Compounding pharmacies are pharmacies that produce drugs tailored to the needs of individual patients by altering, combining, or mixing active pharmaceutical ingredients of drugs. Compounded drugs are prepared under prescription from physicians. Compounding includes combination of two or more drug ingredients in varied proportions. Most regulatory agencies across the world do not approve compounded medications and do not verify the safety or effectiveness of compounded drugs. These drugs are also mostly not reimbursed by pharmaceutical benefit agencies.
Market Value and Forecast
The global compounding pharmacies market is forecasted to be worth US$ 13,366.5 Mn by 2025 end and is expected to increase at a CAGR of 7.5% throughout forecast period. North America is the largest regional market accounting for 66.6% market share in 2016 and is expected to grow at a CAGR of 7.6%.
The prime driver for the compounding pharmacies market is medicinal drought. When the need for critical drugs are not met through commercially available branded equivalents, compounded drugs are sought after. Furthermore, increasing demand for anti-ageing products that use custom compounded drugs is a prevalent trend across the globe. Innovative sub-therapeutic areas such as bio-identical hormone replacement therapy are also contributing to the growing popularity of compounded drugs. Ease of administering compounded drugs is especially noted in critical illnesses such as cancer, where a patient is unable to swallow a pain-reducing drug. The drug is either administered as a lollipop, transdermal application, or sterile preparation.
Increasing need to conform to regulatory specifications is however becoming a necessity for compounding pharmacies all over the world.
Market Segmentation by Drug Type
Based on product type, the market has been segmented into:
By product type, the oral medication segment is expected to gain more than 40% of the market share in terms of revenue in the global compounding pharmacies market. Topical medication is the second largest segment by product in the global compounding pharmacies market. The oral medication segment dominates the global compounding pharmacies market and is expected to be the most lucrative segment, with a market attractiveness index of 2.2.
Market Segmentation by Application Type
Based on application type, the market has been segmented into:
The medication for adults segment is expected to gain maximum share in terms of value over the forecast period.
Market Segmentation by Therapeutic Area
Based on therapeutic area, the market has been segmented into:
The hormone replacement therapy segment is expected to gain maximum share in terms of value during the forecast period.
Market Segmentation by Region
Based on region, the market has been segmented into:
North America is the largest market in terms of value and is expected to increase at over 7.6% CAGR during the forecast period. Increasing out-of-pocket healthcare expenditure in developing economies such as India and China is expected to fuel the growth in revenue of compounding pharmacies. Asia Pacific is projected to have the highest market potential and is expected to grow at 9.2% value CAGR over the forecast period.
This Persistence Market Research (PMR) report examines the global compounding pharmacies market for the period 2017–2025. The primary objective of the report is to offer updates and information related to market opportunities in the global compounding pharmacies market. This report covers the global compounding pharmacies market performance in terms of revenue contribution from various segments. The report begins with an overview of compounding pharmacies and key definitions. The market viewpoint section underlines macro-economic factors influencing revenue growth of the compounding pharmacies market along with detailing the opportunity analysis of the global market.
The global compounding pharmacies market segmented as follows:
On the basis of product type, the market has been segmented as oral medication, topical medication, mouthwashes and suppositories. On the basis of application type, the market has been segmented as medication for adults, medication for veterinary, medication for children and medication for geriatric. On the basis of therapeutic area, the market has been segmented as pain management and hormone replacement therapy. A detailed analysis has been provided for each segment in terms of market size, Y-o-Y growth rate, absolute $ opportunity, and market attractiveness index. Regional market dynamics sections provide information on key growth drivers, restraints, and trends pertaining to each region. The forecast for the compounding pharmacies market by country, product type, application type and therapeutic area are represented in tabular form for each region.
An important section of the report includes the competitive landscape to provide report audiences with a dashboard view of top market companies and to access the key differentiators among the competitor firms. This section is primarily designed to provide clients with an objective and detailed comparative assessment of product offerings and strategies of key providers specific to a market segment in the global market. Detailed profiles of players operating in the global compounding pharmacies market are also provided in the report. Company profiles include company description, product/segment overview, SWOT analysis, financial information, key developments related to the global market and a strategic overview.
The report highlights the market outlook for 2017–2025 and sets the forecast within the context of the compounding pharmacies market by region. Key regions assessed in this report include North America, Latin America, Europe, Asia Pacific and MEA. A detailed analysis has been provided for each region in terms of market size, Y-o-Y growth rate, absolute $ opportunity, and market attractiveness index. All the sections – by product type, application type, therapeutic area and region – evaluate the historic market analysis for the period 2012-2016 and future growth prospects of the global compounding pharmacies market for the period 2017-2025. We have considered 2016 as the base year and provided data for the forecast period. The final section of the report represents the global scenario of the compounding pharmacies market along with Y-o-Y growth and market forecast till 2025. This section also evaluates the global market opportunity over the forecast period and also the absolute dollar opportunity for each year. This section will help readers understand the overall revenue growth of the compounding pharmacies market and the opportunity analysis for every year over the forecast period.
To arrive at the market size, the report considers market value of compounding pharmacies across the aforementioned geographies. The forecast presented here assesses the total revenue generated by the global compounding pharmacies market. When developing the market forecast, the starting point involves sizing the current market, which forms the basis for forecasting how the market is anticipated to take shape in the near future. We have referred to several subject matter experts in the compounding pharmacy domain during our research. Given the characteristics of the market, we have triangulated the outcome based on different analysis based on supply side, demand side and dynamics of the market such as regulations and GMP guidelines of the compounding pharmacies market. Quantification of data has been considered along with provision of quality insights collected directly from the market through extensive discussions with pharmacists, suppliers, physicians and subject matter experts.