In 2024, the North American medical-dispensed skin care market is undergoing a significant shift in growth dynamics. After years of double-digit expansion, recent data from Kline’s Medical-Dispensed Skin Care Mid-Year Series shows a transition to more moderate, single-digit growth across the United States and Canada. This deceleration highlights broader economic pressures and evolving consumer behaviors that are reshaping the aesthetic skin care landscape. As patients and providers adapt to new financial realities, brands must recalibrate their strategies to remain competitive in this changing market environment.
In the United States, the first half of 2024 reveals a cooling from the once-overheated medical-dispensed skin care market, now stabilizing at high-single-digit growth. The slowdown is most pronounced among leading brands, which hold over 70% of the market but are now facing increased consumer scrutiny as shoppers demand more value. Despite this, growth outliers like SkinBetter Science and Colorescience have defied the trend, driving channel growth at three times the market rate. This highlights a bifurcated market, where innovative, consumer-focused brands can thrive while larger competitors struggle to maintain momentum.
Similarly, Canada’s market has mirrored this trend. While the top five brands held steady in their rankings, they experienced a slight decline in market share, signaling increased competitive intensity and stronger traction from smaller brands like Functionalab and Hydrinity.
With increasing promotional activities and price hikes on select products—ranging from 2% to 10% — consumers are becoming more cautious, impacting their spending behaviors and frequency of visits to clinics. This cautiousness is further exacerbated by the looming uncertainties of an election year in the United States, which historically contributes to more conservative consumer spending across various sectors. However, digital integration, new and engaged consumers in the channel, and account expansion are bright spots, helping to keep market growth in positive territory.
As we move into the second half of 2024, it’s clear that adaptability will be key. Brands that innovate, engage consumers through digital platforms, and maintain quality while managing costs will be best positioned to navigate this shifting landscape. The evolving consumer expectations, along with the competitive intensity of the market, signal that strategically agile brands will be the ones to thrive in this new environment.
For a deeper dive into these trends and what they mean for your business, explore our comprehensive analysis of the medical care providers channel as well as a broader spectrum of solutions for the professional skin care market.
