create plant-based squalene, an essential ingredient in cosmetics and vaccinations. Squalene has historically been obtained from shark liver oil, but its scarcity has sparked questions about sustainability. The partnership aims to increase supply while lowering environmental effect by synthesizing squalene utilizing Nicotiana benthamiana, a tobacco relative, and Lemna species, or duckweed.
• August 2024: Researchers at Michigan State University successfully engineered poplar trees to produce squalene, a compound used in cosmetics and biofuels. This innovation offers a sustainable alternative to shark-derived squalene and enhances poplar's economic viability as a biofuel feedstock.

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