In today’s fast-paced world, many people experience skin issues due to modern lifestyle factors, such as lack of sleep and high-stress levels. These factors disrupt the skin's natural barrier, leading to various skin imbalances. According to our iHP survey, 82.1% of respondents believe that skincare is essential. Market research indicates a growing demand for cosmetics, particularly among individuals aged 20 to 40. However, many consumers face budget constraints, finding it challenging to balance affordability with effectiveness. Approximately 44.1% of consumers spend between $28.14 and $70.35 per month on skincare. This is supported by market reports showing that over 63% of women aged 20 to 40 in the Asian market have a monthly cosmetics budget of no more than $50 USD [1].

Figure. Consumers' willingness and budget to buy cosmetics.

Recognizing the unmet needs of our customers, we set out to develop skincare products that are both cost-effective and of high quality. Our products are designed to address common skincare issues, be gentle on sensitive skin, and cater to a wide range of individual skin conditions. According to the Asian Consumer Trends Report 2024, individuals aged 20 to 40 make up over 70% of total market spending on cosmetics, highlighting their purchasing power and strong interest in skincare products [2]. Therefore, we have structured our business model as direct-to-consumer (To-C), primarily targeting the young to mid-age population (20-40).

Target audience:

Career Women: This group often faces high work pressure and needs effective skincare solutions to address issues caused by long hours and irregular schedules.

Young Mothers: With their busy family lives and parenting responsibilities, they seek simple, quick, and affordable skincare options.

Health-Conscious Consumers: As healthy lifestyles become more popular, a growing number of consumers are looking for skincare products that are suitable for sensitive skin.

Our product “Yeastea” has an integrated oscillating system design. We constructed a yeast strain that can produce ceramide and bisabolol. Check project description for more details.

Figure. The minimum viable products—Yeastea.

Our project aims to provide skincare solutions for both the general public and individuals with sensitive skin, with a focus on the young to mid-age population. The benefits of our products include smoothing the skin, reducing inflammation, and strengthening the skin barrier.

To achieve this, we have combined two powerful ingredients—ceramide and bisabolol—into a yeast lysis extract. The growing emphasis on skincare and the rising trend of using yeast essence extract indicate significant market potential. By gathering user feedback in the future, we are confident in developing a product that is both cost-effective and highly beneficial.

Unlike traditional yeast extract products, our formula also includes ceramide and α-bisabolol, offering consumers a wide range of skin-repairing benefits in a single solution. Ceramide helps repair the skin barrier and provides deep moisturization, while α-bisabolol delivers anti-inflammatory and soothing effects. Yeast extract enhances hydration and overall skin condition. This all-in-one product addresses the comprehensive skincare needs of modern consumers, including those with sensitive skin, thereby increasing its market appeal.

We employ a gene oscillation strategy to engineer yeast capable of producing both ceramide and α-bisabolol. Since these substances are toxic to yeast when produced in excess, the oscillation system ensures balance. When the production of one compound reaches a high level, the yeast shifts to producing the other, preventing the accumulation of toxicity from overproduction. This technique optimizes overall production efficiency by minimizing toxicity.

In contrast to conventional plant extraction or chemical synthesis methods, our biosynthetic approach leverages renewable biological resources like yeast, ensuring an eco-friendly process. By fully utilizing yeast lysate, we achieve high resource efficiency and reduce waste, aligning with sustainable practices. This approach meets the growing consumer demand for environmentally friendly products and reflects our team's commitment to environmental protection.

Our initial focus is on the skincare consumers in the southeastern region of China, a key area for skincare product consumption. The skincare market size in this region is estimated at 5 billion CNY, with approximately 5 million consumers suffering from sensitive skin. These individuals represent our potential customer base, signaling strong market potential.

As our business expands, we will target the entire Chinese market. The size of China's cosmetics market is about 200 billion CNY, with around 20 billion CNY allocated to skincare products for sensitive skin [3]. We anticipate a greater demand for skincare products like "Yeastea," and aim to reach a target consumer base of 50 million nationwide.

To evaluate the maximum market potential of "Yeastea," we considered the global skincare market, which is valued at around 150 billion USD (1 USD = 7.05 CNY as of 9/25/2024). There is increasing global demand for products containing natural ingredients and designed for sensitive skin [4].

We plan to keep a contract with OEMs (Original Equipment Manufacturers) to process "Yeastea". OEM is responsible for providing a unique formula for "Yeastea", processing the raw materials and assembling the ingredients into final products. We provide the essential raw materials and cutting-edge techniques necessary to produce α-Bisabolol and ceramide. By calculating the raw material and processing costs per unit, we estimate total raw material expenses based on projected sales volume.

~total: 83,900USD

The product will be packaged in a standard glass essence bottle with a pump head, designed for easy use. The outer packaging will be a cardboard box with a protective sponge to prevent breakage during shipping.

~total:126,000USD

Considering the prosperous development of e-commerce, we plan to sell our products on Taobao—one of China’s largest online cosmetics platforms. Additionally, we will collaborate with influential bloggers on platforms such as TikTok and Xiaohongshu, both of which are highly popular among younger consumers.

~total:160,548USD

Since the OEM handles production, we only need a small team of five employees to manage the online shop. With an average annual salary of 8,611 USD per employee, the total labor cost is approximately 43,055 USD.

Express transportation within China is charged as the main form of transportation. The average weight per product is about 300 grams, and the average delivery cost per unit is about 0.70 USD. The total delivery expense is about 70,000USD

EBIT (earning before interest and tax) helps to evaluate the operational efficiency and profitability of our company. By subtracting the total costs from total revenue, we estimate an EBIT of $3,516,497 USD over the first five years. This estimated value implies that in our business model, our products, although cost-effective for consumers, still have a profit margin.

Our objectives include registering the company, securing patents, and executing our commercialization strategy. This entails formalizing our corporate status, protecting our intellectual property, and preparing for market entry.

We aim to develop the oscillator yeast, conduct safety tests in accordance with Chinese Law (specifically the Technical Specification for Cosmetic Safety), and refine the yeast based on the results of these safety and efficacy evaluations.

The overall development process comprises stages of technical development, safety and efficacy testing, business establishment, and commercialization. To this end, we have outlined specific future plans for both business registration and technical development as detailed below.