Market Insights - Industry Research Report

Compounding Pharmacies Market

Compounding Pharmacies Market Analysis by Therapeutic Area (Pain Management, Hormone Replacement Therapy, Dermal Disorders, Nutritional Supplements, and Others), By Route of Administration (Oral, Topical, and Others), By Sterility (Non-Sterile Compounding Drugs, and Sterile Compounding Drugs), and By Region – Global and Regional Industry Overview, Market Intelligence, Complete Analysis, Premium Insights, Historical Data, and Forecasts 2023 – 2030

The Global Compounding Pharmacies Market was Worth USD 10.82 Billion in 2022 and is Estimated to Grow to USD 20.32 Billion by 2030, with a CAGR of Approximately 8.2 % over the Forecast Period From 2023 To 2030.

Compounding Pharmacies Market Overview

Drug compounding is the process of combining, blending, or altering ingredients to provide a medication tailored to the needs of a certain patient. Compounding is the practice of combining two or more drugs. In dermatology, compounded medications are routinely used to improve treatment outcomes by focusing on a specific chemical mixture. Synthetic medications are also a source of treatment during national prescription shortages. The size of the worldwide compounding pharmacies market is predicted to rise. This is due to the rise in chronic disease prevalence, population aging, and increased life expectancy. Compounding pharmacy industry trends such as rising drug failure rates and severe global drug scarcity contribute to market growth. However, it’s projected that tighter regulations on the production of complex formulations will restrain the market’s expansion for compounding pharmacies. On the other hand, over the projection period for the compounding pharmacy market, the growth potential of emerging economies is anticipated to present lucrative opportunities for the main participants.

COVID-19 Impact:

The COVID-19 pandemic increased drug demand and decreased the manufacturing capacity of commercially available medications, favoring the compounding pharmacy sector. The International Academy of Compounding Pharmacists (IACP) CEO claims that compounding pharmacists now play a broader range of roles, such as ensuring patients’ ongoing access to medications. For instance, the FDA issued guidelines regarding the compounding of specific medications for hospitalized patients by federal facilities and state-licensed pharmacies, including health systems and hospital pharmacies, during the period of the public health emergency due to a shortage of the medications required to treat patients. Therefore, the business of compounding pharmacies saw more chances as a result of medicine scarcity. Additionally, due to a shortage of drugs needed for patient treatment, FDA issued a temporary guidance policy to federal facilities and state-licensed pharmacies, including hospital pharmacies and compounding pharmacies, for compounding specific medications for hospitalized patients for the duration of the public health emergency.

Market Drivers

The market for compounding pharmacies is growing due to the rising demand for hormone replacement therapy (HRT) medications caused by the availability of APIs in various doses. The rise in the elderly population and the use of social media have motivated people to choose hormone replacement therapy. The demand for HRT medications increases as breast and prostate cancer rates rise. Progesterone, estrogen, testosterone, and estradiol are a few examples of the active chemicals in HRT medications. The demand for customized HRT medications is growing as people become more concerned with their sexual health. A larger need for hormones like progesterone results from operations like hysterectomy and testosterone replacement following andropause, which occurs more frequently. Consequently, the demand for HRT medications is driven by the accelerated aging of young people by high amounts of stress and a fast-paced lifestyle. This is expected to open up profitable opportunities for market participants in compounding pharmacies.

Restraints

The development of the global market for compounding pharmacies is anticipated to be hampered by growing constraints on the production of complex formulas. For instance, the U.S. FDA warned that prescribing combination medications with the active pharmaceutical ingredient (API) acetaminophen in doses greater than 325 mg may injure some patients’ livers. As a result, it prohibits compounding pharmacies from producing several different types of medications, including replicas of FDA-approved prescription drugs even if they are listed on the FDA’s shortage list, as well as complicated dosage forms like extended-release products, transdermal patches, liposomal products, and the majority of biologics.

Segmentation

The global compounding pharmacies market has been segmented into the therapeutic area, route of administration, and sterility.

  • Based on the therapeutic area, the global compounding pharmacies market is divided into pain management, hormone replacement, dermal disorder, nutritional supplement, and others. The segment that contributed the most to revenue in 2021 was pain management, and it is projected that this trend will hold throughout the forecast period. This is brought on by a growth in the geriatric population, an increase in surgical operations, and a rise in healthcare costs. On the other hand, the other segment is anticipated to see the quickest market expansion rate during the forecast period. An increase in cancer cases and neurological illnesses brings this on.
  • Based on the route of administration, the market is classified into oral, topical, and others. The oral category accounted for the largest share in 2021. is because there are so many different types of oral medications available. For ages, the most common and convenient way to deliver medication has been oral. Oral medications come in a wide range of forms, including granules, powders, pills, and capsules, all of which are simple for customers to use and store.

Regional Landscape

  • North America dominated the global compounding pharmacies market in 2021. Increased healthcare spending power, increased healthcare facilities, high regional awareness of compounded drugs, and numerous market participants all favor the industry’s growth. The market for compounding pharmacies is also growing because more compounding pharmacies are available and more people are becoming aware of the advantages of custom-made pharmaceuticals.

Competitive Landscape

  • Some of the major competitors dominating the global compounding pharmacies market include- Advanced Pharmacy, Athenex Pharma Solutions, B. Braun Melsungen AG, Dougherty’s Pharmacy, Inc., Fresenius SE, and Co. KGaA, Institutional pharmacy solutions, ITC compounding pharmacy, McGuff Companies, Inc., Nephron pharmaceuticals, New Compounding Pharma, Olympia Compounding Pharmacy, Panacea Biomatx Inc (Triangle Compounding Pharmacy), Pencil compounding pharmacy, Perrigo Company Plc (Fagron), Rx express compounding pharmacy, RX3 compounding pharmacy, Valor Compounding Pharmacy.

Recent Developments

  • May 2021: Slade Health, a division of Icon Group, and the Auckland District Health Board (ADHB) agreed to a long-term partnership to supply sterile compounding services to fulfill the expanding demands of cancer patients. Through this deal, a top-notch GMP (Medsafe)-registered sterile compounding plant would be built and run, providing chemotherapy, antibiotics, analgesics, and nutritional infusions for public and private hospitals throughout New Zealand.

The Global Compounding Pharmacies Market is segmented as follows:

Compounding Pharmacies Market by Therapeutic Area Outlook (Revenue, USD Million, 2017 – 2030)

  1. Pain Management
  2. Hormone Replacement Therapy
  3. Dermal Disorders
  4. Nutritional Supplements
  5. Others

Compounding Pharmacies Market by Route of Administration Outlook (Revenue, USD Million, 2017 – 2030)

  1. Oral
  2. Topical
  3. Others

Compounding Pharmacies Market by Sterility Outlook (Revenue, USD Million, 2017 – 2030)

  1. Non-Sterile Compounding Drugs
  2. Sterile Compounding Drugs

Compounding Pharmacies Market by Region Outlook (Revenue, USD Million, 2017 – 2030)

  1. North America
    • The U.S.
    • Canada
    • Mexico
  2. Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  3. Asia Pacific
    • China
    • Japan
    • India
    • New Zealand
    • Australia
    • South Korea
    • Southeast Asia
    • Rest of Southeast Asia
  4. The Middle East & Africa
    • Saudi Arabia
    • UAE
    • Egypt
    • Kuwait
    • South Africa
    • Rest of the Middle East & Africa
  5. Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
Compounding Pharmacies Market Report Scope
Report Attribute Details
Market Size Value in 2022 USD 10.82 billion
Revenue Forecast in 2030 USD 20.30 billion
Growth Rate CAGR of 8.2 % from 2023 to 2030
Base Year for Estimation 2022
Historical Data 2017 – 2022
Forecast Years 2023 – 2030
Quantitative Units Revenue in USD million and CAGR from 2023 to 2030
Report Coverage Revenue forecast, company ranking, Trends
competitive landscape, and growth factors
Segments Covered Therapeutic Area, Route of Administration, Sterility, and Region
Regional Scope North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Country Scope U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others
Key Companies Profiled Advanced Pharmacy, Athenex Pharma Solutions, B. Braun Melsungen AG, Dougherty’s Pharmacy, Inc., Fresenius SE, and Co. KGaA, Institutional pharmacy solutions, ITC compounding pharmacy, McGuff Companies, Inc and Others

Frequently Asked Questions

The global market for compounding pharmacies is expanding due to an increase in the prevalence of chronic diseases, an aging population, and longer life expectancies.
According to Beyond Market Insights, the global compounding pharmacies market size was worth USD 10.82 billion in 2022 and is estimated to grow to USD 20.32 billion by 2030, with a compound annual growth rate (CAGR) of approximately 8.2 % over the forecast period.
North America dominated the global compounding pharmacies market in 2022. Increased healthcare spending power, increased healthcare facilities, high regional awareness of compounded drugs, and numerous market participants all favor the industry’s growth.
Some of the main competitors dominating the global compounding pharmacies market include Advanced Pharmacy, Athenex Pharma Solutions, B. Braun Melsungen AG, Dougherty’s Pharmacy, Inc., Fresenius SE, and Co. KGaA, Institutional pharmacy solutions, ITC compounding and more

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