The global compounding pharmacies market was valued at around USD 11.2 billion in 2021 and is expected to hit USD 20 billion by 2030, registering growth at a 6.66% CAGR from 2022 to 2030.
The role of compounding pharmacies is to make drugs prescribed by doctors for specific patients with needs that can't be met by commercially available drugs in the market. Compounded drugs are the amalgamation of two or more drug ingredients in different proportions, i.e., combining or altering the active pharmaceutical ingredients of drugs to meet the unmet medical need of an individual patient. The major driver of compounding pharmacies market is worldwide increasing geriatric population. The population aged 60 or above is growing rapidly thus the demand for anti-aging products which use custom compounded drugs are increasing. Moreover, the ease of administering compounded drugs is particularly distinguished in critical illnesses such as cancer, where a patient is incapable to swallow a pain-reducing drug. The drug is either administered as a transdermal application, lollipop, or sterile preparation.
Major factors influencing the growth of compounding pharmacies market are
Rising medical droughts in required medication levels over the world, rising costs of branded prescription equivalents, and insufficient drug accessibility are projected to boost the growth of compounded pharmaceuticals market during the forecast period.
Furthermore, the growing geriatric population is expected to further drive the growth of the compounding pharmacy market. Compounding pharmacies will be in high demand as the rate of drug failure rises.
Moreover, the rising awareness of the benefits of compounded medications, which will lead to higher use of such personalized medications, will propel the market forward.
Scope of the Report
|Market Size in 2021||USD 11.2 Billion|
|Revenue Forecast by 2030||USD 20 Billion|
|Growth Rate from 2022 to 2030||CAGR of 6.66%|
|Largest Market||North America|
|Forecast Period||2022 to 2030|
TRENDS INFLUENCING THE GROWTH OF THE COMPOUNDING PHARMACIES MARKET
During the forecast period, the worldwide compounding pharmacies market is expected to rise due to an increasing geriatric population and rising acceptance of customized medicines. Since senior people are more vulnerable to chronic conditions like cardiovascular disease, the demand for tailored treatments has risen dramatically over time. Compounding pharmacies are a type of pharmacy that creates personalized drugs based on a patient's individual needs.
Rising research and development activities pertaining to topical formulations are expected to propel the global compounding pharmacies market forward. Topical formulations such as gels, creams, ointments, and other similar items are in high demand. Pharmaceutical companies are concentrating their efforts on research and development in order to develop revolutionary topical formulations. As a result, such factors are projected to drive market expansion in the near future.
Furthermore, the growing number of FDA approvals for new medication and industrial collaborations are boosting the market growth. Compounding pharmacy sales are likely to increase in the near future as regulatory processes in developing countries improve and streamline.
Furthermore, compounded pharmaceuticals' simplicity of administration is particularly notable in severe conditions such as cancer, where a patient is unable to swallow a pain-relieving drug. The medicine can be given as a transdermal patch, a lollipop, or a sterile preparation. This feature is expected to drive the growth of the compounding pharmacy market.
Coronavirus disease 2019 (COVID-19) has created an economic crisis in addition to the healthcare crisis. COVID-19 pandemic has stretched healthcare system worldwide; developed countries are expected to cause economic recession. The pandemic has an adverse impact on the healthcare system, resulting in 50% to 70% drop in revenue from March. Many small hospitals, clinics, and nursing homes, have been forced to shut their operations. In addition, social distancing and localized curfews have resulted in delayed elective surgical procedures. Further, visa cancellations have led to an interruption in medical tourism and can negatively impact the healthcare services market growth.
Pandemics, like other humanitarian crises, are times of great change and uncertainty to overcome this situation hence In response to shortages of medicines needed for Covid-19 patients on ventilators, the Food and Drug Administration is temporarily easing its rules so that compounders can start making some of the drugs for as long as the nationwide public health emergency is in effect, the agency will not take action against compounding pharmacies that make a medicine that is a copy of an approved drug, use bulk ingredients not on an approved list, or fail to meet good manufacturing requirements for stability testing. “In light of unprecedented disruptions to, and demands on, the global pharmaceutical supply chain as a result of the Covid-19 pandemic, and in order to respond to evolving regional conditions, additional flexibility is temporarily needed to ensure that treatment options are available when hospitals are unable to obtain FDA-approved drugs used for hospitalized patients with Covid-19,” the FDA said in a guidance.
Pain Management Segment is Expected to Dominate the Market
The pain management segment is expected to account for the largest share of the market owing to the large patient base suffering from chronic pain from various diseases and the presence of a generic market. Increasing accidental cases and growing cancer and chronic pain cases are key factors responsible for the growth of the pain management market. For instance, according to the data published by the Health Economists, Chronic pain costs about USD 635 billion every year to the U.S. which is greater than annual costs of diabetes, cancer, and heart diseases.
Nonsteroidal Anti-Inflammatory Drugs (NSAID’s), anticonvulsants, antidepressants, topical analgesics, and opioids are the major classes of drugs that doctors generally prescribe for chronic pain management. Many people have difficulties such as stomach irritation, unpleasant side effects, and unwanted flavor/route of administration while consuming the commercially available medication and compounding pharmacies provide alternate methods to ease consumption. Such an advantage of compounding pharmacy is expected to accelerate the market growth.
Higher demand for hormonal therapy will create significant growth opportunities
The hormonal replacement segment in the compounding pharmacies market is anticipated to witness around 7% growth rate till 2030 as this therapy use hormone that has the same chemical structure as the hormones in the body. Hormone replacement therapy is used in the treatment of symptoms associated with menopause and hormonal imbalance that surges the segment demand. Similarly, increasing demand for hormonal therapy as it helps to address a range of issues including birth control, prostate cancer, and others are prospective to influence the segment growth.
Growing geriatric population with need of personalized medicines will favor the industry growth
The geriatric segment held more than 20% of the compounding pharmacies market share in 2021. Compounding pharmacies have the ability to combine pills and alter dosage forms in order to make them suitable for patients. Elderly population aged 60 and above undergoes physiological changes that surge the need for pharmacists to compound alternative dosage forms to meet specific treatment needs. The growing geriatric population base with customized requirements for getting better and improved treatment will drive the segment expansion.
Increasing developmental activities in topical formulations will favor the compounding pharmacies market progression
The topical segment accounted for around USD 1.7 billion in 2021, owing to rising demand for ointments, creams, gels, and other similar products. Topical medications are applied to the skin or mucous membranes that allows it to enter the body. Growing R&D activities with respect to topical formulations are projected to impel the market value.
Rising demand for unavailable drugs will create growth opportunities for the segment
The CUPM segment captured around 23% of the compounding pharmacies market share in 2021 led by the need for specialized medicines. Lack of availability of drugs is one of the major concerns due to the factors such as disruption in manufacturing and supply chain, discontinuation of a drug or specific formulation owing to less usage or health risks. In these cases, compounding pharmacies can develop different formulations to cater to the patient population. Increasing list of unavailable medication and its demand in the industry will push the segment progression.
Increasing demand for targeted injectable medicines is poised to drive the segment revenue
The sterile segment in the compounding pharmacies market was valued at USD 3.5 billion in 2021. Sterile compounding pharmacy involves the development of medication requiring complete sterile conditions such as injectable solutions, suspension, vaccines, and syrups among others. The rising demand for injectable targeted medicines and growing usage of parenteral nutrition for geriatric patients will further spur the industry expansion.
Rising number of compounding pharmacies is predicted to fuel the market growth
The compounding pharmacy segment is set to showcase around 6% CAGR through 2030. Compounding pharmacies are specialized entities that are involved in the development of custom medications. Compounding pharmacies create custom medications from base ingredients for patients with different health ailments. Furthermore, growing need for personalized medications and rising number of compounding pharmacies is estimated to prove beneficial for the overall market revenue.
Advanced healthcare infrastructure in the European region will accelerate the market value
Germany compounding pharmacies market size was more than USD 380 million revenue size in 2021. Advanced healthcare infrastructure along with government initiatives favoring compounding pharmacies industry will further boost the market demand in the European region. In addition, increasing number of compounding pharmacies and surging number of geriatric population base will also create growth opportunities in the region.
North America is Expected to Dominate the Market during the Forecast Period
The presence of several compounding pharmacies, high adoption among people, and scarcity of many drugs are key factors for the growth of the market. According to the statistics published by the International Academy of Compounding Pharmacists (IACP), currently, there are about 56,000 compounding pharmacies operating in the United States and out of which 7,500 pharmacies provide advanced compounding services.
The United States Food and Drug Administration (FDA) provided guidelines for the maintenance of the quality of medications. Additionally, there are laws & regulations by the individual state for the operation of a compounding pharmacy. Hence, these regulations help to gain the confidence of patients over compounding pharmacies and thereby are expected to create more demand for compounding pharmacy during the forecast period.
However, the requirement of huge investment for the establishment of a well-equipped compounding pharmacy is expected to restrain the market growth.
By Therapeutic Area
By Compounding Type
By Distribution Channel