U.S. Compounding Pharmacies Market Size

U.S. Compounding Pharmacies Market Size

U.S. Compounding Pharmacies Market size surpassed USD 5.2 billion in 2021 and is expected to witness a 5.9% CAGR from 2022 to 2030. Increasing awareness regarding compounded medication and rising adoption rate of such medicines will boost the U.S. compounding pharmacies business. Other factors such as increase in the number of prescriptions dispensed, shortage of certain commercially formulated drugs or discontinuation of drugs by manufacturers will positively influence the overall market growth.

Rise in the elderly population and age-related chronic diseases and increasing health expenditure in the U.S. have popularized the demand for compounded medications. Patients are seeking for compounded pharmacies to gain medications with alternative dosages, personalized route of administration, and alternative ingredients to avoid allergies that may be otherwise caused from commercially available drug formulations. These factors have contributed to the U.S. compounding pharmacies market expansion.
 

Amid COVID-19 pandemic the demand for compounded medications increased. This can be attributed to the increased demand for several medications for treatment of COVID-19, along with other reasons such as reduced manufacturing capabilities due to restrictions and shortage of commercially available drugs.
 

For instance, according to the U.S. Food and Drug Administration (FDA) report, the U.S. has dealt with a drug shortage for several years, and the COVID-19 outbreak has exacerbated the situation. This shortage is primarily caused by supply chain disruption, manufacturing process delays and discontinuity, quality issues, and difficulties in obtaining raw materials.
 

Hence, drug shortages created additional opportunities for the U.S. compounding pharmacies business. Also, FDA issued a temporary guidance policy to the federal facilities and state-licensed pharmacies, including hospital pharmacies and compounding pharmacy that are not registered with FDA as outsourcing facilities for compounding of certain medication for hospitalized patients for the duration of the public health emergency, due to shortage of drugs required for patient treatment.
 

A compounding pharmacy is a specific type of pharmacy, that makes customized medications. These medications are prescribed to meet specific need of a patient that cannot be met by commercially available FDA approved drugs. In the U.S., compounding practice is popular owing to increasing demand of personalized medications and the convenience of using compounded drugs.