Compounding factors: Drug shortages and an aging population will combine to benefit the industry

Despite some negative media attention over the past five years due to cases of contaminated prescriptions, the Compounding Pharmacies industry has grown because it is indispensable in the broader healthcare sector. Drug shortages at pharmaceutical manufacturers have been a driver of growth over the period by boosting the need for custom-made drugs. Demographic changes, particularly the aging of the population, have also boosted industry revenue by increasing overall demand for pharmaceuticals. Growth is expected to continue over the next five years as visits to physicians increase, though growth will ultimately depend on the extent of demand for customized medications that address variations in patient allergies, dosage requirements and preferences...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 12-17
2.9%
Forecast Growth 17-22
Profit
Employment
22,234
Businesses
1,379
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Doctors and patients will increasingly turn to the industry for alternate doses and strengths
  • The burgeoning elderly population has provided a boon for the industry
  • Consumers’ per capita disposable income is linked to industry demand
  • Industry Report - Industry Key Buyers Chapter

    The Compounding Pharmacies industry exhibits a low market share concentration, with no company accounting for 5.0% of total revenue in 2017. Unlike pharmaceutical companies that mass produce medications, compounding pharmacists individually tailor prescriptions to meet specific patient needs, which limits the industry's ability to benefit from cost synergies from economies of scale.In addition, the Food and Drug Administration (FDA) will bring suit against any operator it expects is mass producing pharmaceuticals rather than altering them for specific customers. In fact, the FDA has claimed that large compounding pharmacies, such as Wedgewood Pharmacy, are skirting its regulations on mass-produced pharmaceuticals. Whi...purchase to read more.

    Additional Insights for the Compounding Pharmacies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Compounding Pharmacies Industry are

  • Experienced work force
  • Proximity to key markets
  • Ability to attract local physician recommendations
  • IBISWorld analysts also discuss how external factors such as Number of adults aged 65 and older and Number of physician visits in the Compounding Pharmacies industry impact industry performance..

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    What is the Compounding Pharmacies Industry?

    This industry includes stores that make and sell compounded medications that are not commercially available. Compounded medications are those that are prescribed and written by physicians and prepared by pharmacists for individual patients. This industry does not include pharmacies that outsource compounding services to third parties.

    Industry Products
  • Drugs compounded to specific patients
  • Drugs compounded for hospitals
  • Industry Activities
  • Preparing alternate dosage forms of medication
  • Preparing alternate strengths of medication
  • Preparing flavored medication
  • Preparing medication for patients with allergies or other sensitivities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of adults aged 65 and older
  • Number of physician visits
  • Regulation
  • Per capita disposable income
  • Number of pets (cats and dogs)

  • Current Performance
  • Pharmaceutical awareness
  • Booming opportunity
  • Enterprises and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising disposable income drives growth
  • Regulation
  • Industry structure
  • Table: Compounding Pharmacies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Compounding Pharmacies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Primary Care Doctors
  • Specialist Doctors
  • Emergency & Other Outpatient Care Centers
  • Hospitals
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Inorganic Chemical Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Vitamin & Supplement Manufacturing

  • Products & Services
  • Drugs compounded to specific patients
  • Drugs compounded for hospitals
  • Chart: Compounding Pharmacies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 55 and older
  • Consumers aged 19 to 44
  • Consumers aged 45 to 54
  • Consumers aged 18 and younger
  • Chart: Major Market Segmentation for the Compounding Pharmacies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Compounding Pharmacies

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Compounding Pharmacies Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Compounding Pharmacies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Compounding Pharmacies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of adults aged 65 and older (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Food And Drug Administration (Fda)
  • An agency of the US Department of Health and Human Services that is responsible for the regulation and supervision of prescription and over-the-counter pharmaceutical drugs.
  • Mortar And Pestle
  • Tool used to crush, grind and mix solid substances.
  • Pharmaceutical Compounding
  • The creation of a specific pharmaceutical product to fit the unique needs of a patient.
  • Transdermal
  • A method of pharmaceutical application in which medications are absorbed through the skin as an alternative to other forms of ingestion.
  • Why buy this report?

    IBISWorld’s Compounding Pharmacies Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Compounding Pharmacies industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Compounding Pharmacies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Compounding Pharmacies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Compounding Pharmacies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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