Compounding pharmacies combine, mix, or alter ingredients to create specialized medications used in treating medical conditions that are not commercially available. They customize medications to treat patients like children, seniors, or those with unique needs or sensitivities. Compounding pharmacies alter drug formulation, flavors, and dosages to provide customized drugs as per prescription.

The global U.S. Compounding Pharmacies Market is estimated to be valued at US$3.34 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity to address rising specialty drug needs presents a key growth driver for the U.S. compounding pharmacies market. Specialty medications are high-cost injectable or infused drugs used to treat complex conditions like cancer, autoimmune disorders, growth hormone deficiency, and multiple sclerosis. With increasing prevalence of chronic and rare diseases, demand for specialty drugs is rising significantly. However, they often have limited clinical evidence and availability issues. Compounded medications allow customized formulations to effectively manage treatment and minimize side effects. This provides an important solution for patients in need of specialized therapy options. As specialty drug costs continue scaling high, compounding pharmacies help expand access to affordable treatment alternatives. Their ability to address such unmet needs of the healthcare industry will boost the market growth over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the US compounding pharmacies market. Significant capital investment is required to set up compounding pharmacies. Established players enjoy economies of scale and brand recognition. Bargaining power of buyers: The bargaining power of buyers is high. Buyers have many options to choose from due to the presence of many players. Buyers can negotiate on pricing and quality of services. Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of raw materials include pharmaceutical manufacturers and ingredient suppliers. Suppliers have low differentiation. Threat of new substitutes: The threat of new substitutes is low. Alternatives include conventional pharmacies and mail order pharmacies. However, compounding pharmacies offer personalized medications. Competitive rivalry: Competition is high among existing players. Players compete based on service quality, innovative medications, and focus on specific therapeutics areas or patient segments.

SWOT Analysis
Strength: Compounding pharmacies offer customized medications for specific patient needs. They help patients who cannot consume regular medications. Compounding pharmacies provide specialized services like needle-free injections. Weakness: Compounding pharmacies have lower scale and production capacity than regular pharmacies. Manufacturing compounded medications involves safety risks. Limited expertise and commercial incentives exist for some complex formulations. Opportunity: Growing geriatric population and rising prevalence of chronic diseases drive demand. Untapped rural regions offer expansion opportunities. Developing specialized expertise in complex formulations can boost market share. Threats: Stringent regulatory environment increases compliance costs. Reimbursement issues limit the accessibility of compounded drugs. Technology advancements may reduce the need for customized medications over time.

Key Takeaways
The U.S. Compounding Pharmacies Market Growth is expected to witness high growth over 2023-2030.

Regional analysis: The Western region dominates the U.S. compounding pharmacies market currently. States like California, Texas, and Florida have a large patient pool and higher healthcare expenditure. The Midwestern region is expected to grow at the fastest rate during the forecast period driven by increasing strategic initiatives undertaken by key players.

Key players: Key players operating in the U.S. compounding pharmacies market are AmerisourceBergen Corporation, Cardinal Health, McKesson Corporation, PharMEDium Services, LLC, Institutional Pharmacy Solutions, Cantrell Drug Company, and Triangle Compounding Pharmacies. AmerisourceBergen Corporation holds the largest market share currently.

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