Global Compounding Pharmacies Market Overview
In 2023, The Global Compounding Pharmacies Market Reached A Value Of USD 11.71 Billion, And It Is Anticipated To Experience Robust Growth, Estimated To Reach USD 23.80 Billion By 2032. This Growth Is Expected To Occur At A Compound Annual Growth Rate (CAGR) Of 8.2% During The Forecast Period Spanning From 2023 To 2032.
Compounding Pharmacies Market Overview
Drug compounding is the process of combining, mixing, or altering ingredients to create personalized medications tailored to the specific needs of individual patients. Compounding often involves the blending of two or more drugs. In dermatology, compounded medications are frequently used to enhance treatment outcomes by customizing chemical formulations. Moreover, compounding serves as a vital source of treatment during national shortages of commercially available medications. The global compounding pharmacies market is poised for growth due to factors such as the increasing prevalence of chronic diseases, the aging global population, and extended life expectancies. Additionally, market trends, including rising drug failure rates and severe global drug shortages, are contributing to market expansion. However, the anticipated implementation of stricter regulations governing the production of complex formulations may restrain the growth of the compounding pharmacy market. On the other hand, emerging economies offer promising growth opportunities for key market players during the forecast period.
COVID-19 Impact:
The COVID-19 pandemic significantly impacted drug demand and disrupted the manufacturing capacity of commercially available medications, leading to increased favorability for the compounding pharmacy sector. The International Academy of Compounding Pharmacists (IACP) CEO emphasized the expanded role of compounding pharmacists in ensuring ongoing patient access to essential medications. For example, the FDA issued guidelines during the public health emergency to allow the compounding of specific medications for hospitalized patients by federal facilities and state-licensed pharmacies, including health systems and hospital pharmacies, due to shortages of necessary medications. Consequently, compounding pharmacies witnessed increased opportunities amid medication shortages. Furthermore, the FDA’s temporary guidance policy permitted federal facilities and state-licensed pharmacies, including hospital pharmacies and compounding pharmacies, to compound specific medications for hospitalized patients throughout the duration of the public health emergency.
Market Drivers:
The growing demand for hormone replacement therapy (HRT) medications is a key driver of the compounding pharmacies market. The availability of active pharmaceutical ingredients (APIs) in various doses has fueled the demand for HRT medications, especially among an aging population and individuals influenced by social media. Rising rates of breast and prostate cancer are driving the need for HRT medications, which include hormones such as progesterone, estrogen, testosterone, and estradiol. Customized HRT medications are in high demand, particularly for addressing sexual health concerns. Surgical procedures like hysterectomy and the effects of andropause are leading to increased demand for hormones like progesterone and testosterone. Stress and a fast-paced lifestyle are accelerating the aging process in younger individuals, further boosting the need for HRT medications. This trend presents lucrative opportunities for participants in the compounding pharmacy market.
Market Restraints:
The global compounding pharmacies market is expected to face constraints due to increasing restrictions on the production of complex formulations. For instance, the U.S. FDA has issued warnings regarding the prescribing of combination medications containing the active pharmaceutical ingredient (API) acetaminophen in doses exceeding 325 mg, which could harm patients’ livers. Consequently, compounding pharmacies are restricted from producing various types of medications, including replicas of FDA-approved prescription drugs and complex dosage forms like extended-release products, transdermal patches, liposomal products, and most biologics, even if they are listed on the FDA’s shortage list.
Market Segmentation:
The global compounding pharmacies market is segmented based on therapeutic area, route of administration, and sterility.
Therapeutic Area:
- Pain Management
- Hormone Replacement
- Dermal Disorders
- Nutritional Supplements
- Others
Pain management was the leading revenue contributor in 2021 and is expected to maintain its dominance throughout the forecast period. This is attributed to factors such as a growing geriatric population, increased surgical procedures, and rising healthcare costs. Additionally, the “others” segment is expected to witness the fastest market growth rate during the forecast period, driven by increasing cases of cancer and neurological disorders.
Route of Administration:
- Oral
- Topical
- Others
The oral category accounted for the largest market share in 2021. The diverse forms of oral medications available have contributed to this dominance. Oral administration has been the most common and convenient method of drug delivery for ages. Oral medications come in various forms, including granules, powders, pills, and capsules, making them user-friendly and easy to store.
Regional Landscape:
North America emerged as the dominant region in the global compounding pharmacies market in 2021. Factors contributing to North America’s leadership include increased healthcare spending, a greater number of healthcare facilities, high awareness of compounded drugs, and a substantial presence of market participants. The growing availability of compounding pharmacies and increasing awareness of the benefits of personalized pharmaceuticals are further driving market growth.
Competitive Landscape:
Key competitors in the global compounding pharmacies market include Advanced Pharmacy, Athenex Pharma Solutions, B. Braun Melsungen AG, Dougherty’s Pharmacy, Inc., Fresenius SE and Co. KGaA, Institutional Pharmacy Solutions, ITC Compounding Pharmacy, McGuff Companies, Inc., Nephron Pharmaceuticals, New Compounding Pharma, Olympia Compounding Pharmacy, Panacea Biomatx Inc (Triangle Compounding Pharmacy), Pencol Compounding Pharmacy, Perrigo Company Plc (Fagron), Rx Express Compounding Pharmacy, RX3 Compounding Pharmacy, and Valor Compounding Pharmacy.
Recent Developments:
- In May 2021, Slade Health, a division of Icon Group, entered into a long-term partnership with the Auckland District Health Board (ADHB) to provide sterile compounding services to meet the growing demands of cancer patients. This partnership aims to establish and operate a high-quality Good Manufacturing Practice (GMP) registered sterile compounding facility, supplying chemotherapy, antibiotics, analgesics, and nutritional infusions to public and private hospitals throughout New Zealand.
The Global Compounding Pharmacies Market is segmented as follows:
Compounding Pharmacies Market by Therapeutic Area Outlook (Revenue, USD Million, 2017 – 2030)
- Pain Management
- Hormone Replacement Therapy
- Dermal Disorders
- Nutritional Supplements
- Others
Compounding Pharmacies Market by Route of Administration Outlook (Revenue, USD Million, 2017 – 2030)
- Oral
- Topical
- Others
Compounding Pharmacies Market by Sterility Outlook (Revenue, USD Million, 2017 – 2030)
- Non-Sterile Compounding Drugs
- Sterile Compounding Drugs
Compounding Pharmacies Market by Region Outlook (Revenue, USD Million, 2017 – 2030)
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
| Compounding Pharmacies Market Report Scope |
| Report Attribute |
Details |
| Market Size Value in 2022 |
USD 10.82 billion |
| Revenue Forecast in 2032 |
USD 23.80 billion |
| Growth Rate |
CAGR of 8.2 % from 2023 to 2032 |
| Base Year for Estimation |
2022 |
| Historical Data |
2018 – 2022 |
| Forecast Years |
2023 – 2032 |
| Quantitative Units |
Revenue in USD million and CAGR from 2023 to 2032 |
| Report Coverage |
Revenue forecast, company ranking, Trends
competitive landscape, and growth factors |
| Segments Covered |
Therapeutic Area, Route of Administration, Sterility, and Region |
| Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others |
| Key Companies Profiled |
Advanced Pharmacy, Athenex Pharma Solutions, B. Braun Melsungen AG, Dougherty’s Pharmacy, Inc., Fresenius SE, and Co. KGaA, Institutional pharmacy solutions, ITC compounding pharmacy, McGuff Companies, Inc. and Others |
Table of Content
Compounding Pharmacies Market Size, Share, Growth, and Forecast Report
Chapter 1. Introduction
1.1. Report Description
1.1.1. Aim of the Report
1.1.2. Prospective Audience
1.1.3. Unique Selling Prepositions and Key Takeaways from the Report
1.2. Scope of the Research Study
1.3. Approach/Research Methodology
1.3.1. Secondary Research
1.3.2. Primary Research
1.3.3. Expert Panel Review
1.3.4. Market Data Breakdown and Data Triangulation
1.3.5. Research Approach for Market Size Estimation
1.3.5.1. Top-Down Approach
1.3.5.2. Bottom-Up Approach
1.3.6. Key Assumptions
1.4. Market Segmentation
1.4.1. Therapeutic Area
1.4.2. Route of Administration
1.4.3. Sterility
Chapter 2. Compounding Pharmacies Market Overview
2.1. Introduction
2.2. Analysis by Therapeutic Area, 2018-2032 (US$ Billion)
2.3. Analysis by Route of Administration, 2018-2032 (US$ Billion)
2.4. Analysis by Sterility, 2018-2032 (US$ Billion)
2.5. Market Analysis by Region, 2018-2032 (US$ Billion)
Chapter 3. Compounding Pharmacies Market Dynamics
3.1. Introduction
3.2. Growth Drivers
3.3. Growth Restraints
3.4. Growth Opportunities
3.5. Porter’s Five Forces Analysis
3.5.1. Threat of New Entrants
3.5.2. Bargaining Power of Buyers/Consumers
3.5.3. Bargaining Power of Suppliers
3.5.4. Threat of Substitute Therapeutic Areas
3.5.5. Intensity of Competitive Rivalry
3.6. Attractiveness Analysis
3.6.1. Therapeutic Area
3.6.2. Route of Administration
3.6.3. Sterility
3.6.4. Region
3.7. Value Chain Analysis
Chapter 4. Compounding Pharmacies Market Competition Analysis
4.1. Compounding Pharmacies Market Share Analysis by Company, 2019 – 2022
4.1.1. Top 3 Players, 2019 – 2022
4.1.2. Top 6 Players, 2019 – 2022
4.2. Strategic Initiatives
4.2.1. New Products Launch
4.2.2. Mergers/Acquisitions
4.2.3. Agreement and Collaborations
4.2.4. Partnerships, Joint Ventures, Expansion, and Distribution
Chapter 5. Global Compounding Pharmacies Market Analysis by Therapeutic Area, Sterility, and Route of Administration, 2018-2032 (US$ Billion)
5.1. Therapeutic Area
5.1.1. Global Compounding Pharmacies Market Share, by Therapeutic Area, 2022 and 2032
5.1.2. Global Compounding Pharmacies Market Revenue, by Therapeutic Area, 2018-2032 (US$ Billion)
5.1.3. By Pain Management Market Analysis 2018-2032 (US$ Billion)
5.1.4. By Hormone Replacement Therapy Market Analysis 2018-2032 (US$ Billion)
5.1.5. By Dermal Disorders Market Analysis 2018-2032 (US$ Billion)
5.1.6. By Nutritional Supplements Market Analysis 2018-2032 (US$ Billion)
5.2. Route of Administration
5.2.1. Market Share, by Route of Administration, 2022 and 2032
5.2.2. Market Revenue, by Route of Administration, 2018-2032 (US$ Billion)
5.2.3. By Oral Market Analysis 2018-2032 (US$ Billion)
5.2.4. By Topical Market Analysis 2018-2032 (US$ Billion)
5.2.5. By Others Route of Administration Market Analysis 2018-2032 (US$ Billion)
5.3. Sterility
5.3.1. Market Share, by Sterility, 2022 and 2032
5.3.2. Market Revenue, by Sterility, 2018-2032 (US$ Billion)
5.3.3. By Non-Sterile Compounding Drugs Market Analysis 2018-2032 (US$ Billion)
5.3.4. By Sterile Compounding Drugs Market Analysis 2018-2032 (US$ Billion)
Chapter 6. Global Compounding Pharmacies Market Therapeutic Area Analysis by Region, 2018-2032 (US$ Billion)
6.1. Pain Management Market Analysis 2018-2032 (US$ Billion)
6.1.1. North America
6.1.2. Europe
6.1.3. Asia Pacific
6.1.4. Latin America
6.1.5. Middle East & Africa
6.2. Hormone Replacement Therapy Market Analysis 2018-2032 (US$ Billion)
6.3. Dermal Disorders Market Analysis 2018-2032 (US$ Billion)
6.4. Nutritional Supplements Market Analysis 2018-2032 (US$ Billion)
6.5. Other Therapeutic Areas Market Analysis 2018-2032 (US$ Billion)
Chapter 7. Global Compounding Pharmacies Market Route of Administration Analysis by Region, 2018-2032 (US$ Billion)
7.1. Oral Market Analysis 2018-2032 (US$ Billion)
7.1.1. North America
7.1.2. Europe
7.1.3. Asia Pacific
7.1.4. Latin America
7.1.5. Middle East & Africa
7.2. Topical Market Analysis 2018-2032 (US$ Billion)
7.3. Others Route of Administration Market Analysis 2018-2032 (US$ Billion)
Chapter 8. Global Compounding Pharmacies Market Sterility Analysis by Region, 2018-2032 (US$ Billion)
8.1. Non-Sterile Compounding Drugs Market Analysis 2018-2032 (US$ Billion)
8.1.1. North America
8.1.2. Europe
8.1.3. Asia Pacific
8.1.4. Latin America
8.1.5. Middle East & Africa
8.2. Sterile Compounding Drugs Market Analysis 2018-2032 (US$ Billion)
Chapter 9. Compounding Pharmacies Market Analysis by Geography, 2018-2032 (US$ Billion)
9.1. North America Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.1.1. U.S. Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.1.1.1. Therapeutic Area
9.1.1.2. Route of Administration
9.1.1.3. Sterility
9.1.2. Canada Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.1.3. Mexico Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2. Europe Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2.1. UK Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2.1.1. Therapeutic Area
9.2.1.2. Route of Administration
9.2.1.3. Sterility
9.2.2. France Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2.3. Germany Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2.4. Spain Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2.5. Russia Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2.6. Italy Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.2.7. Rest of Europe Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3. Asia Pacific Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.1. China Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.1.1. Therapeutic Area
9.3.1.2. Route of Administration
9.3.1.3. Sterility
9.3.2. Japan Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.3. South Korea Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.4. India Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.5. Australia Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.6. Southeast Asia Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.7. Taiwan Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.3.8. Rest of Asia Pacific Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.4. Latin America Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.4.1. Brazil Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.4.1.1. Therapeutic Area
9.4.1.2. Route of Administration
9.4.1.3. Sterility
9.4.2. Argentina Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.4.3. Rest of Latin America Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.5. Middle East Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.5.1. Israel Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.5.1.1. Therapeutic Area
9.5.1.2. Route of Administration
9.5.1.3. Sterility
9.5.2. Turkey Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.5.3. Saudi Arabia Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.5.4. UAE Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.5.5. Rest of Middle East Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.6. Africa Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.6.1. Egypt Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.6.1.1. Therapeutic Area
9.6.1.2. Route of Administration
9.6.1.3. Sterility
9.6.2. South Africa Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
9.6.3. Rest of Africa Compounding Pharmacies Market Analysis 2018-2032 (US$ Billion)
Chapter 10. Company Profiles
10.1. Advanced Pharmacy
10.1.1. Company Overview
10.1.2. Financial Performance
10.1.3. Product Benchmarking
10.1.4. Strategic Initiatives
10.2. Athenex Pharma Solutions
10.3. B. Braun Melsungen AG
10.4. Dougherty’s Pharmacy Inc
10.5. Fresenius SEand Co.
10.6. KGaA
10.7. Institutional pharmacy solutions LLC
10.8. ITC compounding pharmacy
10.9. McGuff CompaniesInc
10.10. Nephron pharmaceuticals
10.11. New Compounding Pharma
10.12. Olympia Compounding Pharmacy
10.13. Panacea Biomatx Inc (Triangle Compounding Pharmacy)
10.14. Pencil Compounding Pharmacy
10.15. Perrigo Company Plc (Fagron)
10.16. Rx Express Compounding Pharmacy
10.17. RX3 Compounding Pharmacy
10.18. Valor Compounding Pharmacy
Chapter 11. COVID-19 Impact Analysis
11.1. Global Compounding Pharmacies Market, 2020 – 2032, Pre-V/S Post COVID 19
11.2. Estimated Impact of The Coronavirus (Covid-19) Epidemic on the Compounding Pharmacies Market Size In 2022, By Scenario
11.3. Impact on Supply Chain and Production in Compounding Pharmacies Market
11.4. Impact on Import and Export
Chapter 12. Import-Export Analysis
12.1. North America Compounding Pharmacies Import-Export, 2018 – 2022
12.2. Europe Compounding Pharmacies Import-Export, 2018 – 2022
12.3. Asia Pacific Compounding Pharmacies Import-Export, 2018 – 2022
12.4. Latin America Compounding Pharmacies Import-Export, 2018 – 2022
12.5. Middle East America Compounding Pharmacies Import-Export, 2018 – 2022
12.6. Africa Compounding Pharmacies Import-Export, 2018 – 2022
Chapter 13. Compounding Pharmacies Marketing Channel Analysis
13.1. Marketing Channel
13.1.1. Direct Marketing
13.1.2. Indirect Marketing
13.1.3. Development Trend
13.2. Market Positioning
Chapter 14. Compounding Pharmacies Manufacturing Cost Analysis
14.1. Key Raw Materials
14.2. Key Raw Material Suppliers
14.3. Market Concentration Rate
14.4. Manufacturing Cost Structure
14.5. Process Analysis
Chapter 15. Conclusion
Compounding Pharmacies Market by Therapeutic Area Outlook (Revenue, USD Million, 2017 – 2030)
- Pain Management
- Hormone Replacement Therapy
- Dermal Disorders
- Nutritional Supplements
- Others
Compounding Pharmacies Market by Route of Administration Outlook (Revenue, USD Million, 2017 – 2030)
- Oral
- Topical
- Others
Compounding Pharmacies Market by Sterility Outlook (Revenue, USD Million, 2017 – 2030)
- Non-Sterile Compounding Drugs
- Sterile Compounding Drugs
