Compounding Pharmacies Market – By Product (Oral, Parenteral, Topical, Ophthalmic, Nasal, Rectal, Otic) Therapeutic Area (Pain Management, Hormone Replacement), Application, Compounding Type, Sterility, Distribution Channel, Global Forecast 2024 – 2032

Compounding Pharmacies Market – By Product (Oral, Parenteral, Topical, Ophthalmic, Nasal, Rectal, Otic) Therapeutic Area (Pain Management, Hormone Replacement), Application, Compounding Type, Sterility, Distribution Channel, Global Forecast 2024 – 2032

Compounding Pharmacies Market Size

Compounding Pharmacies Market size was valued at USD 12.4 billion in 2023 and is anticipated to witness growth at a CAGR of 5.6% between 2024 and 2032. One major driver is the increasing demand for personalized medications, which cater to specific patient needs that are unmet by commercially available drugs. This trend is particularly notable in the treatment of chronic diseases, pediatric, geriatric, and veterinary medicine, where customized dosages and formulations are crucial.

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Additionally, advancements in pharmaceutical compounding technologies and practices have enhanced the safety, efficacy, and accessibility of compounded medications. Regulatory support and guidelines promoting safe compounding practices also contribute to market growth. Furthermore, the shortage of certain medications and drug recalls have underscored the importance of compounding pharmacies in ensuring continuous patient care. Rising healthcare costs and the shift towards cost-effective treatment options further boost the demand for compounded drugs.

Compounding pharmacies are specialized pharmacies that create customized medications tailored to the specific needs of individual patients. Unlike standard pharmacies that dispense mass-produced drugs, compounding pharmacies mix ingredients to formulate medications that are not commercially available or to alter existing medications to meet unique patient requirements. This can include adjusting dosage strengths, flavoring medications for palatability, excluding non-essential ingredients that cause allergies, or providing alternative forms of medications such as creams, gels, or liquids for patients who have difficulty swallowing pills.
 

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Compounding Pharmacies Market Trends

• Customizing medication to specifically deal with issues faced by the older population will drive the compounding pharmacy industry.
• For instance, dysphagia (difficulty in swallowing) is a common problem associated with old age. Compounding medication into alternative delivery methods, such as troches or sublingual’s, to eliminate the need of swallowing can help solve the problem.
• Also, elderly patients are often prescribed with many medications to be taken on each day. This increases the risk of allergic reaction and adverse drug interaction and there are high chances that a senior person can skip certain pills and miss their doses. Here compounding the medicines into one single pill and eliminating any allergic element can be very useful for senior citizens.
• Moreover, availability of several therapies such as bioidentical hormone replacement therapy for women, testosterone therapy for men along with high-quality dermatological products primarily produced in compounding pharmacies proves advantageous for the industry expansion.

Compounding Pharmacies Market Analysis

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Based on product, the market is segmented into oral, parenteral, topical, ophthalmic, nasal, rectal, and otic. The oral segment is further categorized into solid preparations and liquid preparations. The oral segment dominated the market in 2023 and accounted for USD 4.2 billion.

• Increasing demand for oral compounded medications can be attributed to the several benefits associated with oral dosage form such as self-administration, convenience, and pain-free.
• The availability of several medications in oral form, such as solid preparations that include capsules, tablets, powder, etc. and liquid preparations such as syrups, suspensions, etc. as compared to other dosage forms fuels the segmental growth.
• Moreover, higher preference towards oral compounded medications especially in children and geriatric population further drives the oral segment market growth.

Based on therapeutic area, the compounding pharmacies market is segmented into pain management, hormone replacement, dermatology applications, specialty drugs, nutritional supplements, and other therapeutic areas. The pain management segment held a market share of 33.3% in 2023.

• Compounding pharmacies play a crucial role in creating tailored pain relief formulations, offering solutions that address specific patient needs, such as customized dosage forms, unique combinations of analgesics, and alternative delivery methods.
• Additionally, growing incidence of chronic pain among adults and rising geriatric population across the globe with increased susceptibility to chronic pain increases the demand for pain medications.
• For instance, according to the CDC 2019 report, 20.4% of the U.S. adults had chronic pain. Such scenarios are expected to provide a massive opportunity to the pain management market segment.

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 Based on application, the compounding pharmacies market is segmented into adult, geriatric, veterinary, and pediatric. The adult segment dominated the market in 2023 and is anticipated to grow at a CAGR of 5.9% between 2024 - 2032.

• The high market share of the adult segment is primarily driven by the growing prevalence of chronic diseases, which necessitates personalized medication solutions.
• Adults, particularly those with complex health conditions, often require tailored pharmaceutical preparations that are not readily available in standard formulations.
• Additionally, rising awareness about the benefits of compounded medications, including the ability to create formulations free from allergens, dyes, and preservatives, further propels the market.

Based on compounding type, the compounding pharmacies market is segmented into Pharmaceutical Ingredient Alteration (PIA), Currently Unavailable Pharmaceutical Manufacturing (CUPM), Pharmaceutical Dosage Alteration (PDA), and other compounding types. The Pharmaceutical Ingredient Alteration (PIA) segment dominated the market in 2023 and is anticipated to reach USD 7.4 billion by 2032.

• The ability of compounding pharmacies to alter ingredients to include or omit certain drugs is gaining popularity. Pharmaceutical Ingredient Alteration (PIA) allows addition or deletion of specific drugs in a medication to formulate patient specific medicines as per the patient need.
• This is highly beneficial in substituting certain drugs that the patient might be allergic to, allowing pharmacists to create hypoallergenic versions of commercial drugs.
• Such benefits of compounded medications enhance the compounded pharmacies industry growth.

Based on sterility, the compounding pharmacies market is segmented into sterile dosage form and non-sterile dosage form. The non-sterile dosage form segment dominated the market in 2023 and is anticipated to grow at a CAGR of 5.4% between 2024 -2032.

• The non-sterile dosage form involves medicines that are to be taken orally such as pills and liquids, or topical application forms such as creams, ointments, etc. that are rubbed onto the skin.
• The rising demand for such dosage forms will boost the market and propel segmental growth.

Based on distribution channel, the compounding pharmacies market is segmented into hospital pharmacies, compounding pharmacies, and other distribution channels. The hospital pharmacies dominated the market in 2023 and is anticipated to witness considerable growth over the forecast years.

• Patients frequently visit hospitals for their aliments and hence the number of patients visiting hospital pharmacies are higher as compared to other pharmacies.
• Additionally, increasing demand for personalized medication in hospital settings drives the hospital pharmacy segment.
• The rising prevalence of chronic diseases and the necessity for tailored treatments further amplify the role of hospital pharmacies in compounding.

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North America compounding pharmacies market was valued at USD 6.8 billion in 2023 and is anticipated to reach USD 11 billion by 2032.

• High regional awareness regarding compounding medications, increasing healthcare facilities and higher healthcare spending power are attributed to the rapid growth of market across the region.
• The presence of various market participants focusing on development of compounded medications to better manage patients and deliver compounded medications to treat specific conditions will prove advantageous for the market expansion.
• Additionally, promotional and marketing efforts by key industry players to increase the awareness amongst the people regarding the availability of compounding pharmacies will augment he growth of compounding industry.

The U.S. compounding pharmacies market is anticipated to grow at a CAGR of 5.3% between 2024 - 2032.

• The regulatory framework in the U.S. supports the growth of these pharmacies by ensuring quality and safety standards.
• Additionally, high awareness about the benefits of customized medications, such as tailored dosages and formulations, further boosts market growth.

Asia Pacific region will exhibit high growth over the forecast period.

• Increasing geriatric population in countries such as Japan, and China accelerate the demand for compounding pharmacies in the region.
• Additionally, there has been growing awareness regarding compounded medications in the region.
• Other factors such as developing healthcare services, rising healthcare expenditure, and increasing awareness amongst people will help in the growth of the market in the region.

Germany is anticipated to witness robust growth in the global compounding pharmacies market.

• Rising awareness regarding compounded medications, shortage of certain commercially available drugs, and the need for customized individual focused treatments are some of the factors that will drive the market in the country.
• Additionally, availability of advanced infrastructure and a number of government initiatives towards development of compounding pharmacies are important factors that favor the growth of compounding pharmacies industry in Europe.

Compounding Pharmacies Market Share

The competitive landscape in the compounding pharmacies industry is characterized by a mix of large-scale, well-established players and smaller, independent pharmacies. Major companies such as B. Braun Melsungen AG and Fagron NV are prominent due to their extensive product offerings, advanced compounding technologies, and strong distribution networks. These key players invest heavily in research and development to innovate and comply with stringent regulatory standards, ensuring high-quality, customized medications. Smaller compounding pharmacies, while fewer in resources, compete by offering personalized services and niche products tailored to specific patient needs. The market is further intensified by strategic mergers, acquisitions, and partnerships aimed at expanding geographic reach and enhancing technological capabilities.

Compounding Pharmacies Market Companies

Prominent players operating in the compounding pharmacies industry include

• B. Braun Melsungen AG
• Clinigen Group PLC
• Dougherty's Pharmacy, Inc.
• Fagron NV
• Fresenius Kabi AG
• ITC Compounding Pharmacy
• Institutional Pharmacy Solutions, LLC
• Lorraine’s Pharmacy
• McGuff Compounding Pharmacy Services
• Nephron Pharmaceuticals Corporation
• Pencol Compounding Pharmacy
• Rx3 Compounding Pharmacy
• Triangle Compounding Pharmacies
• Valor Compounding Pharmacy, Inc.
• Wedgewood Village Pharmacy, Inc.

Compounding Pharmacies Industry News

• In March 2022, Fagron opened a new facility in Colombia. It is a highly technologically advanced facility and has helped the company to strengthen the concept of personalized medicine in the region.
• In December 2021, ImprimisRx and EyePoint Pharmaceuticals, Inc. announced expansion of their commercial alliance and the U.S. sales and marketing activities for DEXYCU, it is an innovative FDA approved injectable steroid product. This partnership has increased in building customer demand for DEXYCU, thereby widening company’s product portfolio.

The compounding pharmacies market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 - 2032 for the following segments

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Market, By Product

• Oral
  • Solid preparations
    • Tablets
    • Capsules
    • Granules
    • Powder
    • Other solid preparations
  • Liquid preparations
    • Syrup
    • Suspension
    • Emulsion
    • Solutions
    • Other liquid preparations
• Parenteral
  • Large volume parenterals (LVPs)
  • Small volume parenterals (LVPs)
• Topical
  • Ointments
  • Gels
  • Creams
  • Pastes
  • Other topical products
• Ophthalmic
• Nasal
• Rectal
  • Suppositories
  • Enema
  • Other rectal products
• Otic

Market, By Therapeutic Area

• Pain management
• Hormone replacement
• Dermatology applications
• Specialty drugs
• Nutritional supplements
• Other therapeutic areas

Market, By Application

• Adult
• Geriatric
• Veterinary
• Pediatric

Market, By Compounding Type

• Pharmaceutical Ingredient Alteration (PIA)
• Currently Unavailable Pharmaceutical Manufacturing (CUPM)
• Pharmaceutical Dosage Alteration (PDA)
• Other compounding types

Market, By Sterility

• Sterile dosage form
• Non-sterile dosage form

Market, By Distribution Channel

• Hospital pharmacies
• Compounding pharmacies
• Other distribution channels

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Poland
  • Netherlands
  • Sweden
  • Belgium
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Rest of Middle East and Africa