Topical Drugs Market Size, Share & Trends Analysis Report By Type (Semi-solid, Liquid), By Route Of Administration (Dermal, Ophthalmic), By End-use (Burn Centers, Hospitals & Clinics)- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

The global Topical Drugs market size was estimated at USD 97.45 billion in 2021 and is expected to surpass around USD 217.81 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 10.9% during the forecast period 2022 to 2030.

Growth Factors:

The industry growth is primarily driven by the rising incidence of skin disorders and diabetes. According to the British Journal of Dermatology, skin diseases affect almost one-third of the global population. For instance, as per the Journal of the European Academy of Dermatology and Venereology, an estimated more than 94 million Europeans suffer from skin burning, itch, and dryness. Innovation in topical drug formulations and associated product launches in major regions is projected to drive industry growth.

For instance, in May 2022, Dermavant Sciences, Inc. received the U.S. FDA approval for Vtama (tapinarof) cream indicated for topical treatment of adult plaque psoriasis. Vtama is the first steroid-free topical medication. Moreover, in February 2022, Almirall S.A. launched innovative Wynzora cream in Europe for the treatment of mild-to-moderate plaque psoriasis in adults. Moreover, the rising prevalence of diabetes is expected to contribute largely to the industry growth. According to the International Diabetes Foundation, nearly 537 million adults have diabetes in 2021; which is expected to rise to about 783 million by 2045.

As stated in the American Association of Neurology, peripheral neuropathy is associated with diabetes, accounting for about 32%-53% of cases. The launch of topical drugs for the treatment of neuropathic pain is expected to boost industry growth. For instance, in July 2020, Qutenza (capsaicin), manufactured by Grunenthal, received FDA approval for the treatment of diabetic neuropathic pain of the feet. However, the irritations and allergies associated with topical treatments are expected to hamper the adoption of topical drugs. Allergy due to contact with topical drugs can produce reactions, such as anaphylaxis, irritant contact dermatitis, and photosensitivity.

This can lead to switching or discontinuation of drugs as well as medical non-adherence. According to the American Medical Association, 1 in 5 people suffer from allergic contact dermatitis. In addition, as per ResearchGate GmbH, the incidence of dermatological adverse drug reactions was recorded in antimicrobial agents in approximately 56% of cases. The rising cases of allergies associated with topical treatment are anticipated to impede industry growth.

Report Scope of the Topical Drugs Market

Report Coverage

Details

Market Size

US$ 217.81 Billion by 2030

Growth Rate

CAGR of 10.9% from 2022 to 2030

Largest Market

North America

Fastest Growing Market

Asia Pacific

Base Year

2021

Forecast Period

2022 to 2030

Segments Covered

 Type, route of administration, end-use and Region,

Companies Mentioned

 Bayer AG; Cipla Inc.; GSK Group of Companies; Johnson & Johnson Private Limited; Novartis AG; Bausch Health Companies Inc.; Hisamitsu Pharmaceuticals Co. Inc.; Merck & Co. Inc.; Glenmark Pharmaceuticals Ltd.; MedPharm Ltd.

 

Type Insights

On the basis of types, the industry has been further categorized into semi-solid formulations, liquid formulations, solid formulations, and transdermal products. The semi-solid formulations type segment dominated the global industry in 2021 and accounted for the largest revenue share of 62.4% of the overall revenue owing to various strategic collaborations and expansion activities by industry players. For instance, in April 2022, Incyte and Maruho Co. Ltd. formed a strategic alliance agreement for the development, manufacturing, and marketing of ruxolitinib cream for the treatment of dermatology diseases.

Moreover, in June 2021, MedPharm Ltd. expanded its CDMO services in semi-solid and liquid manufacturing by inaugurating a manufacturing facility in North Carolina. These strategic initiatives are expected to bolster industry growth in years to come. The liquid formulations drugs segment is expected to register lucrative growth during the forecast period due to the acquisition of advanced technology and the launch of liquid formulations drugs by key players. For instance, in January 2022, Journey Medical Corp. signed an agreement with Vyne Therapeutics, Inc. to acquire its Molecular Stabilizing Technology franchise. The franchise is inclusive of two topical monocycline drugs, namely Amzeeq and Zilxi. Moreover, in June 2022, Zylo Therapeutics raised USD 5.22 million to advance its Z-pod topical delivery particles.

Route Of Administration Insights

On the basis of route of administration, the global industry has been further classified into dermal drug delivery, ophthalmic drug delivery, rectal drug delivery, vaginal drug delivery, and nasal drug delivery. The dermal drug delivery segment dominated the industry in 2021 and accounted for the largest share of more than 53.72% of the global revenue. The high revenue share of this segment can be attributed to the ease of application, non-invasive nature, and increased utilization of transdermal patches. Increased incidence of tobacco smokers willing to quit is expected to drive the use of nicotine transdermal patches.

For instance, according to the Centers for Disease Control and Prevention (CDC), in 2021, nearly 65% of youth consuming tobacco products were willing to quit all tobacco products. The dermal drug delivery segment is anticipated to expand further at the fastest growth rate retaining its leading industry position throughout the forecast period. This growth can be credited to the increased utilization of dermal drug delivery for chronic pain and migraine treatment. The launch of transdermal patches for managing chronic pain is expected to drive the segment growth further. For instance, transdermal buprenorphine patches are used for chronic postoperative pain control.

End-use Insights

On the basis of end-uses, the industry has been further divided into home care settings, hospitals & clinics, burn centers, and other facilities. The other facilities segment is estimated to register the fastest CAGR of 10.17% during the forecast years. This is attributed to the rising health awareness and product advancements. For instance, in February 2020, the FDA approved three topical drugs, namely Voltaren Arthritis Pain topical gel for temporary pain relief from arthritis and Pataday Once/Twice Daily Relief solution/drops for itchy or red eyes. These approvals are expected to increase the utilization of topical drugs in diagnostic centers settings and drive industry growth over the years to come. On the other hand, the hospitals & clinics segment dominated the industry in 2021 and accounted for the largest revenue share.

The segment is estimated to expand further at a steady CAGR retaining its leading position throughout the forecast years. The segment growth can be attributed to the increased hospital visits for skin disorders. For instance, according to Dermatology Research and Practice, about two-thirds of hospital visits among pediatric patients were due to skin infections, eczema, and hypersensitivity in Nepal. Moreover, according to the Journal of the European Academy of Dermatology and Venereology, the incidence of hospitalization of patients with psoriasis has increased from 17.9 per 100,000 patients in 1998 to about 52 per 100,000 patients in 2018, indicating increased hospital visits.

Regional Insights

North America dominated the industry in 2021 and accounted for the maximum share of 42.10% of the global revenue. The high prevalence of skin diseases and increased spending on topical dermatological products are the main factors for the dominance of the region. For instance, according to the American Medical Association, the prevalence of psoriasis among U.S. adults aged 20 or above was about 3% which accounts for nearly 7.55 million U.S. population. Moreover, according to ResearchGate GmbH, annual spending on topical drugs in the U.S. has increased by about 62% in the duration of 2011-2015, of which topical corticosteroids and antifungal medications contributed the highest spending.

The Asia Pacific regional market is expected to witness the fastest CAGR during the forecast period. The growth of the region is attributed to the strategic partnerships among leading players to manufacture topical products in the region. For instance, in January 2022, Kyowa Kirin Co. Ltd. submitted a New Drug Application to MHLW for marketing approval of mitomycin C, a topical ophthalmic drug indicated for glaucoma surgery. In addition, in March 2021, Japan Tobacco, Inc. and Torii Pharmaceuticals Co. Ltd. received production and marketing approval for Corectim ointment indicated for pediatric atopic dermatitis in Japan.

Some of the prominent players in the Topical Drugs Market include:

  • Bayer AG
  • Cipla Inc.
  • GSK Group of Companies
  • Johnson & Johnson Private Ltd.
  • Novartis AG
  • Bausch Health Companies Inc.
  • Hisamitsu Pharmaceuticals Co. Inc.
  • Merck & Co., Inc.
  • Glenmark Pharmaceuticals Ltd.
  • MedPharm Ltd.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Topical Drugs market

  • By Type
    • Semi-solid formulations
      • Creams
      • Ointments
      • Lotions
      • Gel
      • Pastes
    • Liquid Formulations
      • Suspensions
      • Solutions
    • Solid Formulations
      • Powders
      • Suppositories
    • Transdermal Products
      • Transdermal Patches
      • Transdermal Semi-solids
  • By Route of Administration
    • Dermal Drug Delivery
    • Ophthalmic Drug Delivery
    • Rectal Drug Delivery
    • Vaginal Drug Delivery
    • Nasal Drug Delivery
  • By End-use
    • Home Care Settings
    • Hospitals & Clinics
    • Burn Centers
    • Other Facilities

By Geography

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • United Kingdom
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa

Key Points Covered in Topical Drugs Market Study:

  • Growth of Topical Drugs in 2022
  • Market Estimates and Forecasts (2017-2030)
  •  Brand Share and Market Share Analysis
  •  Key Drivers and Restraints Shaping Market Growth
  •  Segment-wise, Country-wise, and Region-wise Analysis
  •  Competition Mapping and Benchmarking
  •  Recommendation on Key Winning Strategies
  •  COVID-19 Impact on Demand for Topical Drugs and How to Navigate
  •  Key Product Innovations and Regulatory Climate
  •  Topical Drugs Consumption Analysis
  •  Topical Drugs Production Analysis
  •  Topical Drugs and Management