Prescription Dermatological Drugs Market Report 2025

The prescription dermatological drugs market size has grown strongly in recent years. It will grow from $37.77 billion in 2024 to $40 billion in 2025 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to the rise in the prevalence of skin disorders, increase in awareness of skin health, growth in dermatology clinics, expanding geriatric population, rise in healthcare spending, and rise in R&D investments.

The prescription dermatological drugs market size is expected to see strong growth in the next few years. It will grow to $51.09 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to increasing prevalence of skin disorders, rising awareness of dermatological health, expanding telemedicine adoption for dermatology consultations, growing skin care aesthetics, enhanced insurance coverage for dermatological treatments, and increasing demand for personalized medicine and precision dermatology. Major trends in the forecast period include the development of targeted biologic therapies, the adoption of gene editing for skin conditions, advancements in drug delivery systems, the adoption of personalized treatments through genetic profiling, the adoption of topical medications with improved absorption, and the adoption of artificial intelligence to optimize drug formulations and treatment plans.

The forecast of 6.3% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff barriers are expected to hamper U.S. dermatology clinics by increasing the cost of biologic psoriasis treatments and topical immunosuppressants sourced from Switzerland and Ireland, thereby reducing access to advanced skin therapies and elevating chronic dermatosis management costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing prevalence of dermatological conditions is expected to drive the expansion of the prescription dermatological drugs market. Dermatological conditions encompass disorders affecting the skin, hair, or nails, such as eczema, psoriasis, and acne, which require medical treatment for effective symptom management. The increasing occurrence of these conditions is largely attributed to heightened exposure to environmental pollutants, lifestyle changes, and rising stress levels. Prescription dermatological drugs play a vital role in managing these conditions by providing targeted treatments to alleviate symptoms and promote long-term skin health. For example, in March 2022, Europe PubMed Central, a UK-based organization hosted by EMBL’s European Bioinformatics Institute for biomedical research, reported that a study conducted across 27 European countries found that approximately 43.35% of participants equivalent to around 185 million individuals experienced at least one skin condition, with fungal infections, atopic dermatitis, and acne being the most prevalent. As a result, the increasing prevalence of dermatological conditions is fueling the growth of the prescription dermatological drugs market.

Leading companies in the prescription dermatological drugs market are prioritizing the development of innovative treatments, such as therapies for prurigo nodularis, to address unmet medical needs and provide more effective solutions for patients suffering from chronic and difficult-to-treat skin conditions. Prurigo nodularis is a chronic skin disorder characterized by intensely itchy, raised, and firm nodules or bumps on the skin. For instance, in September 2022, Regeneron Pharmaceuticals Inc., a US-based biotechnology company, partnered with Sanofi S.A., a France-based pharmaceutical company, to secure approval from the U.S. Food and Drug Administration (FDA) for Dupixent (dupilumab). This marks the first and only FDA-approved treatment for prurigo nodularis. The approval was based on clinical trial data demonstrating significant improvements in itch severity and skin lesions in patients treated with Dupixent compared to those receiving a placebo.

In October 2024, Organon & Co., a US-based pharmaceutical company, acquired Dermavant Sciences Ltd. for $1.2 billion. Through this acquisition, Organon aims to expand its dermatology portfolio by incorporating innovative treatments for chronic skin conditions, including prurigo nodularis and psoriasis. Dermavant Sciences Ltd. is a US-based company specializing in the development of therapeutic solutions in immunodermatology.

Major players in the prescription dermatological drugs market are Pfizer Inc., Johnson & Johnson, Merck KGaA, AbbVie Inc., Bayer AG, Novartis AG, GSK plc, Amgen Inc., Teva Pharmaceutical Industries Ltd., Intas Pharmaceuticals Inc., Regeneron Pharmaceuticals Inc., Mylan NV, Sun Pharmaceutical Industries Ltd., Cipla Limited, Dr. Reddy's Laboratories Ltd., Zydus Cadila Health Care Limited, Leo Pharma A/S, Glenmark Pharmaceuticals Limited, Almirall S.A., DermBiont Inc.

North America was the largest region in the prescription dermatological drugs market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in prescription dermatological drugs report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the prescription dermatological drugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The prescription dermatological drugs market consists of sales of products such as antifungals, antihistamines, and isotretinoin. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a significant impact on the pharmaceutical sector. Companies are grappling with higher costs on imported active pharmaceutical ingredients (APIs), glass vials, and laboratory equipment - many of which have limited alternative sources. Generic drug manufacturers, already operating with minimal profit margins, are particularly affected, with some scaling back production of low-margin medications. Biotech firms are also experiencing delays in clinical trials due to shortages of specialized reagents linked to tariffs. In response, the industry is shifting API production to regions like India and Europe, building up inventory reserves, and advocating for tariff exemptions on essential medicines.

The prescription dermatological drugs market research report is one of a series of new reports that provides prescription dermatological drugs market statistics, including the prescription dermatological drugs industry's global market size, regional shares, competitors with a prescription dermatological drugs market share, detailed prescription dermatological drugs market segments, market trends and opportunities, and any further data you may need to thrive in the prescription dermatological drugs industry. This prescription dermatological drugs market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Prescription dermatological drugs are medications prescribed by healthcare providers to treat various skin conditions, including acne, eczema, psoriasis, and other dermatological disorders. These drugs contain active ingredients that require medical supervision to ensure safe and effective use.

The primary drug classes of prescription dermatological drugs include corticosteroids, retinoids, calcineurin inhibitors, antifungal agents, antibiotics, and others. Corticosteroids, which are steroid hormones derived from the adrenal cortex or their synthetic analogs, are primarily used to reduce inflammation and suppress immune responses in various medical conditions. These medications are commonly prescribed for conditions such as acne, psoriasis, dermatitis, and fungal skin infections. They are distributed through multiple channels, including hospital pharmacies, retail pharmacies, and online pharmacies.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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