Compounding pharmacies combine or alter drug ingredients to create customized medications for patients with specific needs that cannot be met by commercially available drugs. Compounding pharmacies cater to a diverse range of needs from medication for allergies, dietary requirements and childhood illnesses. They produce medications for animals as well in the form of palatable flavors, sizes or dosages that are different than what is commercially available.

The global compounding pharmacies market is estimated to be valued at US$ 10,705.19 Mn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing Personalized Medication Demand: Customized medication through compounding pharmacies provide solutions for patients having allergies or adverse reactions to existing commercially available drugs. They have contributed to significant increase in demand for personalized medication worldwide. According to the International Complementary and Alternative Medicine Research Center, around 50% of patients in the U.S. demand personalized formulations rather than purchasing commercially available drugs potentially containing inactive or allergenic ingredients. This high demand is a major driver for growth of compounding pharmacies market over the forecast period.

The rapidly growing geriatric population globally is also increasing need for customized medication as senior patients frequently have complex medical histories and drug requirements. Compounded drugs provide formulations in alternative routes of administration such as topical gels or creams that are easier for older patients to use rather than oral medications. It is estimated that by 2030, over 1.5 billion people will be aged 65 years or above requiring more specialized healthcare, thus augmenting market value of compounding pharmacies.

SWOT Analysis
Strength: Compounding pharmacies have the ability to customize medication for patients. By compounding medications, they can address issues like allergies, dosage, or drug interactions. They also provide alternatives for medications no longer commercially available. Compounding pharmacies have experienced pharmacists and chemists who can create specialized formulations.

Weakness: Compounded medications are not FDA approved. This lack of approval means there is no oversight on the effectiveness, quality, or safety of compounded drugs. Compounded medications also have a shorter shelf life than FDA-approved drugs. Due to their custom nature, compounded drugs can be more expensive than traditional medications.

Opportunity: An aging population with complex medication needs presents an opportunity for compounding pharmacies. As the number of people with multiple chronic conditions rises, demand will increase for customized formulations. There is also growth potential in serving veterinary markets by compounding animal medications. Compounding pharmacies can offer alternatives for drugs in shortage or facing supply issues.

Threats: Increased FDA regulation of compounding pharmacies may lead to higher compliance costs. Stricter rules could reduce the scope of compounds allowable. Competing markets for customized medications, such as specialty pharmacies, also present a threat. Drug shortages or formulations going off patent could negatively impact revenue streams.

Key Takeaways

The Global Compounding Pharmacies Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2023 is estimated at US$ 10,705.19 million and is projected to reach US$ 17,000 million by 2030, registering a CAGR of 4.1% during the forecast period.

Regional analysis

North America is currently the dominant region for compounding pharmacies, driven by the United States market. Factors like an aging population, demand for specialized drug formulations, and availability of insurance reimbursement contribute to the large market size. Asia Pacific is projected to be the fastest growing region due to growing medical tourism, economic development, and rising chronic disease prevalence. China and Japan represent major opportunities in Asia Pacific.

Key players

Key players operating in the compounding pharmacies market are Akzo Nobel N.V., Ashland Inc., CP Kelco, Daicel Corporation, The Dow Chemical Company, Lamberti S.p.A., Penn Carbose Inc., Sichem LLC, SINCOCMC Co. Ltd, Yixing Tongda Chemical Co. Ltd, and Nouryon. These companies provide various excipients and raw materials used in compounding formulations across multiple therapeutic areas. Strategic collaborations and acquisitions are common in this competitive landscape.

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