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What is the size of the veterinary compounding market?
Hi there! Thanks for asking Wonder to identify the global market size for veterinary compounding. The sho version is that the global veterinary compounding market is currently valued at approximately $844.2 million USD. The industry boasts a projected CAGR of 6.3% and is expected to reach an estimated $1.37 billion USD by the close of 2024. Canada and the US dominate over two-thirds of global compounded animal drug sales, while North America expects to see a healthy 7% CAGR in revenue growth. A shortage of generic animal medications and a trend toward flavored dosages have fueled the industry. Finally, some of the key global manufacturers in animal drug compounding are Triangle Compounding Pharmacy Inc., Lorraine's Pharmacy, Medisca Inc., and Wedgewood Pharmacy.
Below you will find a brief explanation of our methodology and a deep dive of our findings.
METHODOLOGY
In response to your question, our team searched for readily available reports on the global veterinary compounding market. After scouring reputable industry publications and academic databases, we managed to locate an April 2017 report from Persistence Market Research that directly answers the request for market data. For the purpose of this study, we used the terms "animal drug compounding" and "veterinary compounding" interchangeably. Finally, we did not limit our research to any particular geographic region in order to address the full global sector.
VETERINARY COMPOUNDING OVERVIEW
To provide context for our research, we will quote the definition provided by the American Veterinary Medical Association (AVMA): "Compounding that is consistent with the FDA Extra-Label Drug Use regulations is the customized manipulation of an approved drug(s) by a veterinarian, or by a pharmacist upon the prescription of a veterinarian, to meet the needs of a particular patient". According to a Federal Trade Commission report, veterinarians and animal owners are able to meet the specific health needs of patients "requiring specialized concentrations, sizes, or flavors of medications". Common use cases for compounding include the following: mixing injectable medications tailored to a unique ailment, concocting liquid versions of a drug for animals who aren't able to swallow, creating a suspension or paste from ground tablets, and adding extra flavoring to enhance a drug's palatability. Since drug manipulation could be used to unethically circumvent veterinary drug approval, the process is tightly governed by FDA regulations and policies.
GLOBAL MARKET SIZE AND GROWTH
According to recent findings from Persistence Market Research, the 2017 global veterinary compounding market is valued at $844.2 million USD. The global industry boasts a projected CAGR of 6.3% and is expected to reach an estimated $1.37 billion by the close of 2024.
Another related report from Persistence Market Research suggests that Canada and the US will continue to dominate over two-thirds of global compounded animal drug sales. On the whole, the North American market expects to see a healthy 7% CAGR in revenue growth, while other geographic regions report insubstantial growth and CAGRs that will likely remain under 5%. As of 2016, the continent was responsible for almost 70% of global revenue share and is "poised to gain 376.6 basis points over the course of the next eight years". According to a 2016 white paper from Multidisciplinary Digital Publishing Institute (MDPI), the US Food and Drug Administration (FDA) reports that an estimated 6,350,000 compounded animal prescriptions are filled by approximately 75,000 pharmacies in the US every year. Persistence Market Research purports that this industry domination may be a direct result of "an eager adoption of pets in the region with the US having the bulk of the companion animals on the continent".
What are some of the market drivers that fuel the global veterinary compounding business? A chronic shortage of generic animal medications in "desired dosage forms for optimum efficiency" is creating a spike in the demand for manipulated drugs. According to the FDA, a few of the medications that have seen widespread shortage are Epinephrine, Perox-Aid, and Flunixine. As these drugs are active ingredients in several animal medications, veterinarians are forced to rely on compounded supplements as an alternative. Furthermore, most animal drugs are paid out-of-pocket since there is currently no available insurance reimbursement for veterinary medication. Persistence Market Research notes that animal owners can save money by using compounded animal drugs that are "easily available, cheaper than branded equivalents, and do not require multiple prescriptions".
It is also worth noting that a trend toward flavored dosages has made animal drug compounding a popular form of drug therapy. Manufacturers can alter the taste of medications "to remove the bitter taste of the medicine and make it feel non-gritty, smooth, [and] creamy, thus contributing largely towards improved patient compliance". Simply put, if it tastes good, the animal will eat it! These flavor variations expand product offerings and have the potential to translate to extra revenue generation. Research indicates that, by 2024, over 80% of the global market value of veterinary drug compounding will be comprised of orally applied drugs.
KEY MANUFACTURERS
To provide a snapshot of the industry's segmentation, a report from Market Watch presents the competitive set at the forefront of the global market. A Persistence Market Research report published a precompiled list of the most notable manufacturers in veterinary drug compounding. (Unfortunately, exact market share and revenue figures for these companies are protected by a pay wall.)
-- Triangle Compounding Pharmacy Inc.
-- Lorraine's Pharmacy
-- Medisca Inc.
-- Wedgewood Pharmacy
-- Diamondback Drugs LLC
-- Essential Pharmacy Compounding Vet
-- Slade Dispensary Services
POSSIBLE FUTURE RESEARCH
If it's of any interest, we would be happy to continue our research by exploring the following topics in greater detail.
-- According to Persistence Market Research, central nervous system (CNS) veterinary treatment claimed a 37% market share of global drug compounding in 2016. The International Journal of Pharmaceutical Compounding reports that CNS drugs made up nearly 40% of all veterinary prescriptions. The industry will be worth about $500 million USD by 2024, climbing at a CAGR of 6.4%.
-- Research also indicates that over 50% of the global market’s value will be attributed to sales of compounded medications for livestock. However, this segment is forecast to decline by the close of 2024.
CONCLUSION
To wrap it up, the global veterinary compounding market is currently valued at approximately $844.2 million USD. The industry boasts a projected CAGR of 6.3% and is expected to reach an estimated $1.37 billion USD by the close of 2024. Canada and the US dominate over two-thirds of global compounded animal drug sales, while North America expects to see a healthy 7% CAGR in revenue growth. A shortage of generic animal medications and a trend toward flavored dosages have fueled the industry. Finally, some of the key global manufacturers in animal drug compounding are Triangle Compounding Pharmacy Inc., Lorraine's Pharmacy, Medisca Inc., and Wedgewood Pharmacy.
We hope this research is useful! As always, thanks for using Wonder. Please let us know if we can help with anything else!