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      The Indian dermatology market is growing steadily and emerging as one of the most resilient therapeutic segments within the Indian pharmaceutical landscape, spanning both prescription drugs (Rx) and over-the-counter (OTC) products. The market has also witnessed a rise in over-the-counter prescription drugs (commonly referred to as OTx products).

      In 2025, the Indian dermatology market is valued at INR16,000+ crore, growing at a CAGR of ~8 per cent from around INR12,000 crore in 2021. Key trends and value drivers of this growth includes

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      Next wave of growth is expected from preventive skincare segments primarily driven by OTx and OTC drugs

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      Several brands in preventive skincare segment have transitioned from prescription to OTC, unlocking value through significant growth and mass market penetration

      segment

      Indian pure-play derma players have a strong play in the fast-growing OTx to OTC segments

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      Large players are filling their derma-cosmetology portfolio gaps through strategic acquisitions

      Market composition


      The top five product categories-anti-inflammatory, antifungal, moisturizing and protective agents, anti-acne and anti-scarring, and topical antibiotics-account for over 65 per cent of the total market. The competitive landscape includes a mix of pure-play derma companies and large diversified pharmaceutical players. Large pharma companies hold 30 per cent+ market share through flagship brands, while pure-play derma companies hold around 15 per cent, focusing on diversified portfolios and strong OTC presence.

      Industry dynamics


      The sector is witnessing increased transaction activity, with leading pharmaceutical companies acquiring specialised derma and cosmetology brands to strengthen portfolios. Financial investors are also showing keen interest in innovation-led companies, fueling further growth.

      The Indian dermatology market is undergoing a transformative phase, marked by robust growth, evolving consumer preferences, and rapid innovation. However, challenges such as counterfeit products, regulatory gaps, and affordability must be addressed to sustain momentum. Companies prioritising research-based, differentiated formulations, regulatory compliance, and customer-centric strategies are well-positioned to lead the future of dermatology in India, delivering improved skin health outcomes and greater consumer confidence.

      Industry views

      While cosmetic dermatology is a fast-growing piece, medical dermatology still accounts for 70-80 per cent of the patients seen daily. High-end cosmetic treatments presently make up a small sliver of the market, though growing fast

      Krishnakumar Vaidyanathan

      Executive Director and Chief Operating Officer

      Eris Lifesciences

      Consumers are no longer passive-they are informed, ingredient-conscious, and demand both performance and safety. Brands that offer clinically backed solutions with transparent labelling and safer ingredient could command stronger loyalty and market relevance

      Rahulkumar Darda

      Chairman and Managing Director

      Brinton Pharmaceuticals

      The dermocosmetic industry is witnessing rapid evolution with emerging trends like advanced functional actives, novel delivery systems such as encapsulations, exosomes etc. and peptide-based derma fillers and hair fillers for aesthetic applications

      Sanjeev Jain

      Co-Founder and Managing Director

      Akums Drugs and Pharmaceuticals

      Key highlights of the report:

      • Emergence of preventive skincare

        Next wave of growth for preventive skincare is expected to be driven by OTx and OTC drugs

      • Transition of brands from prescription to OTC

        Several preventive skincare brands have shifted to OTC, driving strong growth and wider market reach

      • Dominance of Indian-pure play derma players

        Indian pure-play derma players hold a strong position in the rapidly growing OTx to OTC segments

      • Evolving M&A activity in the space

        Large players are bridging derma-cosmetology portfolio gaps through strategic acquisitions

      Dermatology market in India


      An in-depth analysis of India’s derma sector, highlighting key trends, competitive landscape, evolving transaction activity and key challenges

      Download the report (1.01 MB)

      Key Contact

      Abhishek Aggarwal
      Abhishek Aggarwal

      Partner, Corporate Finance

      KPMG in India

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