ADVERTORIAL
The $11.1 Billion Suncare Sector Could Have A New Technological Leader
Editorial Feature | Jun 6, 2023 | Industry
This Revolutionary Product is Controlled by a $2 Million Microcap. And it’s about to be approved for sale in some of the world’s largest markets.
The Opportunity in a Nutshell
A little-known manufacturer has signed a letter of intent to acquire an initial 51% stake — with the option to buy a further 29% — in a new suncare company. This newly developed suncare product gives up to 3 Days Broad Spectrum SPF50+ coverage — without a greasy feel or residue, without dangerous chemicals that can leach into your skin, without needing to reapply after a shower or swim.
Developed in Australia for the harsh Australian sun, this product redefines what sun protection should be, by offering what is the most durable, reliable sun protection available, anywhere.
Your skin can breathe normally, sweat normally — because the product forms a micro thin protective barrier against the sun by leveraging patented Microskintechnology. When applied, it binds to the dry outer layer of dead skin cells called the corneum — never penetrating any deeper. Once an application of the product dries, it combines with this outer layer to provide sunscreen protection that’s integrated with the body’s own skin — and only decreases in effectiveness as we naturally shed our dead skin cells.
Water, sweat, soap won’t remove this protection. You can shower with it on at night and still be protected the next day.
There is simply no other product out there today that is near this product ’s class. Some are fine in water, some say they can last up to a day, some go on without grease or residue.
But none combine all those attributes in one, and then exceed them all. This product ’s revolutionary technology is, simply, a better mousetrap. It should take the markets by storm.
And it does it at a price point that’s in line with its competitors —far below the top of the market (despite providing much more protection per application than any other offering).
That means that overworked moms can apply sunscreen to squirmy kids once before leaving for a beach weekend… and never have to think about it again. Never even have to pack it!
It means outdoor workers can apply it twice a week, and get protection throughout the day. No hands slipping on handles, no worries that sweat will wash the protection away.
The product has regulatory approval for use in Australia by the Therapeutic Goods Administration (TGA). It is known to be the toughest regulator in the world, when judging skin products.
The product is expected to launch in Australia – sales will begin in October, 2023
It has also been approved in the UK/EU — sales will begin in Q2 2024.
And is expecting to get US FDA approval in the second half of this year – sales will begin in Q2,2024.
In test runs, the product has sold out in less than half the time expected, and projects up to a 65% gross profit margin.
The Industry
- Size: $11.1 billion
- Growth: 4% CAGR through 2027
- Innovation: Nothing Meaningful Since 1980
The Growing $11.1 Billion Suncare Sector Needs Innovating Ideas
By 1980, the suncare industry had wisened up to the damage that UVA and UVB rays can do.
Specifically, UVA makes up 95% of the UV rays that reach earth, and are most responsible for aging our skin and leading to some cancers. UVB rays make up 5% of the UV that reaches the planet’s surface, but they are more energetic and more directly lead to numerous nasty skin cancers.
With this discovery, sunscreen started blocking for these harmful rays, along with offering full spectrum SPF protection.
And that’s the last major innovation the industry had.
Since then, there have been sunscreens that promise to go on without greasiness.
There have been sunscreens that promise they won’t wash off in the pool or the ocean.
There have been sunscreens that claim they can last eight hours. Some even claim they can last up to a day.
But these are all minor refinements. They are closer to fashion choices — like preferring unscented laundry detergent.
The suncare industry is ripe for disruption.
This is especially so because of the heightened importance of suncare in today’s world, and going forward.
Already, 1 in every 3 cancer diagnoses is skin cancer. Squamous cell melanoma rates have increased 310% since 19901. Indeed, all skin cancers have been on the rise.
On the positive side of the ledger, the ozone layer is healing and should be increasing protection in certain exposed areas like Australia.
But for most of the world, an increase in solar radiation trapped in our atmosphere translates to an increased risk of sun damage.
And an increased need for sun protection.
This is why the projected 4% CAGR for the suncare industry is likely a conservative estimate.
Or, perhaps more accurately, it is only measuring one small part of the market.
Suncare is making its way into everything. From cosmetics to apparel, just about anything that touches your skin is now expected to protect it.
The Innovation
- Durability: 7x the closest competitor
- Appearance: Invisible, scentless, moves just like your own skin
- Safety: Ingredients found safe by safety boards, and regardless never penetrates your skin
This Revolutionary Breakthrough Will Change Our Relationship with the Sun
The microskin technology works by binding to your body’s own outer skin cells — the layer of dry skin called the corneum.
As the product is formulated on more Lipophilic (Oil based) ingredients these components have a difficult job continuing deeper than the Corneum layer due to the lower epidermal layer having a higher water concentration and therefore considered more Lipophobic (Oil resistant). As we all know water and oil do not mix, so this keeps the product and any of the ingredients suspended in it from being absorbed into the skin.
Where it differentiates itself from other sunscreens is that it is not absorbed into the skin. The active UVA and UVB blockers used are suspended within the barrier that sits on top of the skin, they are never absorbed into the skin like other sunscreens.
This companies’ product is a liquidised simulated skin that performs in three distinct ways.
01 When the liquid delivery agent evaporates it leaves a waterproof film on the skins surface. As mentioned above, the product suspends the active ingredient particles within the film.
02 After the evaporation phase, the cellulosic and oil components migrate towards the skins surface and partially enter the Corneum layer which are our dead skin cells. This assists in binding the now dried film to the skins surface with exceptional elasticity.
03 At this time the film has dried and it is attached to the Corneum layer and will comfortably stay there for up to 3 days. Now everyone’s skin is different, some oily, some dry but what we do know is that it takes from 3-10 days for our dead skin cells (Corneum layer) to naturally shed. That is how the product naturally leaves the skin.
It is odorless.
It is flexible — it moves with your skin.
It is permeable — allowing fluids to pass into and out of the skin all while remaining waterproof.
This is one of the best innovations the cosmetics or skincare industry has seen in quite some time.
And it’s controlled by a tiny company ready to explode in value.
The Opportunity
- Industry: $11.1 billion
- Company: $2 million market cap
- Projections: £2.5 million revenue next year in the UK alone
What Happens When a $2 Million Microcap Takes a Chunk Out of an $11.1 billion Industry?
Today, this product has only had a very limited roll out so far.
Even that has gone exceptionally well — with beta runs selling out in less than half the expected time, with less than half the expected marketing necessary. Explosive growth to the company’s website — with minimal advertising — shows the market’s appetite for this product.
And the gross margin of 65% shows just how profitable this product can be.
The product is available now in Australia, the UK and EU and soon in the US in Q2, 2024.
The first toe-in-the-water sales in Australia and the UK will soon be overshadowed by much larger rollouts to much larger markets.
The company plans to start with a D2C business model to capitalize on maximizing margins, leaving open the possibility for expansion to in-store sales when production and demand has ramped up.
Easier, safer, preferable on any continuum you choose, and cheaper than anything other option?
That’s the perfect recipe for explosive growth for a new, disruptive product.
The coming entry of this product into the US should be enough to send sales soaring.
And make this small company a bargain at a $2 million microcap.
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1https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8362234/
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