China's Dermatitis-Eczema Drug Market Surges 48.5%

Executive Summary#

Prescription drugs for dermatitis and eczema have become the largest source of growth in China's online market for prescription dermatological drugs, taking 30.36% of that market and growing 48.5% year on year in January-July 2024^[1]. On a leading marketplace, monthly sales in the segment more than doubled, from CN¥ 10-17 million a month in early 2023 to CN¥ 22-35 million in 2024, as expensive biologic drugs grew to 21.1% of its dermatitis-eczema sales. Sales have also spread across more brands since 2022, which we believe points to stronger competition as the segment matures.

Dermatitis-Eczema Leads the RX Sub-segments on Growth#

Dermatitis-eczema drug sales grew from CN¥ 226 million to CN¥ 336 million in January-July 2024, an increase of CN¥ 110 million that makes the segment the largest single contributor to growth in the prescription dermatological market^[1]. We believe the growth of 48.5% reflects a rising prevalence of these conditions, linked to changes in environment and lifestyle, and easier access to treatment through e-prescriptions, which has made consumers more willing to buy prescription medicines online.

Among the ten largest RX sub-segments, fungal infection treatments grew 28.4% year on year and wart and herpes medications grew approximately 57%, while sales of scar treatments held steady at CN¥ 150-153 million.

Monthly Sales More Than Doubled on a Leading Marketplace#

On a leading marketplace, monthly dermatitis-eczema sales reached CN¥ 34.7 million in April 2024, up from CN¥ 10.7 million in January 2023^[1]. The monthly run rate moved from CN¥ 10-17 million in early 2023 to CN¥ 22-35 million in 2024.

Across the marketplaces in the data, monthly sales volume passed 1 million units in mid-2024, up from 581,000 units in January 2023, so the market has grown on the number of units sold as well as on higher prices.

Biologics Lift Prices on a Leading Marketplace#

Biologic drugs have changed the price mix of the dermatitis-eczema segment^[1]. On the same leading marketplace, products priced at CN¥ 200 or more grew from 5.3% of sales in 2022 to 21.1% in 2024. The rise was driven by high-cost medications such as upadacitinib (乌帕替尼) and abrocitinib (阿布昔替尼), which cost more than CN¥ 1,000 per treatment course.

Generics such as fusidic acid, halometasone and desonide continue to serve the lower-priced end of the market, so we believe the segment leaves room for two strategies, premium positioning built on biologic drugs and mass-market access built on affordable generics.

Sales Spread Across More Brands#

Sales in the segment have become steadily less concentrated since 2022^[1], and we believe this reflects a maturing market in which more brands offer treatments of comparable efficacy and compete on price and on the trust consumers place in them.

Consumers' purchase decisions are also turning more on efficacy: brand influence fell from 3.8% to 1.3% of purchase decision factors, while the disease or use case (38.1%) and awareness of the product category (18.4%) carry the most weight.