Animal Drug Compounding Market

Animal Drug Compounding Market Size

Animal Drug Compounding Market size was valued at USD 2.2 billion in 2023 and is estimated to grow at 8.3% CAGR from 2024 to 2032. The market has seen substantial growth due to the increasing prevalence of chronic diseases among pets and livestock animals which has increased the emphasis on personalized veterinary care.

Chronic diseases such as arthritis, diabetes, cancer, and other diseases are anticipated to significantly increase the demand for tailored medication solutions that standard pharmaceuticals often fail to provide. This trend towards personalized veterinary care is fostering a greater reliance on compounded drugs to meet the diverse needs of animals further bolstering the market growth.

In addition, global pet ownership continues to grow, owners are becoming more attuned to their pets' specific health requirements, driving the need for customized medications that effectively address these unique conditions, further propelling market growth.

Animal drug compounding is the process of creating customized drugs for animals by combining, mixing, or altering ingredients to meet specific health needs. This practice is essential when commercially available drugs do not adequately address an animal's unique condition, dosage requirements, or formulation preferences. Compounded medications can include tailored dosages, flavors, or forms (such as liquids or gels) to enhance palatability and compliance.

Animal Drug Compounding Market Trends

Growing regulatory support and comprehensive regulatory guidance are expected to enhance market demand by ensuring safety and efficacy in animal drug compounding. This framework aimed to provide veterinarians and stakeholders with clear guidelines, boosting confidence and adoption rates. The increased regulatory oversight and education efforts further drive market growth by minimizing risks.

• For instance, on April 14, 2022, the FDA issued Guidance for Industry #256, titled “Compounding Animal Drugs from Bulk Drug Substances.” This guidance outlines the agency’s approach to enabling veterinarians to access these unapproved drugs to meet the diverse medical needs of the animals they treat. The FDA’s final guidance balances three main objectives: ensuring veterinarians have access to necessary drugs, protecting animals and humans from unsafe drugs, and preserving the integrity of the FDA animal drug approval process. Additionally, the FDA continues to provide extensive education and stakeholder engagement opportunities to address the wide-ranging impact of this guidance anticipating market expansion.
  

Additionally, growing advances in veterinary medicine, rising pet ownership and healthcare spending, and the demand for personalized treatments are driving the need for customized compounded medications, fuelling market growth.

Animal Drug Compounding Market Analysis

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Based on the animal type, the market is categorized as companion animals and livestock animals. The companion animals segment is set to lead the market, accounting for the largest revenue of USD 1.5 billion in 2023, anticipating its dominance throughout the forecast period.

• The companion animal segment dominance was asserted to the increasing number of pets and their growing healthcare needs.
  
• The rise in pet ownership and increased awareness of pet health tends to significantly propel the demand for personalized medications tailored to the specific health conditions of dogs, cats, and other pets.
  
• In addition, compounded drugs are often required to address unique dosage requirements and formulations not available in standard pharmaceuticals. The segment's expansion is driven by pet owners' willingness to invest in customized treatments for their pets, leading to substantial growth in the market.
  

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Based on drug type, the animal drug compounding market is classified into anti-infective agents, anti-inflammatory agents, hormones & substitutes, CNS agents, and other drug types. The CNS agents segment holds the largest market share of 34.2% in 2023 and is expected to maintain dominance throughout the analysis period.

• Veterinarians are increasingly turning to CNS agents to address a spectrum of neurological conditions in pets, ranging from seizures and behavioral changes to blindness.
  
• This class of drugs, spanning anticonvulsants, tranquilizers, and sedatives, targets health issues that conventional pharmaceuticals often struggle to address.
  
• Thus, with a growing appreciation among veterinarians for the efficacy of these specialized medications, the demand for CNS agents is on a steady ascent, cementing their dominance in the market.
  

Based on the dosage form, the animal drug compounding market is segmented into oral, topical, injectable, and other dosage forms. The oral segment leads the market, holding the largest revenue share in 2023, and is expected to maintain its dominance with a projected CAGR of 8.1% during the analysis period. The oral segment is further categorized into tablets, capsules, liquid, and other oral dosage forms.

• Oral medications are generally more palatable and can be easily customized to suit individual animal needs, enhancing compliance.
  
• This method is particularly favored for companion animals, as it minimizes stress during administration and allows for flexible dosage adjustments.
  
• In addition, the convenience of administering flavored formulations in food further drives the demand for oral compounded medications, solidifying their position as the leading segment in the market. This trend reflects the growing focus on personalized veterinary care.
  

Based on the distribution channel, the animal drug compounding market is segmented into veterinary hospitals pharmacies, compounding pharmacies, and other distribution channels. The compounding pharmacies segment holds the largest revenue share and is projected to reach 53.6% by 2032.

• Compounding pharmacies excel in tailoring medications to suit distinct veterinary requirements. They focus on creating customized formulations, bridging gaps left by standard-produced drugs, especially for rare animal diseases.
  
• In addition, to the high preference by the pet owners for tailored treatments, compounding pharmacies are pivotal in offering solutions, such as flavored oral medications and unconventional dosage forms.
  
• This increasing preference indicates an increased acceptance of personalized veterinary care, cementing the significance of compounding pharmacies in the sector.
  

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U.S. dominated the North American animal drug compounding market accounting for USD 1.3 billion in 2023 and is anticipated to show considerable growth over the analysis period.

• High pet ownership rates and substantial R&D investments propel the U.S. market. The country witness’s significant veterinary healthcare spending. For instance, according to the American Pet Products Association in 2022, pet owners spent USD 31.5 billion on supplies, live animals, and medicine, and a staggering USD 35.9 billion on veterinary care and products. This underscores the escalating focus on pet healthcare. With an increased emphasis on veterinary care, pet owners are increasingly seeking tailored treatment options, fueling the demand for animal drug compounding.
  
• Additionally, the U.S. boasts a stringent regulatory landscape, bolstered by FDA guidelines. This, in conjunction with a plethora of veterinary clinics and hospitals, and a growing trend towards personalized animal care, further propels the market's expansion.
  

Germany exhibited a high growth potential in the European animal drug compounding market.

• Germany's prominence is exemplified by its advanced veterinary healthcare system and strong regulatory environment.
  
• The country’s well-established veterinary infrastructure supports a high demand for customized medication solutions, driven by its large pet and livestock population.
  
• With increasing investments in veterinary care and a growing focus on personalized treatments, Germany remains a key player in the European market.
  

The Asia Pacific animal drug compounding market is poised for rapid growth with a CAGR of 8.9% during the forecast period.

• Increasing pet ownership, a surge in awareness regarding advanced veterinary treatments, and rising expenditure on animal healthcare are driving growth in the region.
  
• The region's bolstered animal healthcare infrastructure, alongside increased investments in veterinary services, is fostering the growth of compounding pharmacies.
  
• Moreover, with ongoing advancements in veterinary medicine and a notable rise in chronic animal diseases, the market is witnessing further expansion.
  
• Thus, the aforementioned factors are expected to fuel the market growth in the region.
  

Animal Drug Compounding Market Share

The animal drug compounding industry is characterized by the blend of established pharmaceutical companies and specialized compounding pharmacies that shapes the competitive landscape. Leading companies emphasize innovation, quality control, and regulatory compliance to maintain their edge. The market includes both major pharmaceutical players and niche compounding service providers, each offering tailored solutions for various animal health needs. While dominant players leverage advanced technology and extensive distribution networks, smaller entities focus on personalized services and local expertise. This competition is further driven by advancements in veterinary medicine, regulatory changes, and the growing demand for customized treatments.

Animal Drug Compounding Market Companies

Few of the prominent players operating in the animal drug compounding industry include:

• AVRIO Pharmacy
• New Era Pharmacy
• NexGen Pharmaceuticals
• Pace Pharmacy
• SaveWay Compounding Pharmacy
• ScriptWorks 
• SCIRx Pharmacy
• Summit Veterinary Pharmacy Ltd.
• Triangle Compounding Pharmacy
• The Pet Apothecary
• Veterinary Pharmaceutical Solutions
• Veterinary Specialty Pharmacy
• WEDGEWOOD PHARMACY
  

Animal Drug Compounding Industry News:

• In May 2024, Mixlab acquired NexGen Animal Health to extend its advanced compounding pharmacy services from companion animals to large animals, with continued financial support from Vanterra Ventures. This acquisition aims to utilize Mixlab's proprietary technology platform to enhance offerings for large animal practitioners and owners, improve production efficiency, and drive further growth.
  
• In June 2023, Wedgewood Pharmacy merged with Blue Rabbit, integrating Wedgewood’s custom compounding expertise with Blue Rabbit’s innovative veterinary prescription technology and its five regional pharmacies. This merger aims to redefine veterinary pharmacy services by improving capabilities, expediting medication delivery, and expanding the formulary. The partnership positioned both companies to deliver superior and more efficient veterinary care.
  

The animal drug compounding 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 Animal Type

• Companion animals
• Livestock animals

Market, By Drug Type

• Anti-infective agents
• Anti-inflammatory agents
• Hormones & substitutes
• CNS agents
• Other drug types

Market, By Dosage Form

• Oral
  • Tablets
  • Capsules
  • Liquids
  • Other oral dosage forms
• Topical
  • Ointments
  • Creams
  • Gels
  • Sprays
• Injectable
• Other dosage forms

Market, By Distribution Channel

• Veterinary hospitals 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
  • The Netherlands
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East and Africa