Global Squalene Market- Forecast To 2024
The animal source segment is projected to be the largest source type of squalene during the forecast period.
The animal source is projected to dominate the squalene market during the forecast period. Shark liver oil will remain the richest natural source of squalene. The dominance of animal source is mainly due to the price of squalene obtained from animal source is less than that of squalene obtained from vegetable and other sources. Also, the purity of squalene obtained from an animal source is higher than the purity of squalene obtained from a vegetable source. Hence, the demand for animal-sourced squalene is high than the vegetable source squalene.
Europe to account for the largest share of the global squalene market during the forecast period
Europe is expected to account for the largest market share in squalene during the forecast period, in terms of value. This is owing to the increasing demand for squalene from pharmaceuticals and nutraceutical segments in the country. Moreover, the high spending power of consumers in the region, as well as the growing demand for natural cosmetics with good quality products, has been driving the growth of squalene in Europe.
The cosmetic segment accounted for a share of largest share, in terms of volume, of the European squalene market in 2018. The large market share is due to the presence of the world’s most dominant cosmetic industry players such as L’Oreal (France) and Beiersdorf (Germany) in the region. The market in this segment is expected to continue to lead during the forecast period. The pharmaceutical and food end-use industries in the region are witnessing an upward trend in growth.
Beneficial Properties of Squalene for Human Health
Squalene is a natural skin ingredient as it is naturally present in the skin in minute concentrations. It has many beneficial properties such as anti-oxidation, anti-aging, UV protection, and others, thus finding applications in the cosmetic, pharmaceutical, and food industries. Squalene is not easily influenced by peroxidation, and appears to function as a quencher of singlet oxygen in the skin and, therefore, protects human skin surface from the exposure of ultraviolet light and other sources of oxidative damage. It acts as a detoxifier for highly lipophilic xenobiotics, assisting with their elimination from the body. Therefore, it does not have side effects in comparison to other drugs, which is why it is used in pharmaceutical formulations to reduce the dosage of drugs and the side effects. Squalene is used along with common cancer drugs for the treatment of leukemia and other cancers; for preventing radiation illness from cancer X-ray therapy; and for treating common cold, flu, and swine flu. It also aids in the body’s immune system and is used for increasing white cells count during treatment with anti-cancer drugs. The demand for squalene is increasing in the food, cosmetic, and pharmaceutical industries due to its low ill effects on human skin and internal organs.
Growth in pharmaceutical and cosmetic industries
The growth in the pharmaceutical industry is expected to be a major driver for squalene demand in the future. Increasing R&D in the oncology segment, along with increasing spending on oncology medicines, is expected to drive the market. The global pharmaceuticals sales was USD 916 billion in 2016, and it has increased to USD 982 billion in 2018. An additional sale of pharmaceuticals from orphan drugs is expected by 2022. The future spending on oncology medicines in the next five years is expected to be in the range of 6.0–8.0%, which is likely to boost the squalene market.
In addition, the rising cosmetic industry in emerging markets such as Brazil, China, and India; increasing consumer awareness about the usage of high-quality cosmetic products; and willingness to pay premium prices are driving the cosmetic industry at the global level. Therefore, squalene has wide usage in this industry.
Consumer skeptism about animal-sourced products and limitation on shark fishing
Squalene is majorly derived from shark liver oil, leading to overfishing of sharks. The consumer skepticism regarding the usage of animal-sourced products has led the end-use manufacturers to avoid using squalene sourced from shark liver in their products. Most laws allow shark liver oil to be extracted as a by-product of shark fishing. With the reduction in shark fishing activities due to certain rules and regulations and overfishing of sharks, the supply of shark livers has decreased, which is affecting the supply of squalene. Several regulatory agencies such as General Fisheries Commission of the Mediterranean (GFCM), North East Atlantic Fisheries Commission (NEAFC), Commission for Conservation of Antarctic Marine Living Resources (CCAMLR), and North Atlantic Fisheries Organization (NAFO) have imposed limitations such as fixed quotas for shark fishing, which, in turn, has resulted in supply shortage of shark liver and, thereby squalene
Volatile supply of raw materials
With restrictions on shark fishing, the supply of squalene is getting affected. The vegetable sources used commercially have a low squalene concentration as well as higher processing costs. Most of the vegetable oils are used for human consumption, and squalene production accounts for a very small percentage of it. There has been a decline in shark fishing activities over the years due to the increasing regulations introduced by various governing agencies. This has resulted in the decline of supply of shark livers and shark fins over the years. With respect to squalene sourced from vegetable oils, Europe leads the market with the major production of squalene from olives. For the past few years, there has been an irregular supply of olives in Europe. These reasons are affecting the raw material availability for squalene production, thereby resulting in volatile retail prices.
New renewable sources for squalene production
With skepticism about the shark liver oil sourced from sharks and low concentration of squalene in vegetable oils, the supply is fluctuating, and the prices are volatile. As several regulations are introduced for shark fishing, the supply of squalene has been majorly affected. In the vegetable oils, squalene content is very low, and therefore, tons of olives and amaranth are required to produce a small quantity of squalene. Collectively, these reasons have led to high squalene retail prices. This sparks an opportunity for the players to come up with new technologies to develop squalene and squalane from alternative sources.
Sugarcane and other sugar-containing bio-materials have been identified as the sources for producing squalane (hydrogenated squalene). This is expected to increase the supply of raw materials for squalene production. Squalane is actively researched by pharmaceutical companies such as Novartis AG (Switzerland) and GlaxoSmith Kline (UK) for applications in their formulations. The pharmaceutical sector is currently trying to reduce the side effects of their products by incorporating squalane in their formulations. For instance, Amyris, a US-based biotechnology company, has developed the technology to directly produce squalane through the process of yeast fermentation from sugarcane. SynShark is also working with scientists at Texas A&M University (US) to produce squalene from tobacco crops. These tobacco crops are the special plants from which squalene can be synthesized directly from the tobacco leaves. The commercial viability of these innovations would attract more players in the market. This is expected to bring along more competitiveness into the market in terms of pricing and supply, thereby benefitting the end users.
4.2 Squalene Market, By Source Type
4.3 Squalene Market, By End-Use Industry
4.5 Squalene Market, By Region
5.2 Market Dynamics
5.3 Porter’s Five Forces Analysis
5.3.1 Threat of New Entrants
5.3.2 Threat of Substitutes
5.3.3 Bargaining Power of Suppliers
5.3.4 Bargaining Power of Buyers
5.3.5 Intensity of Competitive Rivalry
6.2 Animal Source
6.3 Vegetable Source
8.4 North America
8.5 Middle East & Africa
8.6 South America
10.1 Seadragon Marine Oils Limited
10.3 Arbee Biomarine Extracts Pvt. Ltd.
10.5 Kishimoto Special Liver Oil Co. Ltd.
10.6 Empresa Figueirense De Pesca, LDA
10.7 Nucelis LLC
10.8 Arista Industries
10.9 EKIZ Olive Oil & Soap Inc.
10.10 New Zealand Green Health Ltd.
10.11 RLR Squalene
10.12 Cabomer Inc.
10.13 Blueline Foods Pvt. Ltd.
10.14 Coastal Aquatic Proteins
10.17 CN Lab Nutrition
10.18 Isho Genki International
*Details Might Not Be Captured in Case of Unlisted Companies.