Animal Drug Compounding Market

Market Study on Animal Drug Compounding: High Demand for Oral Medical Formulations

Animal Drug Compounding Market Segmented By CNS Agents, Anti-infective Agents, Hormones and Substitutes, Anti-Inflammatory Agents Product with Animal Drug Compounding for Companion Animals, Animal Drug Compounding for Livestock Animals with Oral Animal Drug Compounding, Injectable Animal Drug Compounding Formulation

  • March-2022
  • PMRREP12871
  • 253 Pages
  • Healthcare

Animal Drug Compounding Market Outlook (2022-2031)

The global animal drug compounding market was valued at US$ 1.84 Bn in 2021, with a projected CAGR of 8.2% for the next nine years. Detailed industry analysis reveals that revenue from animal drug compounding will surge to a market valuation of US$ 4.03 Bn by the end of 2031.

Animal Drug Compounding Market Size (2021)

US$ 1.84 Bn

Projected Market Value (2031)

US$ 4.03 Bn

Global Market Growth Rate (2022-2031)

8.2% CAGR

Share of Top 5 Countries


According to Persistence Market Research, CNS agents enjoyed a market value of US$ 661.8 Mn in 2021, accounting for nearly one-third of the global market share. Animal drug compounding accounted for nearly 18% share in the global compounding pharmacies market in 2021.

Find Out More about the Report Coverage


  • Hoye's Pharmacy
  • Vertisis Custom Pharmacy
  • Smith Caldwell Drug Store
  • Sixth Avenue Medical Pharmacy
  • Dougherty's Pharmacy
  • Triangle Compounding Pharmacy Inc.
  • Medisca Inc.
  • Wedgewood Pharmacy
  • Millers Pharmacy
  • Chiron Compounding Pharmacy
  • MEDS Canadian Compounding Pharmacy
  • Aurora Compounding
  • Pace Pharmacy
  • Victoria Compounding Pharmacy
  • Pratt’s Compounding Pharmacy
  • People’s Choice Pharmacy

Sales Analysis of Animal Drug Compounding from 2016 to 2021 Vs Market Outlook for 2022 to 2031

The global market for animal drug compounding solutions expanded at a CAGR of 5.8% over the last five years (2016-2021).

The spectrum of therapeutic needs in veterinary medicine is relatively huge, and the availability of approved drug products is comparatively limited for all veterinary species and indications. Consequently, drug compounding for animals is of great importance to fill the therapeutic gaps for these non-human species.

Compounded medications provide various therapies for animals when appropriate government-approved products are not available. Commercially approved products in particular dosage forms are recommended for use in certain species; for example, chewable tablets that are not suitable for use in other animals such as cats or exotic animals.

Likewise, some commercially approved products are disliked by certain animals due to their taste. In such a case, compounding is preferred, particularly for those drugs that are difficult to medicate.

The global animal drug compounding products market is predicted to surge ahead at a CAGR of 8.2% and record sales worth US$ 4.03 Bn by the end of 2031.


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What is the Market Outlook for Animal Drug Compounding Manufacturers?

“Accreditation, Lower Availability of Generic Substitutes, and Increasing Regulatory Compliance to Offer Lucrative Opportunities”

Usually, animal treatment is a high-cost measure that is unbearable for low-income families. Animal owners generally prefer to visit accredited compounding pharmacies that offer more facilities at affordable costs.

  • For instance, the U.S. Quality of compounded drugs is generally ascertained if an independent compounding pharmacy has been accredited by the Pharmacy Compounding Accreditation Board (PCAB).

The list of PCAB-accredited pharmacies is available on the website of PCAB. In this regard, AVMA advocates for the quality oversight of all compounded drug preparations at accredited pharmacies to avoid adverse events and ensure treatment compliance.

Thus, regulatory accredited facilities with attractive offerings are expected to gain. This results in opportunities for manufacturers to collaborate with such associations and grab opportunities in the market.

Availability of generic veterinary drug substitutes is limited due to non-availability of favourable reimbursement for veterinary treatment. Most branded drugs are available for animal treatment. In such circumstances, most animal owners got for compounded medications that are cheaper than branded equivalents, easily available, and do not require a prescription.

In the case of formulation of standardized guidelines for compounded preparations in the veterinary space, a larger amount of revenue can be gained.

Regulatory inspections of drug manufacturing facilities are expected to increase for compounding pharmacies for adherence to good manufacturing practices (GMP).

  • For example, less than 3% of compounding pharmacies were accredited by the PCAB, as of 2015.
  • Furthermore, only 48 facilities in the U.S. are registered and authorized to do bulk API manufacturing.

If these more than 3,500 specialty pharmacies in the U.S. obtain FDA and PCAB certification, it could drive the uptake of customized drugs and eventually lead to better animal welfare.

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What’s Restraining Demand for Animal Drug Compounding Products to Some Extent?

“Risk from Compounding Therapy Failure and Shreds for Imbalanced Composition of Active Ingredients May Impede Market Growth”

The Food and Drug Administration (FDA) does not assure the safety of compounded drug formulations. They state that animal compounded drug formulations may pose serious complications to animal health to some extent. This can be attributed to various factors, including errors in compounded drug formulations, drug contamination, imbalanced amount of active ingredients, chemical and physical instability, and lack of bioavailability in the target animal.

  • For example, in 2019, three horses in Maine and Ohio were reported dead or were euthanized due to an error in the compounded product.
  • Another study reported the death of 2 horses and adverse effects seen in 11 others due to the high concentration of the compounded FDA-approved drug.

Lack of any legal requirements to determine the exact desired strength of compounded preparations as indicated on the prescription label has compromised animal care in several ways. This is one of the prominent factors dampening the sales of compounded animal drugs.

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Country-wise Insights

Why are Animal Drug Compounding Providers Targeting the U.S. Market?

“High Animal-related Spending in the U.S.”

The U.S. dominated the North America animal drug compounding market in terms of market share of 88.6% in 2021, and is expected to retain its top position throughout the forecast period.

According to World Atlas data, in the U.S., one in three households owns a cat, with an average of 2.2 cats per cat-owning household. The total cat population in the country was estimated to be around 76.5 million. Interestingly, in 2019 Americans spent more than US$ 52 Bn on their pets.

High spending on animal care is set to result in high demand for animal treatment in the United States.

How is Demand for Animal Drug Compounding Shaping Up in Germany?

“Several Leading Animal Drug Compounding Players Present in Germany”

In terms of value, Germany accounted for 29% of the Europe animal drug compounding market in 2021. This high market share is owing to the presence of active major players in this industry, which has increased the availability of products in the country.

Also, growing awareness regarding animal welfare and initiatives by German regulatory authorities have resulted in Germany’s dominance in the European market.

Additionally, the U.K. and France are expected to witness high demand growth for animal drug compounding during the forecast period.

Why is China Emerging as a Prominent Market for Animal Drug Compounding?

“Growing Focus on Animal Care in China”

In 2021, the China animal drug compounding market was valued at US$ 20.7 Mn and held a market share of 34.7% in East Asia.

China is also a lucrative market for animal medical care, especially for pigs and poultry. Thus, China can be considered as an emerging economy in terms of the fastest-developing veterinary drug industries involving animal drug compounding solutions.

Category-wise Insights

Which Animal Drug Compounding Product is Driving High Market Growth?

“High Demand for CNS Agents Driving Market Growth”

CNS agents, amongst all products and services, accounted for the highest market share of 35.9% by revenue in 2021.

Abnormality in limb coordination, behavioural changes, seizures, and blindness are cited as the most common abnormalities in dogs and cats suffering from CNS inflammation.

  • For instance, according to the International Journal of Pharmaceutical Compounding, CNS drugs were the most commonly dispensed medications with approximately 39% share of total veterinary prescriptions.

As CNS agents actively respond to the process and control the nerve function, they account for the highest share in the market.

Which Types of Animals are Expected to Drive High Demand for Animal Drug Compounded Products?

“Companion Animals to Drive Most Sales of Animal Drug Compounded Products”

Companion animals are driving high demand for compounded drugs in this market and accounted for more than 54% market share in 2021.

Sometimes, it happens that the pet refuses to take the medication due to a bad taste, which forestalls a prime opportunity for compounded drug products. For example, cats don’t like pills, but they like tuna, and similarly, dogs are offended by traditional medicinal solutions being spurted in their mouth, but gladly eat flavored meat or a tasty biscuit.

Thus, compounded drugs would be happily devoured are the customized formulations. Hence, companion animals are expected to drive high demand for compounded drugs over the forecast duration.

Competitive Landscape

Veterinary companies operating in the animal drug compounding space actively follow strategies such as signing partnership and acquisition agreements to enhance their penetration and gain revenue share in the market. Leading animal drug compounding providers are adopting attractive strategies that would drive their product demand in the market.

  • For instance, in December 2020, Wedgewood Pharmacy and Partners Group signed a definitive purchase agreement that will replace New Harbor Capital as its majority shareholder.

Animal Drug Compounding Industry Report Scope



Forecast Period


Historical Data Available for


Market Analysis

US$ Billion for Value

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Argentina
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Indonesia
  • Thailand
  • Malaysia
  • Australia
  • New Zealand
  • South Africa
  • GCC Countries

Key Market Segments Covered

  • Product
  • Animal Type
  • Formulation
  • Region

Key Companies Profiled

  • Hoye's Pharmacy
  • Vertisis Custom Pharmacy
  • Smith Caldwell Drug Store
  • Sixth Avenue Medical Pharmacy
  • Dougherty's Pharmacy
  • Triangle Compounding Pharmacy Inc.
  • Medisca Inc.
  • Wedgewood Pharmacy
  • Millers Pharmacy
  • Chiron Compounding Pharmacy
  • MEDS Canadian Compounding Pharmacy
  • Aurora Compounding
  • Pace Pharmacy
  • Victoria Compounding Pharmacy
  • Pratt’s Compounding Pharmacy
  • People’s Choice Pharmacy

Report Coverage

  • Market Forecast
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Segments Covered in Animal Drug Compounding Industry Survey

Animal Drug Compounding Market by Product:

  • CNS Agents
  • Anti-Infective Agents
  • Hormones and Substitutes
  • Anti-inflammatory Agents
  • Others

Animal Drug Compounding Market by Animal Type:

  • Companion Animals
  • Livestock Animals

Animal Drug Compounding Market by Formulation:

  • Injectable Animal Drugs
  • Oral Animal Drugs
  • Others

Animal Drug Compounding Market by Region:

  • North America Animal Drug Compounding Market
  • Latin America Animal Drug Compounding Market
  • Europe Animal Drug Compounding Market
  • South Asia Animal Drug Compounding Market
  • East Asia Animal Drug Compounding Market
  • Oceania Animal Drug Compounding Market
  • Middle East & Africa Animal Drug Compounding Market

- FAQs -

The global animal drug compounding market was valued at US$ 1.84 Bn in 2021, and is expected to grow 2X by 2031.

The global market for animal drug compounding solutions is set to witness a high growth rate of 8.2% and reach US$ 4.03 Bn by 2031.

The market expanded at 5.8% during 2016 through 2021, owing to growing demand for customized compounded products over commercially available products.

CNS agents held 35.9% market share in 2021.

The U.S., Canada, Germany, U.K., and Australia drive high demand growth of animal drug compounding products.

The U.S. accounted for 88.6% of the North America market share in 2021.

The U.S. and Germany are major manufacturers of animal drug compounding products.

China holds a share of 34.7% in the East Asia animal drug compounding market, and India accounts for 53.4% of the South Asia market.


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