Dermatology OTC Medications Market Research Report and Outlook by 2028

The dermatology over-the-counter (OTC) medications market is projected to expand from approximately US$ 15,456.63 million in 2021 to around US$ 21,313.40 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.7% during the period from 2021 to 2028.

This growth is primarily driven by the high incidence of skin disorders and the increasing disposable income of the middle-class demographic, which is anticipated to enhance the global market. However, the improper usage of OTC medications poses a significant challenge to market expansion.

The COVID-19 pandemic has had a detrimental effect on numerous industries worldwide, including healthcare. Disruptions in supply chains and the overwhelming demand for effective COVID-19 treatments have severely impacted the healthcare research sector, particularly in China. Stringent measures have been implemented to curb the spread of the virus, which is expected to have a notable effect on the dermatology OTC medications market. For instance, manufacturers in India heavily depend on imports of active pharmaceutical ingredients (APIs) from China. The lockdowns have hindered API production, leading to shortages and increased costs for essential materials needed for OTC products. Furthermore, due to the heightened demand for critical OTC medications, the government has imposed restrictions on the export of certain essential drugs. The nationwide lockdown has disrupted the traditional supply chain for OTC medications, resulting in significant stock shortages at many retail pharmacies, despite state government efforts to facilitate the transport of essential drugs. Conversely, there has been a notable increase in the online purchasing of OTC medications.

A significant portion of the population has expressed that the fear of contracting SARS-CoV-2 has deterred them from seeking treatment for skin conditions during the pandemic. This has led to a substantial decline in the demand for dermatological treatments. A cross-sectional study by Al Saud et al., published in the Plastic and Reconstructive Surgery Global Open Journal in September 2020, indicated that approximately 69.5% of OTC dermatology drug users reported that the COVID-19 pandemic adversely affected dermatological practices in Saudi Arabia. Notably, private practice surgeons experienced greater impacts compared to those in the public sector, primarily due to fears and uncertainties about the future, which resulted in an increased reliance on various technical methods to manage their patient load.

According to the European Union, the global middle-class population is projected to reach 5.3 billion by 2030, with Asia leading this growth. The World Bank Group forecasts that by 2030, China and India will account for approximately 66% of the global middle-class population and 59% of middle-class consumption. This expansion of the middle class is expected to significantly influence consumer behavior and spending patterns, thereby driving global economic growth. Additionally, the US Bureau of Labor Statistics reported that disposable income in the United States rose from US$ 10,036.9 billion in 2006 to US$ 13,968.6 billion in 2016, with projections indicating it will reach US$ 21,178.2 billion by 2026. The increase in disposable income and improved aftercare services have contributed to a higher adoption rate of dermatology OTC medications for treating skin issues, thus propelling market growth.

Regulatory approvals are crucial for companies aiming to market their products in the global dermatology OTC medications sector. Key players are actively pursuing strategic initiatives, including mergers, acquisitions, product development, and geographic expansion. For example, in July 2016, Galderma received FDA approval for Differin Gel 0.1 percent (adapalene), a topical gel for OTC acne treatment, which is approved for individuals aged 12 and older.

The widespread occurrence of skin conditions is a significant factor driving the growth of the dermatology OTC medications market. According to the Canadian Dermatology Association, acne affected approximately 5.6 million Canadians, or about 20% of the population, in 2021. Notably, around 80% of acne sufferers are between the ages of 12 and 24, with acne impacting nearly 90% of teenagers and 20-30% of adults aged 20 to 40. Furthermore, a study published in the journal Actas Dermo-Sifiliogr?ficas in 2019 reported that the prevalence of psoriasis in France was 5.2% of the total population. According to 2020 US census data, approximately 7.55 million individuals in the US are affected by psoriasis, with similar prevalence rates observed in both genders.

Increasing healthcare expenditures are also contributing to the growth of the dermatology OTC medications market during the forecast period. Pharmaceutical spending encompasses both prescription and OTC products. In 2019, spending on pharmaceutical products represented 14.3% and 11.9% of total healthcare expenditures in Germany and France, respectively.

The dermatology OTC medications market is categorized based on product type, route of administration, indication, and distribution channel. By indication, the market is divided into categories such as dermatitis, acne, psoriasis, skin bleaching, fungal infections, warts, and others. The acne segment held the largest market share in 2021 and is expected to exhibit the highest CAGR during the forecast period.

Key organizations such as the Food and Drug Administration, World Health Organization, European Commission, American Academy of Dermatology, National Center for Biotechnology Information, Canadian Skin Patient Alliance, Skin Science Foundation, European Society for Dermatological Research, Economic Co-operation and Development, and Canadian Dermatology Association have been referenced as primary and secondary sources in the preparation of this report on the dermatology OTC medications market.