Compounded Pharmacy Market Research Report Information By Product (Topical Medications, Parenteral Medications, Oral Medications, and Other Medications), By Therapeutic Area (Hormone Replacement, Pain Management, Dermal Disorders, and Others), By Compounding Type (Pharmaceutical Ingredient Alteration, Currently Unavailable Pharmaceutical Manufacturing, Pharmaceutical Dosage Alteration, and Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Global Compounded Pharmacy Market Overview

Compounded Pharmacy Market Size was valued at USD 15.2 Billion in 2023. The compounded pharmacy market industry is projected to grow from USD 16.6 Billion in 2024 to USD 26.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2024 - 2032). A major market driver influencing the increased performance of compounded pharmacies is the importance of compounding in enhancing drug adherence.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Compounded Pharmacy Market Trends

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  Growing acceptance of customized medications is driving the market growth

  
  

The new approach to health care, which aims to take care of each individual and therefore calls for "personalized medicine," not only lowers the risk of adverse events and drug interactions but also can increase effectiveness, safety and overall compliance with treatment. The personal features of the given patient, such as genetic makeup, medical history, allergies, preferences, or other related information, can be incorporated by compounding pharmacists for formulation, dosage, flavor, and other ingredients on a prescription. Bioidentical hormone replacement therapy (BHRT) is not only a compounding pharmacy creation but also achieved, especially for women who are experiencing a menopause stage. Furthermore, if the patient would not be able to take oral opioids, they are provided with creams to be administered transdermally. As per figures of the Personalized Medicine Coalition (PMC), 20% of those new molecular entities approved by the FDA in the year 2016 belonged to the category of personalized medications. As a result, there will likely be an ongoing increase in the use of customized medicine, which is anticipated to lead to an escalation in the Compounded Pharmacy Market CAGR.

The process of developing new drugs is costly, extremely dangerous, and time-consuming. A novel medication needs to go through multiple clinical trials in order to be authorized for sale and therapeutic usage. However, for a variety of reasons—such as inadequate efficacy, safety concerns, or limited commercial potential—many pharmaceutical businesses fail to navigate clinical trials. When taking into account the costs suffered from multiple failed attempts, PhRMA estimates that the average time and cost needed to develop a single new medication are 10–15 years and USD 2.6 billion, respectively. Just 12% of recently created molecular entities that go through clinical trials are eventually approved by the Food and Drug Administration (FDA) in the United States. As a result, a great deal of pharmaceuticals are available that may be both effective and safe. Nevertheless, because more clinical study success is required, they still need to be made available on the market. Compounded pharmacies provide a way to get these medications by producing them in small amounts while working with a doctor. For those looking for alternative therapeutic approaches or without access to alternative therapy choices, this may be helpful.

The availability and accessibility of necessary medications for a variety of illnesses and ailments are impacted by the worldwide problem of drug shortages. A variety of factors, such as issues with manufacturing, poor quality, supply chain interruptions, government actions, changes in the market, or natural disasters, can cause a lack of drugs. The necessity for conventional pharmaceuticals to be available immediately is predicted to drive up demand for compounded pharmacies. According to the most recent report from the Drug Shortages Task Force, 163 medications were unavailable between 2013 and 2017. It also included elements like little incentive to create less profitable medications and difficulties with logistics and legislation. The market for compounded pharmacy is expected to grow as a result of the pattern's expected effects in the conventional drug sector. Additionally, compounded pharmacy can lessen the impact of drug scarcity by producing pharmaceuticals that are hard to get on the market, like orphan or discontinued goods, as well as highly sought-after or hard-to-find treatments. Compounded pharmacies are able to produce hydroxychloroquine, which is a drug used to treat COVID-19 and was severely limited during the epidemic. These elements propel the compounded pharmacy market revenue.

Compounded Pharmacy Market Segment Insights

Compounded Pharmacy Product Insights

The Compounded Pharmacy Market segmentation, based on product, includes Topical Medications, Parenteral Medications, Oral Medications, and Other Medications. In 2023, the oral medications segment dominated the market. The growing need for oral compounded drugs can be attributed to the oral dose form's many benefits, such as self-administration, painlessness, and ease of use. The easier availability of various oral medications, such as tablets, powder, capsules, and so forth, as well as liquid preparations, like syrups and suspensions, in comparison to other dosage forms, will drive segment expansion.

Compounded Pharmacy Therapeutic Area Insights

The Compounded Pharmacy Market segmentation, based on therapeutic area, includes Hormone Replacement, Pain Management, Dermal Disorders, and Others. The pain management category generated the most income in 2023 due to ongoing worries about pain, both acute and chronic, around the world, which have increased demand for specialized pain management treatments that are suited to each patient's needs. Precise formulation modifications are possible with compounded drugs, which combine several analgesics to improve effectiveness and limit side effects. Compound pain relief drugs have become more popular due to the increase in cases of neuropathic pain and musculoskeletal problems.

Figure 1: Compounded Pharmacy Market, by Therapeutic Area, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Compounded Pharmacy Compounding Type Insights

The Compounded Pharmacy Market segmentation, based on compounding type, includes Pharmaceutical Ingredient Alteration, Currently Unavailable Pharmaceutical Manufacturing, Pharmaceutical Dosage Alteration, and Others. In 2023, the pharmaceutical ingredient alteration segment dominated the market due to its essential function in meeting the needs of individual patients. In this section, pharmaceutical chemicals are modified to generate personalized treatments that address unique needs, such as allergies, intolerances, or dose requirements. Compounded pharmacies are experts at modifying ingredients to remove allergies or superfluous compounds, guaranteeing both patient safety and effectiveness.

Compounded Pharmacy Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American compounded pharmacy market area will dominate this market because of the highly developed healthcare system, the high incidence of chronic illnesses, and the need for individualized care. Furthermore, strict regulatory frameworks facilitate trust between patients and healthcare professionals by guaranteeing the quality and safety of compounded pharmacies.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Compounded Pharmacy Market Share By Region 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe compounded pharmacy market accounts for the second-largest market share as a result of a rise in R&D efforts intended to improve healthcare outcomes across the board and produce more precise and accurate results. During the forecast period, the healthcare system would face increased strain due to the growing elderly population and rising incidence of chronic diseases, which would also propel the compounded pharmacy market. Further, the German compounded pharmacy market held the largest market share, and the UK compounded pharmacy market was the fastest growing market in the European region.

The Asia-Pacific Compounded Pharmacy Market is expected to grow at the fastest CAGR from 2024 to 2032. A number of variables, including the growing number of older people, the occurrence of chronic diseases, and the need for individualized healthcare solutions, are driving this growth. Increased disposable income, swift urbanization, and bettering healthcare systems all support the region's potential for growth. Moreover, China’s compounded pharmacy market held the largest market share, and the Indian compounded pharmacy market was the fastest growing market in the Asia-Pacific region.

Compounded Pharmacy Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the compounded pharmacy market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the compounded pharmacy industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global compounded pharmacy industry to benefit clients and increase the market sector. In recent years, the compounded pharmacy industry has offered some of the most significant advantages to medicine. Major players in the compounded pharmacy market are attempting to increase market demand by investing in research and development operations including Fagron, Walgreen Co., JL Diekman and AQ Touchard (Fresh Therapeutics Compounding Pharmacy), Albertsons Companies, Galenic Laboratories Limited (Roseway Labs), The London Specialist Pharmacy Ltd (Specialist Pharmacy), Apollo Clinical Pharmacy, MEDS Pharmacy, Aurora Compounding, Formul8, and Fusion Apothecary.

Product sales and distribution for health and wellness are handled by Walgreens Boots Alliance Inc. (Walgreens Boots Alliance). Prescription and over-the-counter medications, personal care and cosmetics items, mail order and central specialized pharmacy services are all provided by the corporation via drugstores and online. Additionally, health and wellness services are offered. Alliance Healthcare, Boots, Duane Reade, and Walgreens are some of its retail pharmacy brands.

Pharmaceutical firm Fagron NV (Fagron) offers compounding solutions. Raw ingredients, volatile goods, tinctures and extracts, anesthetics, syrups, bases for ointments, medispend, triturations, suspension media, phyto pharmaflore, capsicards systems, and consumables are among the goods that the company sells. Moreover, Fagron offers liquid, solid, and semi-solid preparations. Fagron purchased a 503B outsourcing facility in Boston from Fresenius Kabi in July 2022. In the US, Fagron has expanded its sterile compounding business.

Key companies in the compounded pharmacy market include

• Fagron


• Walgreen Co.


• JL Diekman and AQ Touchard (Fresh Therapeutics Compounding Pharmacy)


• Albertsons Companies


• Galenic Laboratories Limited (Roseway Labs)


• The London Specialist Pharmacy Ltd (Specialist Pharmacy)


• Apollo Clinical Pharmacy


• MEDS Pharmacy


• Aurora Compounding


• Formul8


• Fusion Apothecary

Compounded Pharmacy Industry Developments

October 2023: Empower Pharmacy (Empower) has received a senior subordinated debt investment from LO3 Capital, a private investment firm committed to providing transformative finance to lower-middle market businesses to support its growth capital requirements. 2,000 institutions and more than 15,000 prescribers throughout all 50 states receive state-of-the-art pharmaceutical solutions from Empower, the top compounding pharmacy and outsourcing facility in the US.

February 2023: Harrow, a well-known American pharmaceutical company that specializes in eye care, has announced that its patent-pending, next-generation compounded Atropine formulations are now available via ImprimisRx.

January 2022: Nephron Pharmaceuticals Corporation introduced the Cyclic Olefin Copolymer Syringe (COC) in the course of running the Nephron 503B Outsourcing Facility. The 8.4% sodium bicarbonate injection in a COC syringe will soon be available from the company. This plan will enable the company to increase the range of products it offers in the compounding pharmacy sector.

Compounded Pharmacy Market Segmentation

Compounded Pharmacy Product Outlook

• Topical Medications


• Parenteral Medications


• Oral Medications


• Other Medications

Compounded Pharmacy Therapeutic Area Outlook

• Hormone Replacement


• Pain Management


• Dermal Disorders


• Others

Compounded Pharmacy Compounding Type Outlook

• Pharmaceutical Ingredient Alteration


• Currently Unavailable Pharmaceutical Manufacturing


• Pharmaceutical Dosage Alteration


• Others

Compounded Pharmacy Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America