The global veterinary drugs compounding market is estimated to be valued at US$1,179.7 million in 2023 and is
projected to reach a value of US$1,810.2 million by 2028, growing at a CAGR of 5.5% over the forecast period.
The rising trend of pet adoption and increasing pet healthcare expenditure are
major factors contributing to the market growth.
Market Overview:
The veterinary drugs compounding market offers customized medications that are
tailored to individual animal needs. These compounded drugs provide several
advantages, such as precise dosage, improved palatability, and reduced risk of
adverse reactions. They are especially beneficial for pets with unique
medication requirements, including those with allergies, multiple conditions,
or difficulty swallowing pills. The need for such products is driven by the
growing demand for personalized treatments for pets, leading to the expansion
of the veterinary drugs compounding market.
Market Key Trends:
Increasing demand for flavored medications is a key trend observed in the
veterinary drugs compounding market. Pets, particularly cats and dogs, can be
fussy when it comes to taking medication. Flavored compounding allows for the
addition of palatable flavors to medications, making them more appealing to
animals. This improves medication compliance and ensures proper dosing.
Flavored medications also help in reducing the stress associated with
medication administration, particularly for pet owners. This trend is expected
to drive the growth of the veterinary drugs compounding market in the coming
years.
Porter’s Analysis
Threat of New Entrants: The Veterinary
Drugs Compounding Market Size poses a moderate threat of new entrants.
While the market is relatively niche and requires specialized knowledge and
resources, the low regulatory barriers make it easier for new entrants to
establish themselves. Moreover, the increasing demand for personalized
medications for pets is attracting new players to enter the market.
Bargaining Power of Buyers: The bargaining power of buyers in the veterinary
drugs compounding market is relatively low. Pet owners rely on veterinarians to
prescribe and administer medications, limiting their ability to negotiate
prices directly with compounding pharmacies. However, with increasing
competition and awareness, buyers may gain some leverage in negotiating lower
prices.
Bargaining Power of Suppliers: The bargaining power of suppliers in the
veterinary drugs compounding market is moderate. Suppliers of active
pharmaceutical ingredients (APIs) and other raw materials have some power to
negotiate prices and terms due to the specialized nature of the industry.
However, compounding pharmacies can mitigate this power by diversifying their
supplier base and maintaining strong relationships with reliable suppliers.
Threat of New Substitutes: The threat of new substitutes in the veterinary
drugs compounding market is low. While there may be alternative treatment
options available, compounding pharmacies offer personalized medications
tailored to the specific needs of individual animals. This customization aspect
provides a unique value proposition that is difficult for substitutes to
replicate.
Competitive Rivalry: The competitive rivalry in the veterinary drugs
compounding market is high. There are numerous compounding pharmacies operating
in the market, both large and small. Additionally, the market is witnessing
increased consolidation, with larger players acquiring smaller ones to expand
their customer base and geographic reach. This competition drives innovation,
quality improvement, and competitive pricing.
Key Takeaways
The global veterinary drugs compounding market is expected to witness high
growth, exhibiting a CAGR of 5.5% over
the forecast period of 2023-2028. This growth can be attributed to increasing
pet ownership and the growing demand for personalized medications for pets. Pet
owners are increasingly seeking customized solutions that address their pets'
specific health conditions, driving the demand for compounded drugs.
In terms of regional analysis, North America is expected to be the fastest-growing
and dominating region in the veterinary drugs compounding market. This can be
attributed to factors such as the rise in pet ownership, increased expenditure
on pet healthcare, and a growing awareness of personalized pet medications. The
presence of key players and advanced veterinary healthcare infrastructure
further contribute to the market's growth in this region.
The key players operating in the veterinary drugs compounding market include
Wedgewood Pharmacy, Pace Pharmacy, Tache Pharmacy, The Pet Apothecary, Pet
Script, Golden Gate Veterinary Compounding Pharmacy, CareFirst Specialty
Pharmacy, Triangle Compounding Pharmacy, Miller’s Pharmacy, and Davis Islands
Pharmacy. These players dominate the market due to their extensive product offerings,
strong distribution networks, and strategic partnerships with veterinarians and
pet healthcare providers.
In conclusion, the veterinary drugs compounding market is poised for
significant growth due to the increasing demand for personalized medications
for pets. Market players need to focus on innovation, product quality, and
customer satisfaction to stay competitive in this dynamic market.