Dermatological Drugs Market Analysis North America, Europe, Asia, Rest of World (ROW) - US, Finland, China, Canada, India - Size and Forecast 2024-2028

Dermatological Drugs Market Size 2024-2028 

The dermatological drugs market size is forecast to increase by USD 11.99 billion, at a CAGR of 10.03% between 2023 and 2028. Market growth in dermatology hinges on several key factors. Firstly, the demand for safe and stable drugs that require minimal monitoring is paramount, as patients seek effective treatments with fewer side effects and reduced clinic visits. Secondly, the emergence of improved diagnostic modalities, such as advanced imaging technologies and molecular diagnostics, enables early detection and personalized treatment plans, driving market expansion. Lastly, the need for affordable dermatological therapies, particularly for chronic conditions, spurs innovation in telemedicine and digital health solutions, enhancing accessibility and affordability. These factors collectively contribute to a dynamic market environment where improving patient outcomes and managing healthcare costs are central to sustained growth in dermatology.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market encompasses a wide range of medications used to treat various skin conditions, including acne, eczema, rosacea, and others. Customer preferences and environmental conditions significantly influence the market, with an increasing focus on natural and gentle formulations. Personal care expenditure, particularly in developed regions, is a key driver of growth. Companies are investing heavily in research and development, resulting in innovative treatments for conditions such as dry skin (xerosis), keratosis, and nail problems (corns, callous, ingrown nails, wounds). Emollients, keratolytic agents, and moisturizers are common types of dermatological products. Ingredients like petrolatum, lanolin, mineral oil, dimethicone, lactic acid, salicylic acid, urea, and others are commonly used. Treatments for specific conditions include topical applications of acids like salicylic and lactic acid for acne and keratosis, urea for eczema, and keratolytic agents for callous and corns. Market leaders include companies like Allergan, Novartis, and Pfizer. The market is expected to grow due to the increasing prevalence of skin conditions and the development of new, effective treatments. Water is a crucial ingredient in many dermatological products, highlighting the importance of sustainable sourcing and production methods. Overall, the market is diverse and dynamic, with a focus on meeting the evolving needs of consumers.

Key Market Driver

Need for safe and stable drugs that require minimal monitoring is notably driving market growth. The market caters to the demand for safe and reliable medications for treating various skin conditions affecting the lips, mouth, nose, vaginal area, groin area, face, and other parts of the body. With an increasing number of people suffering from severe dermatologic conditions, there is a growing need for effective and safe drugs with minimal adverse effects. Rational drug use is essential in dermatology to ensure the use of appropriate, effective, and safe therapies in the recommended dosage and formulation for the correct indications and duration.

Moreover, dermatologists play a crucial role in defining the illness, setting therapy objectives, using personalized treatment, initiating treatment, providing necessary information to patients, and monitoring their progress. Bathing, showering, and shampooing are common practices that require the use of various dermatological products such as moisturizers, shampoos, and cleansers. Ensuring the safety and efficacy of these products is essential to prevent adverse reactions and maintain patient compliance. Thus, such factors are driving the growth of the market during the forecast period

Significant Market Trends

Increase in prices of dermatological drugs is the key trend in the market. The market is witnessing an upward trend due to the rising consumer demand and expedited approvals of new medications. Topical treatments remain the most affordable dermatological therapy, while small molecules follow. Biologics, on the other hand, are high-priced. To mitigate the high costs, manufacturers employ pricing strategies such as negotiated discounts with buyers and copay coupon cards. The introduction of biosimilars is anticipated to impact innovator drug prices and decrease the costs for subsequent follow-on biologics.

In response, manufacturers of newer biologics focus on catering to specialized niche markets to justify their product pricing. The anticipated availability of effective and affordable biosimilars may temper the high prices of biologics in the dermatological drugs market. This includes treatments for various areas such as the lips, mouth, nose, vaginal area, groin area, face, and during bathing, showering, and shampooing, as well as the use of moisturizers. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

The presence of access barriers for novel biologics and biosimilars is the major challenge that affects the growth of the market. The dermatological drugs market encompasses a range of pharmaceutical products designed for the treatment of various skin conditions affecting the lips, mouth, nose, vaginal area, groin area, face, and other parts of the body. The use of these drugs includes bathing, showering, and shampooing, as well as the application of moisturizers and specialized topical treatments. One significant segment of the market is dominated by TNF-alpha inhibitor biologics, which are primarily used for chronic inflammatory conditions.

However, the high cost of these biologics, which are protected by clustered patents for another five years, limits their adoption. Regulatory bodies, such as the FDA and EMA, have responded by promoting the adoption of biosimilars, which are lower-priced alternatives. Yet, originator companies have implemented various legal and regulatory barriers to hinder the entry of biosimilars, extending their monopoly profits. Additionally, insurers' mandatory step therapy requirements further complicate the market landscape. Hence, the above factors will impede the growth of the market during the forecast period

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AbbVie - The company offers dermatological drugs such as Botox, Juvederm, and cooltone.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Amgen Inc.
• Bausch Health Companies Inc.
• Botanix Pharmaceutical
• Bristol Myers Squibb Co.
• Cipla Inc.
• Dr Reddys Laboratories Ltd.
• F. Hoffmann La Roche Ltd.
• Galderma SA
• GlaxoSmithKline Plc
• Johnson and Johnson Services Inc.
• LEO Pharma AS
• Lupin Ltd.
• Novartis AG
• Pfizer Inc.
• Sanofi SA
• Sol Gel Technologies Ltd.
• Sun Pharmaceutical Industries Ltd.
• UCB SA
• Vibcare Pharma Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Product 

The biologics segment is estimated to witness significant growth during the forecast period. The global dermatological drugs market is significantly driven by various factors, including the increasing prevalence of skin conditions such as acne, eczema, and rosacea. Customer preferences for effective treatments and improved environmental conditions contribute to the rising personal care expenditure, leading to substantial investments by companies in research and development. The aging population and increasing disposable income are also key factors fueling market growth. Globally, there is a comparison of manufacturer price levels, value-added tax (VAT), and healthcare expenditure across regions.

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The biologics segment was the largest and was valued at USD 10.07 billion in 2018. Emollients, keratolytics, and other topical products are in high demand for treating dry skin conditions like keratosis and xerosis. Water-based formulations, such as petrolatum, lanolin, mineral oil, dimethicone, lactic acid, salicylic acid, and urea, are commonly used for various skin concerns. Corns, callouses, nail problems, and wounds are other conditions addressed by dermatological products. Doctors and pharmacists play a crucial role in diagnosing and prescribing treatments for various eyes conditions, further expanding the market scope. Overall, the dermatological products market is expected to grow steadily due to the increasing awareness and demand for effective skincare solutions.

Regional Analysis

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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market encompasses a wide range of topical products designed to address various skin conditions such as acne, eczema, and rosacea. Customer preferences and environmental conditions significantly influence market trends, with personal care expenditure and investments by companies playing a pivotal role. An aging population, rising disposable income, and global comparison of manufacturer price levels and VAT contribute to market growth. A modeling approach to healthcare expenditure, expiring patents, and trade associations shape industry dynamics. Emollient, keratolytics, and treatments for dry skin, keratosis, xerosis, and related issues like corns, callous, nail problems, and wounds are common dermatological product categories. Doctor and pharmacist often recommend topical treatments for eye conditions as well. Key ingredients include water, petrolatum, lanolin, mineral oil, dimethicone, lactic acid, salicylic acid, urea, and more.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

•  Product Outlook
  • Biologics
  • Small molecules
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
  • Rest of World (ROW)
    • Brazil
    • Argentina
    • Australia

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Market Analyst Overview

The market is witnessing significant growth due to the increasing prevalence of skin conditions such as Acne, Eczema, and Rosacea. Customer preferences for effective treatments and environmental conditions are key drivers for market expansion. Personal care expenditure and investments by companies in research and development are also contributing to market growth. The aging population and rising disposable income are creating new opportunities in the market. Global comparison of healthcare expenditure and manufacturer price levels influence purchasing decisions. VAT and modeling approach are essential factors in market analysis. Healthcare expenditure, expiring patents, and trade associations are significant challenges.

In addition, Emollients, keratolytics, and other topical products are popular treatments for dry skin, keratosis, xerosis, and various skin conditions. Eye care products, including those for corns, callous, nail problems, and ingrown nails, are also gaining popularity. Doctors and pharmacists play crucial roles in prescribing and recommending dermatological products. Water, skin, and various ingredients like petrolatum, lanolin, mineral oil, dimethicone, lactic acid, salicylic acid, urea, and urea are essential components in dermatological products. Wounds and various dermatological conditions require specific treatments, creating diverse market opportunities.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies