VETERINARY DRUGS COMPOUNDING MARKET ANALYSIS
Global veterinary drugs compounding market is estimated to be valued at USD 2.1 Bn in 2024 and is expected to reach USD 3.81 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.9% from 2024 to 2031.
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Rising pet adoption and growing awareness about animal health can drive the market growth. Increasing prevalence of zoonotic diseases and growing importance of preventive healthcare for companion animals can drive the market growth during the forecast period. Moreover, favorable regulations supporting compounding practices and innovations in delivery systems for compounded medications are expected to provide new growth opportunities in the near future. However, lack of standardization and quality control requirements associated with compounded drugs can hamper the market growth.
Market Driver: Rising pet ownership and humanization of pets
With increasing urbanization and smaller family sizes, pets are becoming important family members for many households. People are spending more time and money on taking care of their pets. This includes spending on pet food, accessories, grooming, and most importantly healthcare. As people get attached emotionally to their pets, these people want the best medical care for pets. Customized medical care for pets is gaining popularity and this boosts demand for compounded medications that can be specially tailored for an individual pet based on its needs. Vets also prefer such compounded drugs as these allow developing solutions for pets with unique medical conditions or allergies. With growing humanization of pets, people no more consider them as mere animals but as valuable companions, even as substitute for children members in smaller families. This leads to high expenditure on advanced veterinary healthcare including compounded drugs.
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Increase in lifestyle diseases in pets
Increasing lifestyle driven diseases like obesity, diabetes and joint problems in pets can drive the market growth. This is mainly due to factors like excessive feeding of homemade or packaged snacks, lack of physical activity for indoor pets and genetic predispositions in some breeds. Growing prevalence of such non-communicable diseases among pets requires customized medical solutions. Compounded drugs serve this need as these allow modifications based on individual pet's medical history, symptoms and tolerance levels. Vets find them useful as these medications can be precisely formulated with specific dosage, flavors and delivery methods. This tailor-made approach of compounded drugs boosts their demand for management of lifestyle illnesses in pets. Moreover, as age of pets is rising owing to better healthcare, geriatric conditions are emerging as a new challenge. This can boost the need for compounded medications, especially for multi-drug therapies prescribed to aged pets.
Key Takeaways from Analyst:
Global veterinary drugs compounding market growth is driven by rising pet adoption and increasing awareness about animal health amongst pet owners. The market provides customized medication catering to individual needs of animals. However, stringent regulations pertaining to drug compounding can hamper the market growth. The advantages of compounding such as dose adjustments, alternative formulations for allergic patients, and discontinued drugs present multiple opportunities for players in this industry.
North America dominates the global veterinary drugs compounding market. Within the region, the U.S. holds a major share due to rising pet healthcare expenditure and growing trend of humanization of pets. Asia Pacific is identified as the fastest growing regional market due to rapid urbanization, rising pet ownership in countries like India and China.
Among various product segments, oral medications are likely to remain the most preferred choice of veterinarians as well as pet owners due to ease of administration. Within dosage forms, capsules and gels/pastes are anticipated to register noteworthy growth as these allow for accurate dosage and alternative delivery systems. Canine-specific and feline-specific drugs will continue occupying bulk share of the market over the coming years.
Market Challenges: Strict regulations surrounding drug compounding practices
The strict regulations surrounding drug compounding practices can hamper the market growth. Regulatory bodies have stringent rules around sterile and non-sterile preparation to ensure safety and efficacy. This raises production and compliance costs. The competition from commercialized therapeutic alternatives poses a threat, as large pharmaceutical companies engage in heavy R&D and marketing. Storage and distribution also present difficulties due to short shelf-lives of compounded medications and care needed in transportation.
Market Opportunities: Adoption of innovative drug delivery technologies
The adoption of innovative drug delivery technologies can offer new opportunities in the veterinary drugs compounding market. Novel technologies like transdermal gels, implants, and extended-release injections have the potential to significantly improve drug treatment for pets. These innovations allow for drugs to be efficiently delivered at consistent therapeutic levels over a prolonged period, thus, reducing the need for frequent dosing. This enhances compliance for pet owners and decreases stress for animals that often dislike ingesting conventional pills or visiting the vet regularly for injections.
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By Drug Class: Focus on Disease Treatment
In terms of drug class, CNS agents segment is estimated to contribute the highest market share of 35.0% in 2024, owing to growing prevalence of neurological disorders in companion and livestock animals. CNS agents play a key role in treating diseases such as epilepsy, dementia and anxiety-related conditions that are becoming more common in pets. Rising demand for effective therapeutics to improve animal health and welfare is can boost demand for compounded CNS drugs.
By Animal Type: Rising pet ownership boosts companion animal segment
In terms of animal type, companion animals segment is estimated to contribute the highest market share of 65% in 2024, due to increasing pet adoption globally. Growing human-animal bond and rising number of pet owners increases emphasis on companion animal healthcare. Compounded drugs tailored for dogs and cats aid in treatment of conditions like arthritis, skin allergies and joint problems. Personalized medications allow veterinarians to better address individual animal needs.
By Formulation: Convenience of oral preparations
In terms of formulation, oral segment is estimated to contribute the highest market share 60% in 2024, owing to its convenience advantages over other options. Consumption of compounded oral drugs such as tablets, capsules and suspensions does not require time-consuming injections. This makes dosing simpler for vets as well as pet owners. The non-invasive nature of oral drugs facilitates treatment compliance. Their flexible dosage adaptations also help address the specific medical needs of each animal. These usability benefits correlate to high preference and demand for compounded medications in oral form.
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North America has been dominating the global veterinary drugs compounding market with estimated market share of 38.2 % in 2024, owing to high pet ownership and animal healthcare expenditure in the region. Countries like the U.S. have approximately 70 million pet dogs and 74 million pet cats. With such a large pet population, there has been huge demand for top-quality veterinary care. This has led to significant market presence of leading compounding pharmacies and veterinary drug manufacturers in the region. These companies offer a wide variety of compounded medications tailored to specific health conditions and needs of companion animals. Moreover, custom-made dosage forms like transdermal gels and creams are highly preferred over traditional tablets and capsules.
Asia Pacific region presents lucrative opportunities for the market players. Rapidly developing economies like India and China are attracting major international investments. This enables companies to set up manufacturing and distribution networks more efficiently. Growing pet humanization trends and rising disposable incomes are propelling pet adoption. More pet owners are becoming aware of compounded medicines and seeking personalized care for their companion animals. With urbanization and improved access to quality animal healthcare, Asia Pacific is emerging as the fastest growing regional market over the forecast period.
Veterinary Drugs Compounding Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 2.1 Bn |
| Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 to 2031 |
| Forecast Period 2024 to 2031 CAGR: | 8.9% | 2031 Value Projection: | US$ 3.81 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Wedgewood Pharmacy, Diamondback Drugs LL, Stokes Pharmacy, MEDISCA, Patterson Companies, Inc., Boehringer Ingelheim, Zoetis Inc., Covetrus, Virbac, Dechra Pharmaceuticals PLC, Elanco, Kindred Biosciences, Inc., Merck & Co., Inc., Bayer AG , Putney, Inc., Norbrook Laboratories Limited, Vetoquinol S.A., Ceva Santé Animale, Rood and Riddle Veterinary Pharmacy, Mwi Veterinary Supply Co. |
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| Restraints & Challenges: |
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*Definition: Veterinary Drugs Compounding Market involves the practice of veterinarians or pharmacists compounding or mixing tailored medications for animals. This involves preparing customized medications for individual animals based on a veterinarian's prescription in formulations that are not otherwise commercially available. It allows drugs to be compounded into solutions, gels, creams and other formats specific to an animal's needs and medical condition.
Veterinary Drugs Compounding Market Report Snapshots
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