2025-12-06

Over the past few years, skincare has gone well beyond cosmetics. It's become an integral component of mainstream healthcare, particularly given the increased incidence of dermatological conditions like acne, eczema, psoriasis, pigmentation and even skin cancer. With more individuals seeking successful, targeted therapies for these diseases, topical medications—directly applied to the skin—are gaining in popularity.

But behind the scenes, there is a quiet revolution occurring in the development and manufacturing of these treatments. Contract Development and Manufacturing Organisations (CDMOs) are becoming front and centre to help pharmaceutical firms develop and produce high-quality dermatology products efficiently and at scale.

Why Topical Dermatology is Booming

Topical medications provide a quick and effective solution, with fewer systemic side effects than oral drugs, as they work directly at the location of concern. From anti-inflammatory creams for chronic skin diseases to targeted preparations, their use has increased immensely because of their specificity and ease of application.

As per Precedence Research, the global market for topical drug CDMOs was valued at USD 46.62 billion in 2024. It is expected to grow to USD 136.39 billion by 2034, with a CAGR of 11.33 percent between 2025 and 2034. This dramatic rise is being driven by:

• Increasing skin-related health issues
• Growing public awareness around skincare
• Advancements in drug delivery technology
• Demand for specialised treatments

The Power of Semi-Solid Formulations

A large segment of dermatological therapies is available in semi-solid dosage forms that resemble creams, ointments, gels, lotions, etc. The topical dosage forms are considered extremely suitable because they are easy to use and allow direct application of medication to the skin.

Creams and Lotions: They are daily commodities in dermatology. They're usually well tolerated and easy to use, making them great for managing regular skin ailments.

Gels and Ointments: Gels soak up fast and are ideal for conditions where quick action is necessary. Ointments, by contrast, are oil-in-water emulsions and provide long-term hydration—useful in the treatment of chronic skin conditions.

Foams and Sprays: These are gaining popularity due to ease of use and the ability to treat hard-to-reach areas.

Manufacturing these formulations is not as straightforward as it seems. The end user puts a lot of importance into consistency, stability, and even texture. A CDMO with advanced capabilities and knowledge of formulation science is key to knowing whether or not these products are going to meet the strict quality and safety standards.

India and Asia Pacific: Rising Demand, Rising Opportunities

The Asia-Pacific region, especially countries like India and China, has become a major hub for dermatology CDMOs. The region accounted for 33 percent of the global topical CDMO market share in 2024, according to market research.

There are a number of reasons for this increase in demand:

• Better healthcare infrastructure
• Improved awareness of skin
• Increasing disposable income and access to dermatology care
• Cost-effective manufacturing capabilities

India, in particular, is well positioned with its solid pharmaceutical base, knowledgeable workforce and growing local demand for skin care and dermatology products. The international pharma community is increasingly looking for partnerships in India as a future focus. This is likely to stimulate the growth of the sector ahead.

Challenges Ahead on the Road

Even with such great potential, the dermatology CDMO industry does encounter a few stumbling blocks:

• Regulatory complexities: Transcending various regulatory environments across international markets is challenging.
• Cost pressures: Balancing quality and affordability is a continuing challenge.
• Intellectual property issues: As companies increasingly invest in innovation, protecting proprietary formulations is paramount.

Nevertheless, these challenges also open up opportunities—for more effective regulatory alignment, smarter production practices, and greater global cooperation.

The Future is Bright

The growth in demand for dermatological therapies, supported by technological advancement and changing consumer demands, has put CDMOs at the centre of it all. Not only do they ensure that high-quality topical medicines reach the market sooner, but they also allow pharmaceutical firms to concentrate on what they are best at patient care.

Whether it's advancing semi-solid formulation methods or leading the charge into the future of customised skincare, CDMOs aren't only backing the industry—often, they're leading it.

As the Indian and world markets continue to grow, the dermatology CDMO industry will grow its footprint, giving the world the building blocks for healthier skin—and a healthier world.