From the United States, Europe, Japan to China: Focusing on the Rise and Transformation of Plant Squalane Production in China
1、 Definition of Squalane Industry
Squalane is a fatty hydrocarbon. Squalene extracted from the liver of deep-sea sharks is processed through hydrogenation, hence it is also known as deep-sea shark liver oil. Its English name is Squalane. Squalane has excellent affinity for human skin and can be quickly absorbed by the skin without causing allergies or irritation. In addition, it can also accelerate the penetration of other active ingredients in the formula into the skin, improving the absorption effect of the skin. Squalane has low polarity and moderate spreading properties, making it easy to apply evenly on the skin. More importantly, it also has the characteristics of purity, colorless, and odorless, making it widely used in cosmetics. In addition, squalane also has an inhibitory effect on mold growth, providing a certain guarantee for the preservation of cosmetics. Squalane, a precious raw material, is mainly extracted from deep-sea sharks, and every 3000 deep-sea sharks can produce one ton of squalane, making the resources very limited and almost depleted. In order to seek more environmentally friendly and sustainable alternatives, the industry has begun to focus on developing plant-based squalane. This plant squalane has excellent moisturizing properties,it is Cosmetics & Personal Care, and also can be Antioxidants Raw Materials
which can effectively lock in moisture, moisturize the skin, and smooth hair, making it play an important role in cosmetics and daily chemical formulas, as a Plant Extract and difficult to be replaced by other ingredients. Nowadays, plant squalane has been widely used in many well-known cosmetic brands such as Lancome, L'Oreal, Johnson&Johnson, and has become a favored moisturizing ingredient.
2、 Development history of squalane industry
Initially, from the 1970s to the 1980s, squalane began to be widely used in cosmetics and personal care products, gaining popularity due to its excellent lubricity, stability, and antioxidant properties. In the 1990s to early 2000s, with the rapid growth of the personal care and cosmetics markets, the squalane industry experienced rapid development. As an important chemical raw material, squalane is widely used in skin care products, lipstick, lipstick and other products. Subsequently, from the mid-2000s to the 2010s, the squalane industry continued to innovate and develop. The new generation of production technology and processes has improved the production capacity and quality of squalane, and reduced production costs. At the same time, the application areas of squalane are constantly expanding, including industries such as pharmaceuticals, chemicals, and food. With the increasing awareness of environmental protection and sustainable development, the demand for renewable and natural sources of squalane is constantly increasing. The emergence of new materials and technologies has made the production of squalane more environmentally friendly and sustainable
3、 Overview of the Background of Global Plant Squalane Production
Due to the strengthening of shark conservation policies and the reduction of shark catch in various countries around the world, the production of shark derived squalane has been decreasing year by year, and the current market expects its production to be less than 1000 tons. In the field of squalane (ene) production, core manufacturers mainly include Amyris NOF Group and Ineos, among others, have a combined global market share of approximately 70%. From the perspective of production regions, North America is the world's largest producer of squalane, accounting for over 50% of the market share, followed by Japan and Europe, with market shares of approximately 25% and 15%, respectively. This market pattern puts enormous competitive pressure on new market participants, making it difficult to compete for a place in the existing market share.
Squalane is not a patent of a specific company, and other companies can also innovate and apply for patents in terms of formula, preparation methods, and applications. In terms of brand awareness and consumer mentality, squalane does not possess exclusivity. For example, in addition to brands under Amyris, Olay、 Major brands such as Nivea, Lancome, and Est é e Lauder have also added squalane to their products. In different sources of squalane, Amyris's biological squalane and olive squalane did not show a significant cost advantage. At present, olive squalane dominates the market. According to BLOOM's experimental data, among the 62 cream products that have been tested and obtained usable results, 44 (71%) use olive squalane extracted from plants, 6 use biosynthetic squalane, and 12 use animal squalane. Although biosynthetic squalane is about 20% cheaper than olive squalane in terms of raw material price, this cost advantage is not significant.
4、The Rise of Plant Squalane Production in China
① Market size and growth rate of squalane industry in China
In 2019, the total value of the global squalane market reached 710 million yuan, and it is expected to grow to 1.2 billion yuan by 2026, with a compound annual growth rate of 7.6%. As of 2020, the global squalane market revenue has reached $136.91 million and is expected to grow to $378.11 million by 2027, with a compound annual growth rate (CAGR) of 11.83% (2021-2027). In terms of regional market share, North America is the world's largest market for squalane, accounting for more than half of the market share. Next are the European and Asia Pacific markets, which together account for nearly 45% of the market share. This data indicates that the squalane market continues to grow and is expected to maintain this growth trend in the coming years. Squalane, made from deep-sea sharks, can only produce 1 ton for every 3000 deep-sea sharks, and its resources are about to be depleted. The industry is calling for plant sources as alternatives. The function of plant squalane is to lock in water, moisturize skin, and soften hair, which is difficult to replace in cosmetics and daily chemical formulas. It is widely used in cosmetics such as Lancome, L'Oreal, and Johnson&Johnson. Shark squalane may gradually withdraw from the historical stage with the prohibition of various countries, and synthetic squalane is difficult to match natural squalane. Whether it's squalane extracted from olives, Amyris' unique fermentation technology, or squalane extracted from edible oil by Yichun Turtle Life Science Co., Ltd. The overall development path must be to replace shark squalane with plant squalane (ene). Yichun Big Turtle Life Science Co., Ltd. promotes itself as the world's first enterprise that can industrially extract oil from soybean, camellia oil, sunflower, rapeseed, rice bran and other oil seeds, which is a new breakthrough in the world. The company has built the world's first non olive plant squalene production line. With the localization of squalane (ene), several companies have also invested in the research and development of this product, and it is expected that the number of new entrants to squalane (ene) will increase in the future.
② Natural VS synthesis: Analysis of the advantages of Chinese plant squalane
1)Source and Safety: Natural plant squalane comes from vegetable oils such as olive oil and is obtained through natural extraction technology, ensuring its purity and naturalness. This natural source makes plant squalane safer, skin friendly, and less likely to cause allergies or irritation. In contrast, synthetic squalane is obtained through chemical synthesis, and although it has a similar structure and properties to natural squalane, there may be potential chemical residues or impurities that may have adverse effects on the skin.
2)Affinity and absorption: Natural plant squalane has a good affinity with human sebum membranes, which can quickly integrate into the surface of the skin, forming a natural protective barrier. This affinity makes plant squalane more easily absorbed by the skin, exerting its moisturizing, moisturizing, and repairing effects. Although synthetic squalane also has certain moisturizing and moisturizing effects, due to its chemically synthesized properties, its affinity with the skin may be weak and not easily absorbed by the skin, which may leave a greasy feeling or cause skin burden.
3)Skincare benefits: Natural plant squalane has excellent antioxidant, moisturizing, and repairing properties. It can inhibit the peroxidation of skin lipids, effectively penetrate the skin, promote the proliferation of skin basal cells, delay skin aging, improve and eliminate skin problems such as melasma. In addition, it can also open skin pores, promote blood circulation, enhance cell metabolism, and help repair damaged cells. Although synthetic squalane also has certain skincare effects, it may not fully achieve the effects of natural plant squalane. Due to the characteristics of chemical synthesis, its stability and activity may be affected to some extent, thereby affecting its skincare effect.
4)Environmental protection and sustainability: Natural plant squalane comes from renewable resources such as olive oil and other plant oils, which have the advantages of environmental protection and sustainability. This production method has a lower burden on the environment and is in line with modern consumers' pursuit of environmental protection and sustainability. In contrast, the production process of synthesizing squalane may involve more chemical synthesis and energy consumption, posing a burden on the environment.
5、 Market Outlook for the Development of Squalane in China
① With the growth of market demand, as consumers continue to pay more attention to health and beauty, especially in the Asian market, the demand for skincare products and cosmetics with moisturizing and anti-aging functions will continue to grow. Squalane, as a component with good moisturizing, antioxidant, and anti-aging properties, will play an important role in this market, and its market demand will also increase accordingly.,
② Technological progress drives development, and the development of technology will further promote the improvement of squalane extraction and production processes, improve production efficiency and product quality. This will reduce the production cost of squalane while ensuring the stability and safety of its products, thereby meeting the needs of more consumers.
③ Expansion of new application areas, in addition to traditional cosmetics and skincare products, the application areas of squalane are constantly expanding. For example, in the pharmaceutical field, squalane can serve as a good drug carrier to improve the bioavailability and stability of drugs; In the food industry, squalane can serve as a natural antioxidant to extend the shelf life of food. The expansion of these new application areas will provide more development opportunities for the squalane industry.
④ Policy support and environmental trends: Many countries and regions are actively promoting green chemicals and sustainable development, providing strong support for environmentally friendly, safe, and efficient production technologies. Squalane, as a natural and renewable resource, has been widely recognized for its environmental performance, which will also help promote the development of the squalane industry. Meanwhile, with the increasing awareness of environmental protection, consumers are also demanding higher environmental performance from products, which will further promote the green development of the squalane industry.
⑤ Intensified market competition and branding trend: With the growth of market demand and the expansion of new application areas, the competition in the squalane industry will become increasingly fierce. In order to stand out in competition, enterprises need to continuously improve their technical level and product quality, while strengthening brand building, enhancing brand awareness and reputation. This will help companies establish a good image in the market and attract more consumers.
Xi'an Hersoncare Bio-Tech Co., Ltd