Veterinary Drugs Compounding

Global Veterinary Drugs Compounding Market to Reach US$3.2 Billion by 2030

The global market for Veterinary Drugs Compounding estimated at US$2.0 Billion in the year 2024, is expected to reach US$3.2 Billion by 2030, growing at a CAGR of 7.7% over the analysis period 2024-2030. CNS Agents, one of the segments analyzed in the report, is expected to record a 7.8% CAGR and reach US$1.1 Billion by the end of the analysis period. Growth in the Anti-Infective Agents segment is estimated at 9.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$554.8 Million While China is Forecast to Grow at 12.0% CAGR

The Veterinary Drugs Compounding market in the U.S. is estimated at US$554.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$676.9 Million by the year 2030 trailing a CAGR of 12.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.9% and 7.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.2% CAGR.

Global Veterinary Drugs Compounding Market – Key Trends & Drivers Summarized

Why Is Customized Veterinary Medication Rising in Demand Among Pet and Livestock Owners?

Veterinary drug compounding—the practice of preparing customized medications for animals by altering dosage forms, ingredients, or delivery mechanisms—is experiencing a strong surge in global demand. This trend is closely linked to the increasing humanization of pets, as pet owners seek personalized healthcare solutions comparable to those available in human medicine. Standard veterinary drugs often come in limited dosage forms or strengths, making them unsuitable for animals of different sizes, species, or with specific health conditions. Compounding allows veterinarians to tailor medication for diverse animals including dogs, cats, horses, exotic pets, and even livestock. This may involve converting solid tablets into flavored liquids, removing allergens or inactive ingredients, or combining multiple drugs into a single dosage form to improve adherence. The rise of chronic diseases in animals, such as arthritis, diabetes, and dermatological disorders, has further emphasized the need for specialized formulations that cannot be met by mass-produced drugs. In equine medicine, compounding plays a vital role in treating performance horses with conditions requiring specific dosing regimens and palatability. As companion animal ownership increases worldwide—particularly in urban regions of North America, Europe, and parts of Asia-Pacific—the demand for safe, effective, and pet-specific compounded drugs is steadily rising, creating a significant growth channel in the veterinary pharmaceutical industry.

How Are Regulatory Developments Shaping the Veterinary Compounding Landscape?

The regulatory framework surrounding veterinary drug compounding is evolving rapidly, aiming to balance the benefits of personalized animal care with the need for safety and quality assurance. In the U.S., the Food and Drug Administration (FDA) has issued guidance to ensure that compounded veterinary drugs are prepared under appropriate conditions by licensed pharmacists or veterinarians and only when no suitable approved alternative exists. Recent developments like the FDA’s GFI #256 outline permissible circumstances and quality practices for animal drug compounding from bulk drug substances, thereby formalizing the market and encouraging best practices. Similarly, the European Medicines Agency (EMA) and other regional regulatory bodies are enhancing oversight to ensure that compounded drugs meet defined safety and efficacy standards. In countries with developing pharmaceutical infrastructure, the lack of sufficient veterinary drug options has prompted local governments to promote regulated compounding practices to address unmet needs in rural and agricultural settings. Compliance with Good Compounding Practices (GCP) and adherence to pharmacopeial standards are becoming key differentiators for veterinary compounding pharmacies and service providers. These evolving regulations are encouraging innovation while reinforcing quality control, ultimately legitimizing and institutionalizing veterinary compounding as an integral part of the broader veterinary pharmaceutical market.

What Are the Key Segments and Formulations Driving Market Diversification?

The veterinary drugs compounding market is diversifying rapidly across species, dosage forms, therapeutic categories, and distribution models. Companion animals represent the largest segment, with pet owners seeking customized medications for pain management, anxiety, hormone therapy, and dermatological issues. Livestock and poultry producers are also increasingly turning to compounded drugs for herd-specific treatments that adhere to withdrawal period guidelines while addressing region-specific pathogens. In terms of dosage forms, flavored oral suspensions, topical creams, transdermal gels, chewable treats, and sterile injectables are among the most in-demand, offering enhanced compliance and precise dosing. Veterinary dermatology, ophthalmology, cardiology, and oncology are particularly strong application areas due to the complex and varied treatment needs they involve. E-commerce and telemedicine are also driving significant change, with veterinary telehealth platforms partnering with compounding pharmacies to offer door-delivered, pet-specific prescriptions. Innovations in flavor masking, extended-release formulations, and non-invasive delivery mechanisms are pushing the boundaries of what compounded medications can achieve. Additionally, large-scale animal hospitals and veterinary teaching institutions are establishing in-house compounding units to meet specialized treatment needs promptly. These developments collectively underscore a broader shift toward individualized, responsive veterinary care that mirrors the standards of modern human healthcare.

What Is Fueling the Strong Growth of the Veterinary Drugs Compounding Market Globally?

The growth in the veterinary drugs compounding market is driven by several factors related to shifting consumer behavior, advanced therapeutic demands, and sector-specific innovations. Rising pet ownership and the humanization of companion animals are creating a strong demand for specialized, pet-centric medication solutions that go beyond conventional treatments. Technological advancements in pharmaceutical compounding—such as precision weighing systems, automated mixers, and sterile environments—are enabling high-quality, scalable production of customized formulations. On the end-use side, the increasing prevalence of chronic and age-related animal diseases is compelling veterinarians to seek out flexible, multi-therapy treatment options that can only be delivered through compounding. The growth of veterinary telemedicine and online pet pharmacies is expanding the reach of compounded medications to remote and underserved regions. Furthermore, heightened awareness among livestock producers regarding drug resistance and residue management is encouraging more targeted, short-duration treatments made possible through compounding. Regulatory refinements in key markets are also creating a more secure environment for investment and innovation in veterinary pharmaceutical services. All these factors—ranging from pet health personalization and production technology to veterinary service models and regulatory infrastructure—are collectively accelerating the global adoption of compounded veterinary drugs across both companion and production animal segments.

SCOPE OF STUDY:

The report analyzes the Veterinary Drugs Compounding market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Drug Class (CNS Agents, Anti-Infective Agents, Hormones & Substitutes, Anti-Inflammatory Agents, Other Drug Classes); Animal Type (Companion Animals, Livestock Animals); Administration Route (Oral, Injectable, Other Administration Routes)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Akina Animal Health
• Brava Veterinary Pharmacy
• Central Compounding Center South
• Chewy Inc.
• Covetrus
• Custom Compounding Pharmacy
• Davis Islands Pharmacy & Compounding Lab
• Lorraine`s Pharmacy
• Merck Animal Health (MSD Animal Health)
• Miller’s Pharmacy
• Mixlab
• Norbrook Laboratories Ltd
• Northwest Compounders
• Pace Pharmacy
• PetMeds
• Pharmaca
• Specialty Veterinary Pharmacy
• Stokes Pharmacy
• The Pet Apothecary
• Triangle Compounding Pharmacy

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