If you've tried to purchase sugarcane-derived squalane in the last few months, you may have noticed it is a little hard to find. Every retailer has been out of stock, including us! There are many reasons a retailer doesn't have inventory of an ingredient, and it is not always because someone in the supply chain department forgot to place an order. We waited for our shipment of sugarcane-derived squalane for over four months! It is only because of Valerie's relationships in the industry, were we able to get our shipment.
You may be thinking, "Why not just get a new supplier?" Unfortunately, it isn't that easy.
While squalane derived from olives has been around a long time, sugarcane-derived squalane was introduced to the market around 2013. A biotech company named Amyris discovered they could modify bacteria to produce farnesene, which can be chemically modified into squalane. In order to do this, the bacteria need a sugar source, which comes from sugarcane. Hence, the squalane is called sugarcane-derived squalane. This process is patented, which means Amyris is the only producer of sugarcane-derived squalane in the world, until their patent expires.
Last year, Amyris sold all of their sugarcane squalane manufacturing facilities to Givaudan, a large raw material conglomerate. During business acquisitions of this magnitude, there is often an integration period of systems and processes, which can cause delays. This is particularly true for raw material manufacturing. It is not always seamless when the new company takes over, and unfortunately, this impacted the speed in which squalane could enter the supply stream.
To complicate matters, as of today, all sugarcane-derived squalane has to be purchased through one entity in the United States. This entity, at the same time as the Givaudan acquisition, went through their own acquisition by a different company. Talk about adding insult to injury!
Surely the sugarcane-derived squalane supply chain will smooth out over time, but you never know when it can be interrupted again. There are a few things you can do to ensure you have enough ingredients on hand for your needs.
Create a forecast
Knowing how much of an ingredient you will use over the next 3, 6 or 12 months is extremely helpful to calculate your needs and can help you figure out how much you need to buy to keep a safety stock. This means if there is a shortage on an ingredient, you have enough to help you get through the short term future. It also helps you maximize your buying power. If you always buy squalane every three months, consider buying a larger quantity and only buy every 6 months. The price per ounce of squalane is usually cheaper, and squalane practically has an infinite shelf life. You may not want to do this for a sensitive ingredient, such as a fruit oil, which has a limited shelf life.
Source multiple suppliers
We don't advocate jumping around from supplier to supplier, as not all raw materials are the same, even if they have the same INCI. However, it is absolutely smart business to qualify two or three suppliers for the same ingredient. This ensures you always have a viable option if one supplier runs out of an ingredient, or another supplier has better pricing. To qualify multiple suppliers, review the technical data sheets of an ingredient, or ask the supplier if one material is an exact offset to another. If the answer is yes, order a sample of the ingredient and make a batch. Review the product for its physical and chemical properties, and place it on a mini-stability, which evaluates how the product changes over time. If the existing formula and your newly proposed supplier's version turn out the same, you have a winner!
We're happy to help answer any questions you have about whether a raw material from one supplier is the same as the other, it is what we love doing!
Consider olive-derived squalane
Another source of squalane comes from olives. While it is similar to sugarcane-derived squalane, it does have some differences, and it is not immune to ingredient shortages. However, when in a pinch, it might just do from a performance perspective. Follow the same testing protocol as with any other substitution to evaluate if the olive-derived version suits your needs.
Unfortunately, it won't work if you have hung your product or brand's marketing hat on using sugarcane-derived squalane. You would need to communicate any changes to your customer base, and ensure that the use of sugarcane-derived squalane is not on your packaging.
Stay in the know
Subscribe to our newsletter, if you haven't already. We try to keep our community informed of any rumblings in the raw material world that impact the ingredients we sell. Many ingredients come from plant sources, which are subject to bad crop years or detrimental weather. This can impact many ingredients you wouldn't even think of. We try to keep you abreast of the situation, which can help you in planning.
Now that squalane is back in stock, it's time to make something! If you haven't already, try this Vitamin C + Squalane Serum. Squalane is the perfect carrier for Oil Soluble Vitamin C, which helps brighten skin. We think it's the perfect post-summer serum for fading stubborn pigmentation.
