U.S. Compounding Pharmacies Market

Compounding Pharmacies Market: U.S. Industry Analysis 2013-2017 & Opportunity Assessment 2018-2028

US Compounding Pharmacies Market: Key Research Findings

  • FMI forecasts that the U.S. compounding pharmacies market is expected to reach around US$ 14 Bn by the end of 2028.
  • The U.S. compounding pharmacies market is projected to grow with a CAGR of nearly 5% over the forecast period of 2018-2028.
  • Based on product type, the oral medication and topical medication segments are among the prominent segments. They are estimated to collectively gain a revenue share of around 60% over the forecast period.
  • The oral medications segment is expected to witness stable growth over the forecast period owing to the expiry of blockbuster drugs, increase in the levels of experimentation in drug repackaging, and the creation of multiple ingredient combination drugs.
  • By pharmacy type, the 503A pharmacy segment is estimated to gain a higher share as compared to the 503B pharmacy segment. The 503A pharmacy segment of the U.S. compounding pharmacies market is estimated to gain a share of more than 70% throughout the forecast period.
  • Among all the therapeutic areas, hormone replacement therapy and pain management are among the prominent segments of the U.S. compounding pharmacies market, and these segments are expected to collectively gain a revenue share of more than 55% in 2019.
  • Among the application segments, the veterinary segment of the U.S. compounding pharmacies market is expected to witness significant growth with a CAGR of almost 6%, as compared to the other segments.

Top 3 Factors Impacting the Growth of the Compounding Pharmacies Market

  1. Growing demand for HRT drugs

    The growing popularity of HRTs due to the availability of APIs in varying dosages is driving the growth of the U.S. compounding pharmacies market for compounded HRT drugs. The U.S. compounding pharmacies market is more prominent in the West Coast of the U.S. The key active pharmaceutical ingredients that are currently in demand in the HRT market include progesterone, estradiol, estrogen, and testosterone.

    Of late, bio-identical hormone replacement therapies are also driving the U.S. compounding pharmacies market as an increasing number of people in the U.S. strive to defy the aging process. Moreover, the demand for customised hormone replacement therapies has increased in the recent past as people have become more conscious about important health functions such as breast and bone health, sexual health, osteoporosis, depression, etc. 

    Accordingly, the dosage requirements for specific customised solutions have increased the demand for hormones such as progesterone after procedures such as hysterectomy, testosterone replacement after andropause, infertility curing hormones, etc. These therapies are expensive and in high demand owing to rapid aging in younger people due to lifestyle changes and increasing stress levels, which is driving the revenue growth of the U.S. compounding pharmacies market.

  2. Upsurge in the demand for topical products

    The growing popularity of compounded creams and gels, which comprises ~80% of the topical application category, is driving the growth of the U.S. compounding pharmacies market. Claims from compounding pharmacies for discovering age-defying solutions are increasing substantially.

    For example, the average value of a topical compound application prescription has increased from US$ 90 in 2012 to US$ 1,000 in 2014, according to the California State Pharmacy Board, which is one of the prominent market drivers of the U.S. compounding pharmacies market.

  3. Traditional compounding pharmacies operate without FDA’s supervision

    Traditional compounding pharmacies, also known as ‘503A compounding pharmacies,’ are is regulated by the State Boards of Pharmacy in the U.S. The standards set by the United States Pharmacopoeia (USP) have to be integrated into the day-to-day pharmacy compounding practice and are mandated by law in most states.

    They are mostly used in the off-label production of branded prescription equivalents and can be produced under a patient prescription, which include cases of discontinued drugs, which are still in demand, treatments that require tailored dosages, a combination of multiple APIs into one formulation, etc. Traditional compounding pharmacies are mostly found within smaller towns and communities where the presence of large retail pharmacies is limited.

Compounding Pharmacies Market: Competitive Analysis

  • Leading medical & pharmaceutical companies are collaborating with small compounding solution providers, hospitals, and research facilities to strengthen their market position and create sustainable positioning.
  • Companies in the U.S. compounding pharmacies market are mainly focusing on geographic expansion and the usage of newer equipment according to the customer needs to gain a larger market share.
  • Key players are focusing on strengthening their position by collaborating with local hospitals to enhance their distribution networks.

Compounding Pharmacies Market: Competitive Analysis

  • Leading medical & pharmaceutical companies are collaborating with small compounding solution providers, hospitals, and research facilities to strengthen their market position and create sustainable positioning.
  • Companies in the U.S. compounding pharmacies market are mainly focusing on geographic expansion and the usage of newer equipment according to the customer needs to gain a larger market share.
  • Key players are focusing on strengthening their position by collaborating with local hospitals to enhance their distribution networks.

U.S. Compounding Pharmacies – The One Stop Solution for Personalized Drugs

Rising demand for personalized medicine is a key factor spurring revenues of U.S. compounding pharmacies. The ‘made from scratch’ factor is one of the key factors enhancing the visibility of compounding pharmacies in the U.S.

The medications prepared in compounding pharmacies are prepared by blending of ingredients as per the desired strength and dosage, which makes them ideal for addressing issues of optimal drug usage. The core value, which is developing tailor-made drugs to cater to patients’ needs, is one of the key aspects fostering popularity of U.S. compounding pharmacies.

Market's Future Looks Bright Over Next 9 Years

Compounding pharmacies are gathering significant momentum, on account of rising demand for ‘made-to-order’ medications offering exceptional benefits for specific patients, unlike commercially available drugs.

Over the past few years, there has been a significant escalating footfall in compounding pharmacies, wherein patients seek effective medications to fulfill their personal needs. Owing to specific cases of drug shortage in retail pharmacy stores, compounding pharmacies is emerging as a viable option for purchasing individualized medicines.

Consumers Depict Bias in Favor of Oral Medications

Compounding pharmacies will continue to receive multiple number of orders placed for oral and liquid medication varieties, such as capsules, tablets, lozenges, mixtures, syrup, solutions, and emulsions. However, demand for topical medications is likely to witness strong growth, given that topical medications find extensive use for a wide-range of applications.

How Growth will Unfold

Compounding pharmacies are witnessing substantial increase in revenues, both from in-store footfall and shipment orders. Adoption of medications from compounding pharmacies for oncology will continue to gain significant traction, followed by dental and dermatology.

US COMPOUNDING PHARMACIES MARKET TAXONOMY

The U.S. compounding pharmacies market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach in front of the reader.

By Product Type

  • Oral Medication
    • Solid Medication
      • Capsules
      • Tablets
      • Mixtures
      • Lollipops
      • Lozenges
    • Liquid Medication
      • Syrup
      • Solution/li>
      • Emulsion
      • Suspension
  • Topical Medication
    • Gels
    • Ointments
    • Creams
    • Lotions
  • Injectables
  • Mouthwashes
  • Nasal
  • Ocular
  • Otic
  • Suppositories and Enemas

By Pharmacy Type

  • 503A Pharmacy
  • 503B Pharmacy

By Application

  • Adults
  • Pediatrics
  • Geriatrics
  • Veterinary

By Therapeutic Area

  • Hormone Replacement Therapy
  • Pain Management
  • Dermatology
  • Oncology
  • Hematology
  • Dental
  • Others

By Sterility Type

  • Sterile
  • Non-Sterile

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