by The compounding pharmacies make customized medication as per the patient’s medical needs which differs from the commercially available stock medication. Compounding allows physicians to tailor treatment regimens for patients based on their medical requirements when an FDA-approved pharmaceutical product is unsuitable or does not meet their unique needs. For example, compounding pharmacies prepare medications for children, patients with special dosage requirements, or patients who need alternative routes of administration. Compounding pharmacies provide cost-effective alternatives to expensive FDA-approved medications for conditions like hormonal therapies and pain management along with niche compounding products like topical creams, gels, and transdermal patches.
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 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the compounding pharmacies market is the increasing use of advanced technologies. Compounding pharmacists are using advanced technologies like 3D printing to produce truly customized dosage forms like pills and capsules in specific shapes and sizes as per the patient’s requirements. 3D printing allows compounding unique solid oral dosage forms with intricate designs that cannot be produced through traditional compounding techniques. This advanced technology reduces production time and wastage of ingredients. Furthermore, automation technologies are being incorporated in the compounding process to minimize human errors and inconsistencies in producing high-quality compounded medications. Technologies like pharmaceutical robots streamline workflows and improve efficiency in the compounding pharmacies.
Porter’s Analysis
Threat of new entrants: Low barriers to entry may increase competition as compounding pharmacies require minimal capital investments and licenses. However, consolidation in the industry has strengthened existing players.
Bargaining power of buyers: Individual customers have low bargaining power due to highly specialized and customized medications unavailable commercially. However, large healthcare providers and insurers can negotiate lower costs and influence market trends.
Bargaining power of suppliers: Compounding pharmacies rely on a consistent supply of Active Pharmaceutical Ingredients and excipients. suppliers have some power due to unique product formulations requiring specific ingredients in lower volumes.
Threat of new substitutes: Limited threat as compounded medications offer highly customized formulations to address allergies or inability to swallow pills for specific patients not served by commercially available drugs.
Competitive rivalry: Intense as large chains enhance capabilities to produce high-volume compounds. Regional pharmacies compete on personalized services and ties to local healthcare providers.
Key Takeaways
The Global Compounding Pharmacies Market Size is expected to witness high growth. The global Compounding Pharmacies Market is estimated to be valued at US$ 10,705.19 million in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030.
The market in North America is expected to dominate owing to the large patient pool requiring customized medications and favorable regulations encouraging pharmaceutical compounding. The Asia Pacific market is poised to expand rapidly due to growing healthcare expenditure, large patient population and increasing acceptance of compounded drugs.
Key players operating in the Compounding Pharmacies market are Akzo Nobel N.V., Ashland Inc., CP Kelco, Daicel Corporation, The Dow Chemical Company, Lamberti S.p.A., Penn Carbose Inc., Sichem LLC, SINCOCMC Co. Ltd, Yixing Tongda Chemical Co. Ltd, and Nouryon. Key players are focusing on expanding their portfolio and capabilities to produce high-volume sterile compounds through mergers and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
