How Much Does It Cost to Manufacture a Sunscreen?

April 21, 2023 · News

Adding a sunscreen product to your portfolio makes sense. Not only does Australia have one of the highest rates of skin cancer in the world, but when coupled with the knowledge that sun exposure is one of the biggest contributors to premature ageing, what you have is a large, high-demand market offering a wealth of opportunity.

If you’re considering adding a sunscreen to your product range, it’s important to understand the manufacturing costs associated with branching into this competitive market segment. While commercial sensitivities restrict us from publishing detailed information about sunscreen manufacturing costs, this article provides a general summary of the key costs involved.

Costs Involved With Manufacturing Sunscreen

The cost of manufacturing sunscreen is affected by a variety of factors including the cost of the raw materials and packaging used, how much you produce and how labour-intensive the production processes are.

Raw materials

The ingredients included in your sunscreen formulation will affect the cost of the finished product.

Different sunscreen formulations utilise active ingredients that work to either block or absorb UVA and UVB rays. While mineral sunscreens typically contain zinc oxide, chemical sunscreens might include ingredients such as, octyl salicylate, octocrylene and homosalate. While each of these active ingredients performs the same function, they can differ in terms of performance and cost.

Many formulations also include a variety of other ingredients designed to make the sunscreen more effective or pleasant to use, which will also affect cost.

Packaging

Your choice of packaging is another key consideration that will affect the cost of your finished sunscreen product.

Plastic is a low-cost option that is lightweight, durable and hygienic, however current trends are demonstrating a preference for more eco-friendly packaging options such as using recycled or biodegradable materials. While these will typically cost more, it’s an additional cost that many businesses are willing to accept where their consumers will perceive it as valuable.

Volume

Therapeutic goods are restricted by the batch size able to be manufactured.

The average cost per unit will be influenced by how many units you order, with the average cost per unit decreasing as order volumes increase.

Labour

As a listed medicine, sunscreens need to be manufactured in a TGA licensed facility. The production of therapeutic goods requires systems and processes, and therefore extensive documentation and review, resulting in increased overheads.

What Other Factors Can Affect the Cost of Manufacturing Sunscreen?

Developing and manufacturing a sunscreen is somewhat more involved compared to many other skincare products, often taking significantly longer to get your product to market. This is due to several reasons:

Sunscreens need to meet regulatory requirements: In Australia, most sunscreen products are categorised as lower-risk medicines and must therefore meet the regulatory safety requirements set by the Therapeutic Goods Administration (TGA). They must be listed or registered in the Australian Register of Therapeutic Goods (ARTG) to be approved for sale in Australia, and they also need to comply with standardised testing and labelling requirements to verify their Sun Protection Factor (SPF), level of water resistance and whether they are broad spectrum and pass PET. Sunscreen products are also subject to different regulatory, testing and labelling requirements across the globe, which can present some challenges for businesses that plan to sell their products internationally.
Sunscreens take longer to formulate: UV protection is the most important aspect of any sunscreen, however many active ingredients can make a sunscreen feel either too chalky or too greasy. Finding the right balance of ingredients that makes a sunscreen both pleasant and effective can often take several months.
Sunscreens need to undergo stability testing: During the early stages of product development, stability requirements will be discussed and outlined with clear indication of timeline provided.

The longer lead time required to launch a new sunscreen product is a key factor that can have significant cost implications. If you need to get your sunscreen product to market faster, it’s best to use a contract sunscreen manufacturer that can offer a range of pre-developed sunscreen formulations that allows you to bypass much of the process.

Trusted Australian Sunscreen Manufacturers

If you’re considering launching a new sunscreen product, partner with Wild Child.

As an Australian manufacturer specialising in sunscreen, skincare and cosmetics, our resident chemists boast more than 30 years of experience in the pharmaceutical and cosmetics industry. With an extensive range of ready-to-go, pre-tested formulations, we can dramatically shorten the amount of time it takes to get your new sunscreen product to market.

Find out more about who we are or contact us to discuss your ideas for a new sunscreen product.

Frequently Asked Questions

Yes, our minimum order quantities (MOQs) are a function of the calibrated weights of our mixing vessel and the capacity of our filling lines. Depending on the unit size of the final product the MOQ will typically be around 10,000 units.

We do not have a product catalogue. Products will be suggested by our Product Development team based on the information you provide through the new product enquiry form.

Yes, with a better understanding of your product requirements we will develop a lab sample(s) for your review and ultimate approval. Depending on level of customisation or development required, this service may incur a fee.

Typically, 12 – 14 weeks from the placement of purchase order and payment of the deposit. Please note, the manufacturing lead time is dependent on the availability of the raw materials and packaging components, which can be confirmed prior to the placement of your order.

No, all our pricing is EX WORKS. Whilst we do not provide freight and distribution services, we can assist with the freight quotation and booking from our Facility.

Upon placement of purchase order, a 50% deposit is required, and balance is due prior to the release of the finished goods.

Yes, we can provide packaging options based on formulation compatibility and compliance standards. Alternatively, clients can provide their own packaging with the understanding that it must be compatible with our equipment and meet compliance standards.