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Squalene manufacturers are set to benefit from high demand in the cosmetics industry, according to a new report by global market research company Fact.MR.

A greater focus on personal care across the world has significantly increased the demand for squalene, an oil obtained from shark liver, according to the report, with the cosmetics industry expected to drive increased consumption over the next few years. Consumption of squalene in the cosmetics industry is projected to account for a market share of 40.9% by 2032.

Increased use of squalene in the pharmaceutical industry was also expected to provide new opportunities for squalene providers in the future, the report said.

“Increasing demand for cosmetics and personal care products will spearhead the sales of squalene over the coming years,” a Fact.MR analyst said.

However, bans on shark fishing and the high costs of producing squalene from plant-based products are expected to have a restraining effect on market expansion, according to the report.

The global squalene market is worth US$21.12bn this year, according to the report, and is set to increase to US$66.36bn by the end of 2032. Worldwide squalene consumption is estimated to rise at a CAGR of 12.2% across the forecast period (2022-2032) and the North America squalene market is expected to reach US$26.01bn by 2032.

The current squalene market was dominated by a few major players such as Amyris and Sophim, the report said.

Key findings of the report include the fact that demand for animal-sourced squalene is expected to increase at a CAGR of 12.8% over the forecast period.

Squalene manufacturers are increasing their investments in research and development into new products, according to the report, with a focus on finding new techniques for the extraction of high-purity squalene from plant and vegetable sources.