Compounding Pharmacies Market

Global Compounding Pharmacies Market Size (2023 to 2028)

The size of the global compounding pharmacies market is predicted to be worth USD 17.11 billion by 2028 from USD 12.64 billion in 2023, growing at a CAGR of 6.24% from 2023 to 2028.

The role of a compounding pharmacy, also known as a compound pharmacy, is to blend components according to patients' needs and make pharmaceuticals that are not commercially available. Compounded pharmacies have several advantages over commercial pharmaceuticals that will help to expand the market. For example, customized dosage levels and hypoallergenic formulations are possible with compounded medication. Compounding pharmacies can also blend medicines into a single pill, lowering the number of doses required. Compounding pharmacies combine, change, and mix active pharmaceutical ingredients of medicines to create drugs customized to the needs of particular patients. Compounded drugs are created based on a doctor's prescription. Compounding is the process of combining two or more medicinal components in varying amounts. The majority of regulatory agencies throughout the world do not approve compounded pharmaceuticals or validate their safety.

Impact of COVID-19 on the global compound pharmacy market:

The COVID-19 epidemic has strained the global healthcare system, and wealthier countries are projected to experience economic recession as a result. In addition to the healthcare crisis, Coronavirus Disease 2019 (COVID-19) has caused an economic disaster. The pandemic has had a negative impact on the healthcare system since March’20. Several small hospitals, clinics, and nursing homes have had to close their doors. Furthermore, social isolation and localized curfews have caused elective surgical treatments to be postponed.

The emergence of highly transmissible respiratory infections necessitates the use of stringent treatment and care guidelines for afflicted individuals. In addition, the development and commercialization of effective COVID-19 infection prevention and treatment alternatives, such as vaccinations or antiviral medicines, take a long time. Due to a sharp drop in demand for compounding pharmacy-based medical products due to lower physician visits and hospitalization rates, the global compounding pharmacies market is likely to face short-term negative growth.

MARKET DRIVERS:

The global drug shortage crisis, the benefits of compounded drugs, and the increasing use of personalized medicine are propelling the compounding pharmacy market growth.

The demand for anti-aging therapies and products such as human growth hormone and bioidentical hormone replacement therapy has increased due to a growing number of people nearing old age and a growing desire to look younger. Similarly, as many of these medications are primarily developed in compounding pharmacies, the rising use of testosterone therapy and high-quality dermatological products among the elderly will fuel total market growth.

Compounding pharmacies' low expenses have proven to be favorable to overall market growth over the forecast period. Over the last five years, biopharmaceutical companies nearly doubled their R&D investments in personalized medicine. Furthermore, wealthy countries all around the world have begun to integrate customized treatment into their healthcare systems. Because compounding is an integral part of personalized medicine, the increased need for precision medicines has created lucrative opportunities for compound pharmacies in recent years. As a result, various life science businesses and compounding pharmacy market participants have increased their efforts to develop individualized medicine.

MARKET RESTRAINTS:

The expansion of the global compounding pharmacies market is projected to be hampered by an increase in drug failure rates throughout the drug discovery and formulation process. In addition, the shortage of experienced lab technicians and pharmacists in developing nations and the high expense of maintaining a sterile environment, and regulatory uncertainty may challenge the market's expansion during the forecast period.

REPORT COVERAGE:

This research report on the global compounding pharmacies market has been segmented and sub-segmented based on product, therapeutic area, application, and region.

Compounding Pharmacies Market – By Product:

• Oral Medications
• Topical Medications
• Suppositories
• Others

In 2022, the oral medications segment had the most significant share in the global compounding pharmacies market. This segment's rise can be due to reasons such as ease of use and availability in a variety of forms, including solid tablets, capsules, chewable tablets, and lozenges that can be swallowed whole or sucked, as well as drinkable liquids such as syrups, drops, and solutions.

Compounding Pharmacies Market – By Therapeutic Area:

• Pain Medications
• Hormone Replacement Therapies (HRT)
• Dermatological Applications
• Others

During the forecast period, the dermatology applications segment is estimated to grow at a brisk pace. Patients who are allergic to market pharmaceuticals can use dermatology custom treatments. In addition, compounded drugs can be made without specific preservatives, chemicals, or additions, depending on the patient's demands, allowing for faster segment advancement. Dermatology compounding products come in a range of formulations, including solutions, gels, sprays, ointments, foams, and more, to treat eczema, acne, psoriasis, and other skin conditions. As a result, the segment's expansion will be aided by the availability of a wide range of compounding formulations for dermatology applications.

Compounding Pharmacies Market – By Application:

• Paediatric
• Adult
• Geriatric
• Veterinary

In 2022, the adult segment accounted for the largest share of the global compounding pharmacies market. Adults can get nutritional supplements from compounding pharmacies to help them with their daily tasks. Adults are also susceptible to several chronic disorders that can be avoided early on using compounded medications. The rising prevalence of chronic disease due to sedentary lifestyles and poor diets will fuel demand for compounded medications, moving the market forward.

Compounding Pharmacies Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• The Middle East and Africa

Due to expanding healthcare infrastructure, Asia Pacific is expected to grow at a significant CAGR in the global market during the forecast period. Furthermore, the growth of the compounding pharmacies market in the Asia Pacific region will be fuelled by an increase in research and development initiatives to improve a variety of healthcare outcomes and obtain more accurate and precise findings. The incidence of chronic diseases is rising, and the elderly population is growing, putting a strain on the healthcare system and driving the market throughout the forecast period. In addition, increased consumer knowledge of the benefits of customized medications is driving demand for them in India. As a result, most doctors are prescribing compounded medications that are customized to the patient's specific needs.

North America dominated the global compounding pharmacy market in the recent past. The rising frequency of chronic diseases, the growing elderly population, and the existence of top pharmaceutical companies in the region contribute to the region's market growth. Furthermore, according to the US FDA, there is a medicine scarcity in the United States and similar shortages around the world; the numerous advantages of compounding drugs, such as customization according to the patients' demands, contribute to the market's growth.

Compounding pharmacies in Germany accounted for the third position in the global market and are expected to increase significantly throughout the analyzed period. The regional market will develop as the senior population grows and demand for tailored treatment rises. The market for compounding pharmacies in Germany will be boosted by a shortage of drugs and an increase in chronic pain linked with cancer, where patients cannot swallow the prescription. Furthermore, technological developments will increase the number of effective compounding pharmaceuticals, boosting market growth.

KEY MARKET PARTICIPANTS:

Fagron, Inc., Elixir Compounding Pharmacy, Fresenius Kabi AG, Belle Santé Diagnostic & Therapeutic Institute Pvt. Ltd, Triangle Compounding Pharmacy, Vertisis Custom Pharmacy, Avella specialty pharmacy, B. Braun Melsungen AG, PharMEDium Healthcare Holdings, Inc., and US Compounding Inc. are a few of the noteworthy companies operating in the global compounding pharmacies market and profiled in this report.

RECENT MARKET DEVELOPMENTS:

• The FDA authorized Nephron Pharmaceuticals Corporation's new production line in April 2020. This development increased revenue tremendously and allowed the company to meet the growing demand for compounded medications.
• Triangle Compounding Pharmacy launched compounded hand sanitizer in December 2020 to combat the COVID-19 outbreak. Triangle Compounding Pharmacy is the nation's first pharmacy to sell pharmaceutical-grade hand sanitizer.