Market Review - iGEM 2020
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Market Review
Global Sun Care Market Review The current size of the sun care market is estimated to be 11.6 billion dollars, see Figure 1. The market was previously considered stagnant because the size of the sunscreen market has not increased significantly over the last 5 years. However, this is about to change as the market is expected to grow over the next 4 years, see Figure 1. This figure does not allow us to determine whether the market of sun care products has been increasing because consumers buy more sun care products, or because consumers buy more expensive products. The Figure 1 implies that the sun care market is currently reasonably attractive for commercial developments. Figure 1. Size of Sunscreen market and a forecasted growth of sunscreen market in the next 4 years. CAGR represents Compound Annual Growth Rate. Data was obtained from (1). As Figure 2 shows over 120 million litres of sun care products are sold per year and it is estimated that the consumption of sun care products would increase by 2.65 million litres per year. Assuming that sun care products have the same density as water, every year more than 48 Olympic swimming pools of sun care products are sold and sales increase by an additional Olympic swimming pool a year. Overall, the demand for sun care is likely to grow, see Figure 2. It might become harder to produce large quantities of sunscreen in a sustainable way in the future at this rate. Assuming that a hippo would sweat as much as it drinks per day (25 litres on average), one hippo would produce 25 litres of sweat. Hence, it would take at least 291 hippo to replace current sun care products via
sweating. Additionally, it would be irresponsible to farm a dangerous as well as a vulnerable species.
Therefore, synthetic biology is the most convenient and sustainable method to produce
Hipposudoric Acid for a commercial application. The growth in consumption of sun care also
highlights that the demand for sunscreen is increasing. This allows us to confirm that the size of the
market has not been growing because of other factors, such as people buying more expensive
products. Therefore, it is commercially rational to develop new products to appeal to a growing
number of consumers using sunscreen. Figure 1 and Figure 2 show that demand for sunscreen is real
and is likely to grow.
180
milion of litres of sun care slod = (2.6573* years) + 126.21
Litres of sun care sold per year(million litres)
160
140
120
100
80
60
40
20
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Year
Figure 2. Annual sunscreen production and forecasted annual sunscreen consumption. Data was
obtained from (2).Key Drivers of Sun Care market
Consumer awareness of a necessity of using sun care
products
Disposable income of a Key drivers of sun care Life expectancy of a consumer
consumer market
Figure 3. Drivers of the sun care market. Data was obtained from (3), (4), (5).
It is important to identify the key drivers of the sun care market to be able to predict what is likely to
happen in the future and if it is appropriate to invest money and effort into developing novel sun
care. Knowledge of the key drivers is a prerequisite for identifying a point at which it is beneficial to
quit the sun care market.
Based on reports from Mintel (10), it was hypothesised that the disposable income of the
population, mean life expectancy and consumer awareness of health implications caused by UV
exposure would drive the sun care market. The correlations between these factors and sun care use
are shown in Figure 4. It should be noted that it was not possible to establish the influence of
governments on their populations’ awareness of a necessity to use sun care. Hence, government
expenditure by function was used as a surrogate of governments spending on healthcare.
Government expenditure by function represents spending of the government on all its functions
such as healthcare and education. It was assumed that higher healthcare spending led to better
government information campaigns for the necessity of using sun care. All trends shown in Figure 4
produced a statistically significant correlation. The positive correlations indicate that an increase in
the independent variable is associated with an increasing sun care consumption.Figure 4. Main hypothesised drivers of global sun care market. Consumption per household represents money each household spends on sun care products per year. Each point represents a value for sun care consumption for a respective independent variable from a respective year. Data between years 2014-2019 was used. Each data set was generated from measurements for 82-92 countries. Data was obtained from ((2),(4),(5)). Direct Competitors on Sun Care Market It is important to examine competition to ensure that the space we wish to utilise on the market has not already been occupied. Many companies operate on the global sun care market and this does not have a group of companies that control most of the market (>50%), see Figure 5. The large number of companies operating on the sun care market can be explained by a failure of companies to provide significant innovations that would put them ahead of competition and premiumisation of the market, (11). Sun cream is considered expensive by most consumers, thus cheaper (private label) sun cream made by various retailers is popular, see Figure 5 (11). Many companies operating on the market also suggests that a market is not hard to penetrate for new companies. Overall, the sun care market appears hospitable to new companies.
5 brands/companies with the largest share in global sun
care market
5.4 8.5
5.0
4.1
3.9
3.6
70.6
Nivea/Beiersdorf AG Neutrogena/Johnson & Johnson Inc
Garnier/L'Oréal Groupe Anessa/Shiseido Co Ltd
Banana Boat/Edgewell Personal Care Brands LLC Other brands
Private Label/Various retailers
Figure 5. Brand/Company share on global sun care market for 2019. Data was obtained from (4).
● Nivea was chosen as an example of a company with a major presence on the market, see
Figure 5.
● Blue lizard was chosen because Blue lizard is likely to be on the biggest as well as oldest
companies specialised on reef safe sunscreen only.
● Kokua Sun care was chosen as an example of a small regional (Hawaiian) company that is
specialised only in reef safe sun care.
The comparison of HippoSol to its main potential rivals is evaluated in Figure 6.
It should be noted that there are other companies that currently produce sun care products using
natural UV filters, for example shinorine extracted from red algae is being distributed in Europe,
(15). However, it should be noted that Hipposudoric Acid will be the first completely organic UV
filter, hence HippoSol does not necessarily have to be in direct competition with other companies.Organisation/Product Dimensions of consumer values
name Sustainability/Toxicity Natural ingredients Additional benefits
provided
University of Does not contain any Microorganisms can be Can potentially be
Manchester iGEM team substances that are theoretically used to cheaper because uses
2020 /Hipposol currently known to produce all needed only one component to
present damage to natural ingredients deal with UV effectively,
wildlife. Active found in nature, thus acts as an antimicrobial
ingredient is likely to making the product that agent, can potentially
polymerise into an contains no human change colour to remind
inactive and made chemicals or the user to re-apply
biodegradable polymer, animal testing. sunscreen, might be
production involves the water resistant, vegan
minimum use of natural friendly
resources.
Beiersdorf/Nivea Biodegradable. Does not Most components are Vegan friendly, water-
contain any components human made resistant, moisturising
that are known to cause
great environmental
damage. However, it
uses mined Titanium
Dioxide as an active
ingredient. Titanium
dioxide may cause
environmental damage.
Blue Lizard Does not contain any Most components are Bottles and caps turn
components that are human made blue when exposed to
known to cause great harmful UV rays to
environmental damage. remind user to apply a
However, uses mined sunscreen, water and
Zinc Oxide as an active sweat resistance and
ingredient. Zinc Oxide suitable for sensitive
and manufacturing of skin, does not classify as
Zinc may cause vegan friendly because
environmental damage. uses beeswax
Kokua Sun Care Does not contain any Most components are Water resistant
components that are natural.
known to cause great
environmental damage.
However, it uses mined
Zinc Oxide as an active
ingredient. Zinc Oxide
and manufacturing of
Zinc may cause
environmental damage.
Figure 6. Comparison of Hipposol to direct competitors across 3 main consumer values to which
Hipposol appeals to. Data was obtained from (13, 9, 14, 8,16,17)
It is worth noting that having a natural origin of the compound does not guarantee an absence of
ecotoxicity and future experiments will need to be conducted to confirm the safety of Hipposudoric
Acid. Most importantly sunscreen with natural UV filters should provide at least the same level of UV
protection as other compounds and a natural UV filter should not be more expensive to produce
than alternatives. Collectively, this data suggests that a niche of sunscreen with natural UV filters is
not fully occupied and underdeveloped. Overall, our product would survive a direct competition.Indirect competitors of Sun Care market
The indirect competition to sun cream is represented by cosmetics that have SPF protection and
sunless tanning. Nivea’s sunless tanning was chosen because Nivea currently has the biggest share in
a global sun care market. Maybelline makeup with sun protection properties was chosen because
Maybelline has the biggest share in a global coloured cosmetic market (17).
Organisation/Product Dimensions of consumer values
name
Natural ingredients Additional benefits
Sustainability/Toxicity provided
University of Does not contain any Microorganisms can Can potentially be
Manchester iGEM substances that are be theoretically used cheaper because uses
team 2020 /Hipposol known to present to produce all needed only one component
damage to wildlife. natural ingredients to deal with UV
Active ingredient is found in nature, thus effectively, acts as an
likely to polymerise making the product antimicrobial agent,
into an inactive and that contains no can potentially change
biodegradable human made colour to remind the
polymer, production chemicals user to re-apply
involves the minimum sunscreen, might be
use of natural water resistant, vegan
resources. friendly
Nivea/Q10 Body Contains some Contains some human Contains anti-ageing
Lotion Gradual Tan chemicals suspected made chemicals. enzyme Q10.Provides
Fair to Medium Skin to be toxic to the natural tan. Improves
environment and to skin elasticity.
the consumer. Provides good smell.
Maybelline/ Dream Contains some Contains some human Acts as a make-up
Urban Cover All-In- chemicals suspected made chemicals. foundation. Smooths
One Protective to be toxic to the away dull skin.
Makeup SPF 50 352 environment and to Smooth, easy to
Tuffle the consumer. apply, and light.
Contains antioxidants
to defend from
pollution. Does not
clog pores. Suitable
for sensitive skin.
Figure 7. Comparison of HippoSol to indirect competitors across 3 main consumer values to which
HippoSol appeals. Data was obtained from (9,12, 7).
Overall, data mentioned above suggests that HippoSol would survive an indirect competition as well.References
1.Euromonitor. Sun care in World. Euromonitor (Last accessed 11/7/2020)
2.Euromonitor a. Life Expectancy in all countries. Euromonitor (Last accessed 11/7/2020)
3.Euromonitor b. Euromonitor. Government Expenditure in all countries. (Last accessed 11/7/2020)
4.Euromonitor c. Euromonitor. Sun care in all countries, company share. (Last accessed 11/7/2020)
5.Euromonitor d. Euromonitor. Disposable income in all countries. (Last accessed 11/7/2020)
6.Euromonitor f. Euromonitor. Sun care in all countries. (Last accessed 12/7/2020)
7.EGW,2020. Kokua Sun care. (Last accessed 7/7/2020)
8.Greenpeace,2020. (Last accessed/10/7/20).
9.Nivea,2020. Kokua Sun care. (Last accessed 7/7/2020)
10.Mintel, Samantha Dover,2019, Sun care UK. (Last Access:24/10/2020)
11.Mintel, A., FISHER 2017 Sun care UK. (Last Access:24/10/2020)
12.Maybelline, 2020. Maybelline. (Last accessed 7/7/2020)
13.Blue Lizzard,2020. Kokua Sun care. (Last accessed 7/7/2020)
14.Kokua Sun care,2020, Kokua Sun care. (Last accessed 7/7/2020)
15.PANDIKA, M. 2018. Looking to Nature for New Sunscreens. ACS Cent Sci, 4, 788-790.
16.SHAH, S. N. A., SHAH, Z., HUSSAIN, M. & KHAN, M. 2017. Hazardous Effects of Titanium Dioxide
Nanoparticles in Ecosystem. Bioinorganic Chemistry and Applications, 2017, 4101735.
17.KEERTHANA, S. & KUMAR, A. 2020. Potential risks and benefits of zinc oxide nanoparticles: a
systematic review. Critical Reviews in Toxicology, 50, 47-71.
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