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Compounding Pharmacies Market Size By Therapeutic Area (Hormone Replacement, Pain Management, Dermatology Applications, Specialty Drugs, Nutritional Supplements), By Product (Oral {Solid Preparations [Tablets, Capsules, Granules, Powder], Liquid Preparations [Solutions, Suspension, Emulsion, Syrup]}, Topical {Ointments, Creams, Gels, Pastes}, Rectal {Suppositories, Enema}, Parenteral {SVP, LVP}, Nasal, Ophthalmic, Otic), By Application (Pediatric, Adult, Geriatric, Veterinary), By Compounding Type (Pharmaceutical Ingredient Alteration [PIA], Currently Unavailable Pharmaceutical Manufacturing [CUPM], Pharmaceutical Dosage Alteration [PDA]), By Sterility (Sterile, Non-sterile), By Distribution Channel (Hospital Pharmacy, Compounding Pharmacy) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI749
  • Published Date: Mar 2021
  • Report Format: PDF

Industry trends

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.

Compounding Pharmacies Market Overview

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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.

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.

Rising geriatric population with improved life expectancy will influence the compounding pharmacies market expansion

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.

Increasing demand for pain management medication will fuel the industry growth

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.

Rising usage of oral medication will offer significant industry expansion opportunities 

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.

Sedentary and unhealthy lifestyle will create significant demand for adult compounding medication 

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.

Growing incidences of drug allergies in patients will create lucrative growth opportunities for pharmaceutical ingredient alteration (PIA) segment

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.

High usage of non-sterile medication will impact the compounding pharmacies market demand

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.

Increasing visits in hospital pharmacies for compounded medications will create opportunity for the market expansion

Compounding Pharmacies Market Size

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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.

Rising demand for personalized medicine in North America region will accelerate the market progression

North America Compounding Pharmacies Market

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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.

Rising number of players involved in developing novel products are augmenting the market demand

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.

Some of the recent industry developments:

  • In April 2020, FDA approved the new production line of Nephron Pharmaceuticals Corporation. This development significantly boosted the revenues and enabled the company to cater to the growing compounded medication demand.
  • In May 2020, Wedgewood Pharmacy announced the acquisition of ZooPharm, a veterinary compounding pharmacy. This strategy enhanced the company’s product portfolio allowing them to garner higher revenue share in the industry.

The compounding pharmacies market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments:

Market, By Therapeutic Area, 2016-2027 (USD Million)

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

Market, By Product, 2016-2027 (USD Million)

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

Market, By Application, 2016-2027 (USD Million)

  • Paediatric
  • Adult
  • Geriatric
  • Veterinary

Market, By Compounding Type, 2016-2027 (USD Million)

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

Market, By Sterility, 2016-2027 (USD Million)

  • Sterile
  • Non-sterile

Market, By Distribution Channel, 2016-2027 (USD Million)

  • Hospital pharmacy
  • Compounding pharmacy
  • Others

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

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

Frequently Asked Questions (FAQ) :

The global market for compounding pharmacies was valued at more than USD 10.3 billion in 2020 and will record around 5.8% CAGR over the forecast timeframe 2021-2027.

The industry share from pain management segment had reached USD 3.4 billion during 2020 and will grow further owing to the availability of tailor-made treatment options for patients.

Compounding pharmacies market share from the oral segment held considerable share in 2020 and will witness over 6% CAGR up to 2027 as treating most diseases requires oral route of drug administration.

It was estimated that the adult segment accounted for around 47% of the global market share in 2020 and will expand due to consistent rise in the prevalence of chronic diseases.

The U.S. compounding pharmacies market size was over USD 5 billion in 2020, which indicates the considerable potential of the sector in North America region.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 14
  • Tables & Figures: 499
  • Countries covered: 29
  • Pages: 338

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