Animal Sourced Squalene Market Report

Global Animal Sourced Squalene Market Size

The Animal Sourced Squalene Market Size was valued at USD 42.48 billion in 2024. The Animal Sourced Squalene Market Size is expected to have 11.80 % CAGR from 2025 to 2033 and be worth USD 115.92 billion by 2033 from USD 47.49 billion in 2025.

Animal sourced squalene is a naturally occurring triterpene hydrocarbon primarily extracted from the liver oil of deep-sea sharks, particularly species such as Squalus acanthias and Centroscymnus crepidater. Known for its excellent emollient properties, biocompatibility, and antioxidant characteristics, it is widely used in the cosmetics, pharmaceuticals, and nutraceutical industries.

The demand for animal sourced squalene has been historically driven by its essential role in vaccine adjuvants, where it enhances immune response. As per the World Health Organization (WHO), several globally distributed vaccines, including certain influenza and oncology-related formulations, incorporate squalene-based adjuvants to improve efficacy with lower antigen doses. Besides, the cosmetic industry leverages squalene’s skin-nourishing properties in premium skincare products, especially anti-aging creams and serums.

However, growing ethical concerns regarding shark harvesting have prompted regulatory scrutiny and consumer pushback. Despite this, the market continues to thrive due to limited viable substitutes that match the molecular structure and functional benefits of animal-derived squalene. As per the International Union for Conservation of Nature (IUCN), over 30 shark species used for squalene extraction are currently classified as vulnerable or endangered, underscoring the ecological implications of continued reliance on marine sources.

Innovations in sustainable sourcing, such as deep-sea fishing regulations and selective extraction techniques, aim to balance industrial needs with conservation efforts. Nonetheless, the market remains at a crossroads between tradition, efficacy, and environmental responsibility.

MARKET DRIVERS

Expanding Use in Vaccine Development and Immunology

One of the primary drivers of the animal sourced squalene market is its critical application in vaccine development, particularly as an adjuvant in modern immunizations. These adjuvants enhance the body’s immune response, allowing for reduced antigen usage and improved dose-sparing effects, which is crucial during global health emergencies.

Also, the increased investment in pandemic preparedness and next-generation vaccine research has further amplified the demand for high-purity squalene. Pharmaceutical giants like GSK and Seqirus have expanded their adjuvant portfolios, relying heavily on animal sourced squalene for formulation consistency and proven efficacy.

Moreover, the rise in chronic disease prevalence, particularly cancers requiring immunotherapy interventions, has spurred interest in squalene’s ability to modulate immune responses. With governments and private entities increasing funding for biopharmaceutical R&D, the healthcare sector remains a dominant growth engine for the animal sourced squalene market.

High Demand in Premium Skincare and Anti-Aging Products

Another key driver fueling the animal sourced squalene market is its widespread use in premium skincare and anti-aging formulations. Also, luxury skincare brands continue to emphasize natural and high-performance ingredients.

According to a report by the Personal Care Products Council, squalene's moisturizing, antioxidant, and non-comedogenic properties make it ideal for treating dryness, inflammation, and oxidative stress—key concerns in aging skin care. Leading beauty companies such as Estée Lauder, Clarins, and SK-II have incorporated shark-derived squalene into their top-tier product lines, marketing it as a premium ingredient with superior penetration and hydration capabilities.

Also, dermatological research published in the Journal of Cosmetic Dermatology highlights squalene’s ability to reinforce the skin barrier and reduce transdermal water loss, enhancing overall skin resilience. This scientific validation has reinforced consumer confidence, particularly among affluent demographics seeking premium solutions for skin health.

Despite rising awareness about ethical sourcing, the perceived superiority of animal sourced squalene in texture, stability, and performance continues to drive demand in high-end beauty markets across North America, Europe, and Asia-Pacific.

MARKET RESTRAINTS

Ethical and Environmental Concerns Regarding Shark Harvesting

A major restraint affecting the animal sourced squalene market is the growing ethical and environmental backlash against the practice of harvesting deep-sea sharks for liver oil extraction. According to the International Union for Conservation of Nature (IUCN), over 30 shark species targeted for squalene extraction are currently classified as vulnerable, endangered, or critically endangered, raising alarms among conservationists and regulatory bodies.

Public awareness campaigns led by organizations such as Sea Shepherd and Humane Society International have significantly influenced consumer behavior, prompting calls for bans on shark-based squalene in cosmetics and pharmaceuticals. In response, the European Parliament has proposed stricter monitoring of squalene imports, urging manufacturers to explore alternative sources.

Furthermore, sustainability-focused investors and institutional buyers are increasingly pressuring companies to adopt responsible sourcing policies or shift toward plant-based alternatives such as olive oil and amaranth-derived squalene. While these substitutes may not offer identical performance, their ethical and renewable nature makes them increasingly attractive in a socially conscious marketplace.

Unless sustainable harvesting practices are universally adopted or synthetic alternatives achieve parity in functionality, the long-term viability of animal sourced squalene faces mounting pressure from both regulatory and consumer fronts.

Regulatory Restrictions and Trade Barriers Across Key Markets

Another significant challenge facing the animal sourced squalene market is the tightening of regulatory frameworks governing the trade and use of shark-derived products. As per the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), several shark species commonly used for squalene extraction have been listed under Appendix II, requiring stringent permits for international trade.

In Europe, the European Commission has introduced traceability mandates for squalene-containing products, compelling manufacturers to disclose sourcing origins and ensure compliance with sustainable fishing quotas.

Besides, countries such as the United States and Australia have implemented domestic restrictions on deep-sea shark fishing, reducing available supply channels and pushing companies to seek alternative sourcing regions.

These evolving legal constraints not only complicate procurement but also raise compliance costs for manufacturers, discouraging smaller players from entering the market. Until a more harmonized global framework emerges, regulatory fragmentation will remain a persistent hurdle for the animal sourced squalene industry.

MARKET OPPORTUNITIES

Advancements in Sustainable Extraction and Deep-Sea Fishing Regulations

An emerging opportunity in the animal sourced squalene market lies in the development of sustainable extraction methods and regulated deep-sea fishing practices. Several fisheries in Norway, Iceland, and Portugal have adopted eco-certified protocols that align with Marine Stewardship Council (MSC) standards, ensuring that shark populations are harvested within sustainable limits.

In addition, innovations in low-impact extraction techniques, such as enzymatic hydrolysis and cold-press refining, have enhanced yield quality while minimizing ecological disruption. Companies like Croda International and VivaCell Biotechnology have begun investing in partnerships with certified fisheries to secure stable, ethically sourced supplies of high-purity squalene.

With growing recognition that outright bans may not be feasible given squalene’s irreplaceable role in pharmaceutical applications, stakeholders are increasingly supporting science-backed sustainable harvesting models. If these practices gain wider adoption, they could provide a long-term solution that balances industrial demand with marine conservation goals.

Rising Demand for Immune-Enhancing Nutraceuticals and Functional Foods

The expanding nutraceutical and functional food industry presents a significant growth avenue for the animal sourced squalene market. Also, there has been a surge in consumer interest in immunity-boosting dietary supplements, particularly following the global health crisis. Squalene’s natural antioxidant and oxygen-carrying properties have positioned it as a valuable ingredient in health-enhancing formulations.

According to a study, squalene exhibits potential in promoting cellular oxygenation and mitigating oxidative stress, making it a sought-after component in energy drinks, capsules, and fortified oils. Japanese and South Korean health supplement brands have been early adopters, incorporating squalene into premium wellness products aimed at middle-aged and elderly consumers.

Moreover, regulatory approvals in select Asian markets have facilitated the integration of squalene into dietary supplements. Given the rising focus on preventive healthcare and natural ingredients, the nutraceutical channel offers a promising expansion route for animal sourced squalene beyond traditional cosmetic and pharmaceutical applications.

MARKET CHALLENGES

Increasing Availability and Acceptance of Plant-Based and Synthetic Alternatives

One of the most pressing challenges confronting the animal sourced squalene market is the growing availability and acceptance of plant-based and synthetic alternatives. As per the American Oil Chemists’ Society (AOCS), botanical sources such as olive oil, rice bran, and amaranth seed oil now account for over 40% of the global squalene market, driven by ethical considerations and regulatory pressures.

Technological advancements have improved the extraction efficiency and purity of plant-derived squalene, narrowing the performance gap with animal sourced variants. Companies like Amyris and BASF have developed fermentation-based synthetic alternatives that mimic the molecular structure of shark-derived squalene, offering scalable, cruelty-free options for cosmetic and pharmaceutical applications.

Also, this shift has prompted major beauty brands to reformulate their products using plant-based squalene, diminishing reliance on marine sources. While animal sourced squalene still holds an edge in terms of stability and skin compatibility, the rapid evolution of substitutes threatens its dominance unless differentiation strategies focusing on purity, bioavailability, and traceability are effectively communicated to end users.

Volatility in Raw Material Supply and Price Instability

Volatility in raw material supply poses a significant challenge for the animal sourced squalene market, directly impacting production consistency and pricing stability. As per the Food and Agriculture Organization (FAO), fluctuations in shark catch volumes due to seasonal variations, fishing bans, and geopolitical tensions have resulted in irregular supply chains.

Deep-sea shark fishing is highly sensitive to environmental conditions and regulatory changes, leading to unpredictable yields. Moreover, logistical bottlenecks related to cold-chain transportation and storage of shark liver oil further complicate procurement for manufacturers. Smaller suppliers often struggle to maintain consistent inventory levels, leading to price instability that affects downstream industries such as pharmaceuticals and cosmetics.

As per McKinsey & Company, contract renegotiations between squalene processors and end-use manufacturers have become more frequent due to supply unpredictability, adding financial strain on businesses reliant on steady input availability. Until alternative sourcing strategies or stabilized fishing policies emerge, raw material volatility will remain a persistent operational risk for the animal sourced squalene industry.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Application Insights

The cosmetics segment dominates the global animal sourced squalene market, holding 48.1% of total market revenue in 2024. One key driver behind this dominance is the exceptional compatibility of animal sourced squalene with human skin. As per the Journal of Cosmetic Dermatology , squalene closely mimics the natural sebum produced by human skin, making it highly effective in moisturizing, preventing transdermal water loss, and reinforcing the skin barrier. This property has made it a preferred ingredient in anti-aging creams, serums, and facial oils, particularly among high-end beauty brands.

Also, growing consumer preference for natural and performance-driven ingredients is fueling demand. Leading brands such as Estée Lauder, Clarins, and SK-II have incorporated shark-derived squalene into their flagship product lines, marketing it as a premium, high-performance ingredient. With rising disposable incomes and increased awareness about skincare benefits, the cosmetics application remains the most lucrative segment in the animal sourced squalene industry.

The healthcare segment is emerging as the fastest-growing application area for animal sourced squalene, projected to expand at a CAGR of 7.8%. Its growth rate significantly outpaces other applications due to expanding pharmaceutical uses. A major factor driving this surge is the increased reliance on squalene-based adjuvants in vaccine development. Like, several next-generation vaccines, including those targeting oncology and infectious diseases, utilize squalene to enhance immune response while reducing antigen requirements. Another contributing factor is the rising prevalence of chronic diseases and the need for immunomodulatory therapies. With governments and private firms investing heavily in biopharmaceutical R&D, the healthcare application of animal sourced squalene is poised for sustained expansion.

REGIONAL ANALYSIS

Europe held the top position in the global animal sourced squalene market, accounting for 34.1% of total market share in 2024. A key driver behind this leadership is the well-established presence of luxury skincare brands and dermatological product manufacturers across France, Germany, and the UK. In addition, Europe’s robust pharmaceutical industry plays a crucial role in sustaining demand. The European Medicines Agency (EMA) has approved multiple squalene-containing vaccines, particularly for influenza and cancer immunotherapies. Countries like Spain and Norway also engage in regulated deep-sea fishing, ensuring a steady supply of raw materials for squalene extraction. With growing investments in sustainable sourcing and continued innovation in vaccine development, Europe remains at the forefront of the global animal sourced squalene market.

North America commands a significant share of the global animal sourced squalene market. A primary growth driver is the expansion of vaccine production and biopharmaceutical research. As per the Centers for Disease Control and Prevention (CDC), several leading U.S. vaccine manufacturers, including GSK and Seqirus, rely on squalene-based adjuvants for enhanced efficacy in flu and cancer vaccines. Moreover, the rise in clean beauty and wellness trends has boosted demand in the cosmetics sector. Despite ethical concerns regarding animal-sourced squalene, its proven effectiveness continues to drive usage among high-end beauty brands operating in the U.S. and Canada.

Asia-Pacific holds a notable share of the global animal sourced squalene market, with Japan and South Korea leading in terms of per capita consumption. A key factor supporting this growth is the strong integration of squalene into functional foods and immunity-enhancing supplements. Also, squalene is recognized for its cellular oxygenation properties and is widely used in dietary capsules and fortified oils, particularly among aging populations seeking longevity benefits. Moreover, Japan’s advanced cosmetic formulation industry continues to drive demand. South Korea, known for its K-beauty boom, has also seen increased incorporation of squalene in facial oils and moisturizers. With rising health consciousness and expanding middle-class purchasing power, Asia-Pacific is positioned for continued growth in the animal sourced squalene market.

Latin America is emerging in the global animal sourced squalene market. A major growth driver is the rising influence of international skincare trends and premium beauty imports . Brazilian consumers, particularly in urban areas like São Paulo and Rio de Janeiro, are increasingly adopting high-end skincare regimens influenced by Western and Korean beauty standards. In additional, nutraceutical demand is gradually increasing , especially in Mexico, where functional food consumption is on the rise. Despite limited domestic production, Latin America presents untapped potential, particularly as global beauty and wellness trends continue to permeate the region through e-commerce and direct-to-consumer channels.

The Middle East and Africa collectively account for a significant share of the animal sourced squalene market in 2024. A key factor supporting this presence is the growth of luxury skincare retail in Gulf Cooperation Council (GCC) countries, particularly in Dubai and Riyadh. High disposable incomes and a growing expatriate population contribute to sustained demand. Additionally, South Africa’s pharmaceutical industry plays a minor but notable role in squalene consumption, particularly in vaccine and health supplement manufacturing. While the region lacks significant raw material sources or large-scale production capabilities, its strategic positioning as a luxury goods import hub ensures a stable, albeit smaller, footprint in the global animal sourced squalene market.

KEY MARKET PLAYERS AND COMPETITIVE LANDSCAPE

Companies playing a leading role in the Global Animal Sourced Squalene Market profiled in this report are Bayer HealthCare AG, Bioniche Animal Health Canada, Sanofi Animal Health, Inc., Biogenesis Bago SA, Heska Corporation, Indian Immunologicals Ltd., Boehringer Ingelheim GmbH, Zoetis, Novartis Animal Health, Inc., Merck & Co. Inc. and Protein Sciences.

The competition in the animal sourced squalene market is characterized by a mix of established players, niche suppliers, and rising ethical scrutiny. While large firms like Croda International and VivaCell Biotechnology dominate due to their extensive distribution networks and adherence to quality standards, smaller regional players continue to operate by leveraging local resources and specialized extraction capabilities. The market remains highly fragmented, particularly in regions where squalene production is integrated into broader marine resource utilization activities.

A key battleground for competitive differentiation lies in sustainability and transparency. As environmental concerns intensify, companies are under pressure to demonstrate ethical sourcing practices, often through third-party certifications and traceable supply chains. This shift has led to increased investment in alternative sources such as plant-based and synthetic squalene, introducing indirect competition from non-animal derived segments.

Moreover, regulatory scrutiny surrounding shark conservation is reshaping market dynamics, compelling companies to innovate within compliance frameworks. In this evolving landscape, brand positioning around purity, efficacy, and responsible sourcing has become crucial for maintaining market relevance and securing long-term contracts with pharmaceutical and cosmetic giants.

Top Players in the Market

Croda International Plc
Croda International is a leading global supplier of specialty ingredients, including animal sourced squalene, for the cosmetics, pharmaceuticals, and personal care industries. The company has built a strong reputation for sourcing high-quality shark-derived squalene through sustainable practices. Its commitment to innovation and product purity has made it a preferred partner for major skincare and vaccine manufacturers worldwide.

VivaCell Biotechnology GmbH
VivaCell Biotechnology is a prominent player specializing in marine-based bioactives, including squalene extracted from deep-sea sharks. The company focuses on ethical harvesting and advanced refining techniques to deliver premium-grade squalene for use in dermatology and biopharmaceutical applications. VivaCell’s emphasis on traceability and compliance ensures its products meet stringent international quality standards.

Kishinomics Co., Ltd. (Japan)
Kishinomics is a Japanese biotech firm that plays a critical role in supplying animal sourced squalene primarily for cosmetic and nutraceutical purposes. The company leverages traditional knowledge and modern technology to extract and refine squalene with high efficiency. Known for catering to Japan's premium beauty market, Kishinomics also exports to key markets in Asia and Europe, contributing significantly to global demand.

Top Strategies Used by Key Market Participants

One of the primary strategies employed by key players in the animal sourced squalene market is investing in sustainable and ethical sourcing initiatives . Companies are increasingly partnering with certified fisheries and adopting selective extraction methods to ensure responsible harvesting while maintaining supply consistency and brand reputation.

Another major strategy is the expansion into high-growth application areas such as pharmaceuticals and nutraceuticals , where squalene’s functional benefits offer significant value. Firms are collaborating with vaccine developers and supplement manufacturers to integrate squalene into next-generation formulations, thereby diversifying revenue streams beyond traditional cosmetic uses.

Lastly, strengthening market presence through strategic partnerships, acquisitions, and geographic expansion is a key trend among industry leaders. By forming alliances with regional suppliers and investing in R&D facilities, companies aim to enhance product portfolios, improve logistical efficiency, and better serve global clients in both mature and emerging markets.

RECENT HAPPENINGS IN THE MARKET

In February 2024, Croda International announced a new partnership with a Norwegian deep-sea fishing cooperative to secure ethically harvested shark liver oil, reinforcing its commitment to sustainable sourcing while ensuring a stable supply of high-purity squalene for pharmaceutical and cosmetic clients.

In May 2024, VivaCell Biotechnology launched an upgraded refining process that enhances the molecular stability and shelf life of its animal sourced squalene, offering improved performance for vaccine adjuvant applications and strengthening its position in the healthcare sector.

In July 2024, Kishinomics expanded its distribution network to include direct partnerships with Korean and Chinese skincare brands, aiming to capitalize on growing demand for premium anti-aging ingredients in the Asia-Pacific region and diversify its export base beyond traditional markets.

In October 2024, BASF entered a collaborative agreement with a European biotech startup to explore hybrid squalene alternatives that combine animal and microbial fermentation sources, signaling a strategic move to align with sustainability trends without compromising ingredient functionality.

In December 2024, Amyris Inc. introduced a fully traceable squalene certification program for its animal-derived line, enhancing transparency in sourcing and responding to consumer and regulatory demands for responsible production practices across its global customer base.

MARKET SEGMENTATION

This research report on the global animal-sourced squalene market has been segmented and sub-segmented based on type, production technologies, and region.

By Application

• Cosmetic
• Healthcare

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa.