April 13, 2024
U.S. Compounding Pharmacies Market

The Growing Aging Population Driving The Growth Of U.S. Compounding Pharmacies Market

The U.S. Compounding Pharmacies Market is estimated to be valued at US$ 5072.19 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The U.S. compounding pharmacies market involves production of customized medicines as per individual patient’s medical condition and requirements. Compounded medicines help address medicine shortage, allergies, intolerances and other needs that commercially available medicines cannot fulfill. They provide solutions to patients suffering from various orphan and rare diseases. Compounded medications are prepared by compounding pharmacists using their pharmaceutical expertise and skills. They tailor medicines for patients where standard pharmaceutical products do not fit their needs. This niche but rapidly growing market helps address unmet needs of several patient groups and enhances quality of life.

Market key trends:

Top trends driving the U.S. compounding pharmacies market include growing number of medication shortages leading to increased demand for compounded drugs, rise in geriatric population who often require customized medications, and increasing preference for personalized drugs. According to Population Reference Bureau, the U.S. aging population aged 65 and above is projected to double from 52 million to 95 million by 2060. This burgeoning senior citizen base will continue spurring demand for specialized compounded drugs designed for their individual conditions. Moreover, favorable reimbursement policies and regulatory guidelines providing legitimacy to compounded drugs are encouraging pharmaceutical companies to invest more in this space.

Porter’s Analysis

Threat of new entrants: The U.S. Compounding Pharmacies market requires substantial investment in specialized equipment and compliance standards to produce compounded medications. These high barriers reduce the threat of new entrants.

Bargaining power of buyers: Individual or small hospital buyers have low bargaining power in this market due to the specialized services provided by compounding pharmacies. However, larger hospital chains and institutional buyers may be able to negotiate lower prices.

Bargaining power of suppliers: Compounding pharmacies rely on a limited number of ingredients and packaging suppliers for specialized products. This concentration gives suppliers significant bargaining power over pricing.

Threat of new substitutes: Currently, there are few substitutes available for the customized medications produced by compounding pharmacies according to individual patient needs. Substitution threat is low.

Competitive rivalry: The U.S. Compounding Pharmacies market is highly fragmented with many local and regional players competing. Intense competitive rivalry keeps prices low and encourages innovation.

Key Takeaways

The U.S. Compounding Pharmacies Market Size is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing geriatric population susceptible to multiple chronic conditions. The elderly require more customized medications which propels the market.

Regional analysis indicates that the Southern region dominates the U.S. market due to greater acceptance of compounded medications. States like Texas and Florida are major hubs for compounding pharmacies providing specialized formulations for a variety of therapies. The Western region is also growing rapidly due to a higher proportion of specialty drug prescriptions.

Key players operating in the U.S. Compounding Pharmacies market are Avella Specialty Pharmacy,Ltd PharMEDium Services, Institutional Pharmacy Solutions, Cantrell Drug Company,Triangle Compounding Pharmacies,Hoye’s Pharmacy,Vertisis Custom Pharmacy,Smith Caldwell Drug Store,Nephron Pharmaceuticals Corporation,Rx3 Compounding Pharmacy,B Braun Melsungen AG,Clinigen Group PLC,QuVa Pharma,ITC Compounding Pharmacy, and Lorraine’s Pharmacy. These players are focusing on expanding their product portfolios and service reach through strategic collaborations.

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