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Compounding Pharmacies Market size was estimated at over USD 10.3 billion in 2020 and is projected to witness around 5.8% CAGR from 2021 to 2027.
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Increasing old age population and improved life expectancy is creating great opportunities for the market growth. Also, the growing drug failure rate and the massive drug shortage across the globe will propel the demand for compounding pharmacies. Additionally, rising awareness regarding the benefits of compounded medication leading to the increased adoption of such customized medicines will push the market progression. On the other hand, factors such as lack of skilled lab technicians and pharmacists in developing countries, high cost of maintenance of sterile environment, and volatility in regulatory scenario will resist the growth of the market to some extent.
Report Coverage | Details |
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Base Year: | 2020 |
Market Size in 2020: | USD 10.4 Billion |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 5.8% |
2027 Value Projection: | USD 15.4 Billion |
Historical Data for: | 2016 to 2020 |
No. of Pages: | 338 |
Tables, Charts & Figures: | 499 |
Segments covered: | Therapeutic Area, Product, Application, Compounding Type, Sterility, Distribution Channel, and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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The fundamental role of compounding pharmacies is to customize drugs prescribed by healthcare provider for individual patients with their specific needs that are either not readily available or not manufactured by commercial pharmaceutical companies. Such medications are manufactured in compounding facilities by a licensed physician after considering patient’s health needs.
Increasing elderly population coupled with rising life expectancy will be a primary factor boosting the market value. As per the Population Reference Bureau, old age population in the U.S. is expected to reach around 24% of entire population by 2060. The growth of the geriatric population is owing to decline in fertility rate and increased life expectancy. Affordable costs of compounding pharmacies have proven beneficial for the overall business growth during the forecast timeframe. Growing inclination towards personalized medication and surging demands to look youthful and younger has resulted in augmented demand for anti-aging products across the globe. Moreover, availability of several therapies such as compounded bioidentical hormone replacement therapy for women, testosterone therapy for men along with high-quality dermatological products proves beneficial for the market revenue.
The pain management segment in the compounding pharmacies market accounted for more than USD 3.4 billion in 2020. Pain management or pain control is a branch of medicine that extensively uses an interdisciplinary method for improving the quality of an individual living with chronic pain. A compounding pharmacist can work with a healthcare provider and develop a tailor-made treatment options for pain management. Growing incidence of chronic pain among adults due to sedentary lifestyle or trauma due to accidents will foster pain management medications demand.
The oral segment is poised to showcase over 6% growth rate till 2027 led by increasing number of medications in oral form, such as capsules and tablets among others. Also, dealing with most of the diseases requires to take medications via oral route of administration as an effective way of treatment, that spurs the demand for oral medications.
Adult segment held 47% of the compounding pharmacies market share in 2020. Compounding pharmacies provide nutritional supplements that aid adult consumers in their day-to-day activities. Also, adults are exposed to several chronic diseases that can be prevented with compounding products at an early stage. Growing burden of chronic disease due to sedentary lifestyle and unhealthy diet will drive the demand for compounded drugs, thus propelling the market growth.
The PIA segment exceeded USD 3.6 billion in 2020 on account of compounding pharmacies to compound hypoallergenic versions of commercial drugs. Pharmaceutical ingredient alteration includes medication that is compounded for individuals that are allergic to certain ingredients present in the commercially marketed drugs. Furthermore, multiple drugs can be compounded into single dosages to increase convenience.
The non-sterile segment is predicted to attain a CAGR of 5.5% through 2027. Although, non-sterile compounding involves formulating drugs in a clean environment, however, it does not require 100% sterile environment as the mode of intake is oral. High usage of non-sterile oral medication is likely to boost the segment growth.
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The hospital pharmacy segment dominated more than 53% of the market share in 2020. The patient visits in hospital pharmacies are more than others as the patients are often required to take prescription from a physician before buying compounded medications. Also, increasing demand for gluten-free, soy-free and preservative-free drugs compounded in the outsourcing facilities will further surge the market value.
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U.S. dominated the North America compounding pharmacies market and was valued at over USD 5 billion in 2020. The North America region is anticipated to continue its growth trend during the forecast period. Increasing demand for compounded drugs coupled with rising geriatric population will drive the market revenue. Existence of advanced healthcare infrastructure facilities along with government initiatives favouring compounding pharmacies will further boost the regional growth.
Some of the prominent companies functioning in the market include B. Braun, Athenex Pharma Solutions (Athenex Inc.), Fresenius Kabi, Clinigen Group PLC, Dougherty's Pharmacy, Inc., Fagron, Lorraine’s Pharmacy, Institutional Pharmacy Solutions, McGuff Company Inc. (McGuff Compounding Pharmacy Services), Nephron Pharmaceuticals Corporation, Rx3 Compounding Pharmacy, and Wedgewood Village Pharmacy, Inc. among many others. These industry leaders are undertaking several organic and inorganic growth strategies to garner a higher market share in the market.
Market, By Therapeutic Area, 2016-2027 (USD Million)
Market, By Product, 2016-2027 (USD Million)
Market, By Application, 2016-2027 (USD Million)
Market, By Compounding Type, 2016-2027 (USD Million)
Market, By Sterility, 2016-2027 (USD Million)
Market, By Distribution Channel, 2016-2027 (USD Million)
The above information is provided for the following regions and countries: