Market Size of Compounding Pharmacy Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 14.31 Billion |
| Market Size (2029) | USD 18.86 Billion |
| CAGR (2024 - 2029) | 5.68 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Compounding Pharmacy Market Analysis
The Compounding Pharmacy Market size is estimated at USD 14.31 billion in 2024, and is expected to reach USD 18.86 billion by 2029, growing at a CAGR of 5.68% during the forecast period (2024-2029).
The key factors responsible for the market's growth include increasing demand for personalized medicine, drug shortage, and the rising geriatric population.
The growing geriatric population is one of the leading factors for market growth as they are more prone to various diseases that ultimately require different types of medicines. For instance, according to the report from the United Nations published in January 2023, the number of people aged over 65 or older is expected to double in the next three decades; it is expected to reach around 1.6 billion by 2050. The senior population is more prone to chronic and complex diseases, such as cardiovascular diseases, cancer, and others that need personalized treatment. Hence, the demand for compounding pharmacies is expected to increase to treat complex diseases in the geriatric population, driving market growth over the forecast period.
The drug shortage in several countries is likely to accelerate the compounding pharmacy market's growth. For instance, according to the Pharmaceutical Group of the European Union Medicine Shortage Report 2023, there was an increase of 36% in medicine shortages in 2023 compared to 2022 in Europe. As per the same report, medicine shortages in patients and pharmacies across Europe accentuated and significantly impacted the market, ultimately creating opportunities for compounding pharmacies and propelling the market’s growth during the forecast period.
Hence, owing to the increase in the geriatric population and rising issues associated with medicine shortages, the market is expected to witness notable growth over the forecast period. However, the need for skilled compounding pharmacists is expected to hinder market growth in the coming years.
Compounding Pharmacy Industry Segmentation
As per the scope of this report, a compounding pharmacy is a formulation of personalized or custom pharmaceutical products that are unique to the patient's needs and generally not available commercially.
The compounding pharmacy market is segmented by therapeutic area, route of administration, end user, and geography. By therapeutic area, the market is segmented into pain management, hormone replacement, dermal disorders, nutritional supplements, and other therapeutic areas. By route of administration, the market is segmented into oral, topical, parenteral, and other routes of administration. By end user, the market is segmented into humans and veterinary. By geography, the market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (USD) for all the above segments.
| By Therapeutic Area | |
| Pain Management | |
| Hormone Replacement | |
| Dermal Disorders | |
| Nutritional Supplements | |
| Other Therapeutic Areas |
| By Route of Administration | |
| Oral | |
| Topical | |
| Parenteral | |
| Other Route of Administrations |
| By End-User | |
| Humans | |
| Veterinary |
| Geography | ||||||||
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Compounding Pharmacy Market Size Summary
The compounding pharmacy market is poised for significant growth, driven by the increasing demand for personalized medicine and the rising geriatric population. The market has been influenced by the COVID-19 pandemic, which prompted regulatory bodies like the US FDA to issue guidelines on compounded drug use, ensuring patient safety and access. The aging population, particularly those over 65, is more susceptible to chronic and complex diseases, necessitating personalized treatments that compounding pharmacies can provide. Additionally, drug shortages in various countries, exacerbated by the pandemic, have created opportunities for compounding pharmacies to fill the gaps in medication availability, further propelling market expansion.
North America is expected to maintain a substantial share of the compounding pharmacy market, supported by a high number of compounding pharmacies and a significant drug scarcity. The region's market growth is also bolstered by strategic investments and expansions by key players, such as the establishment of new facilities and acquisitions. The pain management segment is anticipated to dominate the market due to the large patient base requiring tailored pain management solutions. Compounding pharmacies offer alternatives to standard medications, addressing side effects and improving patient compliance. Despite the promising growth prospects, the market faces challenges, including the need for skilled compounding pharmacists, which could impact its expansion trajectory.
Compounding Pharmacy Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Demand of Personalized Medicine
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1.2.2 Shortage of Drugs
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1.2.3 Rising Geriatric Population
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1.3 Market Restraints
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1.3.1 Lack of Skilled Compounding Pharmacists
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Buyers/Consumers
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1.4.2 Bargaining Power of Suppliers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value – USD)
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2.1 By Therapeutic Area
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2.1.1 Pain Management
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2.1.2 Hormone Replacement
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2.1.3 Dermal Disorders
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2.1.4 Nutritional Supplements
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2.1.5 Other Therapeutic Areas
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2.2 By Route of Administration
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2.2.1 Oral
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2.2.2 Topical
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2.2.3 Parenteral
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2.2.4 Other Route of Administrations
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2.3 By End-User
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2.3.1 Humans
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2.3.2 Veterinary
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2.4 Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Mexico
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 United Kingdom
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2.4.2.3 France
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2.4.2.4 Italy
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2.4.2.5 Spain
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2.4.2.6 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 China
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2.4.3.2 Japan
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2.4.3.3 India
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2.4.3.4 Australia
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2.4.3.5 South Korea
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2.4.3.6 Rest of Asia-Pacific
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2.4.4 Middle East and Africa
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2.4.4.1 GCC
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2.4.4.2 South Africa
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2.4.4.3 Rest of Middle East and Africa
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2.4.5 South America
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2.4.5.1 Brazil
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2.4.5.2 Argentina
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2.4.5.3 Rest of South America
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Compounding Pharmacy Market Size FAQs
How big is the Compounding Pharmacy Market?
The Compounding Pharmacy Market size is expected to reach USD 14.31 billion in 2024 and grow at a CAGR of 5.68% to reach USD 18.86 billion by 2029.
What is the current Compounding Pharmacy Market size?
In 2024, the Compounding Pharmacy Market size is expected to reach USD 14.31 billion.
