
U.S. Compounding Pharmacies Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034
Description
U.S. Compounding Pharmacies Market was valued at USD 6 billion in 2024 and is estimated to grow at a CAGR of 6.2% to reach USD 10.8 billion by 2034, fueled by increasing demand for customized medications, a growing aging population, and rising instances of drug shortages. Compounding pharmacies play a critical role in preparing personalized medications that are not commercially available, addressing unique patient needs related to dosage form, strength, allergies, and discontinued drugs.
The growing prevalence of chronic conditions, such as cancer, hormonal imbalances, and autoimmune disorders, is also boosting the adoption of compounded medications. Healthcare providers are increasingly prescribing compounded therapies to improve patient adherence and therapeutic outcomes. Additionally, regulatory support from the U.S. Food and Drug Administration (FDA) and pharmacy boards is fostering innovation in compounding practices while simultaneously enhancing safety and quality standards.
By sterility, the sterile compounding segment dominated the U.S. market in 2024, generating USD 1.8 billion. Sterile compounding is vital for producing injectables, ophthalmic solutions, and intravenous (IV) medications, especially for patients requiring hospital-based or critical care treatments. The rise in hospital-acquired infections and the need for preservative-free formulations are further contributing to the demand for sterile compounded drugs. Compliance with United States Pharmacopeia (USP) standards, such as USP <797> and USP <800>, is reinforcing the safety and efficacy of sterile preparations, strengthening market confidence.
By product type, oral medications emerged as the leading segment, accounting for 33.1% market share in 2024. Oral compounded drugs, including capsules, tablets, lozenges, and suspensions, are widely used due to ease of administration and high patient acceptability. Pediatric and geriatric populations particularly benefit from custom-flavored, dosed, and form-altered medications. Pharmacies are also expanding services for hormone replacement therapy (HRT), pain management, and veterinary care—further broadening the market scope for oral compounding solutions.
Regionally, the U.S. market remains highly fragmented, with a mix of 503A traditional compounding pharmacies and 503B outsourcing facilities. The outsourcing model is gaining traction among hospitals and healthcare systems looking for large-scale, FDA-compliant sterile preparations. Investments in advanced cleanroom infrastructure, automated compounding technology, and digital prescription platforms are helping compounding pharmacies improve productivity and traceability.
Key players such as Fagron, PCCA, B. Braun Medical Inc., Nephron Pharmaceuticals Corporation, and PharMEDium (a part of AmerisourceBergen) are actively expanding their compounding capabilities through strategic acquisitions, R&D investments, and compliance with evolving regulatory frameworks. These companies are focusing on enhancing product quality, scalability, and service offerings to cater to the growing and diverse needs of patients, hospitals, and healthcare providers across the United States.
With continued advancements in pharmaceutical technology, rising healthcare personalization, and supportive regulatory oversight, the U.S. Compounding Pharmacies Market is poised for sustained growth throughout the forecast period.
The growing prevalence of chronic conditions, such as cancer, hormonal imbalances, and autoimmune disorders, is also boosting the adoption of compounded medications. Healthcare providers are increasingly prescribing compounded therapies to improve patient adherence and therapeutic outcomes. Additionally, regulatory support from the U.S. Food and Drug Administration (FDA) and pharmacy boards is fostering innovation in compounding practices while simultaneously enhancing safety and quality standards.
By sterility, the sterile compounding segment dominated the U.S. market in 2024, generating USD 1.8 billion. Sterile compounding is vital for producing injectables, ophthalmic solutions, and intravenous (IV) medications, especially for patients requiring hospital-based or critical care treatments. The rise in hospital-acquired infections and the need for preservative-free formulations are further contributing to the demand for sterile compounded drugs. Compliance with United States Pharmacopeia (USP) standards, such as USP <797> and USP <800>, is reinforcing the safety and efficacy of sterile preparations, strengthening market confidence.
By product type, oral medications emerged as the leading segment, accounting for 33.1% market share in 2024. Oral compounded drugs, including capsules, tablets, lozenges, and suspensions, are widely used due to ease of administration and high patient acceptability. Pediatric and geriatric populations particularly benefit from custom-flavored, dosed, and form-altered medications. Pharmacies are also expanding services for hormone replacement therapy (HRT), pain management, and veterinary care—further broadening the market scope for oral compounding solutions.
Regionally, the U.S. market remains highly fragmented, with a mix of 503A traditional compounding pharmacies and 503B outsourcing facilities. The outsourcing model is gaining traction among hospitals and healthcare systems looking for large-scale, FDA-compliant sterile preparations. Investments in advanced cleanroom infrastructure, automated compounding technology, and digital prescription platforms are helping compounding pharmacies improve productivity and traceability.
Key players such as Fagron, PCCA, B. Braun Medical Inc., Nephron Pharmaceuticals Corporation, and PharMEDium (a part of AmerisourceBergen) are actively expanding their compounding capabilities through strategic acquisitions, R&D investments, and compliance with evolving regulatory frameworks. These companies are focusing on enhancing product quality, scalability, and service offerings to cater to the growing and diverse needs of patients, hospitals, and healthcare providers across the United States.
With continued advancements in pharmaceutical technology, rising healthcare personalization, and supportive regulatory oversight, the U.S. Compounding Pharmacies Market is poised for sustained growth throughout the forecast period.
Table of Contents
148 Pages
- Chapter 1 Methodology
- 1.1 Market segmentation
- 1.2 Market definitions
- 1.3 Research design
- 1.4 Market size estimates and calculations
- 1.4.1 Approach 1: Top-down approach
- 1.4.2 Approach 2: Data mining approach (investor presentations)
- 1.5 Key trends for market estimates
- 1.6 Forecast model
- 1.7 Primary research & validation
- 1.7.1 Primary sources
- 1.7.2 Data mining sources
- 1.7.2.1 Paid sources
- 1.7.2.2 Public sources
- Chapter 2 Executive Summary
- 2.1 Industry 360º synopsis
- 2.1.1 Business trends
- Chapter 3 Industry Insights
- 3.1 Industry landscape
- 3.2 Industry impact forces
- 3.2.1 Growth drivers
- 3.2.1.1 Increasing geriatric population and improved longevity
- 3.2.1.2 Growing acceptance of personalized medicines
- 3.2.1.3 Increasing drug shortage
- 3.2.1.4 Convenience of using compounded drugs
- 3.2.1.5 Growing demand for compounded bioidentical menopausal hormone therapy (BMHT) among women
- 3.2.2 Industry pitfalls
- 3.2.2.1 Issues related to safety standards of compounded drugs
- 3.2.2.2 Changing regulatory scenario
- 3.3 Growth potential analysis
- 3.3.1 By pharmacy type
- 3.3.2 By sterility
- 3.3.3 By product
- 3.3.4 By application
- 3.3.5 By compounding type
- 3.3.6 By therapeutic area
- 3.4 Regulatory landscape
- 3.5 Reimbursement landscape
- 3.6 Innovative compounding technologies
- 3.6.1 Web-based quality management system
- 3.6.2 Digital tools
- 3.7 U.S. hospital injectable compounding pharmacies market size, by product, 2021 - 2034 (USD Million)
- 3.8 Porter's analysis
- 3.9 PESTEL analysis
- Chapter 4 Competitive Landscape, 2024
- 4.1 Introduction
- 4.1.1 B. Braun
- 4.1.2 Harrow
- 4.1.3 Nephron Pharmaceuticals
- 4.2 Company matrix analysis
- 4.3 Competitive analysis of major market players
- 4.4 Competitive positioning matrix
- 4.5 Strategy dashboard
- Chapter 5 U.S. Compounding Pharmacies Market, By Pharmacy Type
- 5.1 503A
- 5.2 503B
- Chapter 6 U.S. Compounding Pharmacies Market, By Sterility
- 6.1 Sterile
- 6.2 Non-sterile
- Chapter 7 U.S. Compounding Pharmacies Market, By Product
- 7.1 Oral
- 7.1.1 Solid preparation
- 7.1.1.1 Tablets
- 7.1.1.2 Capsules
- 7.1.1.3 Granules
- 7.1.1.4 Powder
- 7.1.1.5 Other solid preparations
- 7.1.2 Liquid preparations
- 7.1.2.1 Solutions
- 7.1.2.2 Suspensions
- 7.1.2.3 Emulsion
- 7.1.2.4 Syrup
- 7.1.2.5 Other liquid formulations
- 7.2 Topical
- 7.2.1 Ointments
- 7.2.2 Creams
- 7.2.3 Gels
- 7.2.4 Paste
- 7.2.5 Other topical products
- 7.3 Rectal
- 7.3.1 Suppositories
- 7.3.2 Enema
- 7.3.3 Other rectal products
- 7.4 Parenteral
- 7.4.1 Large volume parenteral (LVP) solutions
- 7.4.2 Small volume parenteral (SVP) solutions
- 7.5 Ophthalmic
- 7.6 Nasal
- 7.7 Otic
- Chapter 8 U.S. Compounding Pharmacies Market, By Application
- 8.1 Pediatric
- 8.2 Adult
- 8.3 Geriatric
- 8.4 Veterinary
- Chapter 9 U.S. Compounding Pharmacies Market, By Compounding Type
- 9.1 Pharmaceutical Ingredient Alteration (PIA)
- 9.2 Currently Unavailable Pharmaceutical Manufacturing (CUPM)
- 9.3 Pharmaceutical Dosage Alteration (PDA)
- 9.4 Other compounding types
- Chapter 10 U.S. Compounding Pharmacies Market, By Therapeutic Area
- 10.1 Hormone replacement
- 10.2 Pain management
- 10.3 Dermatology
- 10.4 Specialty drugs
- 10.5 Nutritional supplements
- 10.6 Other therapeutic areas
- Chapter 11 Company Profiles
- 11.1 Baxter International
- 11.1.1 Global overview
- 11.1.2 Business overview
- 11.1.3 Financial data
- 11.1.3.1 Annual sales revenue, 2021-2024 (USD Million)
- 11.1.4 Product Landscape
- 11.1.5 Strategic outlook
- 11.1.6 SWOT analysis
- 11.2 B. Braun
- 11.2.1 Global overview
- 11.2.2 Business overview
- 11.2.3 Financial data
- 11.2.3.1 Annual sales revenue, 2021 - 2024 (USD Million)
- 11.2.4 Product landscape
- 11.2.5 Strategic outlook
- 11.2.6 SWOT analysis
- 11.3 Dougherty's Pharmacy
- 11.3.1 Global overview
- 11.3.2 Business overview
- 11.3.3 Financial data
- 11.3.4 Product landscape
- 11.3.5 Strategic outlook
- 11.3.6 SWOT analysis
- 11.4 Fagron
- 11.4.1 Global overview
- 11.4.2 Business overview
- 11.4.3 Financial data
- 11.4.3.1 Annual sales revenue, 2021 - 2024 (USD Million)
- 11.4.4 Product landscape
- 11.4.5 Strategic outlook
- 11.4.6 SWOT analysis
- 11.5 Fresenius Kabi
- 11.5.1 Global overview
- 11.5.2 Business overview
- 11.5.3 Financial data
- 11.5.3.1 Annual sales revenue, 2021 - 2024 (USD Million)
- 11.5.4 Product landscape
- 11.5.5 Strategic outlook
- 11.5.6 SWOT analysis
- 11.6 Harrow
- 11.6.1 Global overview
- 11.6.2 Business overview
- 11.6.3 Financial data
- 11.6.3.1 Annual sales revenue, 2021 - 2024 (USD Million)
- 11.6.4 Product landscape
- 11.6.5 Strategic outlook
- 11.6.6 SWOT analysis
- 11.7 Institutional Pharmacy Solutions
- 11.7.1 Global overview
- 11.7.2 Business Overview
- 11.7.3 Financial data
- 11.7.4 Product Landscape
- 11.7.5 SWOT analysis
- 11.8 ITC Compounding Pharmacy
- 11.8.1 Global overview
- 11.8.2 Business Overview
- 11.8.3 Financial data
- 11.8.4 Product Landscape
- 11.8.5 SWOT analysis
- 11.9 McGuff Outsourcing Solutions
- 11.9.1 Global overview
- 11.9.2 Business Overview
- 11.9.3 Financial data
- 11.9.4 Product Landscape
- 11.9.5 Strategic outlook
- 11.9.6 SWOT analysis
- 11.10 Nephron Pharmaceuticals
- 11.10.1 Global overview
- 11.10.2 Business Overview
- 11.10.3 Financial data
- 11.10.4 Product Landscape
- 11.10.5 Strategic outlook
- 11.10.6 SWOT analysis
- 11.11 Pavilion Compounding Pharmacy
- 11.11.1 Global overview
- 11.11.2 Business Overview
- 11.11.3 Financial data
- 11.11.4 Product Landscape
- 11.11.5 SWOT analysis
- 11.12 Pencol Compounding Pharmacy
- 11.12.1 Global overview
- 11.12.2 Business Overview
- 11.12.3 Financial data
- 11.12.4 Product Landscape
- 11.12.5 SWOT analysis
- 11.13 QuVa Pharma
- 11.13.1 Global overview
- 11.13.2 Business Overview
- 11.13.3 Financial data
- 11.13.4 Product Landscape
- 11.13.5 Strategic outlook
- 11.13.6 SWOT analysis
- 11.14 Rx3 Compounding Pharmacy
- 11.14.1 Global overview
- 11.14.2 Business Overview
- 11.14.3 Financial data
- 11.14.4 Product Landscape
- 11.14.5 SWOT analysis
- 11.15 Triangle Compounding Pharmacies
- 11.15.1 Global overview
- 11.15.2 Business Overview
- 11.15.3 Financial data
- 11.15.4 Product Landscape
- 11.15.5 SWOT analysis
- 11.16 Village Compounding Pharmacy
- 11.16.1 Global overview
- 11.16.2 Business Overview
- 11.16.3 Financial data
- 11.16.4 Product Landscape
- 11.16.5 SWOT analysis
- 11.17 Wedgewood Pharmacy
- 11.17.1 Global overview
- 11.17.2 Business Overview
- 11.17.3 Financial data
- 11.17.4 Product Landscape
- 11.17.5 Strategic outlook
- 11.17.6 SWOT analysis
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