Topical Drug Delivery Market

Topical Drug Delivery Market Size

The global topical drug delivery market size was valued at around USD 156.3 billion in 2024 and is estimated to grow at 8.8% CAGR from 2025 to 2034. Topical drug delivery techniques incorporate the administration of active substances through the skin or the mucous membranes to provide local or systemic effects.

This method includes the use of various formulations such as creams, gels, ointments, patches, or sprays which are meant to be applied to specific parts of the body. Topical delivery makes use of the skin's permeability to administer medications effectively at the application site.

The primary driver for growth within the topical drug industry stems from the surging skin-related problems and diabetes cases. Skin diseases affect about one-third of the global population, according to the British Journal of Dermatology. Furthermore, around 94 million Europeans are reported to suffer from skin burning, itching, and dryness according to The Journal of the European Academy of Dermatology and Venereology. Growth in the industry is also fueled by advancements in topical drug formulations and product launches in key areas.

For instance, in May 2022, Dermavant Sciences, Inc. gained U.S. FDA approval for Vtama (tapinarof) cream, which is the first steroid-free topical treatment for adult plaque psoriasis. In Europe, Almirall S.A. also launched Wynzora cream in February 2022 for the treatment of mild-to-moderate plaque psoriasis in adults.

Also, the increasing global occurrence of diabetes is one of the factors which is accelerating the growth of the topical drug delivery market. According to the International Diabetes Federation, approximately 537 million adults were suffering from diabetes in 2021, and this figure is expected to reach approximately 783 million by 2045. Moreover, diabetes may lead to various other complications such as pain in the lower limbs, and the introduction of topical treatments for these upper-layer conditions is a major reason driving market growth. An example is the FDA's Qutenza (capsaicin) approval in July 2020 for the treatment of diabetic neuropathic pain, which is a significant milestone in this area.

Topical Drug Delivery Market Trends

• The use of topical drug delivery systems is gaining popularity as it is less invasive than injectable treatments due to patient preference. Topical application in the form of gels, creams, and patches is most convenient and is associated with fewer side effects. This is evident in the management of chronic diseases such as diabetes and musculoskeletal disorders as well as dermatological concerns.
  
• Moreover, growing chronic ailments are still an important factor fueling research towards developing new topical drug delivery systems. According to the World Health Organization (WHO), chronic conditions are the reason for 74% of the total deaths worldwide. Thus, there is a massive market scope available for topical treatment methods.
  
• Furthermore, home care for patients with long-term conditions is becoming a key focus in the healthcare sector, marking another important trend. Topical preparations are easy to apply at home, especially for patients with skin lesions or superficial wounds. This trend has been further accelerated by the COVID-19 pandemic, which underscored the importance of having in-home care solutions to limit hospital visits.
  

Trump Administration Tariffs

• Manufacturers of topical drug delivery products might get impacted because of the Trump administration’s tariffs on imported drug components and packaging materials especially those sourced from China for basic building block materials. However, medicines have been exempted from recent reciprocal tariff, there is uncertainty regarding its longevity.
  
• Pricing of pharmaceutical goods, unlike other sectors, doesn’t experience instantaneous fluctuations. Due to the complex nature of supply chain across the pharmaceutical industry, there is a gap between tariffs and its immediate impact on patients.
  
• Simultaneously, there are stockpiles at nearly every step of the supply chain. Wholesalers, pharmaceutical manufacturers and even governments have their own storage facilities.
  
• Despite of such insulation from escalating pricing, businesses might think of adjusting their sourcing strategies by shifting to India, South Korea, or other Eastern European nations which have similar capabilities in pharmaceutical manufacturing but do not have the same tariffs. This shift may be vital for contract manufacturers and generic producers whose margins are being squeezed because of the rising costs of raw materials.
  
• In the near term, manufacturers might deal with new challenges such as rising prices, products being less accessible within expected timelines, and stringent cost control measures. For the long term, this may bring about a change towards regional production and the use of domestic supply strategies which would, in turn, improve the inflexibility of the supply chain and lessen reliance on global trade routes.
  

Topical Drug Delivery Market Analysis

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Based on product, the market is segmented into semi-solid formulations, liquid formulations, solid formulations, and transdermal products. The semi-solid formulations segment is further sub-segmented into creams, ointments, lotions, gel, and pastes. Additionally, the liquid formulations segment is further sub-segmented into suspensions and solutions.

Furthermore, the solid formulations segment is further bifurcated into powders and suppositories. Moreover, the transdermal products segment is further bifurcated into transdermal patches and transdermal semi-solids. The global market was valued at USD 144.9 billion in 2024. The semi-solid formulations segment dominated the market with the largest revenue share of 62.1% in 2024.

• The aggravating prevalence of skin complications such as eczema, psoriasis, acne, and dermatitis is a significant factor that impacts the demand for semi-solid formulations. According to the WHO, skin diseases are considered one of the most prevalent health adversities globally, with almost 900 million people affected at some point in time. For skin issues, semi-solid formulations are more advantageous and therefore their demand is increasing. Their effectiveness in treating these skin disorders will continue to boost their demand in the pharmaceutical market.
  
• The segment’s dominance is further impacted by the expansion and merger activities of the industry participants. For example, Incyte and Maruho Co. Ltd. formed a strategic collaboration in April 2022 for the development, manufacturing, and marketing of ruxolitinib cream for dermatology. Moreover, in June 2021, MedPharm Ltd. enhanced its CDMO services in semi-solid and liquid manufacturing by starting a new facility in North Carolina. Such strategies are expected to promote market growth for this segment in the forthcoming years.

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Based on route of administration, the topical drug delivery market is segmented into dermal drug delivery, nasal drug delivery, ophthalmic drug delivery, vaginal drug delivery, and rectal drug delivery. The dermal drug delivery segment dominated the market with the largest revenue share of 58.7% in 2024.

• The growth of dermal drug delivery is primarily driven by the increasing prevalence of chronic skin disorders such as eczema, psoriasis, and acne. About 125 million people all over the world suffer from psoriasis, as reported by the National Psoriasis Foundation. Further, the National Eczema Association also states that more than 31 million people in the U.S. have some form of eczema. The aforementioned statistics state the significance of skin conditions considering the utilization of medical care services, which emphasizes the need for development of systems for topical drug delivery.
  
• Furthermore, the fact that patients prefer non-surgical and self-administered treatment is contributing to the market growth. The dermal route of drug delivery provides a simple means of dealing with pain and inflammation as well as the treatment of chronic diseases.
  

Based on end use, the topical drug delivery market is segmented into home care settings, hospitals and clinics, burn centers, and other end uses. The home care settings segment dominated the market with the largest revenue of USD 66.9 billion in 2024.

• Topical treatment have distinctive benefits in home care as they are easy to apply and do not require surgical intervention. Unlike injectables and oral medication which require a nurse or doctor’s supervision, topical drug delivery systems are easy to use which makes them more appropriate for home-based therapies.
  
• Moreover, the home-care approach is gaining more prominence with the management of chronic conditions like arthritis, diabetic neuropathy, and other pain disorders. There is an increasing focus on drug delivery systems for treating these conditions. For example, pain management patches and treatments for diabetic neuropathy such as Qutenza (capsaicin), provide long-term treatment alternatives for patients that prefer to minimize the number of hospital visits. The rising prevalence of these chronic conditions is a major factor contributing to the increased demand for drug delivery systems in home care settings.

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North America: The U.S. topical drug delivery market is projected to grow significantly, from USD 59.1 billion in 2023 to USD 149 billion by 2034.

• The dominance of this region is attributed to the high prevalence of skin diseases and increased spending on topical dermatological products. For instance, the American Medical Association states that the prevalence of psoriasis amongst the US adult population aged 20 and above was around 3%, which translates to nearly 7.55 million people in the US. The high incidence of skin conditions, coupled with increased healthcare expenditure in the region, supports the growth of the market in the region.
  
• Furthermore, acne is the most common skin disorder affecting millions of people across U.S. According to American Academy of Dermatology Association, acne affects more than 50 million people in U.S. annually.
  

Europe: The topical drug delivery market in UK is expected to experience significant and promising growth from 2025 to 2034.

• The country faces a surge in its aging population. According to the Office for National Statistics (ONS), it is expected that in 2050 one in four people in the UK will be aged 65 or over. With this increase in population, there is a marked increase in chronic conditions in older adults, such as arthritis, diabetes and skin disorders.
  
• According to the NHS, there are about 10 million people suffering from arthritis in the UK which increases with age. There is a growing supply of effective topical treatments available nowadays which has led to easier home use among the patients.
  

Asia Pacific: Japan topical drug delivery market is anticipated to witness lucrative growth between 2025 – 2034.

• Japan is well known for its advancements in technology in the healthcare and pharmaceutical sector. The country is well advanced in the sophisticated development of drug delivering systems including microneedles, nanoparticles and transdermal drug delivery systems.
  
• For example, in February 2021, Luye Pharma Group declared that they reached an agreement with Towa Pharmaceutical, giving Towa exclusive rights to develop and sell alternative Rivastigmine Multi-Day Transdermal Patch (Rivastigmine MD) in Japan. These activities have increased the effectiveness of topical drug delivery systems to the skin by improving absorption, yielding greater benefits, and increasing compliance of the patients to  treatment regimens.
  

Middle East and Africa: The topical drug delivery market in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.

• In Saudi Arabia, the requirements for pain relief creams and patches are increasing due to the rise in chronic illnesses, especially diabetes. Saudi Arabia has been reported to have one of the highest diabetes rates globally, standing at 15.8% in 2021 according to World Health Organization (WHO) estimates.
  
• The increasing number of diabetic patients along with its complications is expected to propel the growth of the market in the country.
  

Topical Drug Delivery Market Share

Galderma Laboratories, Teva Pharmaceutical Industries, Taro Pharmaceutical Industries, and GlaxoSmithKline as the top 4 players collectively held approximately 40% of the market share in the industry. The market contains both large global enterprises and countless smaller companies, making it rather competitive. Investing in the research and development of novel topical drug delivery systems, including microneedles, microneedle patches, nanotechnology-based drug delivery, as well as smart and wearable drug delivery systems, appears to be a vital strategy for wealthier participants in the market.

Further, strategic partnerships with research and healthcare institutions are important for integrating new technologies and for the widened distribution that enables companies to meet the growing need for non-invasive, low-cost diagnostic methods. Support from government regulations, including lowering the barriers to filing for innovation patents and the easing of the approval process for new therapeutics, encourages investment in novel ideas and competition in the market, thus signaling the fate of companies to profit off the expanding market.

Topical Drug Delivery Market Companies

Some of the eminent market participants operating in the topical drug delivery industry include:

• AbbVie
• Bausch Health Companies
• Bayer
• Cipla
• Eli Lilly and Company
• Galderma Laboratories
• GlaxoSmithKline
• Johnson & Johnson
• Merck
• Novartis International
• Pfizer
• Sanofi
• Sun Pharmaceutical Industries
• Taro Pharmaceutical Industries
• Teva Pharmaceutical Industries
• Viatris
  
• Teva Pharmaceutical Industries provides a wide range of branded and proprietary topical drugs, making them affordable in both developed and emerging economies. It strives to achieve patient compliance with novel interpretations such as combination and layering topical therapies administered through extended-release systems.
  
• Galderma Laboratories' areas of specialization are focused on branded topical drugs for dermatological use like Differin and Epiduo. The firm places substantial emphasis on research and development for sophisticated systems of macromolecular drug delivery like liposome and microemulsion systems.
  

Topical Drug Delivery Industry News:

• In May 2022, Dermavant Sciences reported that the FDA approved the use of the VTAMA cream, tapinarof 1%, for the treatment of plaque psoriasis in adults. VTAMA was the first and only lesion-targeting steroid-free ArGAR (aryl hydrocarbon receptor agonist) in topical medication. For the company, this was another remarkable achievement because they now had a non-steroidal option to offer for psoriasis patients in need.
  
• In January 2020, Eli Lilly and Company announced the purchase of Dermira for an estimated USD 1.1 billion in cash. This purchase added lebrikizumab, an investigational monoclonal antibody that inhibits IL-13 and is presently in the third phase of clinical trials for atopic dermatitis in patients 12 and older, to Lilly’s pipeline in immunology. It showed the company’s strategic undertakings directed at deepening penetration in the field of topical immunodermatology.
  
• In April 2024, Cipla Health Limited has acquired the cosmetics and personal care business of Ivia Beaute Private Limited. This acquisition has included brands such as Astaberry, Ikin, and Bhimsaini. With this acquisition Cipla has plans to expand its product portfolio and further strengthen its presence in India’s beauty and personal care market.
  

The topical drug delivery market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Product

• Semi-solid formulations
  • Creams
  • Ointments
  • Lotions
  • Gel
  • Pastes 
• Liquid formulations
  • Suspensions
  • Solutions
• Solid formulations
  • Powders
  • Suppositories
• Transdermal products
  • Transdermal patches
  • Transdermal semi-solids

Market, By Route of Administration

• Dermal drug delivery
• Ophthalmic drug delivery
• Rectal drug delivery
• Vaginal drug delivery
• Nasal drug delivery

Market, By End Use

• Home care settings
• Hospitals and clinics
• Burn centers
• Other end use

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE