Compounding Pharmacy Global Market Will Experience Robust Growth Through 2021
The global market for compounding pharmacies promises to continue to experience robust growth through 2021, according to a report by Persistence Market Research.1 The industry review, entitled “Global Market Study on Compounding Pharmacies,” projects compounding revenues to grow 6% annually over the six-year study period.
In 2015, the global market revenue totaled $6.8 billion. The research group expects that number to approach $9.8 billion by 2021, with stable growth across all world regions. What’s driving that increase? Drug shortages, a growing elderly population, demand for personalized medicines and pain medication.
Drug shortages: Currently, more than 300 drugs are in short supply in the U.S., requiring hospitals and patients to rely on compounding pharmacies that can create equivalent products.2
Growing elderly population: With more people reaching advanced age, and more societies valuing youthful looks, anti-aging products have also seen an increase in demand that is expected to continue. The use of bio-identical hormone replacement therapy for women, testosterone therapy for men, human growth hormone, and high-quality dermatological products are all rising. Many of these therapies are prepared primarily in compounding pharmacies.
Demand for personalized medicine: Compounding enables providers to request a medication made to their specifications of ingredients and route of administration and precisely matched to the patient’s need. This personalization makes compounded formulations popular in many markets, but especially in those areas where broad distribution of standardized drugs is challenging.
Pain medication: The largest therapeutic segment is expected to remain pain management.
Currently, North America dominates the global market, with Europe in second place. Going forward, Asia Pacific is projected to have the highest rate of growth, with much of the compounding demand originating in Australia and Singapore. Latin America has great opportunity for growth and demand is expected to continue to rise in Europe.
Currently, the Middle East and Africa account for a small share of the market. This is not anticipated to change significantly during the period covered, but to rise in time as infrastructure and the number of pharmacists increases.
Across the world, increased regulation and demand for standardization is transforming the compounding pharmacy market. North America and Europe lead this trend, but it has also affected Asia-Pacific, particularly Australia.
Are you seeing these global trends at your compounding pharmacy? How are you responding?
Global Market Study on Compounding Pharmacies. Persistence Market Research. November 2015.
Global Compounding Pharmacies Market is Projected to Expand at a CAGR of 6% during the Forecast Period (2015-2021): Persistence Market Research. [Press release]. November 4, 2015.