Compounding Pharmacies Market Analysis & Forecast: 2025-2032

Compounding Pharmacies Market Size and Forecast – 2025 to 2032

Global compounding pharmacies market is estimated to be valued at USD 11.89 Bn in 2025 and is expected to reach USD 18.24 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.3% from 2025 to 2032.

Key Takeaways

• By Product Type, Oral holds the largest market share of 42.1% in 2025 owing to its rising demand for personalized medicine.
• By Therapeutic Area, Hormone replacement therapy acquired the prominent share of 37.6% in 2025 as it rising prevalence of hormonal disorders.
• By Application, Pediatric expected to hold largest market share of 33.1% in 2025 owing to its limited availability of pediatric formulations.
• By Region, North America dominates the overall market with an estimated share of 39.2% in 2025 owing to the rising demand for personalized medicine.

Market Overview

The Compounding Pharmacies Market is evolving quickly as more patients demand personalized and tailored medications to meet their unique needs. These pharmacies fill gaps in standard drug formulations by providing customized dosages, flavors, and delivery methods, particularly for pediatric, geriatric, and hormone therapy patients. Technological advancements and increasing awareness of the benefits of compounded medications actively drive market growth. Moreover, frequent drug shortages and the rise in chronic diseases highlight the crucial role compounding pharmacies play in today’s healthcare.

Current Events and Its Impact

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End-user Feedback and Unmet Needs in the Compounding Pharmacies Market

• Personalized Medication Demand: End-users increasingly seek highly personalized medications tailored to unique health profiles, including specific dosages, flavors, or allergen-free formulas. Many reports limited availability of truly customized solutions, highlighting a gap in addressing diverse patient requirements beyond standard compounded offerings.
• Transparency and Quality Assurance: Patients express concerns over inconsistent quality and transparency in compounding processes. They desire clearer information about ingredient sourcing, preparation methods, and safety protocols to build trust and ensure reliable, effective medications.
• Faster Turnaround Times: Healthcare providers and patients emphasize the need for quicker delivery of compounded prescriptions. Delays disrupt treatment continuity, underscoring the necessity for streamlined operations and enhanced logistical efficiency in pharmacies.

Segmental Insights

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Compounding Pharmacies Market Insights, by Product Type -  Oral contributes the highest share of the market owing to its shortages of FDA-approved drugs.

Oral holds the largest market share of 42.1% in 2025. The oral segment in the Compounding Pharmacies Market expands as more patients seek customized medication forms that standard drugs cannot provide. Patients often need specific dosages, flavors, or allergen-free options to enhance adherence and treatment effectiveness. Compounding pharmacies actively offer flexible solutions, particularly for individuals with swallowing challenges or dietary restrictions. Furthermore, drug shortages and the increasing prevalence of chronic illnesses boost the demand for compounded oral medications, highlighting this segment’s crucial role in personalized healthcare and better patient outcomes. For instance, in July 2025, Eton Pharmaceuticals, Inc., an innovative pharmaceutical company, announced that the U.S. Food and Drug Administration (FDA) has accepted the Company’s New Drug Application (NDA) for ET-600, a proprietary patented formulation of desmopressin oral solution, for review and assigned it a Prescription Drug User Fee Act (PDUFA) date.

Compounding Pharmacies Market Insights, by Therapeutic Area -  Hormone Replacement Therapy contribute the highest share of the market owing to its customization and personalized medicine.

Hormone replacement therapy acquired the prominent share of 37.6% in 2025. Hormone replacement therapy (HRT) in compounding pharmacies grows as more patients face hormonal imbalances and age-related conditions. Many patients choose bioidentical hormones for their natural compatibility and fewer side effects. Compounding pharmacies customize hormone doses and delivery methods to suit individual needs. They also respond to limited availability of commercial hormone treatments and leverage advancements in compounding technology. These factors actively boost the demand for personalized HRT, establishing compounding as a vital option in hormone therapy.

 In April 2025, Spark Hormone Therapy, a leader in bioidentical hormone replacement, launched its innovative Auto Injector device to transform the at-home treatment experience by eliminating injection-related anxiety and discomfort.

Compounding Pharmacies Market Insights, by Application -  Pediatric contribute the highest share of the market owing to its customization of dosage forms and flavors.

Pediatric expected to hold largest market share of 33.1% in 2025. Compounding pharmacies expand their pediatric segment as children frequently need medications in specialized doses and forms that commercial products don’t offer. Parents and healthcare providers actively request tailored solutions, such as flavored liquids and accurate dosages, to enhance medication adherence and safety for young patients. The increasing prevalence of pediatric chronic conditions and the demand for personalized treatments drive compounding pharmacies to develop customized medications, emphasizing their essential role in meeting the unique healthcare needs of children.

In July 2025, The FDA has accepted the New Drug Application (NDA) submitted by Eton Pharmaceuticals, Inc. for ET-600, a proprietary oral formulation of desmopressin designed to treat central diabetes insipidus, also known as arginine vasopressin deficiency (AVP-D), in pediatric patients.

Regional Insights

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North America Compounding Pharmacies Market Trends

North America dominates the overall market with an estimated share of 39.2% in 2025. North America’s compounding pharmacies market continues to grow as healthcare providers and patients actively seek personalized treatment options. They rely on compounded medications to meet specific needs that standard drugs often fail to address. The market sees rising use of bioidentical hormone therapies, pediatric-specific formulations, and allergen-free alternatives. Compounding pharmacies adopt advanced technologies to boost precision and workflow efficiency. At the same time, regulatory bodies work to ensure safety while supporting innovation. These trends establish North America as a key center for compounding services.

Asia Pacific Compounding Pharmacies Market Trends

Healthcare providers across Asia Pacific are driving growth in the compounding pharmacies market by turning to customized medications to meet diverse patient needs. They use compounding to address drug shortages, personalize dosages, and enhance treatment adherence. Rising awareness of personalized medicine, along with a growing middle class and better healthcare access, further fuels demand. Local pharmacies adopt advanced compounding methods to keep pace with changing medical requirements. These developments establish Asia Pacific as a fast-emerging hub for specialized pharmacy solutions.

United States Compounding Pharmacies Market Trends

In the United States, healthcare providers and patients are fueling the growth of the compounding pharmacies market by opting for personalized alternatives to conventional medications. The growing need for customized treatments—such as bioidentical hormone therapy, pediatric care, and pain management—continues to shape the market. Pharmacies are implementing advanced compounding technologies to improve accuracy and ensure safety. Meanwhile, regulatory agencies maintain strict quality standards while promoting innovation. Together, these factors strengthen the U.S. position as a leading market for tailored pharmaceutical solutions.

For instance, Hikma Pharmaceuticals PLC, the multinational pharmaceutical company, announced the launch of Hikma 503B, a new outsourced sterile compounding business that delivers high-quality, ready-to-administer injectable medications customized to meet the specific needs of patients in the United States.

China Compounding Pharmacies Market Trends

As China modernizes its healthcare system and focuses more on patient-centered care, the compounding pharmacies market is rapidly expanding. Hospitals and clinics actively recognize the benefits of customized medications for patients with specific needs, particularly in pediatrics, geriatrics, and chronic disease management. Increased public awareness of personalized medicine and rising investments in pharmaceutical infrastructure drive this growth. Chinese pharmacies are also adopting global best practices in compounding, establishing the country as an emerging leader in customized pharmaceutical services.

Market Report Scope

Compounding Pharmacies Market Report Coverage

Market Dynamics

Compounding Pharmacies Market Trend

Growth of Personalized Medicine

The market is rapidly shifting towards personalized medicine, where compounding pharmacies play a critical role by crafting customized dosages and formulations to meet individual patient needs. This trend is driven by rising patient awareness and demand for tailored therapies, especially for chronic and rare conditions. Compounding pharmacies are evolving beyond traditional roles to become essential partners in personalized healthcare, focusing on innovative drug delivery methods and patient-centric solutions that conventional pharmaceuticals cannot easily provide.

Expansion of Veterinary Compounding

Veterinary compounding is emerging as a significant market segment as pet owners seek specialized medications for animals with unique dosage or flavor preferences. This trend reflects growing pet ownership and increased willingness to invest in pet health. Compounding pharmacies are adapting formulations for various species, addressing gaps in commercially available veterinary drugs. The market is seeing innovation in palatable, species-specific compounds, driving broader acceptance of compounded treatments in veterinary care and enhancing animal welfare.

Compounding Pharmacies Market Opportunity

Collaboration with Healthcare Providers

Strengthening partnerships with physicians, dentists, and veterinarians presents a significant opportunity for compounding pharmacies. Collaborative care models enable better understanding of patient-specific needs and timely feedback on treatment effectiveness. These alliances facilitate integrated, patient-focused approaches, driving demand for customized medications. Pharmacies that actively engage with providers through education, consultation, and shared decision-making can enhance prescription volume and loyalty, positioning themselves as indispensable components of multidisciplinary healthcare teams.

Compounding Pharmacies News

• In January 2025, Veterinary Pharmaceutical Solutions, a leader in livestock pharmacy compounding, launched UltrAmox, its new compounded water-soluble amoxicillin formulated specifically for swine and poultry.
• In April 2025, Novo Nordisk announced that Wegovy, its popular weight-loss drug, will be available through several major telehealth providers starting this week. The move follows increased restrictions on compounding pharmacies producing unapproved, lower-cost versions of GLP-1 medications.
• In December 2024, Germfree, a leader in cleanroom solutions, has launched Smarthood™, a fully integrated, software-agnostic IV workflow system designed to address key challenges in sterile compounding.

Analyst Opinion (Expert Opinion)

• The compounding pharmacies market is at a pivotal crossroads, where its traditional role is being both challenged and invigorated by shifts in healthcare demands and regulatory landscapes. The rise in personalized medicine is not just a trend but a structural market realignment. For example, a 2023 survey by the International Academy of Compounding Pharmacists revealed that over 70% of patients receiving compounded medications reported improved treatment adherence compared to conventional therapies. This underscores compounding’s unique value proposition in patient-centric care, particularly for chronic and rare conditions.
• However, the market’s potential remains severely underleveraged due to inconsistent quality standards and fragmented regulatory oversight. The FDA’s 503A and 503B distinctions, while necessary, have inadvertently created compliance burdens that many small compounding pharmacies struggle to meet, limiting innovation and accessibility. Yet, those pharmacies investing in advanced sterile compounding facilities and robust quality assurance protocols—like Avella Specialty Pharmacy—are demonstrating measurable success by securing provider trust and expanding into specialized niches such as hormone replacement and pediatric dosing.
• Moreover, the adoption of technology, particularly automation and AI-driven prescription validation, remains underexploited. Walgreens’ pilot program integrating robotic compounding systems reduced medication errors by nearly 50%, signaling clear operational and safety advantages that early adopters can leverage for competitive differentiation.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2020 - 2032)
• Oral 
• Capsule
• Tablets
• Mixtures
• Lollipops
• Lozenges
• Topical
• Gels
• Ointments
• Cream
• Lotions
• Rectal
• Nasal
• Ophthalmic 
•  Therapeutic Area Insights (Revenue, USD Bn, 2020 - 2032)
• Hormone Replacement Therapy
• Pain Management
• Specialty Drugs
• Nutritional Supplements
• Others
•  Application Insights (Revenue, USD Bn, 2020 - 2032)
• Pediatric
• Adults
• Geriatrics 
• Veterinary
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa
• Key Players Insights
• Avella Specialty Pharmacy
• Central Admixture Pharmacy Services
• Fagron
• Fresenius Kabi AG
• PharMEDium Services
• Institutional Pharmacy Solutions
• Cantrell Drug Company
• Triangle Compounding Pharmacies
• Lorraine’s Pharmacy
• Rx3 Compounding Pharmacy
• B Braun SE
• Clinigen Group PLC
• QuVa Pharma
• ITC Compounding Pharmacy
• Advanced Pharmacy
• Myonex

Sources

Primary Research interviews

• Pharmacists and compounding specialists from leading pharmacies
• Healthcare providers including physicians and veterinarians utilizing compounded medications
• Patients using compounded prescriptions for chronic or rare conditions
• Regulatory experts in pharmaceutical compounding compliance

Databases

• PubMed
• ClinicalTrials.gov
• U.S. Food and Drug Administration (FDA) Drug Compounding Database
• National Center for Biotechnology Information (NCBI)

Magazines

• Pharmacy Times
• Drug Topics
• Pharmacy Today
• Compounding Today

Journals

• Journal of Pharmaceutical Sciences
• International Journal of Pharmaceutics
• Journal of Pharmacy Practice
• American Journal of Health-System Pharmacy

Newspapers

• The Wall Street Journal (Healthcare Section)
• The New York Times (Health & Medicine)
• The Guardian (Science & Health)
• The Washington Post (Health Section)

Associations

• International Academy of Compounding Pharmacists (IACP)
• United States Pharmacopeia (USP)
• American Pharmacists Association (APhA)
• National Community Pharmacists Association (NCPA)

Public Domain sources

• U.S. National Library of Medicine
• Centers for Disease Control and Prevention (CDC)
• World Health Organization (WHO) Pharmaceutical Sector Publications
• Government health department reports

Proprietary Elements

• CMI Data Analytics Tool, and Proprietary CMI Existing Repository of information for last 8 years