U.S. Compounding Pharmacies Market (By Pharmacy Type: 503A, 503B; By Product: Oral, Liquid Preparations, Topical, Rectal, Ophthalmic, Nasal, Otic; By Sterility: Sterile, Non-Sterile; By Compounding Type: PIA, CUPM, PDA, Others; By Therapeutic Area: Hormone replacement, Pain management, Dermatology, Pediatrics, Urology, Others; By End-User: Hospitals and Clinics, Specialty Clinics, Others) - Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033


U.S. Compounding Pharmacies Market Size and Companies

The U.S. compounding pharmacies market size was valued at USD 5.78 billion in 2023 and it is expected to surpass around USD 10.31 billion by 2033 with a registered CAGR of 6% from 2024 to 2033.

U.S. Compounding Pharmacies Market Size 2024 to 2033

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U.S. Compounding Pharmacies Market Key Takeaways

  • By Product, the oral medications segment dominated the market with the largest market share of 36.47% in 2023.
  • By Pharmacy Type, 503A segment accounted for more than 73.28% of revenue share in 2023.
  • By Sterility, the non-sterile segment dominated the market with the highest revenue of 72.58% in 2023.
  • By Application, the adult segment is expected to significantly boost during the anticipated timeframe.

U.S. Compounding Pharmacies Market Growth Factors

The surging investments by the key market players in the research and development to innovate and customize the formulations to effectively treat various diseases are expected to boost the growth of the US compounding pharmacies market. The growing prevalence of cancer among the US population is significantly augmenting the market growth.

According to the National Cancer Institute, in 2020, approximately 1,806,590 new cancer cases were estimated to be diagnosed and about 606,520 cancer deaths were estimated in US. The most diagnosed type of cancer included breast cancer, lungs cancer, prostate cancer, and colon and rectum cancer. The lungs, prostate, and colorectal cancer collectively accounted for 43% of the total new cancer cases diagnosed in men, while in women, the breast, lungs, and colorectal cancer accounted for 50% in 2020. The cancer incidence or rate of new cancer cases in men is 442.4 per 100,000. The cancer death rate is 158.3 per 100,000 per year. It was estimated that around 16,850 adolescents and children aged 0 to 19 years would be diagnosed with cancer and around 1,730 would die out of it in 2020. US$150.8 billion was estimated to be the national cancer care expenditure in US in 2018.

Therefore, the surging cases of cancer in US are expected to significantly boost the growth of the US compounding pharmacies market in the forthcoming years. There has been a shortage of drugs owing to the longer lead times, lack of adequate raw materials, increased drug failure, and delayed production, which is a prominent factor behind the growth of the US compounding market. Furthermore, growing geriatric population base in US along with the better longevity is accelerating the market growth significantly. According to the Population Reference Bureau, by 2060, the geriatric population in US will constitute around 24% of the total US population.

The increasing acceptance of compounding pharmacies and the presence of favorable government policies pertaining to reimbursements is driving the growth of the US compounding pharmacies market. Further, the rising technological advancements is leading to the growth of the effective compounding pharmacies. The presence of leading market players coupled with the presence of strong healthcare infrastructure in US is augmenting the growth of the US compounding pharmacies market.

U.S. Compounding Pharmacies Market Scope

Report Coverage Details
Growth Rate from 2024 to 2033 CAGR of 6%
Market Size in 2023 USD 5.78 Billion
Market Size by 2033 USD 10.31 Billion
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered By Pharmacy Type, By Product, By Sterility, By Compounding Type, By Therapeutic Area, and By End-User
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

 

Product Insights

Based on product, the oral medications segment dominated the US compounding pharmacies market, accounting for around 36.47% of the market share in 2023. The rising prevalence of various chronic diseases and increased preference for oral medications owing to their ease of use and easy storage have boosted the growth of this segment. The availability of various oral medications in the form of tablets, capsules, powder, and granules are some of the major and most preferred traditional forms of oral medications. The increasing demand for personalized medications among the various age groups is expected to foster the growth of the market in the upcoming years.

U.S. Compounding Pharmacies Market Share, By Product, 2023 (%)

Liquid Preparations segment accounted for around 24.51% of the US compounding pharmacies market share in 2023 and is expected to be the fastest-growing segment during the forecast period. For doctors looking for a substitution for the more popular oral solid dose type, oral liquid solutions offer a versatile option. Compounding pharmacies may be required to manufacture oral liquids if an oral solid dose form is incorrect for a particular patient or if providing the patient's desired dosage is difficult. Tablets and prescriptions are typically difficult to swallow for children and the elderly. Due to liquid pharmaceuticals offering a more pleasant formulation & an easier delivery mechanism, these patient populations are able to consume their medications more readily. Patients occasionally require prescriptions that are not available over the counter, as well as certain drug combinations. Compounding chemists may develop these unique mixtures in liquid form to meet the needs of the patient.

  • The oral medications segment was valued at USD 2.09 billion in 2023 and the growth rate of this segment is projected to be 6.2% during the forecast period.
  • The topical medications segment reached USD 1.16 billion in 2023 and the growth rate of this segment is projected to be 6.2% from 2024 to 2033.

Pharmacy Type Insights

Based on the pharmacy type, the 503A segment dominated the US compounding market in 2023. This segment is estimated to grow at a CAGR of 6.1% during the forecast period. The government restrictions on drug production and requirements of medicine prescriptions have led to the growth of the 503A segment in the market. It is highly used for domestic consumption and hence dominates the US market. The strict regulations for biannual monitoring and audit ensure the safety and quality of this product.

U.S. Compounding Pharmacies Market Share, By Pharmacy Type, 2023 (%)

Sterility Insights

Depending on the sterility, the US compounding pharmacies market was dominated by the non-sterile segment that accounted for a market share of around 5.9% in 2023.

U.S. Compounding Pharmacies Market Share, By Sterility, 2023 (%)

The sterile segment is expected to witness the highest growth rate during the forecast period. The rising incidences of chronic ailments like cancer and cardiovascular diseases are expected to significantly drive the growth of the sterile segment in the upcoming future. The growing demand for the sterile compounding pharmacies owing to the increasing adoption of ophthalmic and parenteral medications is further fueling the growth of the segment during the forecast period

Therapeutic Area Insights

Others include, oncology, haematology, dental, and others. According to the International Diabetes Federation (IDF), there will be 537 million adult diabetics globally in 2021, rising to 643 million by 2030. Cancer patients are harder to live with than the disease itself. The adverse effects of chemotherapy can make patients weak and compromise their overall health, making other medications a complicated issue. Thus, oncology compounding is used by the doctor and prescribes a particular combination of drugs and treatments to meet patients' needs, minimizing the amount of time and effort a patient has to take medications. Innovative formulations such as mouthwash or topical creams are used to produce drugs who suffer from nausea, cannot swallow pills, or have other conditions that make traditional dosage difficult. Moreover, using topical medications decreases the effectiveness lost through absorption during the digestive process and the potential for adverse interaction with cancer treatment. Similarly, with dental compounding unpleasant experiences and anxiety from patients can be removed, when the dentist and pharmacist work together. Dental compounding has grown more popular in recent years because many variables go into a dental procedure. Dental compounding is the practice of developing customized medications for your dental needs. These customized medications are prescribed for procedural anxiety, pain relief, gum disease, mouth ulcers, and many others. Thus, the growing applications of others in compound pharmacies are likely to enhance market growth during the forecast period.

The pain management segment reached at USD 0.94 billion in 2023 and is projected to grow at a CAGR of 6.4% from 2024 to 2033. Pain is the most obvious symptom for which patients explore medical help. Acute pain can easily grow into chronic pain, which later becomes difficult to treat. Commercially convenient pain relief medications can treat chronic conditions such as arthritis, fibromyalgia, migraine, and other nerve and muscle pain; however, these medication can grow undesired side effects such as dizziness, drowsiness, or stomach irritation. Therefore, many patients seek a more suitable solution through pharmacy compounding.

U.S. Compounding Pharmacies Market, By Therapeutic Area, 2021-2023 (USD Billion)

By Therapeutic Area 2021 2022 2023
Hormone Replacement 1.02 1.08 1.15
Pain Management 0.84 0.89 0.94
Dermatology 0.47 0.50 0.53
Pediatrics 0.33 0.35 0.37
Urology 0.28 0.30 0.32
Others 2.25 2.36 2.47

 

U.S. Compounding Pharmacies Market Recent Developments

  • In May 2020, Wedgewood Pharmacy completed the acquisitions with Zoo, Wildlife specializations for acquisition of 503B outsourcing facilities and state licensed pharmacy. This strategy aimed at strengthening the market position on the company.
  • In November 2020, B Braun formed a strategic alliance with Grifols to integrate the B Braun’s Safe Infusion Systems with Grifols’ automated compounding portfolio for ensuring the safety of automated drug delivery.
  • In August 2021, Adamis Pharmaceuticals entered into a definitive agreement for selling a significant portion of assests of its subsidiary, US Compounding Inc.

The major players in the market are constantly involved in various developmental strategies such as partnerships, collaborations, agreement, mergers, and acquisitions to gain competitive advantage over others, strengthen their position in the market, and strengthen their product portfolio.

U.S. Compounding Pharmacies Market Companies

  • Triangle compounding pharmacy
  • Fagron
  • B. Braun melsungen ag
  • Fresenius kabi ag
  • Pencol Compounding Pharmacy
  • US Compounding Inc.
  • Avella specialty pharmacy
  • Institutional pharmacy solutions, llc
  • Pharmedium services llc
  • Vertisis custom pharmacy

Segments Covered in the Report

By Pharmacy Type

  • 503A
  • 503B

By Product

  • Oral
    • Capsules
    • Granules
    • Tablets
    • Powder
    • Others
  • Liquid Preparations
    • Emulsion
    • Syrup
    • Solutions
    • Suspension
    • Others
  • Topical
    • Gels
    • Ointments
    • Creams
    • Pastes
    • Others
  • Rectal
    • Enema
    • Suppositories
    • Others
  • Ophthalmic
  • Nasal
  • Otic

By Sterility

  • Sterile
  • Non-Sterile

By Compounding Type

  • Pharmaceutical Ingredient Alteration (PIA)
  • Currently Unavailable Pharmaceutical Manufacturing (CUPM)
  • Pharmaceutical Dosage Alteration (PDA)
  • Others

By Therapeutic Area

  • Hormone Replacement
  • Pain Management
  • Dermatology
  • Pediatrics
  • Urology
  • Others

By End-User

  • Hospitals and Clinics
  • Specialty Clinics
  • Others

Frequently Asked Questions

What is the current size of U.S. compounding pharmacies market?
The U.S. compounding pharmacies market size was reached at USD 5.78 billion in 2023 and is anticipated to rake around USD 10.31 billion by 2033.
What will be the CAGR of U.S. compounding pharmacies market?
The U.S. compounding pharmacies market is expected to grow at a CAGR of 6% from 2024 to 2033.
Who are the major players operating in the U.S. compounding pharmacies market?
The major players operating in the U.S. compounding pharmacies market are Triangle compounding pharmacy, Fagron, B. Braun melsungen ag, Fresenius kabi ag, Pencol Compounding Pharmacy, US Compounding Inc., Avella specialty pharmacy, Institutional pharmacy solutions, llc, Pharmedium services llc, and Vertisis custom pharmacy.
Which are the driving factors of the U.S. compounding pharmacies market?
The surging investments by the key market players in the research and development to innovate and customize the formulations to effectively treat various diseases are expected to boost the growth of the US compounding pharmacies market.

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