The global compounding pharmacy market size is expected to be worth nearly USD 31.77 billion by 2034, increasing from USD 18.02 billion in 2025 and it is growing at a compound annual growth rate (CAGR) of 6.50% from 2025 to 2034. Growing due to rising demand for personalized medicine and customized dosages.

Compounding Pharmacy Market Highlights:
🔹 North America strengthens its leadership, capturing 44.13% of the global revenue—driven by advanced healthcare infrastructure and strong adoption of personalized therapies.
🔹 Pharmaceutical Ingredient Alteration (PIA) remains the top compounding type, accounting for a commanding 38% share, reflecting rising demand for dosage customization and allergen-free formulations.
🔹 Sterile compounded preparations lead the market with a robust 58.8% share, supported by growing use in hospitals, injectables, ophthalmics, and high-precision clinical applications.
🔹 Adults represent the largest consumer base, generating 44.5% of total demand, as chronic diseases and personalized treatment needs continue to rise.
🔹 Pain management emerges as the most dominant therapeutic segment, capturing 33.6% share, fueled by the shift toward customized, safer alternatives to conventional pain medications.
🔹 PIA once again reinforces its dominance, holding the highest market share (38%), driven by increasing physician preference for tailored ingredient combinations.
What is Compounding Pharmacy?
The compounding pharmacy market in 2025 is expanding steadily as demand for personalized medications, customized dosages, and alternative formulations rises across hormone therapy, pain management, dermatology, and pediatric care. Key drivers include drug shortages, supply chain challenges, and the need for patient-specific treatments not available in mass-produced pharmaceuticals.
Advances in automated compounding systems, digital prescribing platforms, and sterile/non-sterile preparation techniques are improving efficiency, safety, and scalability. Supportive government policies, increased healthcare spending, and telehealth integration further strengthen the market, positioning compounding pharmacies as a critical component of modern, patient-centered healthcare.
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Private Industry Investments in Compounding Pharmacy
🔹Walgreens Boots Alliance (acquired by Sycamore Partners), the major retail pharmacy chain was acquired by private equity firm Sycamore Partners in August 2025, a move that could accelerate investment in differentiated services like compounding, free from public market pressures.
🔹Fagron, this public company, which operates globally in the compounding sector, is making a $29 million one-off investment to expand Anazao's 503B compounding facility in Las Vegas, highlighting a significant investment in specialized, high-volume sterile preparation capacity.
🔹Revelation Pharma Network, backed by private equity firm Osceola Capital Management, Revelation Pharma has been consolidating the market by acquiring and expanding its national network of compounding pharmacies to provide broader wholesale services to healthcare providers.
🔹Wedgewood Pharmacy A leading provider in both veterinary and human compounded medications, Wedgewood Pharmacy is a significant player whose operations demonstrate ongoing private investment in specialized compounding services, particularly in the animal health sector.
🔹Empower Pharmacy recognized as one of the leading players in the compounding pharmacy market. Empower Pharmacy represents a major investment in the industry, focusing on providing a wide range of compounded medications.
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Key Trends of the Compounding Pharmacy Market
🔹Rising Demand for Personalized Medicine: Patients increasingly require medications tailored to their unique needs, such as specific dosages, allergen-free formulations, or alternative delivery forms (e.g., liquids, topical creams) not available commercially. This focus on patient-centric care is particularly significant for specialized treatments like hormone replacement therapy and pain management, improving patient adherence and treatment outcomes.
🔹Mitigating Persistent Drug Shortages: Compounding pharmacies play a vital role when commercial manufacturers struggle to meet demand or discontinue certain drugs, ensuring patients have continued access to essential treatments. This ability to quickly produce needed medications in smaller batches provides supply chain resilience and helps healthcare providers avoid treatment delays during crises.
🔹Integration of Technology and Automation: The adoption of advanced technology, such as automated compounding systems, robotic dispensing, and specialized software, is streamlining pharmacy operations. These technologies enhance the precision, efficiency, and safety of compounded medications while helping pharmacies meet stringent regulatory and quality control standards.
Compounding Pharmacy Market Opportunity
Personalized Medicine: The Next Frontier Driver in Compounding Pharmacy
The rise of personalized medicine represents the most significant opportunity in the compounding pharmacy market, as patients increasingly demand treatments tailored to their unique health needs, age, and physiology.
Compounded medications allow for customized dosages, alternative formulations, and specific delivery methods, such as creams, gels, transdermal patches, or liquid suspensions, that are not available in standard mass-produced pharmaceuticals. Hormone replacement therapy, pediatric and geriatric care, dermatology treatments, and pain management are key therapeutic areas where personalization is particularly critical.
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Compounding Pharmacy Market Report Coverage
|
Report Attributes |
Key Statistics |
|
Market Size (2025) |
USD 18.02 Billion |
|
Market Size (2026) |
USD 19.19 Billion |
|
Forecast Market Size (2034) |
USD 31.77 Billion |
|
Growth Rate (2025–2034) |
CAGR of 6.50% |
|
Base Year |
2025 |
|
Forecast Period |
2025 to 2034 |
|
Largest Market |
North America |
|
Fastest Growing Region |
Asia-Pacific |
|
Regions Covered |
North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
|
Segments Covered |
Therapeutic Area, Route of Administration, Age Group, Compounding Type, Sterility, Distribution Channel, Region |
|
Therapeutic Areas |
Pain Management, Hormone Replacement, Dermatology, Nutritional Supplements, Others |
|
Route of Administration |
Oral, Topical, Parenteral, Others |
|
Age Groups |
Pediatric, Adult, Geriatric, Veterinary |
|
Compounding Types |
Pharmaceutical Ingredient Alteration (PIA), Pharmaceutical Dosage Alteration (PDA), Currently Unavailable Pharmaceutical Manufacturing (CUPM), Others |
|
Sterility Type |
Sterile, Non-Sterile |
|
Distribution Channels |
Compounding Pharmacies, Hospital Pharmacies, Specialty Clinics, Others |
|
Key Market Drivers |
Increased demand for personalized therapies, surge in drug shortages, rising need for allergen-free and dose-adjusted medications |
|
Market Opportunities |
Growth in sterile injectable compounding, pediatric-specific formulations, hormone therapy, and personalized nutritional supplements |
|
Technology Trends |
Adoption of automated compounding systems, advanced cleanroom technologies, digital prescribing platforms |
|
Demographic Insights |
Adults dominate demand; pediatric and veterinary segments showing rapid growth |
|
Market Characteristics |
Highly fragmented, increasing private investments, growing regulatory focus, accelerated adoption of custom formulations |
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Study: How Compounding Pharmacy Transformed Treatment Outcomes for a Chronic
Pain Patient Background Chronic
pain affects millions of adults globally, and many struggle with standard, mass-produced
medications due to: 🔹intolerance to certain ingredients 🔹inadequate dose strengths 🔹side effects (e.g., drowsiness,
gastrointestinal issues) 🔹lack of alternative delivery options A
52-year-old patient suffering from chronic neuropathic pain had been on
multiple commercially available oral medications but faced severe side
effects, preventing long-term adherence. Physicians sought a personalized
approach to balance efficacy and tolerability. Case Details 👩⚕️ The Challenge The
patient reported: 🔹Burning and tingling neuropathic pain 🔹Intolerance to oral medications due
to nausea and dizziness 🔹Allergy to certain inactive
ingredients in standard drugs 🔹Limited response to existing
therapies The
clinician required a customized treatment that ensured: 🔹controlled local delivery 🔹reduced systemic side effects 🔹absence of allergenic components 🔹improved patient adherence Compounded Solution Customized Topical Cream Formulation A
compounding pharmacy prepared a multi-ingredient topical analgesic using
Pharmaceutical Ingredient Alteration (PIA), combining: 🔹Ketamine 🔹Gabapentin 🔹Baclofen 🔹Lidocaine 🔹Amitriptyline The
formulation was: 🔹Topical (to bypass GI side
effects) 🔹Allergen-free (removing intolerant
excipients) 🔹Customized dose strength tailored to the patient 🔹pH-balanced to avoid skin irritation The
pharmacy also adjusted concentration and absorption enhancers to build a personalized
pain-relief profile. Outcome & Impact 1. 60% Reduction in Pain Scores in the First 4 Weeks The
customized topical cream allowed localized relief with minimal systemic
absorption. 2. Zero GI Side Effects Compared to Oral Therapy The
topical route eliminated nausea, dizziness, and fatigue. 3. Improved Medication Adherence Once-daily
application increased consistency and overall treatment compliance. 4. Iterative Dose Optimization Over
two months, the compounding pharmacy fine-tuned ingredient ratios based on
patient feedback—something impossible with commercially available drugs. 5. Better Quality of Life The
patient reported the ability to resume daily activities, reduced dependence on
opioid therapy, and sustained functional improvement. For
inquiries regarding discounts, bulk purchases, or customization requests,
please contact us at sales@precedenceresearch.com Compounding Pharmacy Market Regional Outlook U.S. Compounding Pharmacy Market Size? According to
Precedence Research, the U.S. compounding pharmacy market size is valued at USD 6.45 billion in
2025 and is expected to cross USD 10.93 billion by 2034, with a CAGR of 6.04%
from 2025 to 2034.
U.S. Compounding Pharmacies Market Key
Takeaways
🔹 By Product, the oral medications
segment dominated the market with the largest market share of 36.21% in 2024. 🔹 By Pharmacy Type, 503A segment accounted
for more than 72.99% of revenue share in 2024. 🔹 By Sterility, the non-sterile
segment dominated the market with the highest revenue of 71.97% in 2024. 🔹 By Application, the adult segment is
expected to significantly boost during the anticipated timeframe. U.S. Compounding Pharmacies Market Size, By Pharmacy
Type, 2022 to 2024 (USD Billion)
By Pharmacy Type 2022 2023 2024 503A 3.99 4.21 4.45 503B 1.49 1.57 1.65
U.S. Compounding Pharmacies Market Size, By Sterility,
2022 to 2024 (USD Billion) By Sterility 2022 2023 2024 Sterile 1.53 1.62 1.71 Non-Sterile 3.95 4.16 4.39 By Therapeutic Area 2022 2023 2024 Hormone Replacement 1.05 1.17 1.17 Pain Management 0.48 0.51 0.54 Dermatology 0.25 0.26 0.28 Pediatrics 0.19 0.20 0.21 Urology 0.15 0.16 0.17 Others 0.54 0.56 0.58
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Compounding Pharmacies Market & Their Offerings Company Headquarters Key Strengths Latest Info (2025) Triangle compounding pharmacy North Carolina High-quality medication Triangle Compounding Pharmacy creates personalised
compounded medications to meet medical needs. Fagron Belgium Strong brand reputation and expertise In November 2025, Fagron, the global leader in
pharmaceutical compounding, reinforced its EMEA position with the
acquisitions of a book of business from Amara (Poland) and Magilab (Hungary). B. Braun melsungen ag Germany Innovation and R&D spending In 2025, B. Braun Melsungen AG continues its focus
on providing products and solutions that support safe and efficient pharmacy
operations, including automated compounding systems and related supplies. Fresenius Kabi AG Germany Specialized Product Portfolio Fresenius Kabi AG is a significant provider of
sterile compounded medications and related services. Pencol Compounding Pharmacy Denver, Colorado Technology and innovation Pencol Compounding Pharmacy significantly provides
customized, patient-specific compounded medications across various
specialties.
Other Key Players ➢ Triangle compounding
pharmacy ➢ Fagron ➢ B.
Braun melsungen ag ➢ Fresenius
kabi ag ➢ Pencol
Compounding Pharmacy ➢ US
Compounding Inc. ➢ Avella
specialty pharmacy ➢ Institutional
pharmacy solutions, llc ➢ Pharmedium
services llc ➢Vertisis custom pharmacy
Note: This report is readily available for immediate delivery. We can
review it with you in a meeting to ensure data
reliability and quality for decision-making. North America Dominates: The Powerhouse of the
Compounding Pharmacy Market North America dominated the market in 2025 due to a
combination of high healthcare spending, advanced medical infrastructure, and
widespread adoption of personalized medicine. The region has a strong presence
of leading compounding pharmacies and technology providers offering automated
systems, sterile and non-sterile formulations, and digital prescribing
platforms. Rising demand for hormone replacement therapy, pain management, dermatology, and pediatric
medications has further fueled growth, supported by patient awareness and
physician preference for customized treatments. Canada Compounding Pharmacy Market
Trends In 2025, Canada's market experienced
steady growth driven by increasing demand for personalized medications across
hormone therapy, pain management, dermatology, and pediatric care. The market
benefited from advanced compounding practices, including sterile and
non-sterile formulations, and the adoption of automated systems and digital
prescribing platforms that improve accuracy and efficiency. Asia Pacific Emerges as the Fastest
Region in the Compounding
Pharmacy Market Asia Pacific emerged as the
fastest-growing region in the market in 2025, driven by increasing healthcare
access, rising awareness of personalized medicine, and rapid expansion of
pharmaceutical infrastructure across countries like China, India, Japan, and
South Korea. Growing demand for customized medications in hormone therapy, pain
management, dermatology, and pediatric care is fueling the adoption of
compounded drugs. The region benefits from a rising number
of local compounding pharmacies, strategic partnerships with global players,
and investments in automated compounding systems and digital prescribing
platforms, improving efficiency, safety, and scalability. India Compounding Pharmacy Market Trends In 2025, India's market showed rapid
growth due to rising demand for personalized medications in hormone therapy,
pain management, dermatology, and pediatric care. Increased awareness of
patient-specific treatments, combined with expanding healthcare infrastructure
and telehealth services, boosted the adoption of compounded drugs. Local compounding pharmacies and
partnerships with global suppliers improved access to high-quality
formulations, including sterile and non-sterile medications. Technological
advancements, such as automated compounding systems and digital prescribing
platforms, have enhanced efficiency, safety, and scalability. Compounding Pharmacy Market Segment
Insights Therapeutic Area Insights The pain management segment led the
market in 2024 due to rising demand for personalized treatments that address
chronic pain, post-surgical recovery, and patient-specific conditions not
adequately managed by standard medications. Compounded formulations, including
topical creams, gels, transdermal patches, and customized oral dosages, allowed
healthcare providers to tailor therapies to individual patient needs, improving
efficacy and minimizing side effects. The nutritional supplements segment is projected to experience the
fastest growth over the forecast period due to rising consumer demand for
personalized vitamins, minerals, and specialty nutrients tailored to individual
health needs. Patients increasingly sought customized formulations to address
deficiencies, improve immunity, support aging, or manage chronic conditions,
which standard over-the-counter supplements could not provide. Growing health
awareness, preventive care trends, and physician recommendations for
patient-specific regimens further boosted adoption. Route of Administration Insights The oral segment dominated the market in
2024 due to its versatility, ease of administration, and high patient
compliance, making it ideal for customized medications such as capsules,
tablets, liquids, and suspensions. Healthcare providers increasingly rely on
oral formulations to deliver patient-specific dosages for hormone therapy,
pediatric care, chronic conditions, and pain management. Rising demand for
personalized treatments that are not available in standard commercial products,
combined with advancements in compounding technologies and automated systems,
enabled pharmacies to efficiently produce safe and accurate oral medications. The parenteral segment is the
second-largest segment, leading the market due to growing demand for sterile,
injectable medications that require precise, patient-specific dosages,
particularly for oncology, intravenous therapies, pain management, and critical
care. Hospitals, clinics, and specialized healthcare providers increasingly
rely on compounded parenteral formulations to address shortages of commercially
available injectables and to provide customized treatments for patients with
unique medical needs. Age Insights In 2024, the adult segment led the
market due to the rising prevalence of chronic diseases, hormone imbalances,
and age-related health conditions that required personalized treatment
solutions. Adults often need customized dosages, alternative formulations, or
specific delivery methods, such as capsules, liquids, or topical applications,
that are not available in mass-produced medications. Growing awareness among healthcare
providers and patients about the benefits of tailored therapies, including
improved efficacy and reduced side effects, further boosted adoption. The pediatric segment is growing fastest
in the market due to the need for customized medications that are safe,
accurately dosed, and age-appropriate for children. Standard commercial drugs
often lack suitable formulations or dosages for pediatric patients, creating a
strong demand for compounded liquids, suspensions, flavored medications, and
chewable forms. Healthcare providers increasingly rely on compounding
pharmacies to address specific pediatric needs, including chronic conditions,
rare diseases, and post-surgical care. Compounding Type Insights The pharmaceutical ingredient alteration (PIA) segment led the market in
2024 segment led the compounding pharmacy market in 2024 due to growing demand
for medications tailored to individual patient needs, including dosage
adjustments, ingredient substitutions, and allergen-free formulations. Patients
with allergies, sensitivities, or unique therapeutic requirements often require
customized compounds that standard commercial drugs cannot provide. Healthcare
providers increasingly rely on PIA to optimize efficacy, reduce side effects,
and enhance patient compliance. The currently unavailable pharmaceutical
manufacturing (CUPM) segment is expected to grow fastest over the forecast
period due to growing shortages and limited availability of certain
commercially manufactured drugs. Patients and healthcare providers turned to
compounding pharmacies to access essential medications that were otherwise out
of stock, discontinued, or unavailable in specific dosages or formulations.
This segment allowed customized production of both sterile and non-sterile
medications to meet urgent therapeutic needs, ensuring continuity of care. Sterility Insights The sterile segment dominated the market
in 2024 due to rising demand for injectable and intravenous medications that
require strict sterility, precision dosing, and safety. Hospitals, clinics, and
specialty care providers increasingly relied on compounded sterile preparations
for oncology, pain management, ophthalmology, and critical care, where commercially available drugs
were insufficient or unavailable. Advances in automated sterile compounding
systems, cleanroom technologies, and stringent quality-control protocols
enhanced accuracy, safety, and regulatory compliance. The non-sterile segment is expected to
grow fastest over the forecast period due to high demand for customizable oral,
topical, and transdermal medications that do not require strict sterility but
still need precise dosing. Patients sought personalized creams, gels, liquids,
capsules, and suspensions for hormone therapy, pain management, dermatology,
and pediatric care, which standard products could not provide. Compounding
pharmacies leverage advanced formulation techniques, automated systems, and
digital prescribing platforms to ensure accuracy, safety, and efficiency in
producing non-sterile medications. Distribution Channel Insights In 2024, the compounding pharmacy
segment led the market due to increasing demand for personalized medications
tailored to individual patient needs, including customized dosages, alternative
formulations, and specific delivery methods. Patients with chronic conditions,
hormone imbalances, pediatric or geriatric requirements, and allergies
increasingly relied on compounded drugs when standard commercial medications
were insufficient. The hospital pharmacy segment is growing
fastest in the market due to high demand for customized medications required in
inpatient and critical care settings, including oncology, pain management,
intravenous therapies, and specialty treatments. Hospitals relied on
compounding pharmacies to provide patient-specific dosages, sterile preparations,
and formulations unavailable commercially, ensuring continuity of care and
improved treatment outcomes. Advances in automated compounding systems,
cleanroom facilities, and quality-control protocols enhanced precision, safety,
and efficiency in hospital pharmacy operations. ✚ Related Topics You May Find Useful: ➡️ U.S.
Pharmaceutical CDMO Market: Explore how outsourcing, biologics expansion, and
capacity upgrades are reshaping America’s drug manufacturing landscape ➡️ Active
Pharmaceutical Ingredient (API) Market: Understand how supply chain shifts
and high-potency APIs are driving next-gen pharmaceutical production ➡️ U.S.
503B Compounding Pharmacies Market: Track sterile outsourcing facility
growth amid rising hospital demand and injectable drug shortages ➡️ U.S.
503A Compounding Pharmacies Market: Discover how personalized medicine,
chronic care needs, and telehealth adoption are boosting traditional
compounding practices ➡️ Pharmacy
Automation Market: See how robotics, AI verification, and automated dispensing
systems are transforming medication safety and workflow efficiency ➡️ U.S.
Pain Management Drugs Market: Analyze evolving treatment trends as non-opioid therapies
and personalized pain solutions gain momentum ➡️ Pharmacy
Management System Market: Explore how digitalization, cloud platforms, and integrated
e-prescribing are modernizing pharmacy operations ➡️ ePharmacy Market: Gain insights into how
online prescription services, home delivery, and telehealth integration are
reshaping modern pharmacy retail Top
Companies in the Compounding Pharmacy Market & Their Offerings ➢ Fresenius
Kabi provides automated
compounding systems and ready-to-administer injectable medications to
hospitals. ➢ Fagron NV supplies APIs, excipients, and outsourced
compounding services to pharmacists for personalized medicine. ➢ B. Braun
Medical Inc. offers infusion
therapy products and automated compounding systems for hospital drug
preparation. ➢ Rx3
Compounding Pharmacy specializes
in custom sterile and non-sterile compounded medications for individuals in the
central Virginia area. ➢ Clinigen
Group PLC has exited the
compounding business to concentrate on global access to specialty licensed and
unlicensed medicines. ➢ Dougherty's
Pharmacy, Inc. is an independent
pharmacy offering sterile and non-sterile custom human and veterinary
compounding services. ➢ Lorraine's
Pharmacy prepares personalized
medications using unique ingredient combinations to meet specific patient
requirements. ➢ Wedgewood
Pharmacy is a major compounding
pharmacy that provides a wide range of customized sterile and non-sterile
medications for animal patients nationwide. ➢ Institutional
Pharmacy Solutions (IPS) provides
custom compounding and onsite pharmacy management services, primarily for
behavioral health facilities. ➢ McGuff
compounding pharmacy services (The
McGuff Companies, Inc.) offers various compounding services and raw materials
to healthcare providers and patients. Recent
Developments in the Compounding Pharmacy Industry 🔸 In November 2025, the compounding PATH for
Technicians, a compounding program designed for elevating pharmacy technicians
to nationally recognized training standards, was launched by the National
Community Pharmacists Association (NCPA), the Pharmacy Technician Certification
Board (PTCB), and PCCA. This program represents an unprecedented collaboration
in organization for helping compounding technicians best serve patients. (Source:
https://ncpa.org)
🔸In September 2024, a leader in
personalized medicine since 1999, MediVera Compounding Pharmacy got an official
license to serve in residents in 18 new state across the West, Southest,
Southeast, Midwest, and Northeast regions. The licnes allows MediVera for
filling compounding prescriptions like semaglutide and tirzepatide across these
states. (Source: https://www.accessnewswire.com) Segment
Covered in the Report By Therapeutic Area 🔹Pain Management 🔹Hormone Replacement 🔹Dermal Disorders 🔹Nutritional Supplements 🔹Others By Route of Administration 🔹Oral 🔹Topical 🔹Parenteral 🔹Others By Age 🔹Pediatric 🔹Geriatric 🔹Adult 🔹Veterinary By Compounding Type 🔹Pharmaceutical Dosage Alteration (PDA) 🔹Pharmaceutical Ingredient Alteration
(PIA) 🔹Currently Unavailable Pharmaceutical
Manufacturing (CUPM) 🔹Others By Sterility 🔹Sterile 🔹Non-sterile By Distribution Channel 🔹Compounding Pharmacy 🔹Hospital Pharmacy 🔹Others By Region 🔹 North America 🔹 Europe 🔹 Asia Pacific 🔹Latin America 🔹Middle East & Africa (MEA) Thanks for reading you can also get individual
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U.S. Compounding Pharmacies Market Size, By Therapeutic Area, 2022 to 2024 (USD
Billion)
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