May 29, 2024

Artificial Intelligence Is Driving Growth In The U.S. Compounding Pharmacies Market

The U.S. compounding pharmacies market plays a crucial role in formulating customized medications for patients with specific medical needs that cannot be met through traditional pharmaceutical products. Compounded medications allow pharmacists to alter ingredients, dosages, delivery methods, formulations, flavors, and other characteristics to meet individual needs. This has been particularly useful in pediatric and geriatric applications where traditional pharmaceutical products may not be suitable. Compounding also enables the creation of medications from bulk pharmaceutical ingredients for patients who have allergies or sensitivities to inactive ingredients found in commercial products. The precise dosing of medications is another key benefit of compounding.

The global U.S. Compounding Pharmacies Market is estimated to be valued at US$ 5843.17 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends: One of the major trends driving growth in the U.S. compounding pharmacies market is the increasing application of artificial intelligence and machine learning. Compounders are leveraging AI technologies to optimize formulation recipes, streamline production processes, enhance quality control, and minimize errors. AI also aids in discovering new excipient and ingredient combinations for medications. This is allowing pharmacists to expand their compounding capabilities and better meet the unique needs of different patient populations.

Porter’s Analysis
Threat of new entrants: Compounding pharmacies market in the U.S. requires large capital investments in infrastructure and equipment. Regulatory policies also make market entry quite difficult.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternative pharmacies. However, compounded drugs cater specialized needs.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative ingredient suppliers and dependence of pharmacies on regular supplies.
Threat of new substitutes: Pharmaceutical compounds have less threat from substitutes. However, specialty drugs pose a threat to compounding pharmacies.
Competitive rivalry: The market is highly competitive with players competing on factors like quality, innovation, and service.

Key Takeaways
The Global U.S. Compounding Pharmacies Market Growth is expected to witness high. The global U.S. Compounding Pharmacies Market is estimated to be valued at US$ 5843.17 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.

Regional analysis: The Western region dominates the market due to high healthcare spending, Medicare coverage for compound drugs, and technological advancements. The rising aging population will drive demand in Florida and California. The Southern region also offers lucrative opportunities with states like Texas emerging as hubs.

Key players: Key players operating in the U.S. Compounding Pharmacies Market are Lionbridge, TransPerfect, SDL plc, LanguageLine Solutions, Telelanguage, and Straker Translations. These players are adopting strategies like expansions, partnerships and acquisitions to strengthen market presence. For instance, in 2022, TransPerfect acquired Straker Translations to expand into new languages and geographies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it