Topical Drug Delivery Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[231+ Pages Report] According to Facts and Factors, the global topical drug delivery market size was valued at USD 203.56 billion in 2022 and is predicted to surpass USD 397.93 billion by the end of 2030. The topical drug delivery industry is expected to grow by a CAGR of 8.74%.

Market Overview

Topical drug delivery is the administration of medicines onto the mucus membrane or the skin for therapeutic purposes. Topical medications are applied in the effective area where localized therapy is required. There are different types of formulations, like patches, gels, creams, and ointments, which are applied to the targeted treatment area with minimal systemic absorption. These drugs pose fewer systemic side effects with improved patient compliance.

Key Insights

• As per the analysis shared by our research analyst, the global topical drug delivery market size is estimated to grow annually at a CAGR of around 8.74% over the forecast period (2023-2030).
• In terms of revenue, the global topical drug delivery market size was valued at around USD 203.56 billion in 2022 and is projected to reach USD 397.93 billion by 2030.
• High prevalence of dermatological disorders is driving the growth of the global topical drug delivery market.
• Based on the facility of use, the homecare setting segment is growing at a high rate and is projected to dominate the global market.
• Based on the route of administration, the dermal drug delivery segment is projected to swipe the largest market share.
• Based on the product, the semisolid formula segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• High prevalence of dermatological disorders is driving the growth of the global market

The surge in the incidences of skin diseases is a major reason for the high growth rate of the global topical drug delivery market. A major portion of the market revenue is swiped by derma delivery solutions.

Also, the continuous innovations in drug technologies like microspheres, nanoformulations, and liposomes are another major factor supporting the growth trajectory of the industry during the anticipated period. The high preference of patients to go for non-invasive treatment options is also paving paths for new opportunities in the market.

For instance, Taro Pharmaceuticals and Galderma entered into an agreement to take over Alchemee in 2022. The major aim is to include Alchemee’s business and assets around the world and broaden the portfolio of prescription and OTC dermal products.

Restraints

• Skin permeability challenges are likely to hamper the growth of the global market.

Skin serves as a barrier, and not all topical drugs are able to penetrate the skin. Different permeability rates of different individuals are a limitation in the topical drug delivery industry. Also, the absorption rate of the drugs through the skin varies from individual to individual, therefore leading to inconsistent results.

Opportunities

• Rising aging population is likely to foster growth opportunities in the global market.

The aging population is more vulnerable to different health conditions which require topical treatments only. This major demographic shift is expected to widen the scope of the global topical drug delivery market.

Moreover, the innovation of topical analgesics is also expected to revolutionize the market in the coming years. These products are being used for localized pain relief, thereby further contributing to the high growth rate of the market.

For instance, Tava Pharmaceuticals Industries Ltd. expanded its operations in Japan in 2020. The company has adopted an innovative strategy for its local commercial operations, emphasizing the commercialization of specialty assets, complex generics, and other pipeline opportunities.

Challenges

• Formulation complexity is a big challenge in the global market.

Developing an effective formulation that can easily be absorbed through the skin is a big challenge for manufacturers. Drugs with specific physicochemical properties pose complexity for manufacturers. Also, the regulatory approval processes for topical drugs are quite complex, and therefore, such a landscape is expected to hamper the growth of the topical drug delivery industry.

Segmentation Analysis

The global topical drug delivery market can be segmented into the facility of use, route of administration, product, and region.

On the basis of the facility of use, the market can be segmented into burn centers, hospitals and clinics, home care settings, and other facilities. The homecare setting segment accounts for the largest share of the topical drug delivery industry. Patients prefer to deliver topical drugs in homecare settings because of the convenience and ease of use. There are certain medications that can be easily administered by patients at home without any chances of complexities, thereby easing the whole treatment process.

Also, the topical medications used in the treatment of chronic conditions require long-term management. Such conditions include hormone replacement therapy, pain management, and dermatological disorders, which involve the delivery of topical formulations at regular intervals, and therefore, it is convenient to self-administer the treatment at home. The growing aging population is another driving factor for the growth of this segment. There is a high demand for home-based healthcare solutions, particularly in the case of the elderly population.

On the basis of the route of administration, the market can be segmented into nasal drug delivery, vagina drug delivery, rectal drug delivery, ophthalmic drug delivery, dermal drug delivery, and others. The dermal drug delivery segment is projected to witness huge growth during the anticipated period. Dermal drug delivery involves the administration of medication through the skin. The rising incidences of dermal conditions like psoriasis, skin infection, and eczema are further boosting the growth of the segment. Patients prefer topical treatment for skin-associated problems because of its localized nature.

Moreover, the advancements in formulation technologies are further expected to widen the scope of the segment. The innovation of novel patches, gels, and creams is enhancing the efficacy of topical drugs, which is further leading to their high demand in the market. Emerging innovations like nanotechnology and lipoma formulations are further expected to penetrate the global marketplace, thereby accentuating the growth of the segment.

On the basis of product, the market can be segmented into transdermal products, solid formulations, liquid formulations, and semisolid formulations. The semisolid formula segment is expected to experience a high CAGR in the global topical drug delivery market in the forthcoming years. The semisolid formulations are much in demand because of the high preference for topical drugs because of their easy applications.

For instance, ointments, creams, and other topical drugs can easily be applied to the skin, thereby ensuring better coverage of affected areas and facilitating patient convenience. The semisolid formulations improve the absorption of active pharmaceutical ingredients, which is important for the easy penetration of drugs in order to reach the target site. These semisolid formulations are versatile in nature.

Also, it helped pharmaceutical companies innovate with formulations and come up with a diverse range of products like ointments, gels, and creams, each serving one specific purpose. Therefore, such a landscape is likely to boost the demand for semisolid formulations in the market.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global topical drug delivery market because of the high prevalence of dermatological disorders in the region. Several skin-associated diseases like psoriasis, acne, eczema, and many others can be attributed to the high demand for topical drug delivery solutions in the region. The growing aging population is another major factor positively impacting the growth trajectory of the regional market. The aging population is more prone to chronic diseases and may require less invasive and more topical drug delivery solutions.

However, advancements in drug delivery technologies like innovative formulations, gel creams, transdermal patches, and others are further expected to foster growth opportunities in the market. The surging consumer awareness regarding the benefits of topical drug delivery systems, like ease of use and convenience, as compared to the traditional systemic administration, is also responsible for the high growth rate of the segment.

Asia Pacific is expected to be a major growing market for the topical drug delivery solution. The region has a vast and diverse population, which fosters a high demand for tropical drug treatment for different health conditions. The fast-growing economy of the region, along with the increasing middle-class population, is another major factor impacting the growth trajectory of the regional market. The advancements in drug delivery technologies are leading to the development of novel delivery systems, which are also likely to widen the scope of the regional market during the anticipated period.

For instance, GlaxoSmithKline is taking the initiative to expand a new campus and innovation center in Weybridge in 2021. The campus will include the global headquarters for the new Consumers Healthcare business.

Competitive Analysis

The key players operating in the global topical drug delivery market include:

• Sun Pharmaceutical Industries Ltd.
• Ingenus
• Akorn Operating Company LLC.
• Crown
• Biofrontera
• AG
• Allergan
• Perrigo Company plc
• Teligent
• Taro Pharmaceutical Industries Ltd
• Aclaris Therapeutics Inc.
• Almirall
• S.A
• LEO Pharma A/S
• Encore Dermatology
• Mylan N.V.
• Crescita Therapeutics
• Cipla Inc.
• Glenmark Pharmaceuticals Limited
• Hisamitsu Pharmaceutical Co. Inc.
• Bayer AG
• Merck & Co Inc.
• Bausch Health Companies Inc.
• GlaxoSmithKline plc
• Novartis AG
• Nestlé India Ltd.
• Johnson & Johnson Private Limited

For instance, Almirall S.A. got approval for exclusive rights to make Wynzora cream in February 2021 for plaque psoriasis therapy.

The global topical drug delivery market is segmented as follows:

By Facility Of Use Segment Analysis

• Burn Centers
• Hospitals & Clinics
• Home Care Settings
• Other Facilities

By Route Of Administration Segment Analysis

• Nasal Drug Delivery
• Vagina Drug Delivery
• Rectal Drug Delivery
• Ophthalmic Drug Delivery
• Dermal Drug Delivery
• Others

By Product Segment Analysis

• Transdermal Products
• Solid Formulations
• Liquid Formulations
• Semisolid Formulations

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America