The Veterinary Drugs Compounding Market comprises of medicines that are individually tailored or customized for individual animals as prescribed by a veterinarian. The drugs are designed and developed as per the unique medical requirements of animals. Compounded drugs often contain alternative ingredients, strengths or dosage forms than commercial products and have shown to achieve better drug therapy outcomes when commercial drugs aren't available or effective. The global veterinary drugs compounding market is driven by increased spending on veterinary healthcare, rising ownership of companion animals worldwide and growing government support for veterinary initiatives.
The Global Veterinary Drugs Compounding Market Size is estimated to be valued at US$ 1512.63 Mn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Veterinary Drugs Compounding market are BASF SE, Huntsman Corporation, The Dow Chemical Company, 3M Company, DuPont, Aditya Birla Chemicals Ltd (Thailand), Momentive Specialty Chemicals Inc, Nan Ya Plastics Corporation, Kukdo Chemical Ltd., and NAMA Chemicals. The companies are investing in expanding their production capacities and product portfolios to cater to the growing demand for compounded veterinary drugs.
The rising pet ownership, increased spending on animal health and government initiatives to promote animal welfare are driving the demand for veterinary healthcare including compounded drugs. As per statistics, the US has around 70 million dogs and 74 million cats as companion animals. Also, pet insurance penetration is rising globally.
Technological advancements in drug compounding techniques allow developing personalized dosage forms, flavors and sizes as per animal's medical needs. 3D printing, computer-aided design and specialized equipment are enabling precision compounding. Novel compounding techniques ensure sterility, stability and bioavailability of compounded formulations.
Market Trends
Growing preference for natural and herbal ingredients - Veterinarians and pet owners are increasingly preferring compounded drugs containing natural extracts, herbs and dietary supplements over regular chemical-based medications due to lesser side-effects.
Rising one health approach - With increasing zoonotic diseases, the veterinary drugs market is aligning with the one health concept to develop broad-spectrum drugs that can benefit both animals and humans. Compounded drugs extend this scope for innovating multi-purpose medications.
Market Opportunities
Multispecies formulations - Developing compounded drugs that are effective across multiple animal species rather than single would help address the healthcare needs of zoo and exotic pet animals.
Emerging economies in Asia and Latin America - With growing pet ownership and increasing spending power, developing nations present lucrative opportunities for local and global veterinary drugs compounders to expand their business.
Impact of COVID-19 on Veterinary Drugs Compounding Market
The COVID-19 pandemic has significantly affected the growth of the veterinary drugs compounding market. During the initial phases of the pandemic, veterinary clinics reported a decline in routine appointments and preventive care visits due to lockdowns and mobility restrictions imposed across various countries to contain the spread of the virus. This impacted the sales of compounded medications as many veterinarians restricted in-clinic visits. Moreover, supply chain disruptions and shutdowns of manufacturing facilities in the initial months of 2020 led to delays and shortages in the availability of active pharmaceutical ingredients required for compounding. However, as restrictions eased in 2021, visits to veterinarians and sales of compounded medicines started improving gradually. Demand for certain compounded drugs also increased owing to supply issues with commercial products. Going forward, strategies like telehealth and curbside services may help veterinarians to serve more clients and drive growth in the post-COVID scenario. Ensuring continuous supply of raw materials through diversified sourcing and improved inventory management would help compounding pharmacies to deal with future disruptions.
North America accounts for the largest share in the veterinary drugs compounding market in terms of value. This is attributed to factors such as higher pet care expenditure, rising pet ownership rates as well as strong presence of key compounding pharmacies in the region. Within North America, the United States holds the major share where compounding pharmacies are compelled to register or get licensed according to the Pharmacy Compounding Accreditation Board (PCAB). Europe stands as the second largest geographic market for compounded drugs owing to increasing focus on animal health and pet care in countries like the UK, Germany, France and Italy.
The Asia Pacific region is anticipated to exhibit fastest growth in the veterinary drugs compounding market during the forecast period. Burgeoning pet humanization trend along with rising disposable incomes is fueling pet healthcare spending in emerging APAC nations. Growth instincts are high in China, India and Southeast Asia where compounding practices are currently at a nascent stage. Some of the common compounded medications demanded in the region include anti-parasitic formulations, nutritional supplements and dermatology products. Entry of international players and capacity expansion of local compounders are likely to boost the APAC compounding market landscape in the coming years.
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