Compounding Pharmacies Market Analysis | 2023-2028

Market Insights

The compounding pharmacies market was estimated at USD 11.8 billion in 2022 and is likely to grow at a CAGR of 5.81% during 2023-2028 to reach USD 16.61 billion in 2028.

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Market Dynamics

Introduction

In pharmacy, compounding is the creation of a particular pharmaceutical product to meet the unique needs of a particular patient. Compounded medications are made for specific patients. The conventional role of compounding pharmacies is to prepare drugs as prescribed by doctors for individual patients with needs that can't be met by the commercially available drugs.

Market Drivers

The compounding pharmacies market is driven by a host of factors, some of which are noted below:

Surging prevalence of chronic diseases: By 2035, 35.66% of the adult population 50 years and older will have at least one chronic condition, increasing to 47.81% by 2050. This rise in chronic diseases like cancer, diabetes, and heart disease is driving demand for customized medications, particularly from compounding pharmacies, which can cater to patients with allergies or swallowing difficulties.

Increasing geriatric population: The market in the European region is expected to grow due to increasing life expectancy and a growing geriatric population. The World Health Organization predicts that by 2050, 40 million Europeans will be 85 or older, with multiple chronic conditions requiring multiple medications. Compounding pharmacies can help manage these medications more effectively.

The surge in adoption of personalized medicine: Personalized medicine is a healthcare approach that considers individual genetic, environmental, and lifestyle factors, with compounding pharmacies playing a crucial role in producing tailored medications.

Insufficient commercially available drugs: Insufficient supplies of drugs are becoming increasingly common in many countries. Compounding pharmacies can bridge the gap in drug insufficiency by producing non-commercially available medications.

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Key Players

The following are the key players in the compounding pharmacies market:

• Athenex Inc.
• B. Braun Melsungen AG
• Clinigen Group plc
• Dougherty's Holdings, Inc.
• Fresenius Kabi AG
• Fagron, Inc.
• Institutional Pharmacy Solutions, LLC
• Lorraine’s Pharmacy
• McGuff Company, Inc.
• Pencol Compounding Pharmacy.

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By Therapeutic Area Type  

"Pain management segment held more than 30% of the market share in 2022"

The market is segmented as hormone replacement, pain management, dermatology applications, specialty drugs, nutritional supplements, and others. The pain management segment held more than 30% of the market share in 2022 due to the increased hormonal imbalance in women.

By Product Type  

"Oral segment CAGR of 5.9% during the forecast period"

The market is segmented as oral, topical, rectal, parenteral, nasal, ophthalmic, and optic. The oral segment CAGR of more than 5.9% during the forecast period, as the increasing number of patients with different chronic conditions, including cancer and diabetes, opting for parenteral administration.

By Application Type  

"Geriatric segment is 5.8% CAGR during the forecast period"

The compounding pharmacies market is segmented as pediatric, adult, geriatric, and veterinary. The geriatric segment is more than 5.8% CAGR during the forecast period, driven by the ability to compound pharmacies to increase the ease of medication among adults who are facing difficulty in swallowing

By Sterility Type  

"Non-sterile segment is likely to witness excellent growth in the coming years"

The compounding pharmacies market is segmented as sterile and non-sterile. The non-sterile segment is likely to witness excellent growth in the coming years, driven by the increasing demand for non-sterile medication such as syrups, capsules, and pills.

By Distribution Channel Type

"Hospital pharmacy segment dominated the market in 2022"

The market is segmented as hospital pharmacy, compounding pharmacy, and others. The hospital pharmacy segment dominated the market in 2022, driven by surging hospital admissions.  

Regional Analysis

"Europe is estimated to be the largest market during the forecast period"

Europe is estimated to be the largest market, whereas Asia-Pacific will be the fastest-growing region for the compounding pharmacies market during the forecast period. Favorable reimbursement policies and the growing acceptance of compounding medication in Europe will foster the region’s overall growth. Also, technological advancements, the presence of leading players, and well-established healthcare facilities will further contribute towards good growth of the market.

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Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s functional compounding pharmacies market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The compounding pharmacies market is segmented into the following categories. 

By Therapeutic Area Type

• Hormone Replacement 
• Pain Management 
• Dermatology Applications 
• Specialty Drugs 
• Nutritional Supplements 
• Others 

By Product Type

• Oral
• Topical
• Rectal
• Parenteral
• Nasal 
• Ophthalmic 
• Optic 

By Application Type

• Pediatric 
• Adult 
• Geriatric 
• Veterinary 

By Compounding Type

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

By Sterility Type

• Sterile 
• Non-sterile 

By Distribution Channel Type

• Hospital Pharmacy 
• Compounding Pharmacy 
• Others 

By Region

• North America (Country Analysis: the USA, Canada, and Mexico) 
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others

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Customization Option

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the product types by application type.  

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com.