Market Size of Compounding Pharmacy Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 14.31 Billion |
| Market Size (2029) | USD 18.86 Billion |
| CAGR (2024 - 2029) | 5.68 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Compounding Pharmacy Market Analysis
The Compounding Pharmacy Market size is estimated at USD 14.31 billion in 2024, and is expected to reach USD 18.86 billion by 2029, growing at a CAGR of 5.68% during the forecast period (2024-2029).
The COVID-19 pandemic had a significant impact on the compounding pharmacy market. Several guidelines were issued by drug regulatory authorities, such as the United States Food and Drug Administration (US FDA), regarding compounded drug use for COVID-19 patients. For instance, as per the data from the US FDA published in January 2023, it was found that the FDA advised states and drug compounders on concerns relating to drug compounding during the COVID-19 pandemic. The agency's recommendations aim to safeguard patients from harmful, ineffective, and unsatisfactory compounded medications while maintaining patient access. The data further stated that stringent regulation was followed for compounded drugs during the pandemic to avoid any complications associated with such drugs. Therefore, the pandemic had a considerable impact on the market studied. However, with the rising need for personalized medicine and the growing aging population, it is believed that the market is likely to witness strong growth in the coming years.
The key factors responsible for the market growth include increasing demand for personalized medicine, shortage of drugs, and a rising geriatric population.
The growing geriatric population is one of the leading factors for market growth. For instance, according to the report from the United Nations published in January 2023, the number of people aged over 65 or older is believed to double in the next three decades. In contrast, it is expected to reach around 1.6 billion by the year 2050. The senior population is more prone to suffer from chronic, complex, and multiple diseases simultaneously, such as cardiovascular diseases, cancer, and other chronic diseases that need personalized treatment. Hence, demand for compounding pharmacies is expected to increase to treat complex diseases in the geriatric population, driving market growth over the forecast period.
Additionally, the shortage of drugs in several countries is further likely to accelerate the compounding pharmacy market growth. For instance, according to the United States Food and Drug Administration (USFDA) data published in August 2021, the United States has faced a drug shortage problem for the last few years. The COVID-19 outbreak further worsened this scenario in the country. This shortage was due to supply chain disruption, delays & discontinuation in the manufacturing processes, quality issues, and difficulties in purchasing raw materials. Hence, drug shortage further creates opportunities for compounding pharmacies, propelling the market’s growth during the forecast period.
However, the need for skilled compounding pharmacists is expected to hinder market growth in the coming years.
