February 25, 2024
U.S. 503B Compounding Pharmacies Market

U.S. 503B Compounding Pharmacies Market Witnesses Growth due to Rising Demand for Customized Medications

The U.S. 503B compounding pharmacies market allows local pharmacists to produce customized medications according to their patients’ specific medical needs. Compounded medications are prescribed when an FDA-approved medication is not suitable for a patient due to drug allergies, dosage form requirements, or other reasons. The customized compounding services provide advantages like minimizing adverse drug reactions and improving therapeutic efficacy through alternative formulations like creams, gels, and suspensions.

The global 503B compounding pharmacies market is estimated to be valued at US$ 1221.71 Mn in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the U.S. 503B Compounding Pharmacies Market  are ANWIL SA (PKN ORLEN SA), BorsodChem (Wanhua Chemical Group Co. Ltd), Ciner Resources Corporation, Covestro AG, Dow, Ercros SA, Formosa Plastics Corporation, Genesis Energy LP, Hanwha Solutions, INOVYN (INEOS), Kemira, Kem Onem, MicroBio Ireland Limited, NIRMA, Nouryon, Occidental Petroleum Corporation, Olin, Corporation, PCC Rokita SA (PCC SE), Shandong Haihua Group Co. Ltd, Spolchemie, Tata Chemicals Limited, Tosoh Corporation, Vinnolit GmbH & Co. KG (Westlake Chemical Corporation), and Vynova Group.

The market offers growth opportunities through expansion in sterile compounding which requires robust safety protocols and facilities. The increasing geriatric population suffering from chronic conditions also drives the need for compounded medications tailored to specific ailments and treatment plans.

Compounding pharmacies are expanding globally through franchising and international partnerships to cater to growing demand from international patients and healthcare facilities abroad.

Market Drivers
Rising prevalence of chronic diseases like diabetes, cancer and cardiovascular diseases drive the demand for customized medicines prepared by compounding pharmacies. According to studies, over 117 million Americans suffer from at least one chronic disease. Compounded drugs tailored to individual medical histories help improve patient outcomes in chronic disease management. The market will also be fueled by increasing awareness among clinicians and patients regarding the clinical advantages of compounded medications. Compounded drugs offer hope to treating conditions where commercially available drugs do not adequately fulfill medical needs.

PEST Analysis
Political: The U.S. 503B compounding pharmacies market is regulated by the Food and Drug Administration(FDA). Any changes in the FDA’s regulations can impact the operations of 503B compounders.

Economic: Rising healthcare expenditures in the U.S. is expected to drive demand for cheaper alternatives like compounded drugs produced by 503B pharmacies. Inflation can increase production costs for these pharmacies.

Social: Growing geriatric population and prevalence of chronic diseases in the U.S. is increasing the demand for customized medications available through compounding pharmacies.

Technological: Adoption of advanced technologies like robotics aid automation in compounding processes, helping 503B pharmacies improve efficiency and production volumes. Investments in new technologies help meet the evolving needs of patients.

The U.S. 503B compounding pharmacies market is concentrated in regions with larger urban centers and older population like Northeast and West Coast states. States like California, New York, Florida and Texas account for over 40% of the total market value due to high healthcare expenditures and density of specialty pharmacies in these regions.

The South region is expected to be the fastest growing market during the forecast period. States like Texas, Florida, North Carolina and Georgia are expected to see above average growth owing to growing geriatric population, improving access to health insurance and expanding presence of large pharmacy chains. The increasing patient population and healthcare investments in the South will support market growth in this region.

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