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The dermatology segment in the Indian Pharmaceutical Market (IPM) is expected to grow at 11-12 per cent. Banking on this, top performers in this segment are focusing on new product launches and science-based solutions.
The growth is attributed to factors such as the increasing prevalence of skin conditions due to pollution, growing demand for aesthetic dermatology procedures, increasing disposable incomes, and a growing population.
The market size for dermatology is estimated at Rs 13,200 crore (as per Pharmatrack April 2024 data) and is growing at a steady rate of 8 per cent compound annual growth rate (CAGR). The dermatology segment in the Indian pharmaceutical market is growing due to factors such as the increasing prevalence of skin conditions due to pollution, growing demand for aesthetic dermatology procedures, increasing disposable incomes, and a growing population.
Speaking on the future growth of dermatology, Ajay Kumar Desai, senior vice president - finance & accounts & investors relation at Alembic Pharmaceuticals, stated, “The dermatology segment in India is poised for growth, with a projected higher single-digit growth rate for the entire industry and an even stronger double-digit surge in the hair care and moisturiser categories. At Alembic Pharmaceuticals, we are well-positioned to capitalise on this trend with our focus on these key areas, and we are committed to new products in the derma segment in the coming quarters.”
The segment is poised for stronger growth, felt industry watchers.
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Bhavesh Shah, managing director and head of investment banking at Equirus, stated, “The Indian derma market is one of the most attractive segments in the pharma space. The segment is likely to grow rapidly at about 11-12 per cent. The growth drivers of the segment have been lifestyle changes, changing weather patterns, improved products, and increased preventive awareness. The sector has seen both private equity and strategic interest. The pharma companies aspire to be a part of the segment by continuously launching new brands/products which are technologically advanced or have key differentiations from the rest in the market.”
According to data from market research firm Pharmatrack, the top six companies in the segment include GSK, Glenmark, Sun Pharma, Hegde and Hegde, Abbott, and Dr Reddy's Laboratories, which all grew at a CAGR of 13 per cent, 6 per cent, 9 per cent, 9 per cent, 8 per cent, and 10 per cent, respectively. The leading segments include anti-dandruff products, hair-care products, and cosmetic dermatology, which showed increased demands as they grew by 24, 14, and 12 per cent, respectively.
Speaking on why the segment is witnessing growth, Alok Malik, president and business head - India formulations at Glenmark, stated, “For us, dermatology has grown at a pace of 9.7 per cent CAGR over the last five years, exceeding the IPM growth. Holding a market share of 7.51 per cent, I can say that the segment's growth is due to rising awareness about skin-related ailments and a growing focus on personal care are significant contributors. We aim to maintain a leadership position in this segment and will continue to launch products in this segment.”
Dr Reddy’s Laboratories spokesperson stated, “We witness an increased awareness among consumers towards science-based and professionally-prescribed dermatology products, resulting in an uptick in demand. With this, the dermatology segment becomes an interesting space for us to build on. Our products are widely prescribed by doctors for the science behind them. We will continue to build on the market strength and our position as a trusted brand and expand into new portfolios with an aim to cater to diverse consumer needs in the space of dermatology.”
The increasing incidence of skin diseases and the growing awareness about these conditions among the Indian populace have been pivotal in driving the dermatology market's expansion. As more people become conscious of skincare and seek treatments for various dermatological issues, the demand for effective products has surged. This has been complemented by rising disposable incomes, which allow for greater expenditure on health and wellness, including skincare.
