Veterinary drugs compounding market is estimated to witness high growth, owing to increasing veterinary healthcare spending and rise in pet ownership
Veterinary drugs compounding market is estimated to be valued at USD 2.1 Bn in 2024, exhibiting a CAGR of 8.9% over the forecast period 2024-2031. Increasing adoption of companion animals across the globe and rising disposable income of pet owners boosts veterinary healthcare spending. Furthermore, growing demand for medications tailored to individual animal needs rather than commercially available off-the-shelf drugs can drive the market growth.
Market Dynamics:
Global veterinary drugs compounding market growth is driven by factors such as increasing veterinary healthcare spending and rise in pet ownership. Growing companion animal population and increasing per capita animal healthcare expenditure are expected to drive the market growth during the forecast period. According to the APPA National Pet Owners Survey conducted in 2021, 68% of U.S. households own a pet, with dogs and cats being the most common. This growing pet population has boosted demand for veterinary services and specialized medications. Custom-formulated medications cater to the specific needs of animals, especially those with pre-existing medical conditions. This drives pet owners to seek compounded drugs produced by a veterinary pharmacist.
Increasing Pet Ownership
One of the major drivers for veterinary drugs compounding market is rising pet ownership across the globe. According to recent studies, over 65% of households in North America and Western Europe own a pet. As people are keeping pets not just as companions but as members of the family, these are willing to spend more on pet healthcare and medicines. This has significantly increased demand for customized veterinary drugs tailored for specific pets. Compounded medicines allow veterinarians to formulate drugs suitable for pets with allergies, sensitivities or unique medical conditions. The growing humanization of pets can drive the veterinary drugs compounding market growth.
Shortage of Veterinary Drugs is Promoting Off-Label Use of Compounded Medicines
The shortage of certain veterinary drugs approved by regulatory authorities can drive the veterinary drugs compounding market growth. Due to lack of commercially available drugs for some diseases, veterinarians are compelled to prescribe compounded formulations as alternatives. As compounding pharmacies are able to create tailor-made drugs based on individual pet needs and conditions, and these help address drugs shortages. This off-label or extra-label use of compounded drugs increases as pet owners seek effective treatment options for their animals. The irregular supply of approved veterinary medications is can drive the market growth.
Stringent Regulations on Compounded Drugs
One of the key challenges faced by veterinary drugs compounding market players is intricate regulations imposed on production, sale and labeling of compounded drugs. Regulatory standards governing compounding pharmacies are quite strict, especially in developed markets, to ensure the quality, safety and efficacy of customized formulations. Non-compliance with evolving rules can attract huge penalties and even business closure. This regulatory complexity and compliance burden have negatively impacted the profit margins and growth pace of compounding pharmacies over the years. Implementing new regulations like the Veterinary Feed Directive also adds to their operational costs.
Lack of Stability and Bioavailability Data
Lack of long-term stability and bioavailability data for compounded drugs can also hamper the market growth. As these drugs are not subjected to the same rigorous testing as approved medicines due to customized nature, their stability under different storage conditions and bioavailability inside the body remains largely unknown. This knowledge gap raises doubts about the effectiveness, safety profile and shelf life of compounded formulations. It discourages veterinarians from frequently prescribing such drugs despite its potential benefits. The market for compounded drugs also loses credibility and trust without robust data on stability and bioavailability of products, which act as a significant market barrier.
Rising Focus on Specialized Therapies
Growing focus on specialized therapies in veterinary healthcare can offer market growth opportunities. Tailored medicines can be particularly beneficial for pets undergoing cancer treatment, hormone replacement therapy, pain management and other niche conditions. This growing need for customized drugs to support novel therapies can boost demand for compounding pharmacies. Their abilities to create low-dose medicines, alter formulations like liquids or gels, and alter flavors makes them ideal for specialized veterinary applications. Compounding can help overcome limited availability of drugs supporting the rising therapies. This widening array of specialized therapies thus offers multi-fold opportunities for veterinary drugs compounding industry.
Increasing Demand for Flavored Medicines
One of the major opportunities for growth of veterinary drugs compounding market is rising demand for flavored formulations from pet owners. Pets may refuse to consume bitter-tasting standard drugs, resulting in non-compliance issues during treatment. Compounded medicines allow creation of palatable flavors like chicken, cheese, peanut butter that increases pets' willingness to take tablets or liquids containing medicines. This enhances treatment effectiveness. With greater humanization of pets, owners want products ensuring stress-free medication experience for animals. The ability of compounding pharmacies to incorporate flavors can offer new market growth opportunity.
Link: https://www.coherentmarketinsights.com/market-insight/veterinary-drugs-compounding-market-4796
Key Development
- In August 2022, Vimian Group, a leading provider of digital solutions, enhanced its services for veterinary clinics in Germany by acquiring Heiland GmbH, a prominent online ordering platform. This acquisition marks a pivotal moment in Vimian Group's efforts to digitize its wide-ranging service offerings for veterinary hospitals.
- In April 2022, The U.S. FDA's Center for Veterinary Medicine released Final Guidance for Industry No. 256 on compounding animal drugs from bulk substances. It outlines when enforcement actions will not be taken, such as for specific prescriptions for non-food-producing animals or sedatives for free-ranging wildlife. The U.S. FDA encourages reporting adverse events and emphasizes compliance with state regulations.
Key Players: 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.
