Market Overview

The global compounding pharmacies market was valued at USD 12.5 billion in 2022 and is projected to reach USD 18.6 billion by 2030, expanding at a CAGR of 5.11% from 2023 to 2030. One of the primary drivers of this growth is the increasing reliance on compounding to improve medication adherence.

Adherence to prescribed medications can be a challenge for many patients due to factors such as difficulty swallowing pills, taste issues, or allergies to ingredients in commercially available products. Compounding pharmacies play a key role in addressing these challenges by formulating personalized medications that meet specific patient needs. Through customized dosage forms, flavoring, and allergen-free alternatives, compounding improves patient compliance and drives greater demand for these services.

In addition to adherence, the rising interest in personalized medicine is significantly fueling market growth. Personalized therapies improve treatment effectiveness and safety by tailoring drugs to each patient's unique health conditions. Patients who suffer from allergies, require treatment for rare or orphan diseases, or need non-standard dosages often depend on compounded medications. Moreover, compounding pharmacies help fill gaps caused by discontinued drugs. For example, the U.S. FDA lists approximately 206 discontinued medications, including budesonide and ursodiol capsules, which can be substituted through compounding.

Drug shortages are another contributing factor. The increasing unavailability of essential medications—particularly for chronic diseases—has led healthcare providers to turn to compounding as a solution. According to the 2022 Medicine Shortage Survey by the Pharmaceutical Group of the European Union (PGEU), all 29 surveyed European countries reported shortages at the community pharmacy level, with cardiovascular medications being among the most impacted categories. Compounded drugs are often used to mitigate these shortages and ensure continuous patient care.

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The COVID-19 pandemic initially disrupted the market in 2020 due to issues like supply chain breakdowns, raw material shortages, and halted manufacturing. However, by 2021, the market rebounded. The rising need for certain COVID-related treatments and reduced availability of commercial drugs drove renewed interest in compounding. In response, the FDA introduced temporary policies allowing state-licensed and federal pharmacies not registered as outsourcing facilities to compound drugs for patient use during the declared public health emergency.

Key Market Trends & Insights

• North America accounted for the largest market share of 43.56% in 2022, largely due to the presence of numerous compounding pharmacies and ongoing medication shortages.
• In terms of therapeutic areas, pain management led the market with a 33.1% revenue share in 2022.
• By age cohort, the adult segment held the highest share at 44.1% in 2022.
• The sterile compounding segment represented the majority share by sterility, accounting for 58.52% in 2022.
• By compounding type, PIA (Pharmaceutical Ingredient Adjustment) dominated the market with a 37.38% share in 2022.

Market Size & Forecast

• 2022 Market Size: USD 12.5 Billion
• 2030 Forecasted Market Size: USD 18.6 Billion
• CAGR (2023–2030): 5.11%
• Leading Region (2022): North America

Key Companies & Market Share Insights

The compounding pharmacies market remains highly fragmented, with numerous independent pharmacies operating regionally. Companies are actively pursuing innovation and strategic initiatives to enhance competitiveness.

For instance:

• In February 2023, Harrow, a leading U.S. eye care pharmaceutical firm, announced the launch of next-generation compounded Atropine formulations through ImprimisRx.
• In July 2022, Fagron expanded its presence in the U.S. sterile compounding sector by acquiring a 503B outsourcing facility in Boston from Fresenius Kabi.

Prominent players in the market include:

• Walgreen Co.
• JL Diekman and AQ Touchard (Fresh Therapeutics Compounding Pharmacy)
• Fagron
• Albertsons Companies
• The London Specialist Pharmacy Ltd (Specialist Pharmacy)
• Galenic Laboratories Limited (Roseway Labs)
• Aurora Compounding
• MEDS Pharmacy
• Apollo Clinical Pharmacy
• Formul8
• Fusion Apothecary

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Conclusion

The global compounding pharmacies market is steadily growing due to increasing demand for personalized, patient-centric medication solutions. As commercial drug shortages persist and patient preferences for individualized therapies rise, compounding pharmacies are well-positioned to address these needs. Further market momentum is expected through advancements in sterile compounding, innovative formulations, and greater support from regulatory bodies during public health emergencies. The market’s expansion, particularly in North America, highlights the critical role of compounded medications in modern healthcare.