U.S. Compounding Pharmacy Market - Industry Outlook & Forecast 2024-2029

List of Tables

The U.S. compounding pharmacies market is expected to grow at a CAGR of 4.06% from 2023 to 2029.

MARKET TRENDS & DRIVERS

Advanced Technology Integration

Integrating advanced technologies such as automation, robotic systems, and digital platforms creates new opportunities for the U.S. compounding pharmacies market. These innovations improve operational efficiency, enhance patient care, ensure compliance, and pave the way for future advancements in personalized medicine. As pharmacies continue to adopt these technologies, they will be better equipped to meet the evolving demands of healthcare and provide tailored medication solutions to patients. Also, adopting artificial intelligence (AI) and machine learning (ML) holds great potential for predictive analytics in compounding, such as anticipating patient needs and personalizing formulations based on genetic profiles.

Growing Demand for Compounded Bioidentical Menopausal Hormone Therapy (BMHT) Among Women

The growing demand for compounded bio-identical menopausal hormone therapy is reshaping the U.S. compounding pharmacies market, providing new opportunities for growth and innovation. As women increasingly seek personalized, natural solutions for managing menopausal symptoms, compounding pharmacies are well-positioned to meet this demand. By offering customized hormone treatments that prioritize patient safety and wellness, compounding pharmacies can capitalize on the expanding market for BMHT while contributing to the broader trend of personalized healthcare in the US.

Growing Geriatric Population & Acceptance of Personalized Medications

The growing geriatric population and the increasing acceptance of personalized medications are key drivers of the U.S. compounding pharmacies market. Compounding pharmacies are uniquely positioned to meet the complex and individualized needs of elderly patients, providing customized solutions that enhance healthcare outcomes. As demand for tailored medications grows, compounding pharmacies will continue to play a vital role in the U.S. healthcare system, providing personalized care for diverse patients.

Growing Significance of Compounding for Drug Adherence

The growing significance of compounding for drug adherence is a key driver of the U.S. compounding pharmacies market. Compounding pharmacies play a vital role in improving medication compliance and, ultimately, patient outcomes by offering customized solutions that address the specific needs of diverse patient populations. With advancements in technology and a growing focus on personalized medicine, the future of the compounding pharmacies market is poised for continued growth and innovation.

Rapid Identification of Chronic Diseases

The increasing prevalence of chronic diseases and the advancements in their rapid identification are reshaping the U.S. compounding pharmacies market. Compounding pharmacies offer customized treatment options that address the specific needs of patients with chronic conditions, improving medication adherence, patient outcomes, and overall quality of care. As the demand for personalized medicine continues to grow, compounding pharmacies will remain at the forefront of providing innovative and tailored solutions for chronic disease management, driving their expansion and influence within the healthcare sector.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT TYPE

The U.S. compounding pharmacies market by product type is segmented into oral, topical, parenteral, ophthalmic, and others. The oral segment holds the most significant U.S. market share. The oral compounds segment can be tailored to patients with allergies to certain excipients or those who require specific dosages that are not commercially available. Customized oral medications are particularly beneficial for pediatric and geriatric patients needing adjusted dosages or specific formulations to improve adherence. Compounding pharmacies can add flavorings to oral medications to make them more palatable for children or patients with difficulty swallowing pills. The demand for oral compounds is driven by the need for personalized dosing, especially in conditions like hormone replacement therapy (HRT) and pain management. Furthermore, parenteral compounds are often used for patients needing customized dosages or drug combinations unavailable in commercial products. Many compounded parenteral medications are utilized in hospital settings for specialized treatments, such as chemotherapy or pain management, where individualized care is crucial.

Segmentation by Product Type

Oral
Topical
Parenteral
Ophthalmic
Others

INSIGHTS BY PHARMACY TYPE

The 503A pharmacy type held the most significant share of the U.S. compounding pharmacies market and is projected to witness the highest segmental CAGR of 4.30% during the forecast period. 503A pharmacies are traditional compounding pharmacies that primarily focus on preparing medications for individual patients based on a prescription from a licensed healthcare provider. They often serve local communities and focus on providing customized solutions for conditions such as hormone replacement therapy, pediatric needs, and dermatological treatments. State boards of pharmacy primarily regulate 503A pharmacies and must adhere to state-specific compounding regulations. The FDA's oversight is more limited compared to 503B facilities. Furthermore, the 503B pharmacies, also known as outsourcing facilities, are designed to compound medications on a larger scale, primarily for healthcare institutions such as hospitals, clinics, and long-term care facilities.

Segmentation by Pharmacy Type

503A
503B

INSIGHTS BY STERILITY TYPE

The U.S. compounding pharmacies market by sterility type is segmented into sterile and non-sterile. The sterile segment holds the largest segmental market share. The demand for sterile compounding is driven by its applications in hospitals and clinical settings, where compounded sterile preparations (CSPs) are used for various treatments. These include intravenous (IV) medications, chemotherapy agents, and other critical therapies. The growth of personalized medicine and an increasing number of patients requiring complex treatments contribute to the rising demand for sterile compounding services. Furthermore, the demand for non-sterile compounding is significant due to its broad range of applications. This includes customized formulations for hormone replacement therapy, pediatric medications, and dermatological treatments.

Segmentation by Sterility Type

Sterile
Non-sterile

INSIGHTS BY COMPOUNDING TYPE

The U.S. compounding pharmacies market by compounding type is segmented into pharmaceutical ingredient alteration (PIA), currently unavailable pharmaceutical manufacturing (CUPM), and pharmaceutical dosage alteration (PDA). The pharmaceutical ingredient alteration (PIA) segment dominated the U.S. market share, accounting for over 39% of the revenue in 2023. PIA involves modifying the ingredients of a medication to meet the specific needs of individual patients better. PIA allows for significant customization, addressing patients requiring non-standard dosages or formulations due to unique health conditions, allergies, or other requirements. The demand for PIA is driven by patients needing tailored solutions for conditions that standard pharmaceutical formulations cannot adequately address. This includes pediatric patients who may need medications in different dosages or forms. Furthermore, the CUPM segment is critical in filling gaps caused by drug shortages or discontinuations. This ensures patients can continue receiving necessary treatments even when standard options are unavailable. CUPM is particularly important for patients requiring niche or rare medications that mainstream pharmaceutical manufacturers do not produce. This can include specialized cancer treatments or rare disease medications.

Segmentation by Compounding Type

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

INSIGHTS BY APPLICATION

The U.S. compounding pharmacies market by application is segmented into pain management, hormone replacement therapy, anti-aging & skin care, nutritional supplements, and others. The pain management segment holds the most substantial market share. Compounding pharmacies play a crucial role in pain management by offering customized medications tailored to patients' needs. For chronic pain sufferers, commercially available pain relief drugs may not be effective or may cause adverse side effects. Compounded pain medications allow for personalized dosages, alternative delivery methods (like topical creams, gels, or transdermal patches), and combinations of multiple drugs to maximize relief while minimizing side effects. The increasing opioid crisis has also spurred the demand for non-opioid, compounded alternatives to manage chronic pain, positioning compounding pharmacies as critical in pain management solutions. Furthermore, hormone replacement therapy (HRT) is one of the most sought-after services in the U.S. compounding pharmacies market. Many patients undergoing HRT for conditions like menopause, thyroid disorders, or low testosterone levels seek bioidentical hormones, which are chemically identical to the hormones naturally produced by the body. Compounding pharmacies offer customized formulations of bioidentical hormones in various forms-creams, gels, pills, or injections-adjusting dosages to meet individual needs. This market has experienced substantial growth due to the aging population and increased awareness of personalized medicine options for hormonal imbalances.

Segmentation by Application

Pain Management
Hormone Replacement Therapy
Anti-aging & Skin Care
Nutritional Supplements
Others

INSIGHTS BY AGE COHORT

The adult age cohort segment dominates the U.S. compounding pharmacies market share. Many adults seek personalized treatments for conditions requiring precise dosage adjustments or specific formulations unavailable through commercial medications. Common treatments include hormone replacement therapy (HRT) for both men and women, pain management, and dermatological compounds for skin conditions. Adults also benefit from compounded medications to avoid allergens or intolerances in standard pharmaceuticals and medications tailored to specific lifestyle needs. Furthermore, the pediatric population is a key demographic for the United States compounding pharmacies market, as children often require customized medications unavailable in standard dosages or formulations. Compounded medications are essential for:

Adjusting the strength of medications to suit a child's weight or age
Creating alternative dosage forms, such as flavored liquids, chewable tablets, or topical gels, to make administration easier for young children
Removing allergens or non-essential ingredients that could cause adverse reactions in children

Pediatric patients frequently require compounded medications for conditions such as asthma, allergies, dermatological issues, and rare diseases, where commercially available drugs may not be appropriate or palatable. The ability to offer personalized, child-friendly medications enhances treatment adherence and improves overall patient outcomes in this age group.

Segmentation by Age Cohort

Adult
Geriatric
Pediatric

COMPETITIVE LANDSCAPE

The U.S. compounding pharmacies market operates in a dynamic and evolving landscape characterized by diverse players, regulatory challenges, and increasing demand for personalized medications. As healthcare trends shift towards personalized treatment solutions, the competition in this sector has intensified. Compounding pharmacies, which offer customized medications tailored to individual patient needs, compete with large pharmaceutical manufacturers, retail pharmacies, and specialized compounding firms. This competition is shaped by factors such as regulatory compliance, quality assurance, technological advancements, and market differentiation. Furthermore, technology plays an increasingly important role in the US compounding pharmacies market. Pharmacies that invest in automation, digital platforms, and advanced compounding equipment have a competitive advantage. Automated compounding machines, for example, can enhance accuracy, reduce human error, and increase production efficiency, especially in sterile environments where precision is critical.

The key players in the U.S. compounding pharmacies market are Avella Specialty Pharmacy, CAPS, Fagron, Fresenius Kabi, and PenCol Pharmacy. Avella Specialty Pharmacy, a prominent player in the market, is known for its focus on providing personalized, high-quality compounded medications. Avella specializes in sterile and non-sterile compounding, offering a wide range of personalized medications, including hormone replacement therapies, pain management solutions, and dermatological preparations. Also, Avella invests in advanced compounding technologies and quality assurance practices to ensure the safety and efficacy of its products.

Key Company Profiles

Avella Specialty Pharmacy
CAPS
Fagron
Fresenius Kabi
PenCol Pharmacy

Other Prominent Vendors

Austin Compounding Pharmacy
Capstone Compounding Pharmacy
Charles River Laboratories
Dougherty's Pharmacy
Eastern States Compounding Pharmacy
Everwell Specialty Pharmacy
Harrow
Hill's Compounding Pharmacy and Milford Pharmacy
INNOVATIVE RX
Institutional Pharmacy Solutions
ITC Compounding Pharmacy
McGuff Company
MediVera Compounding Pharmacy
Nephron Pharmaceuticals
PCCA
Precision Compounding Pharmacy
QuVa Pharma
Sixth Avenue Medical Pharmacy
St. Anthony Pharmacy
The Compounding Pharmacy of America
Triangle Compounding
Valor Compounding Pharmacy
Vertisis Custom Pharmacy

KEY QUESTIONS ANSWERED:

1. How big is the U.S. compounding pharmacies market?

2. What is the growth rate of the U.S. compounding pharmacies market?

3. What are the significant trends in the U.S. compounding pharmacies market?

4. Which compounding type segment dominates the U.S. compounding pharmacies market share?

5. Who are the key players in the U.S. compounding pharmacies market?

Product Code: ARZ240907

1. SCOPE & COVERAGE

1.1. MARKET DEFINITION
- 1.1.1. INCLUSIONS
- 1.1.2. EXCLUSIONS
- 1.1.3. MARKET ESTIMATION CAVEATS
1.2. SEGMENTS COVERED & DEFINITION
- 1.2.1. MARKET SEGMENTATION BY PRODUCT TYPE
- 1.2.2. MARKET SEGMENTATION BY PHARMACY TYPE
- 1.2.3. MARKET SEGMENTATION BY STERILITY TYPE
- 1.2.4. MARKET SEGMENTATION BY COMPOUNDING TYPE
- 1.2.5. MARKET SEGMENTATION BY APPLICATION
- 1.2.6. MARKET SEGMENTATION BY AGE COHORT
- 1.2.7. REGIONS & COUNTRIES COVERED
1.3. MARKET DERIVATION
- 1.3.1. HISTORIC, BASE, & FORECAST YEARS

2. PREMIUM INSIGHTS

2.1. OPPORTUNITY POCKETS
2.2. OVERVIEW

3. MARKET AT A GLANCE

4. INTRODUCTION

4.1. OVERVIEW

5. MARKET OPPORTUNITIES & TRENDS

5.1. ADVANCED TECHNOLOGY INTEGRATION
5.2. GROWTH IN DEMAND FOR COMPOUNDED BIOIDENTICAL MENOPAUSAL HORMONE THERAPY (BMHT) AMONG WOMEN
5.3. GROWTH IN COLLABORATION BETWEEN COMPOUNDING PHARMACIES & HEALTHCARE PROVIDERS

6. MARKET GROWTH ENABLERS

6.1. GROWTH IN GERIATRIC POPULATION & ACCEPTANCE OF PERSONALIZED MEDICATIONS
6.2. GROWTH IN SIGNIFICANCE OF COMPOUNDING FOR DRUG ADHERENCE
6.3. INCREASE IN DRUG SHORTAGE IN US
6.4. RAPID IDENTIFICATION OF CHRONIC DISEASES

7. MARKET RESTRAINTS

7.1. ISSUES RELATED TO SAFETY STANDARDS OF COMPOUNDED DRUGS
7.2. CHANGES IN REGULATORY CONSTRAINTS
7.3. POOR COMPOUNDING PRACTICES RESULTS IN QUALITY PROBLEMS

8. MARKET LANDSCAPE

8.1. MARKET OVERVIEW
8.2. MARKET SIZE & FORECAST
8.3. FIVE FORCES ANALYSIS
- 8.3.1. THREAT OF NEW ENTRANTS
- 8.3.2. BARGAINING POWER OF SUPPLIERS
- 8.3.3. BARGAINING POWER OF BUYERS
- 8.3.4. THREAT OF SUBSTITUTES
- 8.3.5. COMPETITIVE RIVALRY

9. PRODUCT TYPE

9.1. MARKET SNAPSHOT & GROWTH ENGINE
9.2. MARKET OVERVIEW
9.3. ORAL
- 9.3.1. MARKET OVERVIEW
- 9.3.2. MARKET SIZE & FORECAST
9.4. TOPICAL
- 9.4.1. MARKET OVERVIEW
- 9.4.2. MARKET SIZE & FORECAST
9.5. PARENTERAL
- 9.5.1. MARKET OVERVIEW
- 9.5.2. MARKET SIZE & FORECAST
9.6. OPHTHALMIC
- 9.6.1. MARKET OVERVIEW
- 9.6.2. MARKET SIZE & FORECAST
9.7. OTHERS
- 9.7.1. MARKET OVERVIEW
- 9.7.2. MARKET SIZE & FORECAST

10. PHARMACY TYPE

10.1. MARKET SNAPSHOT & GROWTH ENGINE
10.2. MARKET OVERVIEW
10.3. 503A
- 10.3.1. MARKET OVERVIEW
- 10.3.2. MARKET SIZE & FORECAST
10.4. 503B
- 10.4.1. MARKET OVERVIEW
- 10.4.2. MARKET SIZE & FORECAST

11. STERILITY TYPE

11.1. MARKET SNAPSHOT & GROWTH ENGINE
11.2. MARKET OVERVIEW
11.3. STERILE
- 11.3.1. MARKET OVERVIEW
- 11.3.2. MARKET SIZE & FORECAST
11.4. NON-STERILE
- 11.4.1. MARKET OVERVIEW
- 11.4.2. MARKET SIZE & FORECAST

12. COMPOUNDING TYPE

12.1. MARKET SNAPSHOT & GROWTH ENGINE
12.2. MARKET OVERVIEW
12.3. PHARMACEUTICAL INGREDIENT ALTERATION (PIA)
- 12.3.1. MARKET OVERVIEW
- 12.3.2. MARKET SIZE & FORECAST
12.4. CURRENTLY UNAVAILABLE PHARMACEUTICAL MANUFACTURING (CUPM)
- 12.4.1. MARKET OVERVIEW
- 12.4.2. MARKET SIZE & FORECAST
12.5. PHARMACEUTICAL DOSAGE ALTERATION (PDA)
- 12.5.1. MARKET OVERVIEW
- 12.5.2. MARKET SIZE & FORECAST

13. APPLICATION

13.1. MARKET SNAPSHOT & GROWTH ENGINE
13.2. MARKET OVERVIEW
13.3. PAIN MANAGEMENT
- 13.3.1. MARKET OVERVIEW
- 13.3.2. MARKET SIZE & FORECAST
13.4. HORMONE REPLACEMENT THERAPY
- 13.4.1. MARKET OVERVIEW
- 13.4.2. MARKET SIZE & FORECAST
13.5. ANTI-AGING & SKIN CARE
- 13.5.1. MARKET OVERVIEW
- 13.5.2. MARKET SIZE & FORECAST
13.6. NUTRITIONAL SUPPLEMENTS
- 13.6.1. MARKET OVERVIEW
- 13.6.2. MARKET SIZE & FORECAST
13.7. OTHERS
- 13.7.1. MARKET OVERVIEW
- 13.7.2. MARKET SIZE & FORECAST

14. AGE COHORT

14.1. MARKET SNAPSHOT & GROWTH ENGINE
14.2. MARKET OVERVIEW
14.3. ADULT
- 14.3.1. MARKET OVERVIEW
- 14.3.2. MARKET SIZE & FORECAST
14.4. GERIATRIC
- 14.4.1. MARKET OVERVIEW
- 14.4.2. MARKET SIZE & FORECAST
14.5. PEDIATRIC
- 14.5.1. MARKET OVERVIEW
- 14.5.2. MARKET SIZE & FORECAST

15. COMPETITIVE LANDSCAPE

15.1. COMPETITION OVERVIEW
15.2. MARKET SHARE ANALYSIS
- 15.2.1. AVELLA SPECIALTY PHARMACY
- 15.2.2. CAPS
- 15.2.3. FAGRON
- 15.2.4. FRESENIUS KABI
- 15.2.5. PENCOL PHARMACY

16. KEY COMPANY PROFILES

16.1. AVELLA SPECIALTY PHARMACY
- 16.1.1. BUSINESS OVERVIEW
- 16.1.2. PRODUCT OFFERINGS
- 16.1.3. KEY STRATEGIES
- 16.1.4. KEY STRENGTHS
- 16.1.5. KEY OPPORTUNITIES
16.2. CAPS
- 16.2.1. BUSINESS OVERVIEW
- 16.2.2. PRODUCT OFFERINGS
- 16.2.3. KEY STRATEGIES
- 16.2.4. KEY STRENGTHS
- 16.2.5. KEY OPPORTUNITIES
16.3. FAGRON
- 16.3.1. BUSINESS OVERVIEW
- 16.3.2. PRODUCT OFFERINGS
- 16.3.3. KEY STRATEGIES
- 16.3.4. KEY STRENGTHS
- 16.3.5. KEY OPPORTUNITIES
16.4. FRESENIUS KABI
- 16.4.1. BUSINESS OVERVIEW
- 16.4.2. PRODUCT OFFERINGS
- 16.4.3. KEY STRATEGIES
- 16.4.4. KEY STRENGTHS
- 16.4.5. KEY OPPORTUNITIES
16.5. PENCOL PHARMACY
- 16.5.1. BUSINESS OVERVIEW
- 16.5.2. PRODUCT OFFERINGS
- 16.5.3. KEY STRATEGIES
- 16.5.4. KEY STRENGTHS
- 16.5.5. KEY OPPORTUNITIES

17. OTHER PROMINENT VENDORS

17.1. AUSTIN COMPOUNDING PHARMACY
- 17.1.1. BUSINESS OVERVIEW
- 17.1.2. PRODUCT OFFERINGS
17.2. CAPSTONE COMPOUNDING PHARMACY
- 17.2.1. BUSINESS OVERVIEW
- 17.2.2. PRODUCT OFFERINGS
17.3. CHARLES RIVER LABORATORIES
- 17.3.1. BUSINESS OVERVIEW
- 17.3.2. PRODUCT OFFERINGS
17.4. DOUGHERTY'S PHARMACY
- 17.4.1. BUSINESS OVERVIEW
- 17.4.2. PRODUCT OFFERINGS
17.5. EASTERN STATES COMPOUNDING PHARMACY
- 17.5.1. BUSINESS OVERVIEW
- 17.5.2. PRODUCT OFFERINGS
17.6. EVERWELL SPECIALTY PHARMACY
- 17.6.1. BUSINESS OVERVIEW
- 17.6.2. PRODUCT OFFERINGS
17.7. HARROW
- 17.7.1. BUSINESS OVERVIEW
- 17.7.2. PRODUCT OFFERINGS
17.8. HILL'S COMPOUNDING PHARMACY AND MILFORD PHARMACY
- 17.8.1. BUSINESS OVERVIEW
- 17.8.2. PRODUCT OFFERINGS
17.9. INNOVATIVE RX
- 17.9.1. BUSINESS OVERVIEW
- 17.9.2. PRODUCT OFFERINGS
17.10. INSTITUTIONAL PHARMACY SOLUTIONS
- 17.10.1. BUSINESS OVERVIEW
- 17.10.2. PRODUCT OFFERINGS
17.11. ITC COMPOUNDING PHARMACY
- 17.11.1. BUSINESS OVERVIEW
- 17.11.2. PRODUCT OFFERINGS
17.12. MCGUFF COMPANY
- 17.12.1. BUSINESS OVERVIEW
- 17.12.2. PRODUCT OFFERINGS
17.13. MEDIVERA COMPOUNDING PHARMACY
- 17.13.1. BUSINESS OVERVIEW
- 17.13.2. PRODUCT OFFERINGS
17.14. NEPHRON PHARMACEUTICALS
- 17.14.1. BUSINESS OVERVIEW
- 17.14.2. PRODUCT OFFERINGS
17.15. PCCA
- 17.15.1. BUSINESS OVERVIEW
- 17.15.2. PRODUCT OFFERINGS
17.16. PRECISION COMPOUNDING PHARMACY
- 17.16.1. BUSINESS OVERVIEW
- 17.16.2. PRODUCT OFFERINGS
17.17. QUVA PHARMA
- 17.17.1. BUSINESS OVERVIEW
- 17.17.2. PRODUCT OFFERINGS
17.18. SIXTH AVENUE MEDICAL PHARMACY
- 17.18.1. BUSINESS OVERVIEW
- 17.18.2. PRODUCT OFFERINGS
17.19. ST. ANTHONY PHARMACY
- 17.19.1. BUSINESS OVERVIEW
- 17.19.2. PRODUCT OFFERINGS
17.20. THE COMPOUNDING PHARMACY OF AMERICA
- 17.20.1. BUSINESS OVERVIEW
- 17.20.2. PRODUCT OFFERINGS
17.21. TRIANGLE COMPOUNDING
- 17.21.1. BUSINESS OVERVIEW
- 17.21.2. PRODUCT OFFERINGS
17.22. VALOR COMPOUNDING PHARMACY
- 17.22.1. BUSINESS OVERVIEW
- 17.22.2. PRODUCT OFFERINGS
17.23. VERTISIS CUSTOM PHARMACY
- 17.23.1. BUSINESS OVERVIEW
- 17.23.2. PRODUCT OFFERINGS

18. REPORT SUMMARY

18.1. KEY TAKEAWAYS
18.2. STRATEGIC RECOMMENDATIONS

19. QUANTITATIVE SUMMARY

19.1. MARKET BY PRODUCT TYPE
19.2. MARKET BY PHARMACY TYPE
19.3. MARKET BY STERILITY TYPE
19.4. MARKET BY COMPOUNDING TYPE
19.5. MARKET BY APPLICATION
19.6. MARKET BY AGE COHORT

20. APPENDIX

20.1. RESEARCH METHODOLOGY
20.2. RESEARCH PROCESS
20.3. REPORT ASSUMPTIONS & CAVEATS
- 20.3.1. KEY CAVEATS
- 20.3.2. CURRENCY CONVERSION
20.4. ABBREVIATIONS