Compounding pharmacies customize medications to meet patients’ unique needs by combining, mixing, or altering ingredients. They tailor oral and topical medications to address allergies, requirements for alternative dosages or formulations, and specialty medications customized for pets or pediatric populations. Compounding pharmacies produce medications for conditions such as local anesthetics, hormone replacement therapies, psoriasis creams, pain medications, dietary supplements, and veterinary medications.
The global Compounding Pharmacies Market is estimated to be valued at US$ 10705.19 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing geriatric population: The elderly population is more susceptible to chronic and complex conditions that often require compounded medications tailored to individual needs. According to the United Nations, people aged 65+ years are projected to number over 1.5 billion worldwide by 2050. This rising geriatric demography will drive demand for compounded medications.
Preference for customized medications: Compounded formulations allow for modification of active ingredients, dosage forms, flavors, and delivery methods based on unique health conditions, improving effectiveness and compliance. This tailored approach addresses health issues better than commercially available generic or branded drugs, spurring market growth. Moreover, rare conditions often lack FDA-approved treatment options, increasing reliance on compounded medications.
Segment Analysis
The compounding pharmacies market can be segmented into pharmaceutical ingredient type and therapeutic area. Based on pharmaceutical ingredient type, the market can be categorized into pharmaceutical ingredients, bulk drugs, and chemicals. The bulk drugs segment currently dominates the market due to the higher demand for customized medications with a specific dosage and delivery route as prescribed by physicians.
PEST Analysis
Political: Government regulations regarding pharmaceutical compounding often vary between states which can impact the operations and business models of compounding pharmacies. However, more standardized regulations can help the industry grow.
Economic: The rising healthcare costs and increasing demand for customized medications are fueling the market growth. Developed economies with higher per capita healthcare spending also present significant business opportunities.
Social: With growing awareness, customers are increasingly demanding medications tailored to their specific needs. This trend is driving the demand for compounding pharmacy services.
Technological: Adoption of advanced technologies like robotics and artificial intelligence can help compounding pharmacies enhance efficacy, quality, and scale of operations to meet the rising demand.
Key Takeaways
The Global Compounding Pharmacies Market Size is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing demand for personalized medications and shortage of off-patent drugs.
Regionally, North America currently dominates the market and is expected to continue its dominance owing to the favorable regulatory environment and high healthcare expenditure in the US. Countries like Canada and Mexico are also projected to offer lucrative opportunities for market players.
Key players operating in the compounding pharmacies market include Avella Specialty Pharmacy, Central Admixture Pharmacy Services, Fagron, Fresenius Kabi AG, PharMEDium Services, Institutional Pharmacy Solutions, Cantrell Drug Company,Triangle Compounding Pharmacies, Lorraine’s Pharmacy, Rx3 Compounding Pharmacy ,B Braun Melsungen AG, Clinigen Group PLC, QuVa Pharma, ITC Compounding Pharmacy, and Advanced Pharmacy. These players are focusing on expanding their geographical presence and service offerings through strategic partnerships and acquisitions.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it