The market for cosmetics provided by physicians, also called cosmeceuticals, is execpted to take off in the next few years.
According to a new report by Transparency Market Research (TMR), the market is currently undergoing a paradigm shift with a large pool of skincare specialists, dermatologists, and trichologists emerging as entrepreneurs. However, the top three companies, L’Oreal S.A., Valeant Pharmaceuticals Inc., and Allergan plc, held more than 56 percent of the market in 2015. Of these, L’Oreal S.A. accounted for a larger share of 28 percent in the same year.
TMR asserts that because the physician dispensed cosmeceuticals market offers a plethora of products, it is important for manufacturers to cater to consumer preference to gain a strong footing in the market.
With dermatologists manufacturing cosmeceuticals alongside running their skincare centers, the market is expected to gain momentum in the forthcoming years. However, TMR notes that consumer apprehensions related to potential side effects associated with the use of cosmeceuticals may stand in the way of the market’s growth. Another challenge may be lack of awareness among customers regarding the revenue generating cosmeceuticals such as derma fillers and Botox is likely to create bottlenecks or the market in developing and under-developed countries.
“Since the products offered in the market are highly sensitive to prevailing economic trends, financial downturns are also expected to have a negative impact on their sale,” said a lead analyst at TMR. “Nevertheless, the rising demand for branded cosmeceuticals due to their safety and efficacy is expected to boost opportunities for the market in the near future,” he added. Furthermore, the knowledge about new skin conditions caused by exposure to pollution and climate changes will also boost sales of cosmeceuticals.
Among the products currently available in the market, the skincare products segment accounted for the leading market share in 2015. The increasing demand for cosmeceuticals across emerging economies and due to the rising geriatric population for treating various skin conditions will boost demand from this segment.
Regionally, North America has been exhibiting the most lucrative prospects for the sales of cosmeceuticals. As per TMR, the regional market stood at $4.7 billion in 2015 and is expected to reach $10.52 billion by the end of 2024. If these valuations hold true, the physician dispensed cosmeceuticals market in North America will exhibit a CAGR of 9.6 percent between 2016 and 2024.
TMR forecasts opportunities for the market in Asia Pacific to increase at the fastest CAGR. The Asia Pacific physician dispensed cosmeceuticals market is therefore expected to surge at a CAGR of 12.3 percent during the forecast period.
According to TMR, the global physician dispensed cosmeceuticals market stood at $11.2 billion in 2015. Rising at a CAGR of 10.6 percent between 2016 and 2024, the market is expected to reach $27.6 billion by 2024.
Filed Under: Drug Discovery