Compounding Pharmacy Market Size, Share and Trends 2024 to 2034

Compounding Pharmacy Market Size and Companies

The global compounding pharmacy market size was USD 15.89 billion in 2023, accounted for USD 16.92 billion in 2024, and is expected to reach around USD  31.77  billion by 2034, expanding at a CAGR of 6.5% from 2024 to 2034.

Compounding Pharmacy Market Key Takeaways

• North America accounted for 44.13% of revenue share in 2023.
• By compounding types, the PIA segment contributed the highest revenue share of 38% in 2023.
• By sterility, the sterile segment has captured the highest share of 58.8% in 2023.
• By age, the adult segment has generated the highest share of 44.5% in 2023.
• By therapeutic area, the pain management segment has dominated the market with a revenue share of 33.6% in 2023.
• By compounding types, the PIA segment dominated the market with the highest market share of 38% in 2023.

U.S. Compounding Pharmacy Market Size and Growth 2024 to 2034

The U.S. compounding pharmacy market size was estimated at USD 4.92 billion in 2023 and is predicted to be worth around USD 10.38 billion by 2034, at a CAGR of 7% from 2024 to 2034.

North America is expected to dominate the market over the forecast period. Compounding pharmacies in North America focus on patient-centric care, working closely with healthcare providers to understand individual patient's needs and create customized medications accordingly. They cater to a diverse range of patients, including those with allergies, sensitivities, pediatric patients, geriatric patients, and individuals with rare or complex medical conditions. Additionally, compounding pharmacies in North America are subject to strict regulations and quality standards to ensure patient safety and the efficacy of compounded medications. Regulatory bodies, such as the Food and Drug Administration (FDA) in the United States and Health Canada in Canada, provide guidelines and oversight to ensure compliance with good compounding practices. Therefore, this is expected to drive market growth in the region.

Asia Pacific is expected to grow at the highest CAGR over the forecast period. The market growth in the region is driven by the increasing prevalence of chronic disease and the growing geriatric population. For instance, according to an Indian Council for Medical Research report on the 'Burden of Cancers in India,' seven cancers, such as breast, lung, oesophagus, mouth, stomach, cervical and liver account for more than 40% of the overall disease burden.

Moreover, advances in pharmaceutical science and technology are contributing to the expansion of compounding pharmacy services in the Asia Pacific region. These advancements enable compounding pharmacies to prepare innovative and effective medications for patients with diverse healthcare needs. Thus, this is expected to drive market growth in the region over the forecast period.

Market Overview

A compounding pharmacy, also known as a pharmaceutical compounding facility, is a specialized kind of pharmacy that creates customized medications based on specific prescriptions. Unlike traditional pharmacies that dispense mass-produced drugs manufactured by pharmaceutical companies, compounding pharmacies create personalized medications by mixing, altering or combining pharmaceutical-grade ingredients to meet the unique needs of a patient.

Compounding medicines is a centuries-old procedure, but it has seen a resurgence in modern healthcare to cater to patients with specific requirements. Compounded medications are often prescribed when commercially available medications do not suit the patient due to allergies, dosage preferences, or specific health conditions. They can come in various forms such as creams, ointments, capsules, torches, suspensions and suppositories.

• According to the Ministry of Science & Technology, Government of India, globally, chronic or non-communicable diseases are on the increase and are responsible for 73% of all deaths. Non-communicable disease is accountable for 44% of lost disability-adjusted life years and 53% of all fatalities in India.
• According to the International Diabetes Federation, India has the most diabetics in the world, with an estimated 77 million having the disease currently and an estimated 134 million by 2045.
• As per National Cancer Institute, there are projected to be 609,820 cancer related deaths in the US in 2023. The leading cause of mortality is lung and bronchus cancer, which is predicted to claim 127,070 lives this year. When compared to colorectal cancer, which is the second most prevalent kind of cancer deaths, that is almost three times as many deaths. The third deadliest cancer, pancreatic cancer claims 50,550 lives each year.

Compounding Pharmacy Market Growth Factors

Compounding pharmacies work closely with healthcare providers to understand individual patients' needs and then prepare medication accordingly. This level of customization allows for precise dosing, removal of allergens or irritants, and the incorporation of various medications into a single dose form if needed. The ability to customize medications makes compounding pharmacies particularly useful in pediatric, geriatric and veterinary medicine as well as for patients with unique health requirements. The compounding pharmacy market is driven by various factors including the growing geriatric population, increasing prevalence of chronic disease, growing collaboration among key players and continuous product launches.

Market Scope

Market Dynamics

Driver:

Chronis disease and the ageing population

The prevalence of chronic diseases, such as diabetes, cardiovascular conditions, and arthritis, has been rising globally, particularly as the population ages. Compounding pharmacies play a crucial role in managing chronic conditions by creating personalized medications that address the specific needs of patients with these conditions.

For instance, as per the data given by UICC, the global population is ageing quickly. Currently, more than 703 million individuals worldwide are over 65, making up 9.1% of the world's population. According to projections, by 2050, this percentage will reach 15.9% (1.5 billion people). Similarly, according to data from World Health Organization, more than 50% of cancer patients are 65 years of age or older. This is most likely caused by the buildup of ageing-related risk factors for certain cancers and diminished cellular repair systems. Thus, the aforementioned facts support the market growth during the forecast period.

Restraint:

Regulatory compliance

Compounding pharmacies are subject to stringent regulations and quality standards to ensure patient safety and the efficacy of compounded medications. Meeting these regulatory requirements can be complex and costly for compounding pharmacies, particularly smaller establishments, leading to compliance challenges. Thus, regulatory compliance is expected to hamper market growth over the forecast period.

Opportunity:

Growing collaboration

The increasing collaboration among the market participants is expected to offer a lucrative opportunity for market growth over the forecast period. For instance, in February 2023, Front Range Laboratories (FRL), a full-service testing facility that has been a dependable partner of compounding pharmacies for more than 25 years, was acquired by Wedgewood Pharmacy from Loveland, Colorado. To meet the testing requirements of pharmacies across the nation, FRL offers analytical, microbiological, and other testing services in addition to product stability and other services. Michael Travis and Jennifer Travis, who created FRL, will continue to work for the company and be associated with Wedgewood Pharmacy. The FRL brand, which is well-known for providing top-notch services in the compounding pharmacy industry, will be retained by wedgewood pharmacy.

Therapeutic Area Insights:

Based on the therapeutic area, the global compounding pharmacy market is segmented into pain management, hormone replacement, dermal disorders, nutritional supplements and others. The pain management segment is expected to dominate the market over the forecast period. The pain management segment is one of the key areas where compounding pharmacies have seen significant growth and demand. Chronic pain is a widespread health issue, affecting millions of people worldwide, and managing it effectively is essential for improving patients’ quality of life.

The standard approach to pain management often involves using commercially available analgesics, but these medications may not always provide optimal relief or may lead to unwanted side effects. Compounding pharmacies are particularly valuable in pain management because they can tailor medication to suit individual patient needs.

This customization may involve creating personalized formulations that combine different pain-relieving agents, adjusting dosages to precise levels, or preparing medications in alternative delivery forms like topical creams, gels, or patches. By providing personalized pain management solutions, compounding pharmacies can help healthcare providers address their patient's unique pain profiles more effectively. Thereby, driving the segment growth.

Route of Administration Insights:

Based on the route of administration, the global compounding pharmacy market is segmented into oral, topical, parenteral and others. The oral segment is expected to hold the largest revenue share over the forecast period. Compounded oral medications can be mould to make them more palatable, especially for patients who have difficulty swallowing pills or find the taste of certain medications unpleasant. Adding flavours can improve patient compliance, especially for children and individuals with sensory sensitivities. In addition, this can create oral medications that combine multiple active ingredients into a single dosage form.

Distribution Channel Insights:

Based on the distribution channel, the global compounding pharmacy market is segmented into compounding pharmacy, hospital pharmacy and others. The hospital pharmacy segment is expected to dominate the market over the forecast period. Hospital pharmacies often encounter patients with complex medical conditions or specific treatment requirements. Compounding pharmacies can provide customized medications, adjust dosages, and prepare formulations to address the individual needs of each patient.

Moreover, hospital pharmacies frequently treat pediatric patients who may require medications in forms that are not available commercially or need flavoring to improve compliance. Compounding pharmacies can prepare pediatric-specific formulations to ensure appropriate dosing and administration. Thereby, driving the segment development during the forecast period.

Compounding Pharmacy Market Companies

• Fresenius Kabi
• Fagron NV
• B. Braun Medical Inc.
• Rx3 Compounding Pharmacy
• Clinigen Group PLC
• Dougherty's Pharmacy, Inc.
• Lorraine's Pharmacy
• Wedgewood Pharmacy
• Institutional Pharmacy Solutions
• Mcguff compounding pharmacy services

Recent Developments:

• In February 2023, Harrow announced the release of its boric acid- and preservative-free next-generation compounded atropine formulations. Additionally, the fresh formulations may be kept at room temperature for up to 180 days and have a physiological pH of 5.5. The patent-pending formulations are currently offered by ImprimisRx, a fully-owned compounding and mail-order pharmacy subsidiary of Harrow.
• In July 2023, the seventeenth and eighteenth enhancements to the Revelation Pharma platform were been announced by Osceola Capital, giving the company a considerable boost in size and capabilities. Both the Hoover, Alabama-based Eagle Pharmacy and the Beachwood, Ohio-based Lee Silsby Compounding Pharmacy were bought by Revelation. An outsourcing compounding pharmacy, Eagle is a 503B offers services to healthcare facilities and prescribers in the United States.

Segments Covered in the Report:

By Therapeutic Area

• Pain Management
• Hormone Replacement
• Dermal Disorders
• Nutritional Supplements
• Others

By Route of Administration

• Oral
• Topical
• Parenteral
• Others

By Age

• Pediatric
• Geriatric
• Adult
• Veterinary

By Compounding Type

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

By Sterility

• Sterile
• Non-sterile

By Distribution Channel

• Compounding Pharmacy
• Hospital Pharmacy
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa