Dermatology Drugs Market Size, Share & COVID-19 Impact Analysis, By Application (Acne, Psoriasis, Atopic Dermatitis, and Others), By Route of Administration (Oral, Parenteral, and Topical), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies), and Regional Forecast, 2023-2030

The dermatology drugs market size was valued at USD 38.48 billion in 2022 and is projected to grow from USD 40.55 billion in 2023 to USD 70.59 billion by 2030, exhibiting a CAGR of 8.2% during 2023-2030. North America dominated the global market with a share of 49.32% in 2022.

A large number of drugs have been approved in recent years for the treatment of various dermatological conditions, such as dermatitis, vitiligo, acne, skin cancer, and others. Increasing product launches and rigorous clinical studies are expected to contribute to the growth of the market. Acne is a major problem among teenagers today as they are becoming more conscious about their physical appearance. For instance, the American Association of Dermatology states that more than 85% of younger individuals suffer from at least one form of acne. Therefore, increasing availability of anti-infective products is expected to drive the demand for and sales of dermatology drugs. Moreover, improved marketing strategies of companies and their vast distribution networks to help them gain maximum reach for their products are likely to contribute to the market’s growth during the forecast period.

COVID-19 IMPACT

Reduced Demand for Dermatology Drugs Dwindled Market Development amid COVID-19 Pandemic

As a result of the COVID-19 pandemic, this market experienced slower growth as compared to 2019. The pandemic created an unpredictable situation for dermatology drug manufacturers due to disruptions in supply chain management. The imposition of lockdowns and other restrictions by governments of various countries led to a reduction in dermatologist appointments. For instance, according to the data published by the American Association of Dermatology, dermatologists in the U.S. reported a decline in inpatient consultations during the pandemic crisis. As it is crucial to have a physician’s consultation for skin infections or other dermatology conditions before taking any medications, the market witnessed slower growth.

However, patient visits to clinics and hospitals started increasing in 2021, as government imposed regulations were relaxed. In addition, rising cases of acne linked with extended use of medical face masks also reinforced the demand for dermatology drugs.

In 2022, the market registered a significant growth rate owing to new product launches. Moreover, the dermatology drugs market share is projected to grow at a considerable growth rate over the forecast period, owing to an increase in the number of clinical studies that are in the pipeline.

Dermatology Drugs Market Trends

Increasing Approvals by U.S. Food & Drug Administration to Attract Business Investments

Despite the tremendous efforts put toward managing various skin conditions, there is a higher demand for the development of low-cost, accurate, and therapeutically effective dermatology drugs. The increasing prevalence of acne infections, atopic dermatitis, and other conditions among the population has encouraged pharma companies to focus on new product launches for the diagnosis of these skin disorders.

In 2022, 37 new drugs were approved in the U.S. for a wide range of medical conditions, including dermatological disorders, cancer, rare diseases, and autoimmune disorders. These approvals have demonstrated the continuous progress being made in the treatment of dermatological diseases and also displayed significant advancements in terms of medical research. In recent years, the number of U.S. FDA approvals for dermatology drugs has increased, thereby positively influencing the market growth.

• For instance, in June 2023, Pfizer Inc. announced that the U.S. FDA had approved its new product named LITFULO (ritlecitinib), an oral treatment for individuals aged 12 years and older suffering from severe alopecia areata.

Thus, the increasing focus on providing new treatment options for patients suffering from skin diseases who previously had limited treatment options and the potential to improve their quality of life have driven the market’s growth.

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Dermatology Drugs Market Growth Factors

Increasing Prevalence of Dermatological Conditions to Propel Product Demand

An increasing number of patients suffering from acne, vitiligo, and dermatitis will lead to a strong demand for novel products. For instance, according to the data published by the World Health Organization (WHO), skin disorders are among the top 10 causes of disability, affecting around 900 million people worldwide at one time. Therefore, this factor will consequently boost the demand for effective products to cure these infections.

Furthermore, according to the data published in the Global Atopic Dermatitis Atlas Report in 2022, around 223 million people were living with atopic dermatitis in 2022. Also, the prevalence of atopic dermatitis is high, affecting an estimated 10% of adults and 20% of children. Thus, a high incidence of skin diseases, coupled with the growing demand for effective drugs, is anticipated to drive the dermatology drugs market growth during the forecast period.

Launch of Therapeutically Effective Drugs to Aid Market Growth

Regular introduction of novel and customer-centric products is likely to have a greater positive impact on the market. For example, in May 2020, Sanofi received the U.S. FDA approval for its drug Dupixent, which is designed for children aged 6 to 11 years suffering from atopic dermatitis. Also, in March 2020, Cosmedix announced the launch of a new product named Correct Rapid Relief for acne treatment. Additionally, strategies for marketing the product, such as website launch, awareness campaigns, and advertisements through T.V., social media, and other mediums, will aid the market growth during the forecast period.

RESTRAINING FACTORS

Risk of Side Effects from Improper Use of Products to Diminish Product Adoption

A major portion of the global population living with dermatological infections is found in emerging countries owing to improper diet, pollution, and poor habits, such as smoking and alcohol consumption. In low-to-middle income countries, lack of awareness about skin diseases and higher illiteracy rates have led to the lower adoption of skincare products to treat dermatological conditions. Furthermore, adverse effects associated with dermatology drugs can limit their use and add cost to the already expensive treatments.  For instance, according to a research study published in September 2021 by the journal, ‘Indian Journal of Dermatology’, patients with cutaneous drug reactions in the department of dermatology in a tertiary teaching hospital were analyzed. The study stated that in hospitalized patients, it was observed that the incidence of cutaneous adverse drug reactions ranges from 1-3%.

Dermatology Drugs Market Segmentation Analysis

By Application Analysis

Psoriasis Segment Dominates as Rising Prevalence of Psoriasis Leads to Increased Dermatology Drugs Demand

Based on application, the market is segmented into acne, psoriasis, atopic dermatitis, and others. The psoriasis segment accounted for the majority of the market share in 2022.

The rising prevalence of psoriasis is one of the key factors boosting the demand for dermatology drugs.  Moreover, growing awareness of the disease among patients, the launch of new biologic products, approval of cost-efficient biosimilars, and advancement in the diagnosis of this condition are also some of the major factors increasing the uptake of psoriasis drugs among patients.

• For instance, in September 2022, Bristol Myers Squibb received the U.S. FDA approval for its oral drug, Sotyktu, to treat adult patients suffering from moderate-to-severe plaque psoriasis.

The acne segment is anticipated to witness lucrative growth during the forecast period. Acne is one of the most common dermatological conditions affecting the global population. The launch of new products, availability of generic products, and surge in various programs to raise awareness regarding this infection are contributing to the growing adoption of acne treatment drugs.

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By Route of Administration Analysis

New Product Launches Boosted Demand for Parenteral Route of Drug Administration

Based on route of administration, the market is classified into oral, parenteral, and topical.

The parenteral segment dominated the market in 2022. The dominance of the segment is attributed to the launch of biologics for the treatment of dermatological conditions. Moreover, the launch of new drugs by pharmaceutical companies, which are administered through the parenteral route and the availability of proper reimbursement policies for injections & biologics are also promoting the segment’s growth.

• For instance, in September 2020, Sun Pharmaceutical Industries Ltd. launched ILUMYA, a 100mg subcutaneous injection syringe for treating plaque psoriasis in Japan.

The topical segment is also projected to witness significant growth during the forecast period. Rising prescription of topical drugs for treating acne, psoriasis, and other skin disorders will contribute to the market’s growth.

By Distribution Channel Analysis

Hospital Pharmacies Dominated Market in 2022 Owing to Higher Patient Visits

In terms of distribution channel, the market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies.

The hospital pharmacies segment holds the lion’s share of the global market owing to increased patient visits and sales of prescription-based drugs to treat skin disorders. Also, the rise in patient preference toward buying products from nearby pharmacies, coupled with the availability of low-cost OTC products, is responsible for the growth of this segment.

The online pharmacies segment is expected to witness a lucrative CAGR over the forecast period owing to the penetration of online portals and websites, such as Amazon and Walmart. Also, the launch of new online pharmacies to increase patient access will contribute to the growth of the segment.

• For instance, in November 2020, Amazon launched an online pharmacy in the U.S. The pharmacy allowed customers to purchase generic and prescription medications.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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North America accounted for the highest market share in 2022. The valuation of this market stood at USD 18.98 billion in the same year. Rising patient population, increasing product launches, and growing initiatives by government organizations to support research & development of new & effective drugs, among others, are contributing to the regional market’s growth. Moreover, the availability of proper reimbursement policies for the treatment of dermatological conditions also promotes the regional market’s growth.

• For instance, in September 2023, ResVita Bio received a phase 1 Small Business Innovation Research (SBIR) grant of USD 250,000 from the National Institute of Allergy and Infectious Disease (NIAID) for developing a novel therapy for treating severe Atopic Dermatitis (AD).

Europe holds the second position in the market owing to its investments in R&D for the development of effective drugs. This, along with higher sales of dermatology products, is expected to drive the regional market’s growth during the forecast period.

Asia Pacific is anticipated to witness lucrative growth in the coming years. The rising burden of dermatological conditions, the launch of various awareness campaigns to promote the adoption of proper treatments, and market expansion strategies by key manufacturers are supporting the regional market’s growth.

• In August 2021, Novartis received the China National Medical Products Administration (NMPA) approval for Cosentyx to treat pediatric psoriasis.

Latin America and the Middle East & Africa markets are likely to witness comparatively slower growth owing to low adoption of topical solutions, coupled with a lethargic attitude toward the treatment of acne, dermatitis, and other conditions.

List of Key Dermatology Drugs Market Companies

Strong Portfolio and Implementation of Growth Strategies by Key Market Players Will Improve Market Development

This market is highly competitive, with the presence of various players operating in generics as well as biologics markets. Johnson & Johnson Services, Inc., Abbvie, Inc., Novartis, and Leo Pharma, among others, are a few companies that dominated the market in 2022.

Abbvie, Inc. is one of the leading players operating in the market. The strong presence of the company, approval of new dermatology drugs, and increasing focus on strengthening its geographical presence by engaging in inorganic business activities are some of the major factors contributing to the company’s high market share.

• For instance, in January 2022, AbbVie, Inc. received the U.S. FDA approval for Rinvoq to treat patients aged 12 years and above suffering from severe atopic dermatitis.

Other players, including Eli Lilly, Leo Pharma, and Almirall, are currently focusing on mergers and acquisitions to expand their portfolio of dermatology drugs, which is expected to drive the market’s growth during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• AbbVie, Inc. (U.S.)


• Novartis AG (Switzerland)


• Pfizer, Inc.  (U.S.)


• Johnson & Johnson Services, Inc. (U.S.)


• Eli Lilly and Company (U.S.)


• GALDERMA (Switzerland)


• GSK plc (U.K.)


• Almirall, S.A (Spain)


• Bausch Health Companies Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: Arcutis Biotherapeutics, Inc. and Hangzhou Zhongmei Huadong Pharmaceutical Co., a wholly owned subsidiary of Huadong Medicine Co., Ltd., announced a strategic collaboration and licensing agreement to develop, produce, and commercialize a topical solution named roflumilast in Greater China and Southeast Asia.


• June 2023: Eli Lilly and Company announced an agreement to acquire DICE Therapeutics, Inc. to expand its immunology pipeline.


• April 2023: Novartis AG announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency gave the marketing authorization for Cosentyx (secukinumab) to treat adults suffering from active moderate-to-severe Hidradenitis Suppurativa (HS).


• December 2021: LEO Pharma announced the U.S. FDA approval for Adbry (tralokinumab-ldrm), which claims to be the first and only treatment specifically targeting IL-13 for adults diagnosed with moderate-to-severe atopic dermatitis.


• June 2020: Alembic Pharmaceuticals received the U.S. FDA approval for its generic Adapalene Gel, which is useful in the treatment of acne vulgaris.

REPORT COVERAGE

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The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and key applications of the product. Besides this, it offers insights into the latest market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

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