February 24, 2024

Advancing Patient Care To Drive The Growth Of Compounding Pharmacies Market

Compounding pharmacies combine or alter basic pharmaceutical ingredients to create customized medications tailored to each patient’s specific medical needs. These customized medications are prescribed when an FDA-approved drug might be inappropriate or nonexistent. Compounding pharmacists work closely with physicians and patients to develop medications that meet individualized medical needs. They provide alternatives for patients with allergies, sensitivities or unique conditions, who cannot use standard FDA-approved drug products. Compounded medications may be provided in alternative dosage forms, strengths or tailored to a specific medical purpose as prescribed by physicians.

The global Compounding Pharmacies Market is estimated to be valued at US$ 10705.19 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 key trends:

Compounding pharmacies are increasingly adopting advanced technologies such as automation and robotics to streamline the compounding process and reduce errors. This is enhancing the quality, accuracy and consistency of compounded medications. Another major trend is the increasing demand for compounded medications. With growing geriatric population and rising chronic disease prevalence, demand for personalized medications to meet unique health needs is increasing. As FDA-approved drugs cannot fulfill all medical requirements, demand for compounded drugs is growing. Furthermore, shortage of pharmaceutical ingredients is fueling the demand for alternative compounded drugs. The rising availability of compounding pharmacies is also propelling the market growth.

Porter’s Analysis

Threat of new entrants: Low barriers to entry such as low capital requirements and no major economies of scale limit the threat of new entrants. However, high degree of regulation in this market along with established players and long term relationships with customers act as a deterrent.

Bargaining power of buyers: The bargaining power of buyers is low as compounding pharmacies offer specialized services and products not easily available from other sources. However, availability of alternative treatment options provides some bargaining power to buyers.

Bargaining power of suppliers: Suppliers of key raw materials required for compounding have some bargaining power given the specialized nature of inputs and requirements. However, presence of multiple ingredient suppliers keeps this power in check.

Threat of new substitutes: Threat of substitutes is low as compounding pharmacies fulfill an important unmet need not met by commercially available drugs. Customized medications have few close substitutes.

Competitive rivalry: Intense given the specialized and local nature of operations.

Key Takeaways

The Global Compounding Pharmacies Market Size is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing demand for personalized medications and shortage of vital drugs.

Regional analysis

North America is currently the dominant as well as the fastest growing regional market for compounding pharmacies due to the growing elderly population, drug shortages and preference for personalized medications. The United States accounts for the major share in the North American as well as global compounding pharmacies market.

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,Triangle Compounding Pharmacies, Lorraine’s Pharmacy, Rx3 Compounding Pharmacy ,B Braun Melsungen AG, Clinigen Group PLC, QuVa Pharma, ITC Compounding Pharmacy, and Advanced Pharmacy.