The atopic dermatitis drugs market size is estimated to be USD 12,875.1 million in 2022 and is expected to witness a CAGR of 9.28% during the forecast period 2023-2033. Rise in the number of atopic dermatitis and an escalation in the demand for biologics are some of the factors contributing to the market growth. Furthermore, increasing R&D investments by market players and surge in product approvals and development of biologics for the treatment of atopic dermatitis are other factors supporting the market growth. However, unfavourable reimbursement policies are expected to hinder the growth.

Increasing R&D investments by market players is expected to propel the market growth during the forecast period. Companies are investing in R&D to create novel products as the market for atopic dermatitis is profitable. In the upcoming years, leading companies expect revenue growth to be supported by the rising number of pharmaceuticals that are advancing to the late stages of clinical trials after exhibiting promising outcomes. For instance, Galderma reported phase 2b data for its experimental medication Nemolizumab in patients with uncontrolled atopic dermatitis in April 2021. Abrocitinib, which is under development, was declared by Pfizer to be non-inferior to the Sanofi drug Dupixent, which is currently being used, in March 2021.

Surge in product approvals and development of biologics for the treatment of atopic dermatitis is predicted to fuel the market growth during projected period. For instance, Dupixent (dupilumab) was approved by the U.S. FDA in June 2022 for use in children with atopic dermatitis between the ages of 6 months and 5 years old. AbbVie Inc. announced in January 2022 that the U.S. FDA had approved RINVOQ (upadacitinib) for the treatment of severe atopic dermatitis in adults and children over the age of 12.

Segmentation

By Drug Class

The market is categorized into calcineurin inhibitors, corticosteroids, biologics, PDE4 inhibitors, and others. In 2022, the biologics segment accounted for the highest revenue share due to surge in prevalence of the disease as biologics reduce the inflammatory response that causes atopic dermatitis. As biologics target the inflammatory mechanisms causing the disease rather than just treating the symptoms, they have a significant therapeutic benefit over traditional topical therapies. These drugs have a competitive advantage due to their great specificity. The demand for biologics is increasing as a result of their high efficiency, increasing product approvals, and the presence of a strong pipeline of biologic drugs for atopic dermatitis are the factors which contribute to the biologics segment’s expansion. Nemolizumab, a monoclonal antibody under development by GALDERMA LABORATORIES, L.P., is being tested for its potential to treat atopic dermatitis and pruritus.

By Route of Administration

The market is categorized into oral, topical, and injectable. In the global market, the injectable segment accounted for the largest revenue share in 2022 owing to increasing use of injectable drugs including Dupilumab. Tofacitinib and ruxolitinib are other injectable biologics being studied in clinical trials. In the near future, biologics are anticipated to alter the therapy landscape for AD. To fill the significant unmet demand in this market, they are being researched for the treatment of paediatric patients.   Dupilumab development programme is one of the clinical initiatives aimed at creating AD medications for pediatric patients. The program’s objective is to enhance clinical research. The oral segment is predicted to increase at the second-fastest rate throughout the forecast period due to new launches of JAK inhibitors, which are typically used orally. Only in severe situations, when the disease has spread to significant parts of the body, or in the case of any complications with previous treatments, are oral corticosteroids administered.

By Distribution Channel

The market is segmented into online pharmacies, retail pharmacies, hospital pharmacies. In 2022, the retail pharmacies segment accounted for the largest revenue share owing to rise of retail pharmacies and the increase in patient purchasing power. Affordability, convenience, and the simple availability of therapeutic pharmaceuticals at the preferred location are some key elements promoting the market’s expansion. The availability of small molecule drugs and surge in the number of retail pharmacies globally are the other factors driving this segment’s growth. Most drugs can be obtained easily from retail pharmacies, especially while receiving care at home. The online pharmacy distribution channel segment is anticipated to expand substantially during the projected period due to its ease and other advantages including home delivery, online shopping is preferred.

Regional Markets

In 2022, North America region accounted for the highest revenue in the atopic dermatitis drugs market and is expected to maintain its dominance during the forecast period. This is attributed to the presence of major players including AbbVie and Viatris. The availability of a well-established R&D infrastructure and reimbursement policies are two major factors contributing to the region’s sustained dominance. In addition, the regulatory and reimbursement environment is constantly changing to keep up with the rapid advancement of research in this field. Asia Pacific is expected to grow at the fastest rate during the projected period. Growing pro-health measures, use of better therapies, and increasing customer awareness are driving market expansion in this region. Additionally, the market is expected to grow significantly due to the increasing prevalence of atopic dermatitis, escalating demand for affordable treatments, and rising population. Healthcare reimbursement systems that offer comprehensive coverage for molecular diagnostic testing already exist in Asia Pacific markets such as China, Australia, Korea, and Taiwan.

Competitor Insights

Some of the key players operating in the atopic dermatitis drugs market are LEO Pharma Inc., Pfizer Inc., Eli Lilly and Company (Dermira), Novartis AG, GALDERMA LABORATORIES, L.P., AbbVie Inc., Regeneron Pharmaceuticals Inc., Sanofi, Otsuka Pharmaceutical Co., Ltd., and Incyte Corporation

To achieve a competitive edge, these companies are implementing a variety of growth strategies. Strategic partnerships, alliances, and agreements with different businesses and research institutions are seen to be the main strategies used by companies in this sector.

• For instance, AbbVie announced in April 2021 the extension of sNDA for the review of RINVOQ for patients with adult and adolescent atopic dermatitis. PDUFA was extended to the third quarter of 2021.

This comprehensive research report focuses on the global and regional market size and forecasts of diverse segments including drug class, route of administration, and distribution channel from 2023 to 2033.

Report Scope:

Segmentation: Atopic Dermatitis Drugs Market Report 2022 – 2033

Drug Class (Revenue, USD Million), 2022 – 2033

• Calcineurin Inhibitors
• Corticosteroids
• Biologics
• PDE4 Inhibitors
• Others

Route of Administration (Revenue, USD Million), 2022 – 2033

• Oral
• Topical
• Injectable

Distribution Channel (Revenue, USD Million), 2022 – 2033

• Online Pharmacies
• Retail Pharmacies
• Hospital Pharmacies

By Region (Revenue, USD Million), 2022 – 2033

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of LATAM
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • Rest of MEA