Compounding Pharmacies Market Trends and Size - 2028

[Research Report] The compounding pharmacies market was valued at US$ 9,442.8 million in 2020 and is projected to reach US$ 14,995.1 million by 2028; it is expected to grow at a CAGR of 6.1% from 2021 to 2028.

 

Market Insights and Analyst View:

Compounding pharmacies or compound pharmacy role is to mix ingredients as per patients' needs and manufacture drugs that are not commercially available. Pharmacy compounding has been present since the beginning of time. It is essential in cases such as limited dosage strengths and dosage forms, drug allergies to certain ingredients, pediatrics, chemotherapy and veterinary medicine. Further, compounded medicines enhance pharmacist contribution to developing and implementing patient therapeutic plans and provide customized medications of high pharmaceutical quality. The market is driven by the factors such drug shortage crisis across the globe, benefits associated with compounded medications and increasing adoption of customized medicine (Personalized medicine). However, product recalls and stringent regulatory requirements will likely hinder the compounding pharmacies market growth during the forecast period.

 

Growth Drivers and Challenges:

A compounding pharmacy or specialty pharmacy makes drugs recommended by doctors for patients that are not commercially available. The demand for compounding pharmacy is growing due to its various associated benefits. For instance, compounding pharmacy is highly recommended to patients with allergies or to those who are young and need a small dosage of a particular medication. Additionally, pharmacists can alter ingredients if patients are lactose intolerant, glucose intolerant, or allergic to the commercial drug's unnecessary dye. Moreover, pharmacists can lessen the dosage for children or can add flavor for children and double the dose for adults depending on their needs. For patients who are delicate to oral administration, one can change pill formulation into a liquid for the ease of taking it. Compounding pharmacists can get access to medications that have been discontinued to patients who still depend on them. They can recreate the pharmaceutical-based ingredients to retain patients’ health.

Currently, compounding pharmacists are getting access to the highest quality ingredients, the latest research, techniques, and quality control rules to meet their patient’s needs. Further, a compounding pharmacy can create alternative dosage forms when patients face difficulties in swallowing pills. As per the patient and medication type, compounding pharmacies can make the act of taking medicines less difficult. For instance, certain medications can be reformulated into topical solutions to be implemented onto the skin and absorbed into the bloodstream. These benefits are leading to an increase in demand for compounding pharmacies.

Moreover, the major players in the market such as Fagron, Inc., Elixir Compounding Pharmacy, Avella specialty pharmacy, B. Braun Melsungen AG, PharMEDium Healthcare Holdings, Inc., Fresenius Kabi AG, Belle Santé Diagnostic & Therapeutic Institute Pvt. Ltd, Triangle Compounding Pharmacy, Vertisis Custom Pharmacy and US Compounding Inc. are anticipated to provide significant growth opportunities in the worldwide compounding pharmacies market during the forecasted period.

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Compounding Pharmacies Market: Strategic Insights

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Report Segmentation and Scope:

The “Global Compounding Pharmacies Market” is segmented based on product, therapeutic area, and geography. Based on product was segmented into oral medications, topical medications, suppositories, and others. Based on therapeutic area, the compounding pharmacies market has been segmented into pain medications, hormone replacement therapies, dermatological applications, and others. The compounding pharmacies market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on product, is segmented into oral medications, topical medications, suppositories, and others. In 2020, the oral medications segment held a larger share of the market. However, the topical medications segment is anticipated to register the highest CAGR in the market during the forecast period. Oral administration is a route of administration and it is taken through the mouth. They come in different forms like solid tablets, capsules, chewable tablets, or lozenges that are to be swallowed whole or sucked or as drinkable liquids such as syrups, drops or solutions. Sometimes the drug is consumed by the lining of the mouth, like is the case with lozenges. In most cases, oral medication ingredients don't enter the bloodstream until they enter the stomach or bowel. For example, some active ingredients like laxatives or contrast agents aren't meant to penetrate the bloodstream in large quantities at all. Along with the benefits, there are some restraining factors such as about 9% of children cannot swallow a small oral tablet, as they face some common barriers to effective swallowing, such as developmental stage, fear, anxiety, and intolerance to unpleasant flavors. At the same time, children aged 6–11 years can swallow a small oral tablet with education by a pharmacist or practitioner.

Based on therapeutic area, the compounding pharmacies market has been segmented into pain medications, hormone replacement therapies, dermatological applications, and others. In 2020 the pain medications segment held the largest share of the market. Moreover, the same segment is also expected to grow at the fastest rate of CAGR during the coming years. Pain is the most obvious symptom for which patients explore medical help. Acute pain can easily grow into chronic pain, which later becomes difficult to treat. Commercially convenient pain relief medications can treat chronic conditions such as arthritis, fibromyalgia, migraine, and other nerve and muscle pain; however, these medications can grow undesired side effects such as dizziness, drowsiness, or stomach irritation. Therefore, many patients seek a more suitable solution through pharmacy compounding. Compounding is the art and science of developing customized medications for patients. Pharmacy compounding allows patients customized options for pain medication. It provides relevant advantages to those for whom pain management has become a way of life. Dosage forms of pain medication may include topical creams, topical ointments, topical gels, suppositories, rectal suppositories, vaginal, troches, oral solutions, etc. Thus, pain management are contributing to the compounding pharmacies market and are expected to continue the trend during the forecast period.

Regional Analysis:

Based on geography, the compounding pharmacies market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. North America compounding pharmacies market has been analysed based on three major countries — the US, Canada, and Mexico.  The US compounding pharmacies market is estimated to hold the largest compounding pharmacies market share during the forecast period. The compounding pharmacies market growth in the US is attributed to the to the Market players are adopting organic and inorganic strategies for the market development. For instance, In Jan. 2021, Nephron Pharmaceuticals Corporation launched a brand-new syringe presentation under the highly successful Nephron 503B Outsourcing Facility operation. The Cyclic Olefin Copolymer syringe (COC) has a glass-like appearance but is break-resistant and lightweight. COC syringes are suitable for a variety of medications, including highly viscous drugs and provide for extended product shelf-life. Owing to the factors mentioned above in the country is expected to witness fast growth during the forecast period.

UK is the second leading region in the global compounding pharmacies market. Germany is holding the largest share in the Europe compounding pharmacies market during the forecast period due to the factors such as increase in the effectiveness of compounding drugs, which are likely to be the significant factors driving the growth of compounding pharmacies market in this region. The UK is moving ahead of the modern healthcare industry. The increasing geriatric population is the primary factor driving the growth of the UK compounding pharmacies industry. The population's lifespan has improved as a result of the change from high to low fertility and the shift in leading causes of death from infectious and bacterial diseases to chronic illnesses and noncommunicable diseases. Furthermore, the low cost of compounding pharmacies will benefit market growth in the coming years. The increased proportion of people approaching advanced age, and the growing need to look younger, would drive up demand for anti-aging products such as bioidentical hormone replacement therapy for women, human growth hormone, and high-quality dermatological products mainly manufactured in compounding pharmacies.

Furthermore, the ease and advantages provided by compounded drugs would be another factor influencing business development. Individuals that need treatment of an intensity not presently available on the market, and medications that are not currently widely available, are served by highly advanced compounding pharmacies. The potential of compounding pharmacies to expand the supply of difficult-to-find drugs, such as hormone therapy, would aid demand growth. Owing to the factors mentioned above in the country, UK compounding pharmacies market is expected to witness growth during the forecast period.

Industry Developments and Future Opportunities:

Various initiatives taken by key players operating in the global compounding pharmacies market are listed below:

• B. Braun Melsungen AG and Grifols form strategic partnership to enhance compounding pharmacy production output and services for hospitals. Grifols is a leading producer of plasma-derived medicines and has compounding centres in U.S.
• Triangle Compounding Pharmacy has launched compounded hand sanitizer to fight with the COVID-19 pandemic. Triangle Compounding Pharmacy is the first to provide pharmaceutical-grade hand sanitizer in U.S.

Compounding Pharmacies Market Regional Insights

The regional trends and factors influencing the Compounding Pharmacies Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Compounding Pharmacies Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Compounding Pharmacies Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Compounding Pharmacies Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Compounding Pharmacies Market are:

1. Fagron, Inc.
2. Elixir Compounding Pharmacy
3. Avella specialty pharmacy
4. B. Braun Melsungen AG
5. PharMEDium Healthcare Holdings, Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the compounding pharmacies market Fagron, Inc., Elixir Compounding Pharmacy, Avella specialty pharmacy, B. Braun Melsungen AG, PharMEDium Healthcare Holdings, Inc., Fresenius Kabi AG, Belle Santé Diagnostic & Therapeutic Institute Pvt. Ltd, Triangle Compounding Pharmacy, Vertisis Custom Pharmacy and US Compounding Inc. among others among others are the leading companies operating in the compounding pharmacies market. These companies focus on various growth strategies such as collaboration, product launches, business expansions, agreements among others to retain its position in the global market. They have a widespread global presence, which provides them to serve a large set of customers and subsequently increases their compounding pharmacies market share.