Compounding Pharmacies Market Size, Share, Growth 2024 To 2033

Compounding Pharmacies Market Size and Growth 2024 To 2033

The global compounding pharmacies market size was accounted at USD 12.50 billion in 2023 and is projected to grow around USD 21.97 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2033.

The compounding pharmacies market involves the customized preparation of medications tailored to individual patient needs, created by combining, mixing, or altering ingredients. This market caters to patients requiring unique dosages, forms, or combinations of medications not available in standard commercial products. Key trends include a growing demand for personalized medicine, an increase in the geriatric population with specific healthcare needs, and heightened awareness of the benefits of compounded medications. Regulatory developments and technological advancements in compounding practices are also driving market growth, enhancing safety, efficacy, and the ability to meet diverse patient requirements.

• According to data from the US FDA published in January 2023, the agency advised states and drug compounders on issues related to drug compounding during the COVID-19 pandemic. The FDA's recommendations aim to protect patients from harmful, ineffective, and unsatisfactory compounded medications while ensuring continued access to necessary treatments.
• A report from the United Nations in January 2023 projects that the global population aged 65 and older will double over the next three decades, reaching approximately 1.6 billion by 2050. This demographic is increasingly affected by chronic and complex diseases requiring personalized treatments.
• USFDA data published in August 2021 highlighted persistent drug shortages in the United States over recent years. Hence, the ongoing drug shortages in various countries are expected to drive growth in the compounding pharmacy market.

Report Highlights

• North America has dominated the market with revenue share of 56% in 2023.
• Europe has registered second highest market share of 22% in 2023.
• By therapeutic area, The pain management segment has covered market share of 33% in 2023.
• By age cohor, The adult segment has captured market share of 45.26% in 2023.
• By age cohor, in 2023 geriatric segment has accounted market share of 32.77%.
• By product, The oral segment has achived market share of 37% in 2023.
• By product, The parenteral segment has generated market share of 21% in 2023.
• Latin America and Middle East & Africa has garnered combained market share of 6% in 2023.

Compounding Pharmacies Market Growth Factors

• Personalized Medicine Demand: With the rise of personalized medicine, there is increasing demand for customized medications tailored to individual patient needs. Compounding pharmacies can create specific dosages, forms, and combinations of medications that are not available in standard pharmaceutical products, catering to unique patient requirements.
• Aging Population: According to the United Nations, the global population aged 65 and older is expected to double by 2050, reaching approximately 1.6 billion. This demographic is more prone to chronic, complex, and multiple diseases, such as cardiovascular diseases and cancer, necessitating personalized treatment options that compounding pharmacies can provide.
• Drug Shortages: Persistent drug shortages, highlighted by USFDA data from August 2021, have driven the need for alternative solutions. Compounding pharmacies play a crucial role in mitigating these shortages by providing necessary medications when commercial products are unavailable, ensuring continuous patient care.
• Regulatory Support and Guidance: The US FDA's recommendations, published in January 2023, aimed at safeguarding patients from harmful compounded medications, have provided a framework for safe compounding practices. Regulatory guidance helps maintain high standards, boosting confidence in compounded medications and supporting market growth.
• Technological Advancements: Innovations in compounding techniques and equipment have improved the accuracy, safety, and efficiency of compounded medications. Advanced technologies enable pharmacies to produce high-quality, precise formulations, meeting stringent regulatory standards and patient needs.
• Chronic Disease Prevalence: The increasing prevalence of chronic diseases such as diabetes, hypertension, and arthritis drives demand for customized medication regimens. Compounded medications offer tailored solutions for managing these conditions, enhancing therapeutic outcomes and patient satisfaction.

Compounding Pharmacies Market Trends

• Telepharmacy Expansion: The rise of telepharmacy services is transforming how patients access compounded medications. By leveraging telehealth platforms, patients can consult with pharmacists remotely, receive personalized medication plans, and have compounded prescriptions delivered directly to their homes, enhancing convenience and accessibility.
• Increased Regulation and Oversight: There is a growing trend towards stricter regulatory oversight and standardization in the compounding pharmacy industry. Regulatory bodies are implementing more rigorous quality controls and safety protocols to ensure the efficacy and safety of compounded medications, driving improvements in practice standards across the market.
• Integration with Electronic Health Records (EHRs): Compounding pharmacies are increasingly integrating their services with electronic health records systems. This integration facilitates seamless communication between healthcare providers and compounding pharmacists, enabling better coordination of care and more accurate, timely dispensing of customized medications.
• Rising Popularity of Bioidentical Hormone Replacement Therapy (BHRT): There is a growing demand for bioidentical hormone replacement therapy, particularly among aging populations seeking natural alternatives for hormone-related conditions. Compounding pharmacies are at the forefront of providing these personalized hormone therapies, catering to patient preferences for bioidentical products.
• Focus on Veterinary Compounding: The veterinary sector is seeing increased demand for compounded medications tailored to pets' unique needs. Compounding pharmacies are expanding their offerings to include customized veterinary formulations, addressing specific dosage requirements and palatability issues for different animal species.
• Enhanced Education and Training Programs: The industry is placing greater emphasis on education and training for compounding pharmacists. Enhanced training programs ensure pharmacists are well-versed in the latest compounding techniques, regulatory requirements, and safety protocols, thereby improving the overall quality and reliability of compounded medications.

Report Scope

Compounding Pharmacies Market Dynamics

Drivers

Patient-Specific Needs

• Some patients have allergies to certain preservatives, dyes, or fillers found in commercially available medications. Compounding pharmacies can customize medications by removing these allergens, creating formulations that are safe and effective for patients with specific sensitivities, thus driving demand for compounded medications.

Discontinuation of Commercial Drugs

• When pharmaceutical companies discontinue production of certain medications due to low profitability or market demand, compounding pharmacies step in to fill the gap. They can recreate these discontinued drugs to ensure patients continue to have access to necessary treatments, thereby sustaining the relevance and demand for compounded medications.

Restraints

Regulatory Challenges

• The compounding pharmacy industry faces stringent regulatory scrutiny and compliance requirements from bodies like the US FDA. Adhering to these complex regulations can be costly and time-consuming, potentially limiting the ability of smaller pharmacies to operate and innovate. Non-compliance risks can lead to legal actions, fines, and reputational damage.

Quality and Safety Concerns

• Ensuring the consistent quality and safety of compounded medications is a major challenge. Variability in formulations, potential for contamination, and the risk of errors in compounding processes can undermine patient trust and the credibility of compounding pharmacies. These concerns necessitate rigorous quality control measures, which can be resource-intensive.

Opportunities

Personalized Medicine Advancements

With the increasing focus on personalized medicine, compounding pharmacies have a unique opportunity to provide highly customized treatment solutions tailored to individual patient needs. Advances in pharmacogenomics and personalized healthcare approaches enable compounding pharmacists to create more precise formulations, enhancing treatment efficacy and patient outcomes.

Expansion into Telepharmacy

• The growing adoption of telehealth services presents a significant opportunity for compounding pharmacies to expand their reach. By offering telepharmacy consultations and online prescription services, compounding pharmacies can cater to a broader patient base, providing convenient access to personalized medications and expert advice, especially in remote or underserved areas.

Challenges

Supply Chain Disruptions

• Compounding pharmacies often rely on a variety of raw materials and active pharmaceutical ingredients (APIs) from global suppliers. Any disruption in the supply chain, whether due to geopolitical issues, natural disasters, or pandemics, can lead to shortages of essential components, impacting the ability to produce compounded medications and meet patient demand.

Skilled Workforce Shortage

• Compounding pharmacies require highly skilled pharmacists and technicians proficient in specialized compounding techniques. There is a growing challenge in attracting and retaining such skilled professionals due to the specialized nature of the work, which can limit the capacity and efficiency of compounding pharmacies and affect their ability to scale operations.

Compounding Pharmacies Market Segmental Analysis

Therapeutic Area Analysis

Hormone Replacement Therapy: Market trends in hormone replacement therapy (HRT) within compounding pharmacies include increasing demand for bioidentical hormones as patients seek natural alternatives. Drivers include an aging population and rising awareness of personalized treatment benefits, leading to more customized HRT formulations to address specific hormonal imbalances and improve patient outcomes.

Pain Management: The pain management segment has generated market share of 33% in 2023. Trends in pain management highlight a growing preference for customized medication regimens to effectively address chronic pain conditions. Drivers such as the need for alternative therapies to opioids and individualized pain relief solutions boost demand for compounded pain management drugs, offering tailored dosages and formulations for optimal pain control.

Specialty Drugs: Specialty drugs in the compounding pharmacy market are trending towards highly personalized treatments for complex conditions. Drivers include advancements in biotechnology and personalized medicine, which require custom formulations to meet specific patient needs, particularly for rare diseases and conditions where standard medications are ineffective or unavailable.

Dermatology: In dermatology, market trends show increasing demand for personalized skincare solutions and compounded treatments for conditions like eczema, psoriasis, and acne. Drivers include rising consumer awareness of personalized dermatological care and the need for tailored topical formulations that address unique skin conditions and sensitivities.

Nutritional Supplements: Trends in nutritional supplements within compounding pharmacies reflect a growing interest in personalized health and wellness. Drivers include the rising popularity of preventive healthcare and individualized nutrition plans, leading to demand for custom-formulated supplements that cater to specific dietary needs and health goals, enhancing overall wellness.

Others: The others segment includes a wide range of therapeutic areas, including veterinary medicine and pediatric care. Trends include the increasing need for customized dosage forms and flavors. Drivers such as the unique requirements of animals and children for precise, palatable medications contribute to the growth of compounding services in these niches.

Age Cohort Analysis

Pediatric: In the pediatric segment, market trends emphasize the demand for child-friendly formulations and dosages that are often unavailable in commercial medications. The pediatric segment has recorded market share of 21,97% in 2023. Drivers include the need for medications that address specific pediatric health issues and the importance of flavoring and dosage customization to improve compliance among young patients.

Adult: The adult segment has covered market share of 45.265 in 2023. For this segment, trends focus on personalized treatment options for chronic conditions and lifestyle-related health issues. Drivers include the increasing prevalence of chronic diseases such as diabetes and hypertension, leading to a need for tailored medications that offer specific dosages and formulations to optimize therapeutic outcomes and manage long-term health conditions.

Geriatric: The geriatric segment trends highlight a growing demand for customized medications to address multiple and complex health conditions common in older adults. This segment has registered market share of 32.77 in 2023. Drivers include an aging population and the prevalence of chronic illnesses, necessitating compounded medications that cater to unique dosage requirements, ease of administration, and improved tolerability for elderly patients.

Compounding Type Analysis

Pharmaceutical Ingredient Alteration (PIA): This segment has measured market share of 38.72% in 2023. In the Pharmaceutical Ingredient Alteration (PIA) segment, market trends focus on creating medications by modifying existing ingredients to meet specific patient needs. Drivers include the demand for allergen-free or customized formulations that are not available in standard products. PIA allows compounding pharmacies to provide solutions for patients with unique sensitivities or requirements by adjusting ingredient profiles.

Currently Unavailable Pharmaceutical Manufacturing (CUPM): This segment has captured market share of 20.56% in 2023. The Currently Unavailable Pharmaceutical Manufacturing (CUPM) segment trends towards addressing gaps in the market where certain drugs are discontinued or hard to find. Drivers include drug shortages and discontinuations by large manufacturers, prompting compounding pharmacies to produce needed medications. This segment helps ensure continuity of care by offering alternatives for medications that are no longer commercially available.

Pharmaceutical Dosage Alteration (PDA): Pharmaceutical Dosage Alteration (PDA) trends highlight the customization of medication dosages to fit individual patient needs. This segment has garnered market shae of 17.83% in 2023. Drivers include the necessity for precise dosage adjustments due to varying patient tolerances and requirements, such as for children or those with specific health conditions. PDA allows pharmacies to provide tailored dosages that improve treatment efficacy and patient adherence.

Others: The others segment has accounted market share of 22.89% in 2023. This segment in compounding types includes a variety of less common compounding practices. Trends include the development of unique dosage forms and specialized preparations. Drivers include niche patient needs and innovative compounding techniques that address specific health conditions or preferences, expanding the range of personalized treatment options available in the compounding pharmacy market.

Sterility Analysis

Sterile: In the sterile compounding segment, trends emphasize the need for high-precision, contamination-free formulations, particularly for injections and ophthalmic preparations. Drivers include increased demand for sterile medications in hospitals and clinics due to their critical role in preventing infections and ensuring patient safety. Enhanced regulatory standards and advanced sterilization technologies further boost this segment’s growth.

Non-Sterile: The non-sterile compounding segment focuses on creating customized oral medications, topical treatments, and non-injection formulations. Trends include a rising demand for personalized creams, ointments, and capsules tailored to specific patient needs. Drivers include the need for customized dosage forms and the ability to address unique health issues with non-sterile preparations, enhancing treatment options outside of sterile environments.

Compounding Pharmacies Market Regional Analysis

Why is North America leading in the compounding pharmacies market?

In North America, the compounding pharmacies market is highly developed, driven by advanced healthcare infrastructure and a strong focus on personalized medicine. North America market size is calculated at USD 7.41 billion in 2024 and is projected to grow around USD 12.39 billion by 2033. The U.S. and Canada have stringent regulatory frameworks ensuring high standards in compounding practices. Trends include increased demand for customized medications due to rising chronic disease prevalence and an aging population. Additionally, there is significant growth in telepharmacy services, enhancing accessibility and convenience for patients across the region.

Europe Compounding Pharmacies Market Trends

Europe market size is projected to grow around USD 4.83 billion by 2033 from USD 2.91 billion in 2024. The European compounding pharmacies market is characterized by a diverse regulatory landscape and a growing emphasis on personalized healthcare solutions. Countries across Europe are witnessing increased demand for compounded medications due to varying national healthcare needs and an aging demographic. Trends include a focus on integrating advanced compounding technologies and strict adherence to EU regulations. Market growth is driven by a rising prevalence of chronic conditions and the need for tailored therapeutic solutions.

Why is Asia-Pacific experiencing rapid growth in the compounding pharmacies market?

Asia Pacific market size is estimated to achieve around USD 3.52 billion by 2033 increasing from USD 2.12 billion in 2024. The Asia-Pacific compounding pharmacies market is expanding rapidly due to increasing healthcare access and rising awareness of personalized medicine. Countries like China, India, and Japan are experiencing significant growth in demand for compounded medications, driven by a large population base and a growing middle class. Trends include advancements in compounding technology and increasing investment in healthcare infrastructure. The market is also supported by the rise in chronic diseases and a focus on improving patient-specific treatment options.

LAMEA Compounding Pharmacies Market Trends

In the LAMEA region, the compounding pharmacies market is developing with a focus on addressing diverse healthcare needs. The LAMEA market size is calculated USD 0.79 billion in 2024 and is anticipated to grow around USD 1.32 billion by 2033. Growth is driven by increasing drug shortages and a rising demand for personalized treatments in these regions. Trends include efforts to improve healthcare access and quality amid economic and infrastructural challenges. The market is supported by expanding healthcare systems and a growing awareness of customized medication benefits, though regulatory and logistical hurdles remain.

Global Compounding Pharmacies Market Top Companies

• Fagron
• Patterson Companies, Inc.
• Wedgewood Pharmacy
• Capsule Pharmacy
• Medisca
• The Compounding Center
• PharMEDium Services
• Custom Rx Pharmacy
• Pharmacy Solutions
• NorthStar Rx
• Accella
• Harbor Compounding Pharmacy
• Vasanta Medical
• Revive Pharmacy
• RPh on the Go

New players such as Capsule Pharmacy and Revive Pharmacy are leveraging advanced digital tools and personalized care to enhance their offerings. Capsule Pharmacy integrates innovative technology for efficient prescription management, while Revive Pharmacy focuses on customized compounding solutions tailored to individual patient needs. On the other hand, Fagron and Patterson Companies, Inc. are dominating the market through their extensive global networks and diverse product portfolios. Fagron drives growth with continuous technological advancements and strategic acquisitions, while Patterson Companies excels with its broad distribution channels and partnerships with healthcare providers, optimizing medication accessibility and patient care.

CEO Statements

Fagron CEO, Rafael Padilla

"At Fagron, our commitment is to advance the field of personalized medicine through innovative compounding solutions. We are focused on integrating cutting-edge technologies and expanding our global presence to meet the evolving needs of healthcare providers and patients."
Patterson Companies, Inc.

CEO, Jeremy J. A.

"Patterson Companies remains dedicated to enhancing healthcare delivery by providing high-quality compounding services. Our focus on technological advancements and strategic partnerships helps us deliver customized medication solutions that improve patient outcomes and support healthcare professionals."

Wedgewood Pharmacy CEO, Steve Schwartz

"Wedgewood Pharmacy is committed to leading the compounding industry through exceptional quality and personalized service. We strive to exceed industry standards by investing in advanced compounding technologies and maintaining rigorous quality controls to ensure patient safety and satisfaction."

Medisca CEO, Tom McLean

"Medisca is at the forefront of innovation in compounding, continuously evolving our product offerings and services to meet the demands of a dynamic healthcare landscape. Our dedication to research and development ensures that we provide the highest quality compounded medications for our clients."

Custom Rx Pharmacy CEO, Dr. Marc Davidson

"At Custom Rx Pharmacy, our mission is to deliver tailored medication solutions that address the unique needs of each patient. We leverage our expertise and state-of-the-art compounding techniques to provide effective and personalized treatments, improving patient care and outcomes."

PharMEDium Services CEO, Dan O’Connell

"PharMEDium Services is focused on advancing the safety and efficacy of compounded medications through rigorous quality assurance and innovative practices. Our dedication to excellence and collaboration with healthcare providers ensures that we meet the highest standards in patient care."
These statements reflect the commitment of these key players to innovation, quality, and patient-centered care in the compounding pharmacies market.

Recent Developments

• In February 2023, Harrow, a leading U.S. eye care pharmaceutical company, introduced its patent-pending, next-generation compounded Atropine formulations through ImprimisRx.
• In July 2022, Fagron, a global leader in pharmaceutical compounding, acquired a 503B outsourcing facility from Fresenius Kabi in Boston, thereby enhancing its sterile compounding capabilities in the U.S.
•  In June 2022, Osceola Capital added Wedgewood Pharmacy’s human health business to the Revelation Pharma Corporation platform, complementing its operations with Wedgewood’s extensive network of compounding pharmacies serving both human and animal patients across 50 states.
• In August 2021, Empower Pharmacy, a leading compounding pharmacy and FDA-registered outsourcing facility, inaugurated a new $55 million branch in Houston to expand access to affordable and innovative pharmaceutical solutions.
• In March 2021, Osceola Capital, a private equity firm specializing in the lower middle market, established Revelation Pharma Corp. to seek investments and partnerships within the pharmacy compounding sector, collaborating with industry executives.

Market Segmentation

By Therapeutic Area 

• Hormone Replacement Therapy
• Pain Management
• Specialty Drugs
• Dermatology
• Nutritional Supplements
• Others

By Age Cohort 

• Pediatric
• Adult
• Geriatric

By Compounding Type 

• Pharmaceutical Ingredient Alteration (PIA)
• Currently Unavailable Pharmaceutical Manufacturing (CUPM)   
• Pharmaceutical Dosage Alteration (PDA)
• Others

By Sterility 

• Sterile
• Non-sterile

By Product

• Oral
• Parenteral
• Topical
• Ophthalmic
• Nasal
• Rectal
• Otic

By Regions

• North America
• APAC
• Europe
• LAMEA