Squalene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Squalene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The squalene market is projected to register a CAGR of over 6% during the forecast period.

• COVID-19 negatively impacted the market in 2020. Considering the pandemic scenario, manufacturing activities were temporarily stopped during the government-imposed lockdown to curb the spread of new COVID-19 cases, thereby reducing the demand for squalene-based products. However, the need for squalene to produce adjuvants for various COVID-19 vaccines significantly increased, enhancing the demand for the market studied.
• Over the short term, owing to squalene's versatile and favorable chemical properties, its application in the cosmetics and food industries is growing exponentially, consequently propelling the market growth.
• However, stringent regulations employed by the General Fisheries Commission of the Mediterranean (GFCM), North East Atlantic Fisheries Commission (NEAFC), and Commission for Conservation of Antarctic Marine Living Resources (CCAMLR) toward shark killing concerns and fishing limitations are likely to hinder the growth of the studied market.
• The study and development of squalene as an additional therapy in various cancers are projected to generate prospects for the squalene market in the coming years. The Asia-Pacific is the fastest-growing region in the squalene market, owing to the escalating consumption of squalene in cosmetics from countries such as China and India.

• Cosmetics is the dominating segment, owing to increasing consumer awareness and higher spending power toward natural personal care and cosmetics. There is an increasing demand for long-lasting and waterproof makeup, sun protection makeup with SPF, and vitamin enhancement makeup. This, in turn, offers a lucrative opportunity to the key players in the category to innovate in the facial makeup market.
• The growth of the squalene market is likely driven by consumers' rising demand for natural ingredients, especially those derived from plants, in personal care and cosmetic products due to the adverse effects of fossil fuel sources. Due to the immense benefits of squalene on skincare, it is found in several moisturizers and face creams and is a prominent ingredient in anti-aging creams.
• According to Cosmetics Europe, the European cosmetics and personal care market was valued at about EUR 80 billion (USD 94 billion) in 2021. The largest national markets for cosmetics and personal care products within Europe are Germany (EUR 13.6 billion (USD 16 billion)), France (EUR 12.0 billion (USD 14 billion)), Italy (EUR 10.6 billion (USD 12.2 billion)), the United Kingdom (EUR 9.9 billion (USD 11.8 billion)) and Spain (EUR 7 billion (USD 8 billion)).
• Skincare (EUR 23.2 billion (USD 27 billion)) and toiletries (EUR 20.6 billion (USD 24 billion)) have the biggest market share in Europe, followed by hair-care products, fragrances/perfumes, and decorative cosmetics.
• Mexico is one of the top ten markets in the world for cosmetics and personal care goods, and it is Latin America's second-largest market for beauty products. According to the International Trade Association (ITA), the total local production of cosmetics and personal care products in Mexico in 2021 was about USD 7.15 billion. It was estimated to reach USD 7.19 billion in the year 2022.
• Furthermore, the easy availability of plant-based squalene in various regions, including Europe, Asia-Pacific, and North America, would fuel the market's growth. Therefore, the aforementioned factors are expected to impact the market in the coming years significantly.

• The Asia-Pacific region stands to be the fastest-growing market for the personal care and food industry. Factors such as strengthening the immune system, anti-aging, anti-oxidation, and UV protection properties of squalene will likely drive market growth.
• The increasing application of squalene in bath oils, eye makeup, suntan, nail products, body powders, cleansing, moisturizing, etc., and the growing demand from the cosmetic and personal care industries in countries like China and India are expected to provide thrust to the squalene market.
• China is one of the major consumers of cosmetics. In 2022, wholesale and retail companies' retail sales of cosmetics in China totaled about 393.6 billion yuan (USD 57 billion). This, though, indicated a slight decrease compared to the previous year, which had a total retail sale of about 402.6 billion yuan (USD 58.6 billion).
• China is one of the largest and fastest-growing pharmaceutical markets in the world. According to the National Bureau of Statistics (NBS) of China, in August 2022, the retail sales figure amounted to about CNY 51.92 billion (USD 7.5 billion) in China.
• India is home to one of the largest pharmaceutical industries in the world. There are more than 3000 pharma companies with over 10,500 manufacturing facilities. In 2021, India's domestic pharmaceutical market was estimated at around USD 42 billion; it is expected to reach USD 65 billion by 2024 and USD 120-130 billion by 2030. Pharmaceuticals and drugs exports from India stood at USD 24.44 billion in 2021.
• India's cosmetics and personal care segment accounts for about 51% of the total FMCG sector of the country. Due to the growing demand for the products, many companies have come up with several strategies, including expansion and product innovation, to have a strong foothold in the country. For instance, In July 2022, Godrej Consumer Products unveiled Godrej Magic Bodywash, India's first ready-to-mix body wash at just INR 45 (USD 0.57)
• Therefore, the aforementioned factors are expected to impact the market of squalene in the coming years significantly.

The global squalene market is consolidated in nature, with the presence of a few large-sized players and some small players in the market. Some major companies include Amyris, Sophim, Nucelis, Vestan S.A., and Arista Industries.

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