The main concern with nanoparticles is that they are so tiny that they are absorbed into the skin more than we want them (ideally sunscreen should remain on the surface of the skin). Once absorbed they might form unwanted complexes with proteins and they might promote the formation of evil free radicals. But do not panic, these are concerns under investigation. A 2009 review article about the safety of nanoparticles summarizes this, to date, in-vivo and in-vitro studies have not demonstrated percutaneous penetration of nanosized particles in titanium dioxide and zinc oxide sunscreens. The English translation is, so far it looks like sunscreens with nanoparticles do stay on the surface of the skin where they should be.  

Market Dynamics

It’s true that titanium dioxide does not rank as high for UVA protection as zinc oxide, it ends up being a small difference (think about it like being 10 years old versus 10 years and 3 months old). This is not easily understood in terms of other factors affecting how sunscreen actives perform (such as the base formula), so many, including some dermatologists, assume that zinc oxide is superior to titanium dioxide for UVA protection. When carefully formulated, titanium dioxide provides excellent UVA protection. Its UVA protection peak is lower than that of zinc oxide, but both continue to provide protection throughout the UVA range for the same amount of time.