The Compounding Pharmacy Market Size is valued at USD 14.79 Bn in 2023 and is predicted to reach USD 26.38 Bn by the year 2031 at an 7.6% CAGR during the forecast period for 2024-2031.
Compounding is the creation of a pharmaceutical preparation of a drug by a licensed pharmacist to meet the unique needs of an individual patient, whether human or animal when a commercially available drug does not suffice. This may be necessary when a patient cannot tolerate the commercially available drug, when the exact preparation needed is unavailable on the market, or when a drug is in shortage or discontinued. Compounded medication is occasionally referred to as "personalized medicine" due to its ability to be tailored to the unique health requirements of each patient. Customized medications that are unavailable from commercial drug manufacturers are manufactured by compounding pharmacies. Pharmaceutical compounding is a valuable tool for addressing the unique requirements of a patient that cannot be accommodated by commercially available medications.
In February 2024, the Parenteral Drug Association (PDA) began a four-year partnership with the U.S. FDA's Compounding Quality Center of Excellence, aiming to improve the quality and accessibility of compounded drugs. This collaboration focuses on expanding training programs for professionals in outsourcing facilities and the broader compounding community, as well as creating interactive platforms for knowledge sharing and collaboration. While compounding is primarily regulated at the state level by boards of pharmacy, community and hospital pharmacists can claim exemptions from certain federal regulations under Section 503A of the Food, Drug, and Cosmetic Act. Despite these exemptions, both federal and state authorities oversee compounding practices to ensure medication safety, with pharmacists required to adhere to specific standards and regulations regarding the quality and integrity of drug ingredients, as overseen by the FDA.
The compounding pharmacy market is segmented based on products, therapeutic areas, route of administration, sterility type, end-user, and compounding type. Based on the products, the market is segmented into topical, oral, rectal, nasal, and ophthalmic. Based on the therapeutic areas, the market is segmented into pain management, hormone, replacement therapy, dermal disorder, nutritional supplement, other therapeutic areas. Based on the route of administration, the market is segmented into oral, topical, parenteral, and others. Based on the sterility type, the market is segmented into sterile, and non-sterile. Based on the end user, the market is segmented into pediatric, adult, geriatric, and veterinary. Based on the compounding type, the market is segmented into pharmaceutical ingredient alteration (PIA), currently unavailable pharmaceutical manufacturing (CUPM), pharmaceutical dosage alteration (PDA), and others
Based on the therapeutic areas the market is segmented into pain management, hormone, replacement therapy, dermal disorder, nutritional supplement, other therapeutic areas, and oral. The pain management segment is a major driver, due to the high demand for customized pain relief solutions, particularly for patients with chronic or severe pain who may not find adequate relief from commercially available medications. Compounding allows for personalized formulations, including topical analgesics, customized doses, and alternative delivery methods, which can be critical for managing complex pain conditions.
Based on the by route of administration, the market is segmented into oral, topical, parenteral, other, routes of administration. The topical segment generally dominates. Topical formulations are highly sought after due to their effectiveness in treating a variety of conditions, including dermatological issues, localized pain, and hormone replacement therapy. Their ease of application and targeted treatment benefits make them a preferred choice for many patients and healthcare providers.
The rise of the regional market is being driven by the unavailability of some pharmaceuticals and the existence of multiple compounding pharmacies. The primary drivers propelling the market growth are the rising incidence of chronic diseases, the growing demand for customized drugs, the development of the healthcare infrastructure, and the growing awareness and demand for alternative therapies. The regulatory framework in North America, including stringent standards for compounded medications, supports the growth of the market by ensuring high-quality standards and safety.
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Report Attribute |
Specifications |
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Market Size Value In 2023 |
USD 14.79 Bn |
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Revenue Forecast In 2031 |
USD 26.38 Bn |
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Growth Rate CAGR |
CAGR of 7.6% from 2024 to 2031 |
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Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Products, Therapeutic Areas, Route of Administration, Sterility Type, End-User, and Compounding Type. |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; South East Asia |
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Competitive Landscape |
Albertsons Companies, Apollo Clinical Pharmacy, Aurora Compounding, B. Braun Melsungen, Custom Med Apothecary, Fresenius Kabi, Fagron, Formul8, Fusion Apothecary, Galenic Laboratories, Institutional Pharmacy Solutions, JL Diekman and AQ Touchard, Letco Medical, Olympia Pharmacy, PharMEDium Services, Walgreen, Wedgewood Pharmacy, The London Specialist Pharmacy Ltd, MEDS Pharmacy, Rx3 Compounding Pharmacy, Clinigen Group PLC, Dougherty's Pharmacy, Inc., Lorraine's Pharmacy, Mcguff compounding pharmacy services. |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing and Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global Compounding Pharmacy Market Snapshot
Chapter 4. Global Compounding Pharmacy Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Industry Analysis – Porter’s Five Forces Analysis
4.7. Competitive Landscape & Market Share Analysis
4.8. Impact of Covid-19 Analysis
Chapter 5. Market Segmentation 1: by Products Estimates & Trend Analysis
5.1. by Products & Market Share, 2019 & 2031
5.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Products:
5.2.1. Topical
5.2.2. Oral
5.2.3. Rectal
5.2.4. Nasal
5.2.5. Ophthalmic
Chapter 6. Market Segmentation 2: by Therapeutic Areas Estimates & Trend Analysis
6.1. by Therapeutic Areas & Market Share, 2019 & 2031
6.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Therapeutic Areas:
6.2.1. Pain Management
6.2.2. Hormone Replacement Therapy
6.2.3. Dermal Disorder
6.2.4. Nutritional Supplement
6.2.5. Other Therapeutic Areas
Chapter 7. Market Segmentation 3: by Route of Administration Estimates & Trend Analysis
7.1. by Route of Administration & Market Share, 2019 & 2031
7.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Route of Administration:
7.2.1. Oral
7.2.2. Topical
7.2.3. Parenteral
7.2.4. Other Routes of Administration
Chapter 8. Market Segmentation 4: by Sterility Type Estimates & Trend Analysis
8.1. By Sterility Type & Market Share, 2019 & 2031
8.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Sterility Type:
8.2.1. Sterile
8.2.2. Non-Sterile
Chapter 9. Market Segmentation 5: by End User Estimates & Trend Analysis
9.1. By End User & Market Share, 2019 & 2031
9.1.1. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by End User:
9.1.2. Pediatric
9.1.3. Adults
9.1.4. Geriatric
9.1.5. Veterinary
Chapter 10. Market Segmentation 6: by Compounding Type Estimates & Trend Analysis
10.1. by Compounding Type & Market Share, 2019 & 2031
10.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Compounding Type:
10.2.1. Pharmaceutical Ingredient Alteration (PIA)
10.2.2. Currently Unavailable Pharmaceutical Manufacturing (CUPM)
10.2.3. Pharmaceutical Dosage Alteration (PDA)
10.2.4. Others
Chapter 11. Compounding Pharmacy Market Segmentation 7: Regional Estimates & Trend Analysis
11.1. North America
11.1.1. North America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Products, 2024-2031
11.1.2. North America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Therapeutic Areas, 2024-2031
11.1.3. North America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Route of Administration, 2024-2031
11.1.4. North America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Sterility Type, 2024-2031
11.1.5. North America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by End User, 2024-2031
11.1.6. North America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Compounding Type, 2024-2031
11.1.7. North America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
11.2. Europe
11.2.1. Europe Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Products, 2024-2031
11.2.2. Europe Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Therapeutic Areas, 2024-2031
11.2.3. Europe Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Route of Administration, 2024-2031
11.2.4. Europe Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Sterility Type, 2024-2031
11.2.5. Europe Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by End User, 2024-2031
11.2.6. Europe Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Compounding Type, 2024-2031
11.2.7. Europe Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
11.3. Asia Pacific
11.3.1. Asia Pacific Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Products, 2024-2031
11.3.2. Asia Pacific Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Therapeutic Areas, 2024-2031
11.3.3. Asia-Pacific Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Route of Administration, 2024-2031
11.3.4. Asia-Pacific Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Sterility Type, 2024-2031
11.3.5. Asia-Pacific Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by End User, 2024-2031
11.3.6. Asia-Pacific Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Compounding Type, 2024-2031
11.3.7. Asia Pacific Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
11.4. Latin America
11.4.1. Latin America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Products, 2024-2031
11.4.2. Latin America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Therapeutic Areas, 2024-2031
11.4.3. Latin America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Route of Administration, 2024-2031
11.4.4. Latin America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Sterility Type, 2024-2031
11.4.5. Latin America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by End User, 2024-2031
11.4.6. Latin America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Compounding Type, 2024-2031
11.4.7. Latin America Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
11.5. Middle East & Africa
11.5.1. Middle East & Africa Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Products, 2024-2031
11.5.2. Middle East & Africa Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Therapeutic Areas, 2024-2031
11.5.3. Middle East & Africa Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Route of Administration, 2024-2031
11.5.4. Middle East & Africa Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Sterility Type, 2024-2031
11.5.5. Middle East & Africa Compounding Pharmacy Market Revenue (US$ Million) Estimates and by End User, 2024-2031
11.5.6. Middle East & Africa Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by Compounding Type, 2024-2031
11.5.7. Middle East & Africa Compounding Pharmacy Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
Chapter 12. Competitive Landscape
12.1. Major Mergers and Acquisitions/Strategic Alliances
12.2. Company Profiles
12.2.1. Albertsons Companies
12.2.2. Apollo Clinical Pharmacy
12.2.3. Aurora Compounding
12.2.4. B. Braun Melsungen
12.2.5. Custom Med Apothecary
12.2.6. Fresenius Kabi
12.2.7. Fagron
12.2.8. Formul8
12.2.9. Fusion Apothecary
12.2.10. Galenic Laboratories (Roseway Labs)
12.2.11. Institutional Pharmacy Solutions
12.2.12. JL Diekman and AQ Touchard
12.2.13. Letco Medical
12.2.14. Olympia Pharmacy
12.2.15. PharMEDium Services
12.2.16. Walgreen
12.2.17. Wedgewood Pharmacy
12.2.18. The London Specialist Pharmacy Ltd
12.2.19. MEDS Pharmacy
12.2.20. Rx3 Compounding Pharmacy
12.2.21. Clinigen Group PLC
12.2.22. Dougherty's Pharmacy, Inc.
12.2.23. Lorraine's Pharmacy
12.2.24. Mcguff compounding pharmacy services
12.2.25. Other Prominent Players
Global Compounding Pharmacy Market - By Products
Global Compounding Pharmacy Market – By Therapeutic Areas
Global Compounding Pharmacy Market – By Route of Administration
Global Compounding Pharmacy Market – By Sterility Type
Global Compounding Pharmacy Market – By End User
Global Compounding Pharmacy Market – By Compounding Type
Global Compounding Pharmacy Market – By Region
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
