Medicated Shampoo Market By Product Type (Dandruff & Seborrheic Dermatitis, Psoriasis, and Others), By Sales Channel (Supermarkets/Hypermarkets, Pharmacy & Drug Stores, Departmental Stores, Online, and Others (Direct Sales etc.)), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 26.75 Billion
CAGR (2026-2031)	5.37%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 36.61 Billion

Market Overview

The Global Medicated Shampoo Market will grow from USD 26.75 Billion in 2025 to USD 36.61 Billion by 2031 at a 5.37% CAGR. The Global Medicated Shampoo Market is defined as the industry segment focused on therapeutic hair care formulations containing active agents designed to treat scalp pathologies such as dandruff, psoriasis, and seborrheic dermatitis. The primary drivers supporting market growth include the rising prevalence of scalp ailments and increasing consumer expenditure on functional personal care products that offer specific health benefits. According to Cosmetics Europe, in 2024, the European hair care category generated retail sales of €18.1 billion, illustrating the substantial economic demand for solutions that address scalp and hair maintenance. This robust market performance reflects a strong consumer inclination towards products that deliver tangible therapeutic results beyond basic hygiene.

A significant challenge that could impede market expansion is the stringent regulatory framework governing the approval of active ingredients and medical claims. Manufacturers must navigate rigorous clinical testing and safety validations to substantiate efficacy which results in high operational costs and extended development timelines. This complex compliance environment creates high barriers to entry and restricts the speed at which new treatments can reach the global consumer base.

Key Market Drivers

The rising prevalence of chronic scalp ailments, including dandruff, psoriasis, and seborrheic dermatitis, serves as the fundamental catalyst expanding the Global Medicated Shampoo Market. As these pathologies affect a larger segment of the global population due to environmental stressors and lifestyle changes, there is a critical need for therapeutic hair care formulations containing active pharmaceutical ingredients. This growing burden of disease compels consumers to transition from cosmetic shampoos to functional treatments capable of managing symptoms like inflammation and desquamation. According to the National Psoriasis Foundation, August 2024, in the 'Psoriasis Health Indicator Report', approximately 7.5 million adults in the United States, representing about 3% of the adult population, are affected by psoriasis, a statistic that underscores the substantial addressable market for specialized management solutions.

Simultaneously, a surge in dermatologist recommendations and clinical prescriptions is elevating the status of medicated hair care from optional hygiene to essential health maintenance. Manufacturers are increasingly validating their products through rigorous testing to secure endorsements from medical professionals, which significantly influences consumer purchasing decisions in this segment. This trend toward "medicalization" has allowed brands with strong clinical heritage to outperform the broader market. According to L'Oréal, February 2024, in the '2023 Annual Report', the company's Dermatological Beauty division achieved a remarkable like-for-like sales growth of 28.4% for the year, driven by the heightened demand for expert-recommended health and beauty formulations. This shift toward efficacy-driven products is evident across the wider industry; according to Procter & Gamble, in 2024, the company's Hair Care segment delivered high single-digit organic sales growth, fueled by a favorable mix of premium and performance-centric products.

Download Free Sample Report

Key Market Challenges

The stringent regulatory framework governing the approval of active ingredients and medical claims serves as a substantial impediment to the growth of the Global Medicated Shampoo Market. Manufacturers are required to navigate complex clinical testing and safety validations to substantiate the efficacy of their therapeutic formulations. This rigorous process inevitably leads to inflated operational costs and significantly extended development timelines, preventing companies from swiftly responding to emerging consumer needs. Consequently, the financial burden associated with compliance discourages investment in novel active agents, thereby stalling the introduction of innovative treatments that could drive broader market adoption.

This high-compliance environment creates formidable barriers to entry, particularly for smaller entities that often lack the capital reserves to sustain prolonged approval phases. This dynamic is especially critical given the composition of the industry. According to Cosmetics Europe, in 2024, the European personal care industry was comprised of more than 9,600 small and medium-sized enterprises (SMEs). The vulnerability of such a large volume of smaller market participants to these regulatory pressures restricts their ability to launch niche therapeutic products, ultimately limiting the diversity of solutions available to the global consumer base and hampering overall market expansion.

Key Market Trends

The emergence of microbiome-friendly and probiotic infusions is reshaping the Global Medicated Shampoo Market, moving product development beyond simple pathogen eradication toward holistic scalp ecosystem management. Manufacturers are increasingly prioritizing formulations that preserve the stratum corneum and balance the scalp’s natural flora, rather than solely stripping away fungi or bacteria with harsh active agents. This scientific evolution aligns with the "skinification" of hair care, where ingredients traditionally found in facial skincare, such as prebiotics and urea, are utilized to repair the scalp barrier and prevent recurrence of symptoms. This strategic focus on dermatological efficacy is yielding significant commercial returns; according to Beiersdorf AG, February 2025, in the 'Annual Report 2024', the company's Derma business unit, which houses the Eucerin brand known for its specialized scalp treatments, achieved organic sales growth of 10.6%, validating the rising consumer demand for scientifically advanced, barrier-supporting care.

Simultaneously, the development of multi-functional therapeutic products is driving premiumization as consumers refuse to compromise on hair aesthetics for the sake of scalp health. The market is witnessing a convergence of medicinal utility and cosmetic elegance, where new formulations are designed to treat underlying pathologies while delivering salon-grade benefits such as volumizing, color protection, and texture enhancement. This trend addresses the historical trade-off between the unpleasant sensory attributes of clinical shampoos and the beautifying effects of standard hair care, encouraging consistent usage and higher price points. This shift toward hybrid efficacy is evident in financial performance; according to Unilever PLC, February 2025, in the 'Full Year 2024 Results', the Beauty & Wellbeing division reported underlying sales growth of 6.5%, a performance attributed to the successful premiumization of core portfolios including new scalp-focused innovations that combine health benefits with superior cosmetic results.

Segmental Insights

The online distribution channel is recognized as the fastest-growing segment in the global medicated shampoo market. This rapid expansion is attributed to the increasing consumer preference for e-commerce platforms that offer convenience and a broader selection of therapeutic products compared to traditional physical stores. Additionally, the ability to discreetly purchase treatments for scalp disorders such as psoriasis and severe dandruff facilitates demand within this channel. The detailed product descriptions and customer reviews available online further empower buyers to make informed decisions regarding specific active ingredients and formulation benefits.

Regional Insights

North America maintains a dominant position in the global medicated shampoo market, driven by the high prevalence of scalp disorders such as dandruff and psoriasis. The region benefits from strong consumer awareness regarding therapeutic hair care and substantial spending on personal hygiene products. Additionally, the market is supported by strict safety standards and product approvals enforced by the U.S. Food and Drug Administration, which fosters significant consumer trust in these treatments. This robust regulatory environment, combined with the presence of key manufacturers and established retail infrastructure, reinforces North America’s leadership in the industry.

Recent Developments

• In November 2024, CeraVe announced its strategic expansion into the hair care market with the launch of a new Anti-Dandruff Shampoo. This medicated formulation features 1% Pyrithione Zinc, a clinically proven ingredient designed to eliminate visible flakes and alleviate symptoms associated with mild to moderate dandruff. Distinct from traditional treatments, the product incorporates the brand's signature three essential ceramides to help restore and maintain the delicate scalp barrier. Developed in collaboration with dermatologists, this system aims to provide an effective therapeutic solution that cleanses the hair while supporting overall scalp health without disrupting the natural moisture balance.
• In November 2024, Raven Innovations introduced RestoraScalp, marketed as the first medicated dry shampoo specifically developed for managing scalp conditions such as dandruff, seborrheic dermatitis, and psoriasis. This innovative over-the-counter solution enables consumers to treat scalp issues and control flaking without the need for a traditional water-based wash routine. The formulation is compliant with FDA monograph guidelines and is designed to remain on the skin to deliver extended therapeutic effects. The company launched this product to offer a convenient alternative for individuals who wish to extend the time between washes while effectively managing chronic scalp maladies.
• In September 2024, ANI Pharmaceuticals, Inc. announced the commercial launch of Ketoconazole Shampoo, 2%, following final approval from the U.S. Food and Drug Administration. This product serves as a generic equivalent to the reference listed drug Nizoral, which is widely prescribed for treating fungal infections of the scalp. The organization highlighted that this addition aligns with its strategy to introduce limited-competition products that address specific patient needs. The company noted that this launch is significant for its generics division, referencing market data which indicated that annual U.S. sales for this medicated shampoo formulation totaled approximately $69.2 million.
• In August 2024, Verb Products entered the medicated scalp care sector with the launch of a new Dandruff Shampoo featuring 3% Salicylic Acid. This formulation is designed to exfoliate the scalp, thereby eliminating flakes and controlling the itchiness and irritation associated with dandruff. The company emphasized that the product is clinically proven to reduce symptoms after one use while remaining safe for color-treated hair. Beyond the active ingredient, the shampoo incorporates zinc PCA and clary sage oil to help balance excess sebum and soothe the skin, representing the brand's effort to provide effective, salon-quality scalp solutions to a broader consumer base.

Key Market Players

• Procter & Gamble
• Johnson & Johnson
• Himalaya Herbal Healthcare
• Farnam Companies, Inc.
• Sanofi-Aventis Groupe
• Summers Laboratories Inc.
• Maruho Co. Ltd.
• Kao Corporation
• Coty Inc.
• Avalon Natural Products, Inc.

By Product Type	By Sales Channel	By Region
Dandruff & Seborrheic Dermatitis Psoriasis and Others	Supermarkets/Hypermarkets Pharmacy & Drug Stores Departmental Stores Online and Others (Direct Sales etc.)	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Medicated Shampoo Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Medicated Shampoo Market, By Product Type:

• Dandruff & Seborrheic Dermatitis
• Psoriasis
• and Others

• Medicated Shampoo Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Pharmacy & Drug Stores
• Departmental Stores
• Online
• and Others (Direct Sales etc.)

• Medicated Shampoo Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE