Compounding Pharmacies Market - By Therapeutic Area (Nutritional Supplements, Hormone Replacement, Dermatology, Pain Management, Specialty Drugs), By Product, By Application, By Compounding Type, By Distribution Channel & Forecast, 2022-2030

Compounding Pharmacies Market Size

Compounding Pharmacies Market size was valued at more than USD 11 billion in 2021. Driven by the rising rate of drug failure and shortages of drugs, the industry is expected to grow at a CAGR of over 5.5% from 2022 to 2030.
 

Drug discovery & development is a costly and high-risk process that takes a long time. A new proposed drug needs to go through several clinical trials to be finally approved for sale and used for treatment. As per Biotechnology Innovation Organization statistics, about 63% of drugs are successful in the Phase I transition. Phase II has the lowest transition success rate of about 30% owing to failure during clinical trials while Phase III has the second lowest transition success rate of nearly 58%. Even after several efforts by researchers, drugs fail clinical test approvals. High occurrences of drug failure favor the compounding pharmacies industry expansion.
 

Prejudice against compound drugs may restrain industry progression

Consumer perception towards compounded drugs is a major factor restraining market growth. Burgeoning safety issues of compounded drugs owing to public health incidents prevent patients from their consumption. For instance, the fungal meningitis outbreak affected several patients on receipt of contaminated preservative-free medroxyprogesterone acetate (MPA) steroid injections from the New England Compounding Centre. Nonetheless, growing awareness of the effectiveness of compounded medication will encourage market players to expand their product portfolios. However, growing consumer preference for personalized medicine, often known as precision medicine, will fuel compounding pharmacies market growth. Companies are focusing on product range expansion and forming strategic alliances to improve their market standing over the coming years.
 

Compounding Pharmacies Market Analysis

In terms of product, the compounding pharmacies market is categorized into oral, rectal, topical, parenteral, ophthalmic, nasal, and otic. The oral segment is expected to exhibit strong CAGR of over 6% CAGR through the analysis timeframe. Surging demand for oral compounded medicines can be attributed to several benefits of the oral dosage form viz., convenience, self-administration, and being pain-free. Better accessibility to certain medications in oral forms, such as solid preparations (tablets, powder, capsules, and so on) and liquid preparations (suspensions, syrups, and others), as compared to other dosage forms will fuel segmental growth.
 

In terms of therapeutic area, the compounding pharmacies market is categorized into pain management, dermatology, hormone replacement, nutritional supplements, specialty drugs, and others. The pain management segment held over 33% market share in 2021 and is expected to register substantial gains by 2030. Growing instances of chronic pain in elderly as well as adult population will propel the segmental growth. For instance, according to the CDC 2019 report, 20.4% U.S. adults had chronic pain. Such scenarios are expected to create massive growth potential for the pain management segment.
 

Based on application, the compounding pharmacies market is divided into pediatric, adult, geriatric, and veterinary. The geriatric segment is poised to depict more than 6% CAGR over the analysis timeframe. The rising geriatric population and increased life longevity play a crucial role in the expansion of the compounding pharmacy market. Compounding medications to custom fit patient requirements, dosages, and drug modulation help in targeting specific needs of the patients, which is vital for geriatric patients owing to the benefits offered by compounded medications, thereby aiding segmental demand.
 

With respect to compounding type, the compounding pharmacies market is segregated into pharmaceutical dosage alteration (PDA), currently unavailable pharmaceutical manufacturing (CUPM), pharmaceutical ingredient alteration (PIA), and others. Drug shortages globally caused by discontinuations & delays and quality & manufacturing problems will augment segmental outlook. Many manufacturers provide FDA drug shortage information to prevent drug shortages. In such scenarios, compounding pharmacies play an essential role to provide medications to patients in absolute need of these medications. The currently unavailable pharmaceutical manufacturing segment was valued at over USD 2.5 billion in 2021 and is set to grow massively in the coming years.
 

 North America compounding pharmacies market was valued at more than USD 6 billion in 2021. High regional awareness regarding compounding medications, increasing number of healthcare facilities, and higher healthcare spending power, coupled with the presence of various market participants, will prove advantageous for the market expansion. Another region that may emerge as a prominent revenue hub is Latin America. Driven by the rising awareness about the benefits of compounded medications and the growing number of compounding pharmacies, the LATAM compounding pharmacies market is foreseen to showcase steady CAGR of over 6% through the forecast time period. U.S. Compounding Pharmacies industry is expected to witness a 5.9% CAGR from 2022 to 2030.
 

Compounding Pharmacies Market Share

• Fagron
• B. Braun
• Nephron Pharmaceuticals Corporation
• Fresenius Kabi
• Athenex Pharma Solutions (Athenex Inc.)
• Dougherty's Pharmacy, Inc.
• Clinigen Group PLC
• Pencol Compounding Pharmacy
• Lorraine's Pharmacy
• McGuff Company Inc. (McGuff Compounding Pharmacy Services)
• Institutional Pharmacy Solutions
• Rx3 Compounding Pharmacy
• Wedgewood Village Pharmacy, Inc
• Triangle Compounding Pharmacies

are some major compounding pharmacies market players. The companies are engaging in profitable collaborations with healthcare companies and focusing on providing an extended range of customized drugs to grow in the industry. For instance, in April 2020, Clinigen Group PLC signed a distribution agreement with Porton Biopharma Limited (PBL) to commercialize ‘Erwinaze’ in the U.S. and European countries. This partnership helped the company to propel its business growth.

COVID-19 Impact

Increased demand for medications and reduced manufacturing capabilities of commercial medications during the COVID-19 pandemic positively impacted the compounding pharmacies industry. According to the CEO of IACP (International Academy of Compounding Pharmacists), the role of compounding pharmacists widened tremendously, such as ensuring the continuous availability of drugs for patients. For instance, FDA issued a guidance policy regarding the compounding of certain drugs for hospitalized patients by Federal facilities and State-licensed pharmacies, including health system and hospital pharmacies, which are not registered with the FDA as outsourcing facilities for the duration of the public health emergency, due to shortage of drugs required for patient treatment.
 

The compounding pharmacies market report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2017 to 2030 for the following segments:

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By Therapeutic Area

• Dermatology
• Pain management
• Specialty drugs
• Nutritional supplements
• Hormone replacement
• Others

By Product

• Oral
  • Solid preparations
    • Capsules
    • Granules
    • Tablets
    • Powder
    • Others
  • Liquid preparations
    • Suspension
    • Emulsion
    • Solutions
    • Syrup
    • Others
• Topical
  • Creams
  • Gels
  • Ointments
  • Pastes
  • Others
• Rectal
  • Enema
  • Suppositories
  • Others
• Parenteral
  • LVP
  • SVP
• Ophthalmic
• Nasal
• Otic

By Application

• Pediatric
• Geriatric
• Adult
• Veterinary

By Compounding Type

• Pharmaceutical Dosage Alteration (PDA)
• Pharmaceutical Ingredient Alteration (PIA)
• Currently Unavailable Pharmaceutical Manufacturing (CUPM)
• Others

By Sterility

• Non-sterile
• Sterile

By Distribution Channel

• Compounding pharmacy
• Hospital pharmacy
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Greece
  • Russia
  • Germany
  • UK
  • Spain
  • Poland
  • France
  • Norway
  • Czech Republic
  • Ukraine
  • Belgium
  • Italy
  • Finland
  • Sweden
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • Kuwait