The global compounding pharmacies market size was valued at USD 16.19 billion in 2023 and is anticipated to reach around USD 30.97 billion by 2033, growing at a CAGR of 6.7% from 2024 to 2033.
The increasing importance of compounding for enhancing medication adherence is one of the major factors driving the market's growth. Medication adherence can be challenging for patients due to various factors, such as swallowing issues, taste preferences, or allergies, to certain ingredients in commercially available medications. Compounding pharmacies specialize in creating personalized medications tailored to individual patient needs, addressing barriers to adherence by providing customized dosage forms, flavors, and allergen-free formulations, to enhance patient acceptance and compliance, ultimately driving demand for their services.
Moreover, the increasing demand for personalized medicine is contributing to the growth of the market. Personalized medicine aims to increase the safety and effectiveness of medications by tailoring them to each patient's unique needs. Patients with specific needs, such as allergies and intolerance to certain substances, medication for rare/orphan diseases, and others, require compounded medications tailored to their specific conditions. In addition, compounded pharmacies are used to provide access to some discontinued medications, mainly due to commercial reasons. For instance, the U.S. FDA lists around 206 discontinued medications, including budesonide and ursodiol capsules, which compounded medications can easily substitute.
Moreover, the shortage of commercial medications, especially for chronic conditions, has resulted in increased demand for compounded medications, contributing to the growth of the market. According to the Medicine Shortage Survey 2022 conducted by the Pharmaceutical Group of the European Union (PGEU), 29 member countries out of 29 survey countries in Europe reported medication shortages among the community pharmacists in the region. The majority of the shortage of medication was reported for cardiovascular medications. Pharmaceutical compounding is often considered the solution to address the medication shortage and cover the gaps due to shortage.
The COVID-19 pandemic negatively impacted the market initially in 2020. This shortage was due to supply chain disruption, delays & discontinuation in the manufacturing processes, quality issues, and difficulties in purchasing raw materials. However, the market recovered in 2021 and exhibited steady growth. In 2021, the demand for compounded medications increased owing to the increased demand for certain COVID-19 treatments and diminished manufacturing capacity due to the scarcity of commercially accessible drugs. Furthermore, due to the shortage of drugs required for treatments, the FDA issued a policy for state-licensed pharmacies and federal facilities, which are not registered with the FDA as outsourcing facilities for compounding medication for patients for the public health emergency duration.
| Report Attribute | Details |
| Market Size in 2024 | USD 17.02 Billion |
| Market Size by 2033 | USD 26.70 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 5.13% |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | Therapeutic area, age cohort, compounding type, sterility, region |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | Walgreens Co; JL Diekman and AQ Touchard (Fresh Therapeutics Compounding Pharmacy); Fagron; Albertsons Companies; The London Specialist Pharmacy Ltd. (Specialist Pharmacy); Galenic Laboratories Ltd. (Roseway Labs); Aurora Compounding MEDS Pharmacy; Apollo Clinical Pharmacy; Formul8; Fusion Apothecary |
Driver:
Chronis disease and the ageing population
The prevalence of chronic diseases, such as diabetes, cardiovascular conditions, and arthritis, has been rising globally, particularly as the population ages. Compounding pharmacies play a crucial role in managing chronic conditions by creating personalized medications that address the specific needs of patients with these conditions.
For instance, as per the data given by UICC, the global population is ageing quickly. Currently, more than 703 million individuals worldwide are over 65, making up 9.1% of the world's population. According to projections, by 2050, this percentage will reach 15.9% (1.5 billion people). Similarly, according to data from World Health Organization, more than 50% of cancer patients are 65 years of age or older. This is most likely caused by the buildup of ageing-related risk factors for certain cancers and diminished cellular repair systems. Thus, the aforementioned facts support the market growth during the forecast period.
Restraint:
Regulatory compliance
Compounding pharmacies are subject to stringent regulations and quality standards to ensure patient safety and the efficacy of compounded medications. Meeting these regulatory requirements can be complex and costly for compounding pharmacies, particularly smaller establishments, leading to compliance challenges. Thus, regulatory compliance is expected to hamper market growth over the forecast period.
Opportunity:
Growing collaboration
The increasing collaboration among the market participants is expected to offer a lucrative opportunity for market growth over the forecast period. For instance, in February 2023, Front Range Laboratories (FRL), a full-service testing facility that has been a dependable partner of compounding pharmacies for more than 25 years, was acquired by Wedgewood Pharmacy from Loveland, Colorado. To meet the testing requirements of pharmacies across the nation, FRL offers analytical, microbiological, and other testing services in addition to product stability and other services. Michael Travis and Jennifer Travis, who created FRL, will continue to work for the company and be associated with Wedgewood Pharmacy. The FRL brand, which is well-known for providing top-notch services in the compounding pharmacy industry, will be retained by wedgewood pharmacy.
Based on the therapeutic areas, the market is divided into hormone replacement therapy, pain management, specialty drugs, dermatology, and nutritional supplements. The pain management segment dominated the market with the largest revenue share of 34.86% in 2023. The high share of the segment can be attributed to the growing prevalence of chronic pain and side effects associated with commercially available pain management medications. The compounded pain management medications have several benefits, including bypassing the Gastrointestinal (GI) system for patients experiencing GI side effects and combining multiple medications in a single dose.
The nutritional supplements segment is anticipated to witness the fastest growth rate over the forecast period. This can be attributed to the growing demand for personalized beauty and anti-aging products. Hence, to cater to this demand, many companies are offering a range of compounded nutraceutical products. For instance, Medisca Inc. offers more than 100 high-quality compounded nutraceutical products, which are tested for heavy metals, including prenatal multivitamins, minerals, antioxidants, and many other supplements. The hormone replacement therapy segment held a significant market share in 2022.
Hormone replacement therapy often requires personalized formulations to meet each patient's unique needs. Compounding pharmacies specialize in creating customized hormone medications tailored to specific patient preferences and hormone levels. According to a study published by the National Center for Biotechnology Information, in December 2022, hormone replacement treatment prescriptions increased by 13.64% each year, from 5.01 per 1000 person-years-at-risk (PYAR) in 2010 to 18.16 per 1000 PYAR in 2021.
Based on the age cohort, the market is divided into adult, pediatric, and geriatric. The adult segment dominated the market with the largest revenue share of 46.1% in 2023. Adult patients may require personalized medication due to the factors, such as sensitivities to certain ingredients and specific dosage strengths. These demands can be met by compounding pharmacies that can address these needs by creating tailored medications in the form of creams, capsules, or gels. The pediatric segment is expected to witness the fastest growth rate over the forecast period. Children often require customized medications due to their smaller size, preferred tastes, limited dosage options, and difficulties swallowing solid dosage forms.
These customized medications improve medication adherence and make it simpler for children to take their prescribed medications. Hence, many companies are launching personalized compounded medications for these age groups. For instance, in March 2021, Children's Hospital Colorado, in partnership with STAQ Pharma, launched a product line of compounded medications designed for pediatric patients. Geriatric patients may require medication formulation with adjusted dosages, specialized delivery forms, or combinations of multiple medications in a single formulation for ease of administration. Compounding pharmacies can prepare personalized medications that are suitable for geriatric patients.
Based on sterility, the market is segmented into sterile and non-sterile. The sterility segment dominated the market with the largest share of 59.52% in 2023. It is expected to expand further at the fastest growth rate over the forecast period. The growth of the segment can be attributed to the rising demand for sterile-compounded medications in various healthcare settings. Furthermore, the rising complexity of patient needs and advancements in medical treatments may also contribute to the growth of the segment.
For instance, in October 2019, The National Association of Boards of Pharmacy stated that it had received funding from the FDA to build a data-sharing system for better control of sterile compounding pharmacies. The non-sterility segment can address therapeutic gaps where commercially available medications may not meet specific patient needs. Compounded medications in non-sterile forms can be specially formulated to accommodate allergies, sensitivities, or unique patient requirements not met by mass-produced drugs. The flexibility and versatility of non-sterile compounding also play a major role in driving the market’s growth.
Based on the compounding types, the market is segmented into pharmaceutical Dosage Alteration (PDA), Pharmaceutical Ingredient Alteration (PIA), Currently Unavailable Pharmaceutical Manufacturing (CUPM), and others. The PIA segment dominated the market with the largest market of 39.19% in 2023 and is expected to witness the fastest growth rate over the forecast period. A significant demand for compounded medications involves modifying or altering pharmaceutical ingredients to meet specific patient needs.
PIA involves altering the composition or concentration of active ingredients in medications, often to customize them for individual patients. The PDA segment dominated the market with the largest market share. PDA is an essential aspect of compounding pharmacies; the dominance of a specific segment within the market may change depending on factors, such as regional preferences, patient demands, and market dynamics.
North America accounted for the largest share of 49.11% in 2023. The presence of several compounding pharmacies and the shortage of certain medications are driving the regional market growth. According to the statistics published by the American Pharmacists Association, in October 2021, over 56,000 community pharmacies were operating in the U.S., with 7,500 offering advanced compounding services. The market in the Asia Pacific region is expected to witness the fastest growth rate over the forecast period.
The increasing demand for personalized medications, rising prevalence of chronic diseases, expansion of healthcare infrastructure, and increasing awareness about and demand for alternative therapies are the key factors driving the market growth. Europe held a significant market share in 2023. The aging population and advancements in medical treatments are contributing to the growth of the market in Europe. In addition, regulatory frameworks and guidelines, such as those set by the European Directorate for the Quality of Medicines (EDQM), aid in ensuring the safety, quality, and standardization of compounded medications, further supporting the growth of the industry.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the Compounding Pharmacies market.
By Compounding Pharmacies Therapeutic Area
By Compounding Pharmacies Age Cohort
By Compounding Pharmacies Compounding Type
By Compounding Pharmacies Sterility
By Region
Chapter 1. Methodology and Scope
1.1. Market Segmentation
1.2. Estimates and Forecast Timeline
1.3. Research Methodology
1.3.1. Information procurement
1.3.2. Purchased Database
1.3.3. nova one advisor. Internal Database
1.3.4. Secondary Sources
1.3.5. Primary Research
1.3.6. Details of Primary Research
1.4. Information or Data Analysis
1.4.1. Data Analysis Models
1.5. 1.5 Market Formulation & Validation
1.5.1. Volume Price Analysis
1.6. List of Secondary Sources
1.7. List of Abbreviations
1.8. Research Objectives
1.8.1. Objective - 1
1.8.2. Objective - 2
1.8.3. Objective - 3
Chapter 2. Executive Summary
2.1. Market Snapshot
2.2. Segment Snapshot
2.3. Competitive Landscape Snapshot
Chapter 3. Market Variables, Trends, & Scope
3.1. Market Dynamics
3.1.1. Market Driver Analysis
3.1.1.1. Increasing supportive government policies
3.1.1.2. Increasing demand for personalized medications
3.1.1.3. Growing importance of pharmaceutical compounding in promoting medication adherence
3.1.2. Market Restraint Analysis
3.1.2.1. Risk of Chemical Contamination
3.1.2.2. Chances of human errors or medication errors
3.2. Industry Analysis Tools
3.2.1. Porter's Five Forces Analysis
3.2.2. PESTLE Analysis
3.3. COVID-19 Impact Analysis
Chapter 4. Compounding Pharmacies Market: Therapeutic Area Estimates & Trend Analysis
4.1. Segment Definitions
4.2. Compounding Pharmacies Market: Segment Dashboard
4.3. Compounding Pharmacies Market: Therapeutic Area Movement & Market Share Analysis
4.4. Hormone Replacement Therapy
4.4.1. Hormone Replacement Therapy Market, 2021 - 2033
4.5. Pain Management
4.5.1. Pain Management Market, 2021 - 2033
4.6. Dermatology
4.6.1. Dermatology Market, 2021 - 2033
4.7. Specialty Drugs
4.7.1. Specialty Drugs Market, 2021 - 2033
4.8. Nutritional Supplements
4.8.1. Nutritional Supplements Market, 2021 - 2033
4.9. Others
4.9.1. Others Market, 2021 - 2033
Chapter 5. Compounding Pharmacies Market: Age Cohort Estimates & Trend Analysis
5.1. Segment Definitions
5.2. Compounding Pharmacies Market: Segment Dashboard
5.3. Compounding Pharmacies Market: Age Cohort Movement & Market Share Analysis
5.4. Pediatric
5.4.1. Pediatric Market, 2021 - 2033
5.5. Adult
5.5.1. Adult Market, 2021 - 2033
5.6. Geriatric
5.6.1. Geriatric Market, 2021 - 2033
Chapter 6. Compounding Pharmacies Market: Compounding Type Estimates & Trend Analysis
6.1. Segment Definitions
6.2. Compounding Pharmacies Market: Segment Dashboard
6.3. Compounding Pharmacies Market: Compounding type Movement & Market share Analysis
6.4. Pharmaceutical Ingredient Alteration (PIA)
6.4.1. Pharmaceutical Ingredient Alteration (PIA) Market, 2021 - 2033
6.5. Currently Unavailable Pharmaceutical Manufacturing (CUPM)
6.5.1. Currently Unavailable Pharmaceutical Manufacturing (CUPM) Market, 2021 - 2033
6.6. Pharmaceutical Dosage Alteration (PDA)
6.6.1. Pharmaceutical Dosage Alteration (PDA) Market, 2021 - 2033
6.7. Others
6.7.1. Others Market, 2021 - 2033
Chapter 7. Compounding Pharmacies Market: Sterility Estimates & Trend Analysis
7.1. Segment Definitions
7.2. Compounding Pharmacies Market: Segment Dashboard
7.3. Compounding Pharmacies Market: Sterility Movement & Market Share Analysis
7.4. Sterility
7.4.1. Sterility Market, 2021 - 2033
7.5. Non-Sterility
7.5.1. Non-Sterility Market, 2021 - 2033
Chapter 8. Compounding Pharmacies Market: Regional Estimates & Trend Analysis
8.1. Compounding Pharmacies Market: Regional Movement Analysis, 2022 & 2030
8.2. North America
8.2.1. North America Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.2.2. U.S.
8.2.2.1. Key Country Dynamics
8.2.2.2. Regulatory Scenario
8.2.2.3. Competitive Scenario
8.2.2.4. U.S. Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.2.3. Canada
8.2.3.1. Key Country Dynamics
8.2.3.2. Regulatory Scenario
8.2.3.3. Competitive Scenario
8.2.3.4. Canada Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3. Europe
8.3.1. Europe Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.2. UK
8.3.2.1. Key Country Dynamics
8.3.2.2. Regulatory Scenario
8.3.2.3. Competitive Scenario
8.3.2.4. UK Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.3. Germany
8.3.3.1. Key Country Dynamics
8.3.3.2. Regulatory Scenario
8.3.3.3. Competitive Scenario
8.3.3.4. Germany Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.4. France
8.3.4.1. Key Country Dynamics
8.3.4.2. Regulatory Scenario
8.3.4.3. Competitive Scenario
8.3.4.4. France Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.5. Italy
8.3.5.1. Key Country Dynamics
8.3.5.2. Regulatory Scenario
8.3.5.3. Competitive Scenario
8.3.5.4. Italy Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.6. Spain
8.3.6.1. Key Country Dynamics
8.3.6.2. Regulatory Scenario
8.3.6.3. Competitive Scenario
8.3.6.4. Spain Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.7. Denmark
8.3.7.1. Key Country Dynamics
8.3.7.2. Regulatory Scenario
8.3.7.3. Competitive Scenario
8.3.7.4. Denmark Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.8. Sweden
8.3.8.1. Key Country Dynamics
8.3.8.2. Regulatory Scenario
8.3.8.3. Competitive Scenario
8.3.8.4. Sweden Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.3.9. Norway
8.3.9.1. Key Country Dynamics
8.3.9.2. Regulatory Scenario
8.3.9.3. Competitive Scenario
8.3.9.4. Norway Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.4. Asia Pacific
8.4.1. Asia Pacific Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.4.2. Japan
8.4.2.1. Key Country Dynamics
8.4.2.2. Regulatory Scenario
8.4.2.3. Competitive Scenario
8.4.2.4. Japan Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.4.3. China
8.4.3.1. Key Country Dynamics
8.4.3.2. Regulatory Scenario
8.4.3.3. Competitive Scenario
8.4.3.4. China Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.4.4. India
8.4.4.1. Key Country Dynamics
8.4.4.2. Regulatory Scenario
8.4.4.3. Competitive Scenario
8.4.4.4. India Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.4.5. Australia
8.4.5.1. Key Country Dynamics
8.4.5.2. Regulatory Scenario
8.4.5.3. Competitive Scenario
8.4.5.4. Australia Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.4.6. Thailand
8.4.6.1. Key Country Dynamics
8.4.6.2. Regulatory Scenario
8.4.6.3. Competitive Scenario
8.4.6.4. Thailand Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.4.7. South Korea
8.4.7.1. Key Country Dynamics
8.4.7.2. Regulatory Scenario
8.4.7.3. Competitive Scenario
8.4.7.4. South Korea Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.5. Latin America
8.5.1. Latin America Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.5.2. Brazil
8.5.2.1. Key Country Dynamics
8.5.2.2. Regulatory Scenario
8.5.2.3. Competitive Scenario
8.5.2.4. Brazil Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.5.3. Mexico
8.5.3.1. Key Country Dynamics
8.5.3.2. Regulatory Scenario
8.5.3.3. Competitive Scenario
8.5.3.4. Mexico Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.5.4. Argentina
8.5.4.1. Key Country Dynamics
8.5.4.2. Regulatory Scenario
8.5.4.3. Competitive Scenario
8.5.4.4. Argentina Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.6. Middle East & Africa
8.6.1. Middle East & Africa Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.6.2. South Africa
8.6.2.1. Key Country Dynamics
8.6.2.2. Regulatory Scenario
8.6.2.3. Competitive Scenario
8.6.2.4. South Africa Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.6.3. Saudi Arabia
8.6.3.1. Key Country Dynamics
8.6.3.2. Regulatory Scenario
8.6.3.3. Competitive Scenario
8.6.3.4. Saudi Arabia Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.6.4. UAE
8.6.4.1. Key Country Dynamics
8.6.4.2. Regulatory Scenario
8.6.4.3. Competitive Scenario
8.6.4.4. UAE Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
8.6.5. Kuwait
8.6.5.1. Key Country Dynamics
8.6.5.2. Regulatory Scenario
8.6.5.3. Competitive Scenario
8.6.5.4. Kuwait Compounding Pharmacies Market Estimates and Forecasts, 2021 - 2033
Chapter 9. Competitive Landscape
9.1. Company Profiles
9.1.1. Walgreens Co.
9.1.1.1. Overview
9.1.1.2. Financial Performance
9.1.1.3. Service Benchmarking
9.1.1.4. Strategic Initiatives
9.1.2. JL Diekman and AQ Touchard (Fresh Therapeutics Compounding Pharmacy)
9.1.2.1. Overview
9.1.2.2. Financial Performance
9.1.2.3. Service Benchmarking
9.1.2.4. Strategic Initiatives
9.1.3. Fagron.
9.1.3.1. Overview
9.1.3.2. Financial Performance
9.1.3.3. Service Benchmarking
9.1.3.4. Strategic Initiatives
9.1.4. Albertsons Companies
9.1.4.1. Overview
9.1.4.2. Financial Performance
9.1.4.3. Service Benchmarking
9.1.4.4. Strategic Initiatives
9.1.5. The London Specialist Pharmacy Ltd (Specialist Pharmacy)
9.1.5.1. Overview
9.1.5.2. Financial Performance
9.1.5.3. Service Benchmarking
9.1.5.4. Strategic Initiatives
9.1.6. Galenic Laboratories Limited (Roseway Labs)
9.1.6.1. Overview
9.1.6.2. Financial Performance
9.1.6.3. Service Benchmarking
9.1.6.4. Strategic Initiatives
9.1.7. Aurora Compounding
9.1.7.1. Overview
9.1.7.2. Financial Performance
9.1.7.3. Service Benchmarking
9.1.7.4. Strategic Initiatives
9.1.8. MEDS Pharmacy
9.1.8.1. Overview
9.1.8.2. Financial Performance
9.1.8.3. Service Benchmarking
9.1.8.4. Strategic Initiatives
9.1.9. Apollo Clinical Pharmacy
9.1.9.1. Overview
9.1.9.2. Financial Performance
9.1.9.3. Service Benchmarking
9.1.9.4. Strategic Initiatives
9.1.10. Formul8
9.1.10.1. Overview
9.1.10.2. Financial Performance
9.1.10.3. Service Benchmarking
9.1.10.4. Strategic Initiatives
9.1.11. Fusion Apothecary
9.1.11.1. Overview
9.1.11.2. Financial Performance
9.1.11.3. Service Benchmarking
9.1.11.4. Strategic Initiatives
9.2. Company Categorization
9.3. Company Market Position Analysis
9.4. Strategy Mapping
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
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Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers