The global botulinum toxin market is profitable, both for existing players as well as new entrants. A substantial level of rivalry is observed among the existing manufacturers in the market. Our analysis revealed that market players have adopted different strategies and innovative research and development techniques to expand their business and secure their position in the global botulinum toxin market. In recent years, strategic movements by major players included approvals, which have been used as market penetration strategies and a means to reduce competition.
The growth of market vendors is dependent on market conditions, government support, and industry development. Thus, vendors should focus on geographical expansion and product improvement. It has also been predicted that improvement of the global economic scenario, combined with efforts to enhance infrastructure, can fuel market growth, making it an ideal time to launch new products and increase the market presence.
Vendors with better technical and financial resources could develop innovative products. Therefore, vendors must develop new technologies to stay abreast of emerging technologies that could affect the continuing competitiveness of their product lines in the market.
The top players in the global botulinum toxin market are Allergan, Ipsen Pharma/Galderma S.A., and Merz Pharma.
Allergan, a leading pharmaceutical company, based in the US, manufactures products for areas such as ophthalmic, neurological, medical aesthetics, medical dermatology, breast aesthetics, obesity intervention, and urological diseases. The company has a strong product portfolio in the market. Also, the company has a vast geographic reach. This prominent player is involved in various activities, such as collaborations with regional vendors as well as key players operating in the botulinum toxin market. The company has also successfully integrated small companies through mergers and acquisitions to build a strong supply chain network. The company has captured 75.3% of the global market share in 2018.
Ipsen Pharma and Galderma SA accounted for the second-largest market share of 10.3% in 2018. It operates in endocrinology, oncology, neurology, cognitive disorders, gastroenterology, and rheumatology areas. The company has a strong research and development unit which offers innovative products.
Merz Pharma GmbH & Co KGaA operates through the following segments, namely, neurology, over the counter (OTC) medicine, dietary supplements, and skincare products. The company accounted for 7% of the total botulinum toxin market share in 2018.
Other prominent players operating in the market are Daewoong Pharmaceutical Co., Ltd, US WorldMeds, LLC, Evolus, Inc., Hugel, Inc., and Medytox. The majority of the companies are working in collaboration with local players to distribute their products in the market. Moreover, companies such as Revance Therapeutics, Inc. are developing innovative products that are likely to hit the market in the next 3 to 5 years. After product approval of core products, Revance Therapeutics, Inc. is anticipated to capture the significant market share of the global botulinum toxin market.
The top players in the global botulinum toxin market are Allergan, Ipsen Pharma/Galderma S.A., and Merz Pharma.
Allergan, a leading pharmaceutical company, based in the US, manufactures products for areas such as ophthalmic, neurological, medical aesthetics, medical dermatology, breast aesthetics, obesity intervention, and urological diseases. The company has a strong product portfolio in the market. Also, the company has a vast geographic reach. This prominent player is involved in various activities, such as collaborations with regional vendors as well as key players operating in the botulinum toxin market. The company has also successfully integrated small companies through mergers and acquisitions to build a strong supply chain network. The company has captured 75.3% of the global market share in 2018.
Ipsen Pharma and Galderma SA accounted for the second-largest market share of 10.3% in 2018. It operates in endocrinology, oncology, neurology, cognitive disorders, gastroenterology, and rheumatology areas. The company has a strong research and development unit which offers innovative products.
Merz Pharma GmbH & Co KGaA operates through the following segments, namely, neurology, over the counter (OTC) medicine, dietary supplements, and skincare products. The company accounted for 7% of the total botulinum toxin market share in 2018.
Other prominent players operating in the market are Daewoong Pharmaceutical Co., Ltd, US WorldMeds, LLC, Evolus, Inc., Hugel, Inc., and Medytox. The majority of the companies are working in collaboration with local players to distribute their products in the market. Moreover, companies such as Revance Therapeutics, Inc. are developing innovative products that are likely to hit the market in the next 3 to 5 years. After product approval of core products, Revance Therapeutics, Inc. is anticipated to capture the significant market share of the global botulinum toxin market.
Threat of New Entrants
The threat of new entrants is moderate to high in the global botulinum toxin market. Any manufacturing company trying to enter the market is required to accept or abide by the mandatory regulatory standards. The botulinum toxin market is also characterized by a reasonable degree of brand loyalty towards brands such as Botox, where establishing a brand name is difficult for newcomers and small companies. However, the cost involved in R&D is comparatively high, which does not comfort the new entrants to enter the market easily. Recently, due to different cases related to horrific adverse events of botulinum toxin such as allergic reactions, muscle stiffness, nausea, and respiratory infections, regulatory authorities have made approvals stricter and started scrutinized checks for every product with more detail.
Additionally, the rising awareness regarding the aesthetic products and its benefits among the population pushes the current manufacturers to focus more on the R&D of innovative products with therapeutic use. Thus, the threat of new entrants in the market is moderate. Thus, the threat of new entrants remains moderate to high.
Bargaining Power of Suppliers
The suppliers in the global botulinum toxin market are the developers and manufacturers of botulinum toxin products. The existing key companies capture a significant share of the market and have the capability of influencing the cost of products. Another factor affecting the bargaining power of suppliers is the switching cost for buyers. Since there are a few options to choose from, this gives a low level of leverage to the buyers to switch.
Furthermore, many companies are focused on entering the global market, which increases competition. However, developing countries in the Asia-Pacific region consist of a large number of local players that offer botulinum toxin products at a reasonable rate. This leads to the high bargaining power of suppliers, and the profit potential of the global botulinum toxin market is increased. Thus, the threat of new entrants remains moderate.
Threat of Substitutes
The threat of substitutes in the global botulinum toxin market is moderate to high. Buyer propensity to substitute is also a factor that should be given importance. The emerging trend of usage of hyaluronic acid can hamper the growth of the market. Various substitutes are available in the market, which can replace botulinum toxin in cosmetic procedures. However, quality and trust issues for products provided by new players, and excellent sales support provided by existing players may restrict the threat of substitutes to an extent. Thus, the threat of substitutes tends to be moderate to high.
Bargaining Power of Buyers
The bargaining power of buyers is moderate in the global botulinum toxin market. The market has a large number of buyers. The buyers are moderately inclined towards branded botulinum toxin products manufactured by established players. There is a limited number of suppliers present in the market to cater to the needs of customers. Moreover, buyers can exert moderate pressure on the manufacturers to provide high-quality products with fewer side effects. Hence, with the high quality of products provided by the botulinum toxin manufacturers, the bargaining power of suppliers tends to be moderate.
Intensity of Rivalry
The degree of competition in the global botulinum toxin market is moderate to high. The reserved degree of product differentiation among existing players increases the intensity of rivalry in the market. Aesthetic products and neurotoxin manufacturers are trying to develop less expensive products to make them more affordable in developing markets. To overcome the competition, players are engaged in developing a process to lower their manufacturing costs. Moreover, the players are also developing advanced products for differentiating their brand from their competitors.
