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 Pharmacy, Retail Pharmacy, and Online Pharmacy), and Regional Forecast, 2020-2027

The global dermatology drugs market size was valued at USD 36.82 billion in 2019 and is projected to grow from USD 27.45 billion in 2020 to USD 63.99 billion by 2027, at a CAGR of 12.9% during the forecast period.

Currently, a large number of drugs have been approved for the treatment of various dermatologic conditions such as dermatitis, vitiligo, acne, skin cancer, and others. Increasing product launches and rigorous clinical studies are expected to contribute to growth in the global market. Nowadays, acne tends to be a major problem among teenagers concerning 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 prevalence of anti-infective products is expected to drive the demand and sales of dermatology drugs. Moreover, improved marketing strategies of companies and a vast distribution network in order to have a maximum reach of products are likely to contribute to the growing market size during the forecast period.

COVID-19 Pandemic: Reduced Demand for Dermatology Drugs to Dwindle Business Development

The COVID-19 pandemic has negatively impacted the global market as pharmaceutical companies witnessed a setback in the supply chain management owing to the imposition of lockdown by governments of various countries. This led to a reduction in dermatologist appointments. As it is crucial to have a physician’s consultation for skin infections or other dermatology conditions before taking any medications. Stringent social distancing regulations have further led to a decline in market growth. According to the American Association of Dermatology, the dermatologists in the U.S reported an approximately 43% decline in inpatient consultations during the pandemic crisis. Moreover, the reduced demand for products ultimately led to a decrease in sales.

LATEST TRENDS

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

Despite the tremendous efforts put towards managing dermatology skin conditions, there is a higher demand for the development of low-cost, accurate, and therapeutically effective drugs. The increasing prevalence of acne infections, atopic dermatitis, and other conditions among the population has boosted the pharma companies to manufacture medications targeting skin diseases thus increasing the spending on R&D activities. For example, Alembic pharmaceuticals received a U.S FDA nod for its topical retinoid adapalene gel USP 0.3% indicated for treatment against acne vulgaris.

DRIVING FACTORS

Increasing Prevalence of Dermatologic Conditions to Propel Product Demand

Globally, an increasing patient population suffering from acne, vitiligo, and dermatitis will strongly lead to an increased demand for novel products. For instance, according to the American Association of Dermatology, in 2018, around 50 million people in the U.S had acne. Therefore, this will consequently boost the demand for effective products to cure the infections. According to Australian research, more than 4% of the population are affected by acne vulgaris in the long term. Thus, a higher prevalence of skin diseases coupled with demand for effective drugs is anticipated to drive the market growth during the forecast period.

Launch of Therapeutically Effective Drugs to Aid Growth

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

RESTRAINING FACTORS

Risk of Side-effects About Improper Use of Products to Diminish Product Adoption

A major portion of the global population with dermatology infections is contributed by emerging countries owing to improper diet, pollution, and incorrect habitual activities such as smoking, alcohol etc. In low-middle income countries, lack of awareness about skin diseases, and higher illiteracy rate has led to lower adoption of products in the treatment against dermatology conditions. Another factor hindering the market growth is the side-effects associated with the products. For instance, U.S FDA issues an alert for the usage of certain OTC medications that can cause life-threatening allergic conditions. This is likely to lower the adoption of products, leading to a decline in the dermatology drugs’ market value.

SEGMENTATION

By Application Analysis

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Increased Sales of Products for Acne/ Psoriasis to Foster Growth

Based on the application, the market segments include acne, psoriasis, atopic dermatitis, and others. The psoriasis segment accounts for the majority of the dermatology drugs market share in 2019. High growth of dermatological is attributable to the increased number of manufacturers launching effective drugs. Also, the continuous rise in the prevalence of acne and atopic dermatitis is another factor responsible for the surge in the sales of dermatology drugs. Easy availability of topical solutions at the retail pharmacy has led to intrigued patient population towards the adoption of these products.  

Additionally, the acne segment is expected to grow at a considerable CAGR during the forecast period due to the increasing number of market players engaged in introducing advanced products in the global market.

By Route of Administration Analysis

Easy Availability of Topical Solutions to Contribute Revenue Growth

Based on the route of administration, the market for dermatology drugs is classified as oral, parenteral, and topical. The parenteral segment dominated the market in 2019. The dominance of the segment is attributable to the launch of biologics for the treatment of dermatology conditions. Additionally, a rise in the patient preference for topical solutions is expected to surge sales of the products. The oral segment is anticipated to have a significant CAGR during the forecast period owing to U.S FDA approvals for oral treatments.

By Distribution Channel Analysis

Growing OTC Products to Contribute Growth of Retail Segment

In terms of the distribution channel, the market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies. The hospital pharmacy segment holds the lion’s share in the global market owing to increased patient visits and sales of prescription based drugs for treatment against dermatology skin disorders. Also, the rise in the patient preference to buy products from nearby pharmacies, coupled with the availability of low-cost OTC products, is responsible for the growth of this segment. The online pharmacy segment is expected to witness lucrative CAGR over the forecast period owing to penetration of online portals and websites such as amazon, Walmart, etc.

REGIONAL INSIGHTS

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The market size in North America stood at USD 18.08 billion in 2019. The dominance of this region is attributable to the increasing prevalence of dermatology infections. Also, another major factor contributing to the growth of the region is the presence of major players coupled with the launch of products. 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 growth during the forecast period. Moreover, Asia Pacific is anticipated to witness the highest CAGR owing to growing awareness among the population about the care & management of acne as well as other conditions. On the other hand, Latin America, and Middle East & Africa are likely to witness comparatively slower growth owing to lower adoption of topical solutions coupled with a lethargic attitude towards the treatment of acne, dermatitis, and other conditions.

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KEY INDUSTRY PLAYERS

Strong Portfolio and Growth Strategies by Key Players to Improve Business Outcome

The market is consolidated owing to the strong product portfolios and remarkable distribution network of major companies in developed and emerging countries. Currently, Pfizer Inc, BotanixPharma, and Allergan lead the market, accounting for a dominant share in 2019. However, the potential opportunities provided by the market is enabling the entry of several domestic players in the forthcoming years. This will result in a slightly fragmented market by 2027. For example, in December 2019, Ortho Dermatologics received U.S FDA approval for its lotion ARAZLO useful against acne vulgaris.

LIST OF KEY COMPANIES PROFILED:

• Allergan (Dublin, Ireland)


• Botanix Pharmaceuticals (NorthBridge, Australia)


• Pfizer Inc. (New York, U.S)


• Galderma S.A (Lausanne, Switzerland)


• Bausch Health Companies Inc. (Bridgewater, U.S)


• Novartis (Switzerland, Europe)


• GlaxoSmithKline Plc. (London, U.K)


• Valeant Pharmaceuticals International Inc. (New Jersey, U.S)


• Johnson & Johnson (New Jersey, U.S)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• July 2021- Sol-Gel Technologies, Ltd., announced the U.S. FDA approval of TWYNEO cream for the treatment of acne vulgaris in adults and pediatric patients of age 9 years and above with an aim to increase its product portfolio.


• June 2021- Novartis AG announced the U.S. FDA approval for Cosentyx for the treatment of plaque psoriasis in children and adolescents with a view to increase its product line and maintain its brand position in the dermatology drug market.


• June 2021- Amgen Inc., and Kyowa Kirin Co., Ltd. announced an agreement to co-develop and commercialize KHK4083 globally which is a potential human monoclonal antibody for the treatment of atopic dermatitis with a view to increase the product line as well as widen the distribution channel globally.


• June 2021- Galderma announced two 5-years agreements with Sol-Gel Technologies, Ltd., with a view to commercialize EPSOLAY and TWYNEO in the U.S. market and retain its brand position as a leading company in this region.

REPORT COVERAGE

An Infographic Representation of Dermatology Drugs Market

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The global dermatology drugs market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the key 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 advanced market in recent years.

Report Scope & Segmentation