The Compounding Chemotherapy Market is estimated to be valued at US$ 10.20 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Compounding is a process in which chemotherapy medications are customized to meet patient-specific needs. The compounded chemotherapy medications are customized based on patient’s age, weight and organ dysfunction to arrive at the optimal dosage. This improves drug efficacy and safety. Such customized dosage offers advantages over commercially available fixed dosage chemotherapy drugs.
Market key trends:
The global compounding chemotherapy market is driven by increased demand from oncology specialty clinics. As per statistics, over 18 million new cancer cases were reported globally in 2018. To meet the rising demand for chemotherapy from growing cancer patients, oncology clinics prefer compounded drugs which can be customized as per individual patient need. This has driven higher adoption of compounding chemotherapy. Another key trend is the entry of major pharmacy chains in compounding chemotherapy drugs. To tap into this lucrative segment, pharmacy chains such as AmerisourceBergen Corporation and McKesson Corporation have acquired compounding pharmacy businesses. Their extensive network and capabilities in large scale production and distribution have enabled addressing demand from large hospitals as well.
Threat of new entrants: Low barrier to entry, as compounding facilities require little capital. However, established players have strong brand reputation and distribution networks.
Bargaining power of buyers: Buyers have moderate bargaining power due to high competition among existing players and availability of substitute therapies. However, complex production process increases switching costs.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitutes and lack of differentiation. Suppliers are also dependent on existing players for stable demand.
Threat of new substitutes: Threat of new substitutes is moderate as alternative drug delivery methods and therapies constantly emerge. However, compounding offers customized solutions not available from alternate treatment options.
Competitive rivalry: Intense competition due to many regional and global players operating in the market. Players compete based on product portfolio, reliability, and pricing.
Strengths: Ability to create customized medications as per specific patient needs. Increased healthcare expenditures and demand for personalized therapies.
Weaknesses: Regulatory challenges due to complex production process. Risk of contamination during compounding.
Opportunities: Growing geriatric population prone to chronic illnesses. Emerging economies with increasing healthcare investments.
Threats: Stringent regulatory approvals and quality standards. Supply chain disruptions and raw material shortages.
The Global Compounding Chemotherapy Market Size is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing prevalence of cancer globally. North America dominates the market currently due to high awareness, healthcare expenditures and concentration of major players in the region.
Regional analysis: Asia Pacific is expected to witness fastest growth during the forecast period owing to rising healthcare investments, large patient pool and growing medical tourism in the region. Countries like China and India offer huge opportunities for players due to expanding healthcare infrastructure and rising disposable incomes.
Key players analysis: Key players operating in the compounding chemotherapy market are B. Braun Melsungen AG, Fagron NV, PharMEDium Services, LLC (AmerisourceBergen Corporation), Baxter International Inc., Fresenius Kabi AG, Advanced Pharma, Inc., McGuff Compounding Pharmacy Services, Inc., Central Admixture Pharmacy Services, Inc. (CAPS), Institutional Pharmacy Solutions, LLC, Wedgewood Pharmacy, Medisca Inc., Dougherty’s Holdings, Inc., PharMEDium Services, LLC (AmerisourceBergen Corporation), PharMEDium Services, LLC, (AmerisourceBergen Corporation), BioScrip, Inc.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it