by The Compounding Pharmacies Market is estimated to be valued at US$ 10,705.19 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The compounding pharmacies market manufactures medications for patients with specific needs that may not be met by commercially available products. This includes customizable dosing and formulations of certain medications for pediatric and geriatric patients, as well as products manufactured to avoid specific allergens or using alternative routes of administration. Compounding pharmacies work closely with prescribers to tailor medications for individual therapeutic needs.
Market key trends:
The increasing prevalence of chronic diseases, such as cancer, diabetes, cardiovascular diseases, and others requiring long term medication management is a key driver augmenting the growth of Global Compounding Pharmacies Market. Customized medication dosing and formulations produced by compounding pharmacies help in improving patient compliance and therapeutic outcomes over the long term, especially for geriatric and pediatric populations. Additionally, the lack of FDA approval for certain medications and formulations represents an unmet need addressed by compounded drugs in niche clinical areas such as oncology and anti-infective therapy. This acts as an opportunity for compounding pharmacies to offer specialized solutions meeting critical healthcare needs.
Here is the Porter’s analysis, SWOT analysis and Key takeaways for the provided market details:
Porter’s Analysis
Threat of new entrants: The compounding pharmacies market requires high initial investments and regulatory approvals which limits new players entering the market. However, the growing market opportunities attract new local players.
Bargaining power of buyers: Individual customers have low bargaining power due to their dependence on specialized compounded medications. However, large healthcare institutions and insurers have moderate bargaining power owing to their ability to negotiate lower drug prices.
Bargaining power of suppliers: The suppliers of pharmaceutical ingredients and excipients used in compounding have moderate bargaining power due to the specialized nature of products and regulatory requirements. This ensures a steady supply of quality inputs.
Threat of new substitutes: There exist few substitutes for compounded medications as they cater to special medical needs not met by commercially available drugs. New drug delivery technologies can pose a minor threat.
Competitive rivalry: The compounding pharmacies market is highly fragmented with the presence of small to medium sized local players. Market consolidation through mergers and acquisitions is intensifying competition.
SWOT Analysis
Strengths: Ability to cater to individual patient needs. Compliance with stringent compounding standards ensures drug safety. Growing geriatric population increases demand for customized medications.
Weaknesses: Higher costs of operations than large pharmaceutical firms. Strict regulations limit growth opportunities. Dependence on hiring specialized pharmacists.
Opportunities: Untapped rural markets offer scope for expansion. Increasing demand for specialized veterinary compounds and medical formulations. Growing acceptance of compounding in developing countries.
Threats: Stringent quality oversight may lead to additional compliance costs. Reimbursement hurdles restrict revenue streams. Supply chain disruptions impact product availability. Higher liability risks compared to generic drugs.
Key Takeaways
Market size: The global compounding pharmacies market is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing prevalence of chronic diseases requiring customized treatment regimens. The market size is projected to reach $18,308.3 million by 2030 from $10,705.19 million in 2023.
Regional analysis: North America dominates the global market, with the US accounting for the major share. This is attributed to the large patient pool, availability of supportive regulatory framework, and favorable reimbursement system. However, Asia Pacific is projected to exhibit the fastest growth during the forecast period, owing to rising healthcare expenditure, and increasing acceptance of compounded drugs.
Key players: Key players operating in the compounding pharmacies market are Avella Specialty Pharmacy, Central Admixture Pharmacy Services, Fagron, Fresenius Kabi AG, PharMEDium Services, Institutional Pharmacy Solutions, Cantrell Drug Company
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
