Industry Trends

North America Compounding Pharmacies Market size was valued at USD 5.4 billion in 2019 and is expected to witness 5.6% CAGR from 2020 to 2026.

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Rising adoption of customized medicine in North America will drive the industry expansion. Personalized medicine or precision medicine is an emerging method for disease treatment and prevention that accounts for differences in lifestyle as well as environment and genetic variation. Individuals requiring specific medications that are not commercially available depend on customized medication offered by compounding pharmacies, thereby surging the demand for compounding pharmacies products. Personalized medicines can offer better health outcomes for patients, majorly senior citizens, infants, and individuals allergic to certain ingredients of commercial medicine, securing the compounding pharmacies market growth. Compounding allows providers to request for drugs prepared according to their specifications of ingredients and administration route along with being precisely matched to the patient’s need. Popularity of compounded formulations across the North America market will expand the business growth.

North America Market, By Therapeutic Area

The therapeutic area segment is classified into specialty drugs, hormone replacement, nutritional supplements, dermatology applications, pain management and others. Hormone replacement segment held around 6% CAGR over the analysis period owing to the increasing demand for the anti-ageing solutions and high excellence dermatological products. Additionally, rising need among women to balance progesterone and estrogen levels during menopause and surging ailments associated with imbalanced hormones will escalate the segmental growth.

North America Market, By Product

The product segment is divided into topical, rectal, nasal, parenteral, otic, oral and ophthalmic. Oral segment accounted for around USD 1.9 billion revenue size in 2019. Several medications for treatment of pains and aches are mostly available in the tablets and capsules form that can be consumed orally. However, these medications pass through patient’s digestive tract and may delay effect of medication and can also result in gastrointestinal side effects, impelling the segment growth. With these factors the compounding pharmacy offers desired changes in the oral dosage forms of the medicines such as flavored medication for children. The flavored medication taken orally makes a difference for the children thereby, several companies’ offer custom flavouring as per child’s preference, fostering the market growth.

North America Market, By Application

Based on application, the North America compounding pharmacies market is classified into adult, veterinary, geriatric, and pediatric. Amongst them, the geriatric segment captured around 19.5% market share in 2019. Geriatric patient population base undergoes physiological changes and may not be able to use some commercial drug products for different treatments. The ability of compounding pharmacies to escalate the ease of medication among geriatric population due to difficulty in swallowing will enhance the market growth. Compounding offers an answer to address these problems by mixing several drugs into one preparation that makes it convenient and easier for the patient, surging the demand for compounding pharmacies products.

North America Market, By Compounding Type

The compounding pharmacies market on the basis of compounding type is divided into pharmaceutical ingredient alteration (PIA), pharmaceutical dosage alteration (PDA), currently unavailable pharmaceutical manufacturing (CUPM) and others. The currently unavailable pharmaceutical manufacturing (CUPM) segment valued more than USD 1 billion in 2019. Drug shortages across North America will stimulate the market demand. Drug shortages may occur due to several reasons including discontinuations and delays, quality as well as manufacturing problems. Several manufacturers offer FDA drug shortage information to prevent shortages of drugs.

North America Market, By Sterility

On the basis of sterility, the compounding pharmacies market is bifurcated into sterile and non-sterile dosage forms. The non-sterile segment is estimated to witness around 5% CAGR over the analysis timeframe. Rising demand for non-sterile medications including capsules, pills and syrups will positively impact the market growth. Surging incidence of chronic pain will escalate the demand for pain medication including pills and topical pain relievers produced by compounding pharmacies.

North America Market, By Distribution Channel

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Based on distribution channel, the market is segmented into compounding pharmacy, hospital pharmacy and others. The hospital pharmacy segment was valued around USD 3 billion market size in 2019 and is projected to witness substantial growth during analysis timeframe. Rising demand for customized medication due to surging hospital admissions will favor the market growth. Each year, several individuals suffer from chronic disorders requiring proper medication at hospital settings that secures the market progression. Availability of skilled healthcare professionals and well-developed infrastructure in hospital settings will boost the segment growth.

North America Market, By Country

The U.S. compounding pharmacies market accounted for around 5.8% CAGR and is expected to dominate the market over the analysis period. Presence of leading industry players offering a wide range of compounding pharmacies products will foster the market demand along with favourable reimbursement policies will foster the regional progression. Rising prevalence of cancer due to adoption of sedentary lifestyle and growing chronic pain associated with cancer will boost the market growth.

Competitive Market Share

Some of the foremost market players operating in the North America compounding pharmacies market include B. Braun Medical, Institutional pharmacy solutions, Fagron, Rx3 Compounding Pharmacy, Mc Guff Company, Dougherty's Pharmacy, Nephron Pharmaceuticals, Clinigen Group, Lorraine’s Pharmacy, Pencol Compounding Pharmacy, Athenex, Fresenius Kabi, Triangle Compounding Pharmacies, and Wedgewood Village Pharmacy. The industry players are adopting numerous growth strategies to maintain strong foothold in the compounding pharmacies business. For instance, in October 2018, the Fresenius Kabi opened a new pharmaceutical compounding center in Canada. The center was designed to meet high quality standards and increased need of customers that helped the company increase its customer base in Canada.

Industry Background

The modern age of pharmacy compounding commenced in the 19th century with the isolation of several compounds. Compounding has been vital part of the pharmaceutical process in the early 1900’s, the majority of medications were the result of pharmaceutical compounding. On the other hand, as the 20th century evolved, the need for compounding pharmacies reduced owing to the introduction of mass drug manufacturing. Nowadays, the compounding pharmacy business is witnessing a renaissance as the importance of custom-made medications are getting prevalent. The demand for modified prescribed medication is rising as drug manufacturers do not continually meet the diverse requirements of individual patient. Hence, compounding pharmacists provide customized solutions to patients’ exclusive needs.