Compounding Pharmacies Market (By Therapeutic Area: Specialty Drugs, Dermatology; By Age Cohort: Pediatric, Adult; By Compounding Type: PIA, PDA; By Sterility) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global compounding pharmacies market was valued at USD 13.1 billion in 2023 and it is predicted to surpass around USD 21.58 billion by 2033 with a CAGR of 5.12% from 2024 to 2033. The compounding pharmacies market is witnessing significant growth and evolution driven by several factors such as increasing demand for personalized medications, advancements in pharmaceutical compounding techniques, and rising prevalence of chronic diseases. Compounding pharmacies play a crucial role in customizing medications to meet individual patient needs, offering dosage forms and formulations that are not readily available in commercially manufactured drugs.

Key Pointers

• North America led the market with the largest market share of 44% in 2023.
• By Therapeutic Area, the pain management segment held the largest revenue share of 34% in 2023.
• By Age Cohort, the adult segment generated the maximum market share of 45% in 2023.
• By Age Cohort, the pediatric segment is poised to experience the fastest growth rate from 2024 to 2033.
• By Sterility, the sterile segment had the largest market share of 59% in 2023.

Compounding Pharmacies Market Growth

The growth of the compounding pharmacies market is propelled by several key factors. Firstly, there is a growing demand for personalized medications tailored to individual patient needs, driving the need for compounding pharmacies to customize dosage forms and formulations. Technological advancements in compounding techniques have also contributed significantly, enabling pharmacies to produce complex medications with precision and safety. Additionally, the rising prevalence of chronic diseases worldwide necessitates alternative treatment options, with compounded medications offering a viable solution. Regulatory bodies' emphasis on quality standards and adherence to safety guidelines further bolster market growth by ensuring the efficacy and safety of compounded medications. These factors collectively contribute to the expansion of the compounding pharmacies market, positioning it as a crucial component of the healthcare landscape.

Compounding Pharmacies Market Trends:

• Rising Demand for Personalized Medications: Increased preference for tailored treatment options drives demand for compounding pharmacies to provide customized medications based on individual patient needs.
• Expansion of Therapeutic Offerings: Compounding pharmacies are diversifying their therapeutic offerings beyond traditional areas like hormone replacement therapy and pain management to include specialties such as dermatology, oncology, and pediatrics.
• Focus on Quality Assurance and Regulatory Compliance: Heightened regulatory scrutiny and emphasis on quality standards necessitate compounding pharmacies to prioritize compliance with regulatory guidelines, ensuring the safety, efficacy, and quality of compounded medications.
• Integration of Digital Solutions: Adoption of digital platforms and software solutions streamlines pharmacy operations, improves workflow efficiency, and enhances patient communication, contributing to overall market growth and customer satisfaction.
• Expansion of Market Reach: Compounding pharmacies are expanding their geographic reach through strategic partnerships, collaborations, and mergers, enabling them to tap into new markets and serve a broader patient base.
• Increased Awareness and Acceptance of Compounded Medications: Growing awareness among healthcare professionals and patients about the benefits of compounded medications, such as personalized dosing and reduced side effects, contributes to increased acceptance and utilization of compounding pharmacy services.
• Focus on Sustainability and Eco-Friendly Practices: Rising environmental consciousness prompts compounding pharmacies to adopt sustainable practices, such as reducing waste, recycling materials, and using eco-friendly packaging, aligning with global sustainability initiatives.

Therapeutic Area Insights

The market is segmented based on therapeutic areas, including hormone replacement therapy, pain management, specialty drugs, dermatology, and nutritional supplements. In 2023, the pain management segment emerged as the market leader, accounting for the largest revenue share at 34%. This dominance is attributed to the escalating prevalence of chronic pain and the adverse effects associated with commercially available pain medications. Compounded pain management medications offer several advantages, such as bypassing the gastrointestinal system for patients experiencing related side effects and consolidating multiple medications into a single dose.

Forecasts indicate that the nutritional supplements segment will experience the most rapid growth. This surge is driven by the increasing demand for personalized beauty and anti-aging products. Consequently, numerous companies are introducing a variety of compounded nutraceutical products to meet this demand. For instance, Medisca Inc. offers over 100 high-quality compounded nutraceutical products, rigorously tested for heavy metals. These include prenatal multivitamins, minerals, antioxidants, and various other supplements. The hormone replacement therapy segment also commanded a substantial market share in 2023.

Age Cohort Insights

The market is segmented based on age cohorts, including adult, pediatric, and geriatric categories. In 2023, the adult segment emerged as the market leader, capturing the largest revenue share at 45%. Adults often require personalized medication due to factors such as ingredient sensitivities and specific dosage needs. Compounding pharmacies excel in meeting these demands by crafting tailored medications in various forms such as creams, capsules, or gels.

The pediatric segment is poised to experience the fastest growth rate over the forecast period. Children frequently need customized medications due to their smaller size, taste preferences, limited dosage options, and challenges in swallowing solid forms. These personalized medications enhance medication adherence and simplify the administration process, making it easier for children to take their prescribed treatments. Consequently, numerous companies are introducing personalized compounded medications catering to these age groups.

Sterility Insights

The market is categorized based on sterility into sterile and non-sterile segments. In 2023, the sterile segment emerged as the market leader, commanding the largest share at 59%. This segment is projected to experience rapid expansion at the highest growth rate during the forecast period. The surge in demand for sterile-compounded medications across various healthcare settings drives the growth of this segment. Additionally, the increasing complexity of patient needs and advancements in medical treatments also contribute to its growth.

For instance, in October 2019, The National Association of Boards of Pharmacy announced receiving funding from the FDA to develop a data-sharing system aimed at enhancing the oversight of sterile compounding pharmacies. On the other hand, the non-sterility segment addresses therapeutic gaps where commercially available medications may not fulfill specific patient requirements. Compounded medications in non-sterile forms can be custom formulated to accommodate allergies, sensitivities, or unique patient needs not addressed by mass-produced drugs. The flexibility and adaptability of non-sterile compounding also significantly contribute to driving the market's growth.

Compounding Type Insights

The market is segmented based on compounding types, including Pharmaceutical Dosage Alteration (PDA), Pharmaceutical Ingredient Alteration (PIA), Currently Unavailable Pharmaceutical Manufacturing (CUPM), and others. In 2023, the PIA segment emerged as the market leader, capturing the largest share at 38%, and is anticipated to witness the fastest growth rate throughout the forecast period. The demand for compounded medications often involves modifying or adjusting pharmaceutical ingredients to cater to specific patient requirements.

PIA entails modifying the composition or concentration of active ingredients in medications, typically to tailor them for individual patients' needs. Meanwhile, the PDA segment also commanded a significant market share. PDA is a fundamental aspect of compounding pharmacies, and the dominance of specific segments within the market may fluctuate based on factors such as regional preferences, patient demands, and market dynamics.

Regional Insights

North America dominated the market in 2023, accounting for the largest share of 44%. The region's market growth is propelled by the presence of numerous compounding pharmacies and the shortage of certain medications. According to statistics from the American Pharmacists Association in October 2021, the U.S. alone had over 56,000 community pharmacies, with 7,500 offering advanced compounding services. Meanwhile, the Asia Pacific region is poised to experience the fastest growth rate over the forecast period.

Key factors driving market growth in the Asia Pacific region include increasing demand for personalized medications, rising prevalence of chronic diseases, expansion of healthcare infrastructure, and growing awareness and demand for alternative therapies. Europe also held a significant market share in 2023, with factors such as the aging population and advancements in medical treatments contributing to its growth. Moreover, regulatory frameworks and guidelines, such as those established by the European Directorate for the Quality of Medicines (EDQM), ensure the safety, quality, and standardization of compounded medications, further supporting the industry's growth.

Compounding Pharmacies Market Key Companies

• Walgreen Co.
• JL Diekman and AQ Touchard (Fresh Therapeutics Compounding Pharmacy)
• Fagron
• Albertsons Companies
• The London Specialist Pharmacy Ltd (Specialist Pharmacy)
• Galenic Laboratories Limited (Roseway Labs)
• Aurora Compounding
• MEDS Pharmacy
• Apollo Clinical Pharmacy
• Formul8
• Fusion Apothecary

Compounding Pharmacies Market Segmentations:

By Therapeutic Area

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

By Age Cohort

• Pediatric
• Adult
• Geriatric

By Type

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

By Sterility

• Sterile
• Non-sterile

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)