US FDA Regulates Sunscreen Products as Over-the-Counter Drugs
Inglewood Lab Secures Unique Competitiveness
Inglewood Lab Performance Improves with Indie Brand Growth
The stock price of Englewood Lab, an ODM manufacturer of basic cosmetics, has been steadily trending upward this year amid expectations of improved performance.
According to the financial investment industry on the 20th, Englewood Lab's stock price rose by 40% over about two months since March. Headquartered in New Jersey, USA, Englewood Lab produces basic cosmetics as well as color cosmetics and sunscreens. The U.S. Food and Drug Administration (FDA) classifies sunscreens as over-the-counter (OTC) drugs and requires proof of safety and efficacy. Englewood Lab, which has specialized experience and production facilities for OTC product manufacturing, has secured outstanding technological competitiveness in the sunscreen sector.
In the first quarter of this year, it recorded sales of 52.6 billion KRW and operating profit of 6.6 billion KRW, up 14.2% and 19.2%, respectively, compared to the same period last year.
Securities firms expect Englewood Lab's performance to improve quarter by quarter. According to market research firm Euromonitor, the U.S. sunscreen market size reached about 2.6 billion USD (approximately 3.5 trillion KRW) last year. Oh Hyun-ji, a researcher at Kiwoom Securities, explained, "As the sunscreen market grows in North America, Englewood Lab will benefit," adding, "With increasing interest in skin health and anti-aging, sunscreen is becoming an essential product."
Researcher Oh added, "Recently, indie brands have launched sunscreen products, which will rapidly grow the market," and "High standards are applied when developing or manufacturing sunscreen products in the U.S."
Indie cosmetic brands in the U.S. are expanding their influence by leveraging cost-effectiveness. Based on their popularity on online channels, they have started offline sales, quickly increasing market share. Englewood Lab obtained OTC manufacturing approval in 2011 and began developing sunscreen products in 2021. It is expected to improve its performance by producing sunscreen products for indie brands. In the U.S., to manufacture sunscreen products, production facilities and raw material components must be reported to the FDA. The related procedures typically take about two years to complete.
Hwang Se-hwan, a researcher at FS Research, analyzed, "According to the U.S. market research firm ReportLinker, the global sunscreen functional cosmetics market is estimated to reach 13.4 billion USD by 2028," adding, "It is expected to grow at an average annual rate of 8.5% from 2022 to 2028." He continued, "Indie brands are commissioning research and development from Englewood Lab to sell sunscreen products in the U.S. market," and said, "Sales and operating profit are expected to increase by 27% and 38%, respectively, compared to last year."
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