April 13, 2024
Compounding Pharmacies Market

Compounding Pharmacies Market to Witness High Growth Owing to Increased Focus on Customized Medication

The compounding pharmacies market has grown significantly over the years, as customized medications allow patients to get treatment based on their precise medical needs. Compounding pharmacies produce medications specially formulated to match a patient’s unique clinical needs that are not met through commercially available pharmaceutical products. This helps address the needs of patients who may have difficulty swallowing pills, be allergic to inactive ingredients in certain medicines, have a temporary shortage of a drug product, or have a special clinical requirement for a different dose or dosage form of a FDA-approved medication.

Key functions of compounding pharmacies include accurately mixing, combining or altering ingredients to create customized medications according to prescriptions. This requires specialized equipment and clinical experience.

The Global compounding pharmacies market is estimated to be valued at US$ 12332.38 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in The Compounding Pharmacies Market are Infosys Limited, SAP, HCL, EXL, Atos SE, Accenture, Genpact, IBM Corporation, Oracle Corporation, Cognizant, Capgemini SE, and Tata Consultancy Services Limited and Others.

The market provides several opportunities such as increasing geriatric population suffering from chronic conditions, rising preference for personalized medicines, greater flexibility than commercially manufactured drugs, and growing emphasis on bioavailability. This presents lucrative prospects for market expansion in the coming years.

Globalization of the compounding pharmacies market has also enabled greater accessibility to customized medications worldwide. Continuous innovations are enabling effective new-age solutions to address unmet needs. Strategic collaborations among key stakeholders are further cementing the market presence across international geographies.

Market drivers

One of the major market drivers is the increased focus on customized medication. As no two patients and their conditions are the same, compounding pharmacies provide tailor-made medications based on their clinical needs and medical conditions. This has driven significant demand and popularity of compounding pharmacies over traditional pharmaceutical drugs in recent times.

PEST Analysis

Political: The US government policies regarding pharmaceutical products and patent laws can impact the compounding pharmacies market. Changes or new laws regarding compounding pharmacies can influence their business operations.
Economic: Rising healthcare costs and improving economic conditions boost the demand for customized medications prepared by compounding pharmacies. The expansion of health insurance coverage also benefits market growth.
Social: An aging population and growing demand for personalized care drive the need for compounded medications tailored to individual needs and preferences. Compounded drugs offer solutions for patients with allergies or those unable to consume common drug ingredients.
Technological: Adoption of automation, robotics, and digital tools help compounding pharmacies improve accuracy, efficiency, and scale up production. Online platforms also enable pharmacists to remotely consult with patients and physicians for customized prescriptions.

The United States accounts for the largest share of the global compounding pharmacies market in terms of value. This is attributed to the growth of compounding pharmacies in the country along with well-established healthcare infrastructure and growing patient demand for customized medications. According to industry estimates, the US market was valued at over US$ 8 Bn in 2024 and is anticipated to continue leading globally over the forecast period.

The compounding pharmacies market in Asia Pacific region is projected to witness the fastest growth during 2024-2030. This can be attributed to rising healthcare expenditures, growing geriatric population susceptible to chronic diseases, and increasing collaborations between international players and regional compounders looking to expand footprint in Asia Pacific countries. China, India, Japan and South Korea are expected to be the major revenue generators for compounding pharmacies in the coming years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it