Market Overview

Chem Reports predicts that the Plant-based Squalane Market was valued at USD xxxx million in 2025 and is expected to reach USD xxxx million by 2035, growing at a CAGR of xx percent globally. The Plant-based Squalane Market Report 2025 provides a robust analysis of market structure, technological advancements, production trends, supply chain evolution, and key adoption drivers. Plant-based squalane, derived primarily from olives and sugarcane, has become an essential ingredient across cosmetics, personal care, pharmaceuticals, and specialty applications due to its superior moisturizing properties, biocompatibility, stability, and sustainability profile.

The report evaluates the shift from shark-derived squalane to plant-based and biotech-derived alternatives, fueled by ethical concerns, regulatory scrutiny, and increasing demand for natural, traceable, cruelty-free cosmetic ingredients. Technological innovation in fermentation-derived squalane and optimized extraction processes from olives enhances scalability and cost efficiency, supporting broader market penetration.

Impact of COVID-19 on the Market

COVID-19 temporarily disrupted sourcing, production, and international trade flows for plant-based raw materials. However, demand quickly recovered due to heightened consumer focus on skincare, wellness, and premium personal care products. Post-pandemic trends favor clean beauty, vegan formulations, and bio-based ingredients, accelerating adoption of plant-based squalane. Pharmaceutical applications also expanded with increased research into emollients and skin-repair ingredients.

Market Segmentation

By Type

Olive Squalane

Extracted from olive oil byproducts, this segment represents a major share of the market. Known for excellent oxidative stability, skin compatibility, and premium positioning in natural cosmetic formulations. Commonly used in serums, moisturizers, anti-aging products, and hair care.

Sugar-derived Squalane (Biotech Squalane)

Produced via bio-fermentation (typically using sugarcane feedstock). Offers consistent purity, high scalability, and attractive sustainability credentials. Positioned as a cost-efficient, environmentally friendly alternative to olive squalane with rising adoption across major skincare brands.

By Application

Cosmetics & Personal Care

The largest market segment. Squalane is used in moisturizers, serums, lotions, sunscreens, foundations, hair oils, and cleansers due to its lightweight texture, hydration benefits, and non-comedogenic properties.

Pharmaceuticals

Applied in topical formulations, wound care products, transdermal delivery systems, and dermatological preparations due to its biocompatibility and excellent penetration-enhancing properties.

Others

Includes food supplements, nutraceutical blends, specialty lubricants, and industrial applications where high-purity emollients are required.

Key Players

Amyris

A biotechnology leader known for pioneering fermentation-derived squalane. Offers high-quality, scalable, and sustainable sugar-based squalane widely used by global cosmetic brands.

Sophim

A major producer of olive-derived squalane and related natural emollients. Strong presence in Europe with premium product offerings targeted at luxury skincare.

Croda

A global ingredient supplier offering plant-based squalane and high-performance emollients. Known for extensive R&D capabilities and partnerships in personal care innovation.

Nucelis LLC

Specializes in biotechnology-based production of high-value ingredients, including fermentation-derived squalane with enhanced purity and consistency.

Caroiline

Supplier of natural cosmetic ingredients, including olive-derived squalane, targeting skincare and haircare segments.

Clariant

Provides specialty chemical ingredients including plant-sourced emollients and functional additives. Engages in sustainable ingredient development supporting clean-beauty markets.

The Dirty Moose

A niche provider emphasizing artisan-grade, natural squalane-based formulations for skincare manufacturers and small-batch producers.

Regional Analysis

North America

Strong demand driven by premium skincare brands, clean-beauty trends, and biotech advancements. The U.S. and Canada are major markets for sugarcane-derived squalane due to early adoption of fermentation-based production technologies.

Europe

A mature and sustainability-driven market with strong preferences for natural and plant-based cosmetic ingredients. Italy, France, Germany, and the UK lead consumption, driven by a thriving cosmetics industry and eco-conscious consumer behavior.

Asia-Pacific

The fastest-growing regional market. Rising skincare consumption in China, Japan, South Korea, and Southeast Asia drives significant volume. Regional brands increasingly adopt plant-based active ingredients for whitening, anti-aging, and hydration products.

South America

Growth is supported by increasing personal care consumption in Brazil and Argentina. Sugarcane availability fosters interest in bio-fermentation derivatives.

Middle East & Africa

Demand is rising in premium skincare categories, with growth led by urbanization, rising disposable incomes, and expanding beauty retail networks.

Executive Summary

The Plant-based Squalane Market is poised for strong growth between 2025 and 2035, driven by the global shift toward sustainable, ethical, and highly functional cosmetic ingredients. Squalane, historically sourced from shark liver oil, has transitioned to plant-based and biotechnology-derived alternatives due to ethical concerns, regulatory restrictions, and increasing demand for vegan, cruelty-free products. Plant-based squalane, primarily produced from olives and sugarcane, delivers high oxidative stability, excellent skin absorption, and superior moisturizing properties, making it a key ingredient across skincare, haircare, pharmaceutical topical formulations, and other specialty applications.

The market is experiencing rapid change due to advancements in fermentation-based squalane, which offers highly consistent purity, scalability, and significantly reduced environmental impact compared to traditional sources. Innovations in biotechnology, increased consumer awareness of clean-beauty standards, and expanding cosmetic applications will continue to strengthen demand. Growth is supported by rising disposable incomes, expansion of premium beauty categories, and adoption of natural emollients across global markets.

Challenges remain, including raw material price volatility (particularly olive oil), supply constraints during harvest fluctuations, and the high cost of quality-certified bio-based ingredients. However, the market benefits from significant innovation, regulatory support for ethical sourcing, and expanding applications across personal care and pharmaceuticals.

Market Drivers, Restraints, Trends, and Opportunities

Key Drivers

1. Rising Demand for Clean, Natural, and Vegan Beauty Products

Consumers increasingly seek plant-based, cruelty-free, non-toxic ingredients, making squalane a preferred emollient in premium skincare formulations.

2. Advancements in Fermentation-Derived Squalane

Biotech squalane from sugarcane offers high purity, scalability, and reduced dependence on agricultural yields, making it attractive to major manufacturers.

3. Superior Functional and Sensory Properties

Plant-based squalane provides excellent moisturization, skin absorption, stability, and compatibility with active skincare ingredients.

4. Strong Demand from Cosmetics & Personal Care Industry

Used in moisturizers, serums, anti-aging products, sunscreens, and haircare, squalane supports rapid market expansion.

5. Regulatory Pressure Against Animal-Derived Ingredients

Stricter global regulations and ethical sourcing standards accelerate the shift to plant and biotech-derived squalane.

Restraints

1. High Production and Raw Material Costs

Olive-based squalane production relies on olive oil yield, which is influenced by climate and agricultural conditions.

2. Supply Chain Vulnerabilities

Seasonality in olive harvests and geographic concentration can create inconsistencies in raw material availability.

3. Competition from Alternative Emollients

Ingredients such as jojoba oil, argan oil, and synthetic emollients may serve as substitutes in cost-sensitive applications.

4. Limited Production Capacity for Some Producers

Scaling plant-based and biotech production requires significant investment in fermentation, refining, and purification facilities.

5. Growing Cost Pressure from Mass-Market Brands

Mid-tier cosmetic brands seek affordable formulations, potentially limiting adoption of premium squalane variants.

Trends

1. Rapid Growth of Sugar-derived Squalane

Sustainably sourced, fermentation-derived squalane is becoming the industry standard due to price stability and purity consistency.

2. Expansion of Squalane into Haircare

Used in serums, anti-frizz products, and scalp treatments due to its lightweight, non-greasy texture.

3. Increased Launches of Squalane-based Formulations

Skincare brands highlight squalane in marketing due to strong consumer recognition.

4. Strong Shift Toward Eco-certifications

Demand is rising for COSMOS, ECOCERT, and ISO-certified plant-based squalane.

5. Innovation in Bio-based Emollient Blends

Manufacturers are creating new formulations combining squalane with antioxidants, peptides, and botanicals.

Opportunities

1. High Growth Potential in Asia-Pacific

Rapid adoption of premium skincare and Korean/Japanese beauty influences support long-term demand.

2. Pharmaceutical Applications

Squalane’s biocompatibility makes it ideal for topical drug delivery and wound-healing formulations.

3. Private-label and Indie Beauty Boom

Small and mid-sized brands increasingly use squalane as a hero ingredient in skincare lines.

4. Vertical Integration Through Bio-fermentation

Producers investing in fermentation technologies gain long-term cost efficiency and supply security.

5. Product Diversification

Potential to expand into nutraceuticals, food-grade emulsifiers, and specialty lubricants.

Market-Wide SWOT Analysis

Strengths

• Sustainable, cruelty-free, and environmentally friendly ingredient
• High purity and stability suitable for premium cosmetic applications
• Strong performance as an emollient and moisturizer
• Growing demand across cosmetics, pharmaceuticals, and specialty industries

Weaknesses

• High dependence on olive crop yields for plant-derived squalane
• Production cost variability
• Limited supply chain standardization in developing regions
• Competition from lower-cost alternative emollients

Opportunities

• Expansion of biotech-derived squalane production
• Growth in clean, luxury, and dermatology-backed skincare
• Increased adoption in haircare and sun-care products
• Rising demand in Asia-Pacific beauty markets

Threats

• Economic uncertainties impacting premium beauty sales
• Intensifying competition as more companies enter plant-based ingredient markets
• Regulatory shifts on labeling and natural-ingredient definitions
• Volatility in agricultural resource availability

Key Player SWOT

Amyris

Strengths: Global leader in fermentation-derived squalane; high scalability; strong partnerships with beauty brands.
Weakness: Capital-intensive biotech scaling.
Opportunities: Expansion in pharmaceuticals and private-label beauty.
Threats: Potential competition from emerging fermentation producers.

Sophim

Strengths: Strong presence in olive-derived squalane; trusted supplier in Europe.
Weakness: Dependent on olive availability and pricing.
Opportunities: Growth in luxury skincare.
Threats: Biotech alternatives gaining share.

Croda

Strengths: Extensive specialty-ingredients portfolio; strong R&D.
Weakness: Higher pricing relative to competitors.
Opportunities: Expansion in functional emollients and active formulations.
Threats: Competitive pressure from cost-efficient producers.

Nucelis LLC

Strengths: Advanced biotech production technologies.
Weakness: Smaller commercial footprint.
Opportunities: Licensing fermentation technologies.
Threats: Market dominance of major fermentation players.

Caroiline

Strengths: Established supplier of natural ingredients.
Weakness: Limited focus on large-scale squalane production.
Opportunities: Growth in regional cosmetic manufacturing.
Threats: Competition from larger ingredient suppliers.

Clariant

Strengths: Strong brand, robust sustainability initiatives, diversified product lines.
Weakness: Larger organizational complexity.
Opportunities: Expansion in sustainable cosmetic ingredients.
Threats: Pricing competition from niche natural-ingredient brands.

The Dirty Moose

Strengths: Artisan-grade natural offerings appealing to small markets.
Weakness: Limited production capacity.
Opportunities: Growth in indie beauty and niche formulations.
Threats: Lower scalability compared to large suppliers.

Porter’s Five Forces

1. Competitive Rivalry — Moderate to High

Growing number of suppliers and heightened demand in cosmetics increase competition.

2. Threat of New Entrants — Moderate

Entry requires significant technical capability and certifications but biotech production is becoming more accessible.

3. Threat of Substitutes — Moderate

Other natural oils or synthetic emollients may replace squalane in some formulations, though none fully match its performance profile.

4. Bargaining Power of Suppliers — Moderate

Olive-based producers face agricultural constraints; biotech suppliers have stronger control over supply.

5. Bargaining Power of Buyers — High

Beauty and pharmaceutical brands demand stable prices, high-quality certification, and assured supply continuity.

Competitive Landscape Matrix