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:
Compounding pharmacies combine, mix, or alter ingredients to create a medication tailored to the needs of an individual patient. They prepare customized medications to fulfill special dosage forms, concentrations, flavors, delivery systems, or other unique requirements prescribed by a licensed medical practitioner. Compounding enables patients to use necessary drugs when commercial alternatives are unavailable due to allergies, intolerances, or inability to swallow pills, capsules, or tablets.
Market key trends:
The rising demand for customized medication treatments is a key factor estimated to drive the growth of the compounding pharmacies market. Compounded medications can be catered to suit the specific therapeutic needs of patients, especially those who are allergic to inactive ingredients in commercialized drugs or need tailor-made drugs due to lack of availability of appropriate dosage forms, strengths, or flavors. They allow for accuracy in dosage, incorporation of alternative ingredients that reduce side effects, and availability of drugs for pediatric, geriatric, and other patient populations that cannot otherwise access them. This has led to increased utilization of compounding pharmacies to fulfill the unmet medical needs of various patient groups.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the requirement of huge capital investment and government regulations act as a entry barrier. However, the market is growing at a good pace attracting new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as customers have option to choose from available pharmacies but quality issues may arise.
Bargaining power of suppliers:The bargaining power of suppliers is low as there are many suppliers for raw materials and active pharmaceutical ingredients available.
Threat of new substitutes: The threat of new substitutes is low as compounding medicines aim to fulfill patients individual medical needs which may not be addressed by mainstream pharmaceutical drugs.
Competitive rivalry: Intense as players focus on expanding their service portfolio and regions to gain market share.
SWOT Analysis
Strength: Wide service portfolio including topical creams, oral medicines, implants etc catering to individual needs. Strong technical expertise in compounding complex formulations.
Weakness: Higher costs compared to mainstream drugs. Quality related issues may arise due to improper compounding practices.
Opportunity: Growing geriatric population and rising chronic diseases drive the demand. Increasing preference for personalized medicines opens growth avenues.
Threats: Stringent regulations could hamper ease of doing business. Reimbursement issues may impact market revenue.
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 prevalence of chronic diseases. The market size for 2023 is estimated at US$ 5072.19 Mn.
Regional analysis: The Western region dominates the US compounding pharmacies market with the highest market share. States like California, Texas and Florida exhibit high demand for customized medications due to large pool of geriatric population suffering from multiple chronic conditions.
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€TMs 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€TMs Pharmacy.
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