Compounding Pharmacies Market Size By Therapeutic Area (Hormone Replacement, Pain Management, Dermatology Applications, Specialty Drugs, Nutritional Supplements), By Product (Oral, Topical, Rectal, Parenteral, Nasal, Ophthalmic, Otic), By Application (Paediatric, 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, Application Potential, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Dec 2019  |  Report ID: GMI749  |  Authors: Sumant Ugalmugle, Rupali Swain

Report Format: PDF   |   Pages: 250   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry trends

Compounding Pharmacies Market size surpassed $9.2 billion in 2018 and is projected to achieve over 5.7% CAGR up to 2025.
 

Compounding Pharmacies Market

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Compounding pharmacies differ from the traditional pharmacies in terms of drug composition. Role of compounding pharmacies is to develop drugs that are prescribed according to patient’s specific requirements. Since past few years, the process of compounding drugs has been upgraded that has enabled these pharmacies to deliver advanced compounding services. The tailor made drugs are directly sold to the customers through prescriptions or via hospital pharmacies. Custom-made compounded drugs are specifically utilized in hormone replacement, pain management, dermatology, specialty drugs and also sometimes can be utilized as nutritional supplements. Regulatory authorities keenly monitor the activities of compounding pharmacies to avoid the occurrence of any adverse events that proves beneficial for the market growth.
 

History of compounding pharmacies industry can be traced back to 19th century. In early 1900’s physicians used to prescribe compounds to develop customized medications. Since then, compounding pharmacies have become an integral part of the pharmaceutical industry. Although the industry witnessed substantial growth, requirement of compounding drugs diminished due to advent of mass drug manufacturing. However, in recent times, there has been an upsurge in the demand for compounding medications as the manufacturers do not always meet the patient’s custom requirements. Compounding pharmacies industry is yet to witness numerous growth opportunities with the advent of technology.
 

Compounding Pharmacies Market Report Coverage
Report Coverage Details
Base Year: 2018 Market Size in 2018: 9.3 Billion (USD)
Historical Data for: 2014 to 2018 Forecast Period: 2019 to 2025
Forecast Period 2019 to 2025 CAGR: 5.7% 2025 Value Projection: 13.7 Billion (USD)
Pages: 250 Tables, Charts & Figures: 442
Geographies covered (29): U.S., Canada, Germany, UK, Italy, Spain, France, Poland, Ukraine, Greece, Sweden, Norway, Belgium, Czech Republic, Finland, Russia, China, India, Japan, Singapore, Australia, Argentina, Brazil, Mexico, South Africa, UAE, Saudi Arabia, Qatar, Kuwait
Segments covered: Product, Therapeutic Area, Sterility, Application, Compounding Type, Distribution Channel
Companies covered (14): Fagron, PharmaMEDium, B. Braun Medical, Institutional Pharmacy solutions, Triangle Compounding Pharmacies, Fresenuis Kabi, Lorraine’s Pharmacy, Wedgewood Village Pharmacy, Doughtery’s Pharmacy, Village compounding Pharmacies, Mcguff compounding pharmacy services, Rx3 Compounding Pharmacy, Pencol Compounding Pharmacy, ITC Compounding Pharmacy
Growth Drivers:
  • Increasing geriatric population & longevity globally
  • Growing acceptance of personalized medicines worldwide in U.S. and Europe
  • Increasing drug shortage in North America and Europe
  • Convenience of using compounded drugs
  • Growing drug failure rate
Pitfalls & Challenges:
  • Lack of skilled lab technicians and pharmacists in developed countries
  • High costs of equipment and maintenance of sterile environment
  • Changing regulatory specifications
  • Consumers perception towards compounded drugs

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Shortage of drugs positively impacts the compounded pharmacies market demand

Developed regions such as North America and Europe have experienced considerable drug shortage over the past few years. Reason can be attributed to the inconsistent supply of raw materials, product quality issues and product delays. Shortage of drugs may have serious repercussions such as death of patients. Lack of timely availability of standard drugs will stimulate the demand for compounded medications thereby, augmenting the market growth. However, high cost of advanced equipment required for compounding medicines will hamper the industry growth to some extent.
 

Rising obesity related disorders has led to an emergence of nutritional supplements 

Therapeutic areas of compounding pharmacies market include hormone replacement, pain management, dermatology applications, specialty drugs and nutritional supplements. Nutritional supplements segment was valued around 580 million in 2018. Recently, nutritional supplements have started gaining popularity owing to the increasing health consciousness amongst general population.  People residing in urban areas having sedentary lifestyle often face disorders associated with obesity. Complications associated with these disorders have compelled people to consult physicians for treatment. Physicians are prescribing compounded nutritional supplements to overcome chronic dietary issues thereby, positively influencing the industry size.
 

Ease of administration of oral compounded drugs has elevated their preference

Based on product, the market is segmented into oral, topical, rectal, parenteral, nasal, ophthalmic and otic. Oral segment had over 33% revenue share in 2018 and oral products are acquiring traction since past few years due to the benefits associated with them. Few of the advantages include ease of ingestion, good patient compliance, safety and pain avoidance. Moreover, tablet compounded drugs have significant shelf life that increases its preference. Furthermore, oral drugs have shown high efficacy during several pharmacokinetic studies that proves beneficial for the market demand.
 

Global Compounding Pharmacies Market By Product

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Adult population has inclination towards compounded drugs

Based on application, the market is fragmented into paediatric, adult, geriatric and veterinary. Adult segment was valued around USD 4.3 billion in 2018 and is projected to grow substantially in the forthcoming years. Significant revenue size can be attributed to the rising inclination towards compounded drugs that are specifically tailored according to patient’s need. Adult population suffering from chronic diseases such as cancer rely on custom drugs offered for pain management. These drugs are also free of any allergy that further stimulates their preference thereby, fostering the market growth.
 

Altering the dosage form for adults has escalated the preference of pharmaceutical dosage alteration through compounding pharmacies

Compounding types include pharmaceutical ingredient alteration [PIA], currently unavailable pharmaceutical manufacturing [CUPM], pharmaceutical dosage alteration [PDA]. PDA segment is expected to foresee around 5.5% growth during the forthcoming years. Elderly population experiencing pain due to chronic diseases usually requires compounded drugs that are altered according to patient’s need. Other allopathic drugs may cause adverse reactions in elderly individuals suffering from chronic diseases that will surge the demand for compounded drugs thereby, fostering the market growth.
 

Non-sterile segment is predicted to experience immense growth in the forthcoming years

Based on sterility type, the market is classified into sterile and non-sterile. Non-sterile compounding pharmacies segment was valued over USD 6 billion in 2018. Non-sterile compounding facilities are scrutinized by regulatory authorities such as the U.S. FDA and EU Commission. The non-sterile facilities comply to the regulations for minimizing the adverse events that occur once the drug is in the market. Thus, regulations framed by the authorities ensures availability of superior quality compounded pharmaceuticals proving beneficial for the compounding pharmacies market.
 

Compounded drugs have been extensively sold across hospital pharmacies since past few years

Distribution channel segment of the market is fragmented into hospital pharmacy, compounding pharmacies and others. Hospital pharmacy segment will witness more than 4.5% growth throughout the forecast years. Substantial segmental growth can be associated with the increasing hospital admissions. Annually, millions of people suffer from at least one chronic disorder that stimulates the number of hospital admissions. This scenario proves beneficial for the market growth as it elevates the demand for compounded drugs through pharmacies. It is quite convenient for the patients to receive treatment at right time that boosts the market growth.
 

Favorable demographic trends will trigger the Asia Pacific industry demand  

Asia Pacific Compounding Pharmacies Market By Country

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Japan compounding pharmacies market outlook will grow at over 6% CAGR from 2019 to 2025. Considerable market growth can be associated with the rising elderly population. According to a survey, around 28% of the total population falls in elderly category in Japan. Majority of the people in the age group of 65 years and above suffer from chronic ailments that surges demand for compounded drugs. Moreover, the physicians also majorly prescribe compounded drugs to elderly population that are customized according to their requirements and specific needs that will drive the market size.
 

India compounding pharmacies market size accounted for over 15% revenue share in 2018, owing to favorable regulatory scenario. Positive regulations ensure availability of defect free products in the market. Moreover, rising prevalence of chronic diseases such as cancer and other disorders will further escalate the market growth in near future. Furthermore, growing prevalence of chronic orthopedic disorders will escalate the demand for compounded drugs. According to Arthritis India, around 15% of the population in India suffers from arthritis that increases the demand for compounded pharmacies for pain management boosting the market share.
 

Strategic initiatives undertaken by compounding pharmacies have helped them to evolve as major players 

Some of the prominent market players operating in compounding pharmacies market include Fagron, PharmaMEDium, B. Braun Medical, Institutional Pharmacy Solutions, Triangle Compounding Pharmacies, Fresenuis Kabi, Lorraine’s Pharmacy, Wedgewood Village Pharmacy, Doughtery’s Pharmacy, Village compounding Pharmacies, Mcguff compounding pharmacy services, Rx3 Compounding Pharmacy, Pencol Compounding Pharmacy, ITC Compounding Pharmacy. These eminent industry players strategically execute various in-organic growth strategies such as mergers and acquisitions to sustain market competition.
 

Some of the recent industry developments:

  • In July 2015, Fagron announced the acquisition of JCB labs with the goal to redesign the United States’ sterile compounding industry. This acquisition was envisioned with an aim for Fagron to become the high-quality sterile compounding manufacturer in North America.
     
  • In April 2017, Fresenius Kabi acquires Merck KGaA and Akorn’s biosimilars business. This acquisition was envisioned with an aim to diversify and strengthen Fresenius Kabi’s product portfolio.
     

The compounding pharmacies market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2014 to 2025, for the following segments:

By Therapeutic Area

  • Hormone Replacement
  • Pain Management
  • Dermatology applications
  • Specialty drugs
  • Nutritional supplements
  • Others

By Product

  • 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
    • LVP
    • SVP
  • Nasal
  • Ophthalmic
  • Otic

By Application

  • Children
  • Adult
  • Geriatric
  • Veterinary

By Compounding Type

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

By Sterility

  • Sterile dosage form
  • Non-sterile dosage forms

By Distribution Channel

  • Hospital pharmacy
  • Compounding pharmacies
  • Others

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

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

 

Frequently Asked Questions (FAQ) :

On the basis products, the major segments of compounding pharmacy are oral, topical, rectal, parenteral, nasal, ophthalmic and otic.
Increasing inclination of patients towards personalized medicine along with the rising prevalence of chronic diseases will drive the global market demand.
The Japanese compounding pharmacies industry will witness over 6% CAGR from 2019 to 2025.

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