Industry Trends

Europe Compounding Pharmacies Market share was valued at more than USD 2.2 billion in 2019 and is expected to witness 5.2% CAGR from 2020 to 2026.
 

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Rising geriatric population base along with longer life expectancy will have a positive impact on the market expansion. As per the World Health Organization (WHO), people of age 85 years and above is anticipated to reach around 40 million by 2050 in the European region. Increasing life expectancy among the older population has thereby, escalated the necessity for personalized medication. Higher proportion of people reaching old age and surging need to look youthful has raised the demand for anti-aging therapies and products including human growth hormone and bioidentical hormone replacement therapy. Similarly, increasing usage of testosterone therapy and high-quality dermatological products among the elderly will drive the overall market growth as many of these are primarily developed in compounding pharmacies.

Europe Market, By Therapeutic Area

Based on therapeutic area, the Europe compounding pharmacies market is fragmented into dermatology applications, pain management, hormone replacement, specialty drugs, nutritional supplements, and others. The dermatology segment will witness around 5.8% CAGR over the analysis period. Dermatology compounded medications can be used by patients having allergies to commercial drugs. Compounded medications can be prepared without certain preservatives, ingredients and additives based upon patient's needs, enhancing the segment progression. Dermatology compounding products are available in a variety of formulations, such as solutions, gels, sprays, ointments, foams, and others, to treat several skin diseases including eczema, acne, psoriasis and others. Hence, availability of wide variety of compounding formulations for dermatology applications will boost the segment growth.  

Europe Market, By Product

On the basis of product, the Europe market is classified into topical, nasal, parenteral, rectal, otic, ophthalmic and oral. The topical segment captured more than 15.5% market share in 2019. Compounded topical medications are functional onto the mucous membrane or skin, permitting the medicine to be absorbed into the bloodstream through the skin, thereby increasing its adoption rate. Rising cases of skin diseases coupled with the surging need for aesthetic medicines will stimulate the market growth. Rising availability of topical avenues will foster the segmental progression.

Europe Market, By Application

The Europe market, by application is segmented into adult, geriatric, paediatric, and veterinary. The adult segment will witness around 4.8% CAGR over the forecast period. The growing burden of chronic diseases owing to sedentary lifestyle and unhealthy diet will spur the market growth. Availability of flavoured medication will surge its preference. Many adults may benefit from flavoured medication as taste preferences can change with chronic illness. Moreover, ability of compounding pharmacies to increase the ease of medication among adults due to difficulty in swallowing will drive the market progression.

Europe Market, By Compounding Type

Based on compounding type, the compounding pharmacies market, is divided into pharmaceutical dosage alteration (PDA), pharmaceutical ingredient alteration (PIA), currently unavailable pharmaceutical manufacturing (CUPM) and others. The pharmaceutical ingredient alteration (PIA) segment was valued more than USD 800 million in 2019. Rising demand for hypoallergenic drugs among individuals prone to allergies will drive the segmental growth. Also, multiple drugs can be compounded into single dosages to escalate its convenience, further increasing their preference.

Europe Market, By Sterility

The sterility segment includes non-sterile and sterile dosage form. The non-sterile segment accounted for around 68% market share in 2019. Non-sterile compounding medications do not need stringent regulatory policies for manufacturing as compared to sterile compounding, favouring the segmental progression. Similarly, sterile compounding is a long process and has substantial risk of contamination, leading to a rising preference for non-sterile manufacturing.   

Europe Market, By Distribution Channel

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Europe market, by distribution channel, is fragmented into compounding pharmacies, hospital pharmacies and others. The compounding pharmacies segment will witness around 5.5% CAGR and is anticipated to show a lucrative growth over the forthcoming years. Rising demand for customized medication due to surging hospital admissions will augment the market progression. Each year, several individuals suffer from chronic conditions requiring proper medication at hospital settings, thereby fostering the segmental growth. Additionally, developed public healthcare system in several countries of Europe ensures availability of effective personalized medications in hospital pharmacy, surging the market demand.

Europe Market, By Country

Germany compounding pharmacies accounted for more than 15.7% market share in 2019 and is estimated to grow at a considerable rate over the analysis period. Growing geriatric population base and rising demand for personalized medication will propel the regional market growth. Shortage of drug supply and rising chronic pain associated with cancer where patients are unable to swallow the medication will boost the Germany compounding pharmacies market. Additionally, technological advancements will lead to surge in effective compounding medications, augmenting the market growth.

Competitive Market Share

Some of the prominent corporate players functioning in the Europe compounding pharmacies market are Fagron, Baxter, B. Braun, Nova Laboratories, Athenex Pharma Solutions, Fresenius Kabi, McKesson Corporation, Specialist Pharmacy, Galenic Laboratories and Clinigen Group. The industry players are undertaking various business strategies such as innovations and acquisitions to expand their customer base and cater to the growing demand. For instance, in February 2018, Athenex announced to launch products in 503b and specialty injectables business units. This strategy helped the company to increase its product portfolio in compounding pharmacies business.

Industry Background

The practice of formulating medications dates back to the origins of pharmacy, however, the presence of compounding throughout the pharmacy business has changed over the past years. In the 1930s and 1940s, around 60 percent of medications were compounded. For the period of 1950s and 1960s, with the arrival of manufacturing, compounding declined. In the 1980s, and specifically in the 1990s, patients and physicians again began recognizing the advantages of preparing customized medications to meet specific patient needs. Nowadays, with increased discovery and knowledge there was an arrival of modern marketing techniques and brand promotion and the drug manufacturing industry flourished again.