by The rising elderly population in the U.S. is prone to chronic illnesses which leads to increased demand for customized medication prepared by compounding pharmacies. Compounding allows for manipulating drug dosage, changing drug formulation for allergies or intolerances, and developing medications that are not commercially available. This is especially useful for geriatric patients who may have difficulty swallowing pills or those requiring alternative delivery methods. Compounded medicines provide solutions to unmet medical needs through customization of dose, formulation, delivery, and other factors.
The global U.S. Compounding Pharmacies Market is estimated to be valued at US$ 4.2 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the major trends witnessed in the U.S. compounding pharmacies market is the increasing focus towards compounded topical pain management medications. As per the CDC report published in 2021, over 20 million US adults were suffering from chronic pain alone and were using over-the-counter pain medications for relief. This has boosted the demand for compounded topical pain gels and creams which have benefits over oral medications such as directly acting on the painful area, avoiding first pass liver metabolism effects, and reduced systematic side effects. Leading players are focusing on developing novel topical formulations containing NSAIDs, lidocaine, ketamine etc. to cater to the growing demand from patients seeking safer alternatives to oral pain medications.
Veterinary compounding allows for customizing veterinary drugs to meet the unique medical needs of animals. This includes changing drug dosage, altering drug formulation for allergies or intolerances, and developing medications that are not commercially available for pets. As pets, especially aging ones, often have complex medical histories and comorbidities similar to the human elderly population, this opens opportunities for compounded medications to provide solutions. Compounded medicines provide solutions to unmet medical needs through customization of dose, formulation, delivery, and other factors.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the U.S. compounding pharmacies market is moderate. High costs associated with setting up a compounding pharmacy and stringent regulatory requirements pose a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate. The demand for customized medications gives buyers some influence over pricing. However, the specialized nature of services limits options for buyers.
Bargaining power of suppliers: The bargaining power of suppliers is low. Compounding pharmacies source standard pharmaceutical ingredients from few suppliers, giving suppliers limited control over pricing.
Threat of new substitutes: The threat of new substitutes is low. No close substitute exists for the custom medication compounding services offered by compounding pharmacies.
Competitive rivalry: Competition is fierce among existing compounding pharmacies, especially chains, vying for market share and profitability in this high growth market.
Key Takeaways
The global U.S. Compounding Pharmacies Market Growth is expected to witness high growth. The growing geriatric population suffering from multiple chronic conditions is driving demand for customized medications in the country. Centralized compounding facilities that can service a large patient base economically are also bolstering market expansion.
Regional analysis: The South region holds the major share in the U.S. compounding pharmacies market owing to the presence of leading pharmacy chains such as PharMEDium. States like Texas and Florida have emerged as hotspots due to their large older adult demographic. The West region is poised to witness strong growth on account of increasing investments by major players in California and growing healthcare expenditures.
Key players: Key players operating in the U.S. compounding pharmacies market are PharMEDium, Institutional Pharmacy Solutions, Cantrell Drug Company, Triangle Compounding Pharmacies, and Olympia Pharmacy. These players are focusing on strategic acquisitions and partnerships to expand their geographic presence and services portfolio.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
