Whether you’re battling skin health issues or working to upgrade your skincare routine, you probably already know that going it alone is half the battle. Products and solutions abound, but some of the information and recommendations out there are sketchy at best.
There’s virtual help on the way, however. Multiple studies have shown that both virtual skincare and teledermatology are fast-growing markets, to the point where the combination shows signs of being a game-changer. There’s a lot to unpack in the information they contain, though, so let’s pick out some highlights and see what’s happening.
Custom/personalized skincare is a serious growth market
According to Research and Markets, the personalized/customized skincare market was valued at just over $25B last year, with a CAGR of 9 percent. The former number is expected to come close to doubling in the next decade, with the market being driven in part by the fact that no two individuals have the same specific skin type.
That means customized solutions and products, driven by a combination of AI, machine learning, and in-home diagnostic tools. Social media is also a major driving force, along with influencers who are amplifying the concept of individual skin care.
It’s still a segmented market, though, according to the numbers in several key product categories. Moisturizers lead the pack, unsurprisingly, accounting for nearly $7B in annual revenue. Women are still driving the market with a 69 percent market share, but men are also increasingly interested in skincare solutions that address issues like aging, acne, hyperpigmentation, and skin sensitivity.
The market for teledermatology is growing even faster
With in-person consults becoming increasingly harder to schedule, the teledermatology market offers an attractive alternative. While some procedures require a live diagnosis and subsequent testing, many skincare issues can be treated effectively via virtual consults.
Going by the numbers, the overall market for teledermatology was $15B last year, with an expected growth to $41B in the next five years. That translates to a CAGR of 17.88 percent, and underserved areas represent especially high potential. Add in the fact that insurance reimbursements are becoming easier while regulatory issues decrease, and it’s not hard to see why these numbers are growing so quickly.
Another market driver, unfortunately, is the shortage of available dermatologists. This is occurring even as skin symptoms related to psoriasis, eczema, and acne continue to be a major concern. The new solution is teledermatology, which also offers the added bonus of allowing patients to circumvent an initial visit to their primary care physician for obvious dermatological problems.
While it’s natural to doubt the potential effectiveness of this solution, consider this: According to a British Skin Foundation article published in November 2023, there are approximately 2,000 dermatological conditions, and teledermatology can effectively manage around 90% of them, including skin cancer.
Virtual Skincare vs Teledermatology
To develop a complete understanding of this transition, it’s important to recognize that there’s a clear line between virtual skincare and teledermatology. The latter comes with medical issues, while the former is mostly concerned with knowledge-based analysis and product recommendations.
With virtual skincare, it’s also important to understand that skin analysis apps are getting more sophisticated. They’re being offered by more and more companies, and they can take a simple photo and recognize skin issues, then recommend products based on the age of the subject, medical history, and so on.
Teledermatology, meanwhile, typically crosses the medical line. It’s likely to be more expensive given that you’re paying for the time of a qualified dermatologist, and you’re also empowering that person to make a sophisticated medical diagnosis.
Companies recognize this boundary line, and they’re designing their methodologies accordingly. On the medical side, companies like Musely and Hims can provide dermatologically-based prescriptions, while the likes of Prose, Geologie and Kiehl’s offer online consults to recommend products.
Additional notes about teledermatology
Several other factors also come into play with teledermatology. Medically-based companies are regulated by both state and federal medical boards, and there is oversight from the FDA and DEA when it comes to writing and delivering prescriptions.
Geography also plays a role in how teledermatology works. One of the more shocking numbers in this area comes from a market report from Grand View Research that discusses the availability of dermatologists. In the US, it’s 34 dermatologists for every one million people, which is a reasonable number unless you happen to be living in one of those underserved areas.
In a region like sub-Sahara Africa, however, that number drops to one dermatologist per million. That indicates a need to educate the population about dermatological issues, and this is considered another market driver, albeit in a very different way.
Making the right choice for you
Given all this, how do you know whether virtual skincare or teledermatology is right for you and your situation? These surveys address the issues peripherally, but there are some common-sense guidelines you can use.
The first is to clearly state your skin health goals. If you’re looking for information, virtual skincare is probably the best place to start, with the caveat that you do some homework before you start so you can recognize the terminology and become familiar with the product categories. This also applies if you’re dealing with mild symptoms; if this describes you, virtual skincare can be a solid way to dip your toes in the water.
If you’re experiencing more serious symptoms, though, teledermatology is often the better option, provided you have the budget to afford it. That’s especially true if you’re dealing with symptoms related to eczema, psoriasis, and rosacea. In these situations, getting a fast, accurate diagnosis is imperative, and it’s just as important to get a prescription that gives you the products you need to get both immediate and long-term relief.
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