According to Millennium Research Group and its report, US Markets for Physician-Dispensed Cosmeceuticals 2014, the US market for physician-dispensed cosmeceuticals will see strong growth through 2022.

Most of the revenue growth in this space will stem from sales of physician-dispensed sunscreens and anti-aging cosmeceuticals.

These products hold lucrative revenue potential and are paid for out-of-pocket by patients, making them attractive to physicians. As a result, more physicians are carrying these products in their practices, which will improve accessibility and awareness among the patient population.

Many top companies have recently been acquired by larger global competitors. SkinCeuticals has been a subsidiary brand of L’Oreal since 2005. In 2012, Obagi Medical Products was acquired by Valeant Pharmaceuticals. In 2013, SkinMedica was acquired by Allergan.

Smaller companies will need to differentiate themselves by developing distinctive and effective products; for example, Neocutis‘ portfolio is unique for the inclusion of human growth factors in its products. Small companies can also target certain niche markets. Topix has successfully implemented this strategy by offering private labeling for physicians.