Topical Drugs Market Size to Reach USD 311.88 Billion by 2032, Fueled by Rising Skin Disorder Prevalence and Innovative Drug Delivery Systems

Growing Adoption of Semi-Solid Formulations and Dermal Drug Delivery Solutions Propel the Global Topical Drugs Market Forward, with North America Leading and Asia Pacific Emerging as the Fastest-Growing Region.

Austin, Sept. 15, 2025 (GLOBE NEWSWIRE) — Topical Drugs Market Size Analysis

According to SNS Insider, the Topical Drugs Market (外用薬市場) size was valued at USD 195.77 billion in 2024 and is projected to reach USD 311.88 billion by 2032, growing at a CAGR of 6.02% during the forecast period, 2025-2032. In 2024, the U.S. market accounted for USD 62.26 billion and is projected to grow at a strong CAGR of 5.96% from 2024 to 2032 to USD 98.71 billion. Such astounding growth can be mainly attributed towards the high occurrence of dermal diseases like dermatitis, psoriasis, acne, and skin infection along with advanced drug delivery technology.

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Topical drugs are much preferable to patients and physicians because they provide targeted treatment with little systemic side effects. The use of nanocarriers, liposomal formulations and controlled release mechanisms have helped increase the absorption of drugs as well as patient compliance. In addition, the availability of topical medications over-the-counter (OTC) and increasing consumer awareness of skin health is expected to drive the growth of the market.

Major Companies in the Topical Drugs Market Include:

• Bayer AG
• MedPharm Ltd.
• Encore Dermatology Inc.
• GSK plc
• Johnson & Johnson Services Inc.
• Cipla
• Novartis AG
• Bausch Health Companies Inc.
• Crescita Therapeutics Inc.
• Merck KGaA
• GLENMARK PHARMACEUTICALS LTD.
• Hisamitsu Pharmaceuticals Co. Inc.
• Taro Pharmaceutical Industries Ltd.
• Valeant Pharmaceuticals International Inc.
• Sanofi

Segmentation Analysis:

By Route of Administration:

The market for dermal drug delivery was the largest accounting for 55% of total market in 2024. Dermal formulations are preferred for their ease of use, improved patient compliance, and power in treating various skin and subcutaneous diseases; hence, the demand for this type of formulation is rising. The remaining share includes drug delivery routes such as vaginal, and nasal, ophthalmic, and rectal and is driven by increasing prevalence of local infections and chronic conditions.

By Type:

In 2024, dry formulations segment (tablets, capsules, powders) took the largest revenue share which was estimated at 60% of the market and is expected to remain firm dominance over the forecast period, while semi-solid formulations segment (creams, gels, ointments) followed. The selection of semi-solids is highly considered because it is easy-to-apply, good patient compliance, and it enhances the therapeutic efficacy. However, it is actually being seen in regular demand for novel areas for targeted jobs like hormonal replacement and discomfort control with strong formulations (powders, suppositories), liquid formulations, and transdermal items being utilized.

By End Use:

The largest end-use segment was hospitals and clinics with a 39% global share in the year 2024. These settings are essential for the administration of prescription topical burning treatment, post-operative open wounds, and chronic skin conditions. Home care settings and burn centers are expected to grow at stable rates with increasing numbers of patients choosing home treatments supported by telehealth and digital prescriptions services.

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Regional Analysis:

North America:

North America continued to dominate the global market for topical drugs in 2024, representing nearly 39% of the total market. The growth of the market is attributed to the high prevalence of skin-related disorders, established health care infrastructure, and increasing preferences for advanced dermatological treatments in the region. In addition, the high annual patient pool of psoriasis cases subsequently increase the approval rates for new topical drug formulations in FDA, thereby improving the accessibility to novel topical drug formulations across the region.

Europe:

The highest regional contributor continues to be Western Europe, backed by high healthcare expenditure, extensive acceptance of prescription dermatology products, and leading pharmaceutical players in the region. OTC topical solutions in countries like Germany, France, and the UK are experiencing growth, driven by increased consumer focus on personal care and aesthetics.

Asia Pacific:

During the forecast period, 2025-2032, Asia Pacific region is expected to be the fastest growing with a CAGR of 6.53%. This growth is due to a growing middle-class population, higher disposable income, and rising awareness about skincare and disease prevention. In countries like China, India, and Japan, an increase in advanced drug manufacturing facilities would further develop the regional supply chain as well as decrease the costs of its relevant treatments.

Recent News:

• Targeting the IL-23 protein, Astellas Pharma launched a novel prescription topical foam called Skyrizi in April 2023 for treating plaque psoriasis in adults.
• Acting by blocking the JAK1 protein, Novartis introduced Xeljanz Cream, a topical therapy for adult plaque psoriasis, in March 2023.

Exclusive Sections of the Report (The USPs):

• ENVIRONMENTAL COMPLIANCE METRICS – helps you understand the regulatory pressure and sustainability benchmarks across key markets. Stricter safety and environmental compliance protocols, particularly from the FDA, EMA, and regional health agencies, are shaping production standards in the topical drugs market. Over 70% of new formulations in 2023 adhered to eco-friendly manufacturing and low-residue guidelines, aligning with global trends toward sustainable pharmaceutical practices.
• CAPACITY UTILIZATION RATES – helps you identify whether the industry is facing overcapacity or undersupply, which impacts pricing and investment decisions. Manufacturing units for topical formulations reported 85–90% utilization rates in North America and Europe, signaling strong demand and limited excess production capacity. Meanwhile, emerging markets, such as Southeast Asia are currently underutilized, offering low-cost expansion opportunities for global players.
• SUPPLY CHAIN DISRUPTION INDEX – helps you identify regions or suppliers at higher risk due to geopolitical or logistical factors. Dependency on raw APIs from select countries has increased vulnerability. 2023 saw a 12–15% rise in lead times for critical ingredients due to supply chain disruptions in India and China, emphasizing the need for diversified sourcing strategies and localized manufacturing hubs.
• TECHNOLOGICAL ADOPTION RATE – helps you uncover opportunities for investment or innovation in underpenetrated areas. Emerging trends in nanocarrier-based and transdermal delivery systems are reshaping product innovation. However, only 35% of manufacturers have integrated smart packaging or digital adherence tools, leaving significant room for growth in tech-enabled compliance and patient engagement.
• COMPETITIVE LANDSCAPE – helps you gauge the competitive strength of key players in the market backed by an analysis of their growth projections, market reach, product/service offerings and recent developments. The market remains fragmented, with increasing competition among local and multinational brands in categories including dermatology and pain relief. Top players are focusing on advanced formulations and strategic partnerships with dermatologists and healthcare chains. Market leaders are also expanding their footprint in OTC segments and emerging economies through aggressive distribution strategies.

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Topical Drugs Market Report Scope

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