Compounding Pharmacy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The Compounding Pharmacy Market size is estimated at USD 15.12 billion in 2025, and is expected to reach USD 19.93 billion by 2030, at a CAGR of 5.68% during the forecast period (2025-2030).

The key factors responsible for the market's growth include increasing demand for personalized medicine, drug shortage, and the rising geriatric population.

The growing geriatric population is one of the leading factors for market growth as they are more prone to various diseases that ultimately require different types of medicines. For instance, according to the report from the United Nations published in January 2023, the number of people aged over 65 or older is expected to double in the next three decades; it is expected to reach around 1.6 billion by 2050. The senior population is more prone to chronic and complex diseases, such as cardiovascular diseases, cancer, and others that need personalized treatment. Hence, the demand for compounding pharmacies is expected to increase to treat complex diseases in the geriatric population, driving market growth over the forecast period.

The drug shortage in several countries is likely to accelerate the compounding pharmacy market's growth. For instance, according to the Pharmaceutical Group of the European Union Medicine Shortage Report 2023, there was an increase of 36% in medicine shortages in 2023 compared to 2022 in Europe. As per the same report, medicine shortages in patients and pharmacies across Europe accentuated and significantly impacted the market, ultimately creating opportunities for compounding pharmacies and propelling the market’s growth during the forecast period.

Hence, owing to the increase in the geriatric population and rising issues associated with medicine shortages, the market is expected to witness notable growth over the forecast period. However, the need for skilled compounding pharmacists is expected to hinder market growth in the coming years.

Compounding Pharmacy Market Trends

The Pain Management Segment is Expected to Dominate the Market During the Forecast Period

The pain management segment is expected to account for the largest share of the market owing to the large patient base suffering from chronic pain from various diseases. Increasing accidental cases, the high burden of cancer, and chronic pain cases are key factors responsible for the growth of the pain management market. For instance, according to the May 2023 update by the National Institute of Health, new cases of chronic pain occurred more often among US adults than new cases of several other common conditions, including diabetes, depression, and high blood pressure. Furthermore, almost two-thirds of the chronic disease population suffered from pain. Compounding pharmacies provide drugs for effective pain management tailored for specific patients. Thus, the pain management segment is expected to contribute to the market's growth during the forecast period.

Non-steroidal anti-inflammatory drugs (NSAIDs), anticonvulsants, antidepressants, topical analgesics, and opioids are the major classes of drugs that doctors prescribe for chronic pain management. These drugs are available by prescription to relieve fever and pain. For instance, as per the article published in November 2023 in the International Journal of Pharmaceutical Compounding Inc., low doses of naltrexone were found to be beneficial among patients who had pain associated with the diagnosis of idiopathic hypereosinophilic syndrome. Thus, owing to such personalized approaches, the segment is expected to witness notable growth over the forecast period.

Side effects associated with these medications include stomach irritation, unpleasant side effects, and unwanted flavor/route of administration. Compounding pharmacies provide alternate methods to ease consumption and cope with the side effects. Such an advantage of compounding pharmacies is expected to accelerate market growth.

North America is Expected to Witness Significant Growth Over the Forecast Period

The compounding pharmacy market in North America is expected to hold a significant market share during the forecast period. The presence of several compounding pharmacies, high adoption among people, and scarcity of many drugs are key factors for market growth. Annual conferences in the region discussing updates and advancements in the compounding of drugs are expected to drive market growth over the forecast period. For instance, in November 2023, the US Food and Drug Administration (FDA) virtually conducted its 12th intergovernmental working meeting on drug compounding with state government officials, including officials from state regulators, representatives from the National Association of Boards of Pharmacy (NABP), and other representatives from FDA.

Several organizations are interested in the compounding pharmacy market across the United States. For instance, in July 2022, Fagron, the global player in pharmaceutical compounding, acquired a 503B outsourcing facility from Fresenius Kabi in Boston. With this acquisition, Fagron expanded its US sterile compounding footprint. Similarly, in June 2022, Osceola Capital, a private equity firm, opened its eighth addition to the Revelation Pharma Corporation platform by purchasing Wedgewood Pharmacy’s Human-Health Book of Business. Wedgewood Pharmacy operates compounding pharmacies that offer sterile and non-sterile compounded medications for animal patients in 50 states.

Hence, owing to the developments in compounding pharmacies and the rise in strategic activities by the key players, the market is expected to witness strong growth in the region.

Compounding Pharmacy Industry Overview

The compounding pharmacy market is semi-consolidated. The key market players are continuously involved in various strategic activities to increase their footprints across geographies. B. Braun SE, Athenex Pharma Solutions, Fresenius Kabi, Clinigen Group PLC, Dougherty's Pharmacy Inc., Mcguff Compounding Pharmacy Services, Pencol Compounding Pharmacy, ITC Compounding Pharmacy, and Valor Compounding Pharmacy are some of the key players in the market.

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