Animal Drug Compounding Market

Animal Drug Compounding Market Outlook (2023-2033)

Worldwide revenue from the animal drug compounding market was about US$ 1.2 Billion in 2022, with the global market estimated to surge ahead at a CAGR of 6.4% to reach a valuation of US$ 2.4 Billion by the end of 2033.

As assessed by Persistence Market Research, the oral formulation segment is expected to hold the largest market value of US$ 1.29 Billion by 2023. Overall, animal drug compounding sales account for approximately 6.4% of revenue share in the global compounding pharmacies market, which was valued at around US$ 8.1 Billion at the end of 2022.

Sales Analysis of the Global Market from 2014 to 2022 Vs Market Outlook for 2023 to 2033

The global market for endoscopes recorded a historic CAGR of 5.9% in the last 8 years from 2014 to 2022.

Veterinarians identify the high expense of branded animal medications, particularly those used to treat neoplastic and immune-mediated disorders, as one of the keys causes contributing to an increase in the prescriptions for compounded medications. Furthermore, only a small number of animal species are covered by medical insurance policies, and the overall cost of pet owners' animal medical treatment is frequently paid out of pocket.

Many veterinarians in a compounded form are therefore prescribing the licensed branded medicine. This includes medications for atopic dermatitis, fungal infection, and chlorambucil for lymphoma.

The rising incidence of zoonotic diseases as well as the occurrence of rare diseases in cattle and companion animals. A market for animal drug compounding has been established by increasing government initiatives to minimize viral disease and advancements in the biomedical sciences. A rise in the animal rate of adoption, improved animal welfare, and a decrease in the need for antibiotics are some of the factors that are expected to boost the market growth.

Although there is a wide range of therapeutic needs in the animal care sector, there are not many FDA-approved medication products that can be used to treat all animal diseases or indications.

As a result, animal medication compounding is crucial for bridging the therapeutic divide between animal species. In addition, compounded medications for animal species are thought to be significantly larger than those for branded prescription medications.

The availability of flavor-enhanced compounded medicines for cats, dogs, exotic pets, as well as some zoo animals has improved patient compliance with therapy and medication. For instance, adding a sardine or tuna-flavored suspension to metronidazole boosts its palatability, improving its flavor and compliance. While animals like birds and sugar gliders choose sweet flavors like strawberry and banana.

The global market is thus likely to show high growth over the coming years at a CAGR of 6.4% and reach a global market size of US$ 2.4 Billion by 2033.

What Factors Will Drive the Market to Grow Over the Forecast Period?

“Alternate Flavored Dosage Forms Gaining Popularity”

Veterinary medications that are sold over the counter frequently come in just one dosage or strength. Unlike branded medications, compounded animal pharmaceuticals come in a variety of dosing strengths and alternative dosage formats. These medications work by concentrating the drug in a flavoring gel that is typically applied to the animal's paw or fur and licked to deliver the medication.

By developing innovative dose forms, compounding pharmacists assist with the administration of medications to animals. The typical dosage is a treated tuna, which is especially well-known for cats.

For dogs, it comes in the form of a treat, biscuit, or food that tastes like meat. Doses for birds are made as small volumes of concentrated liquids with fruit flavors. Fish, steak, cheese, chicken, and liver flavors are frequently used in compounded medications for dogs, alfalfa, cherry, apple, carrot, and molasses for horses, and fruit flavors for birds.

Veterinary drug compounders generally strive to eliminate the bitter taste of the medication and make it seem non-gritty, smooth, and creamy in order to significantly enhance patient compliance. The potential for future revenue generation increases with a compounding pharmacist's skill in producing flavored dosages.

Is there any Impact on the Growth of the Global Market?

“Lack of Interdisciplinary Training and Resources, and Utilization of Contaminated Compounded Drugs”

The biggest obstacle limiting the adoption of the animal drug compounding technique on a worldwide scale is the lack or dearth of qualified and experienced medical practitioners in the field of animal health. Despite not having veterinary-specific expertise in pharmaceutical compounding, evidence indicates that many veterinarians offer veterinary compounding services. The health of the animals may be endangered by false medications prescribed by veterinary compounded medical specialists due to a lack of understanding.

Animal care has been affected in several ways due to the lack of a legal obligation to prove the precisely desired strength of compounded medicines as indicated on the prescription label.

For instance, antimicrobial use in animals typically results in the development of resistant microorganisms that can be passed directly from animal to human or through the food chain. Livestock breeders extensively utilize antimicrobial medication for treating animals, along with a lack of knowledge and low awareness regarding the effectiveness of compounded drugs with minimal adverse effects. These factors are capable of inhibiting the utilization of veterinary compounded drugs in the future as well

It is expected that a significant barrier to the growth of the worldwide market for animal drug compounding will be the hazard of adulterated compounded veterinary pharmaceuticals. For instance, the U.S. FDA warned vets in June 2020 that a compound combination drug including pyrimethamine and toltrazuril was contaminated, mislabeled, and had harmful effects on at least three horses. The amount of pyrimethamine in the items was between 18 and 21 times more than what was stated on the label, according to testing.

Country-wise Insights

Why is the U.S. Market Booming?

“Increasing Pet Owning Practices”

The U.S. is expected to hold around 76.0% share in the regional animal drug compounding market at the end of 2023.

Sales in the nation are being boosted by expanding manufacturing and pharmaceutical sectors, as well as by an increase in pet owners' need for a variety of animal pharmaceuticals.

A key element promoting market innovation is the country's strong regulatory environment for the veterinary industry. Constant medicine research and development as well as an expansion in veterinary collaborations to address the therapeutic needs of numerous animal species have improved the long-term income prospects of the local market.

Will Germany Be a Lucrative Market for the Manufacturers?

“Rise in Public Awareness of Animal Welfare & Increasing Government Initiatives”

Germany is expected to hold a significant share of about 38.6% of the regional market at the end of 2023.

Germany currently leads the European market, and it is expected that the market will continue to thrive exponentially throughout the forecast period. The growing demand for a variety of animal drug compounding products, including antibiotics and anti-inflammatories, is being met by the German pharmaceutical sector. In addition, the market is also thriving due to government initiatives and a rise in public awareness of animal welfare issues.

How is Australia Emerging as a Prominent Market for Animal Drug Compounding?

“Strong Regulatory Framework”

Australia is estimated to hold a market share of about 65.7% of the global animal drug compounding in 2023.

The humanization of pets, the expanding adoption of animals across the country, and the increased availability of medical information online are all factors encouraging the animal compounding drugs market. Furthermore, Australia has a robust regulatory system for animal care and veterinary drugs, such as the Australian Pesticides and Veterinary Medicines Authority (APVMA), which safeguards the manufacture and usage of veterinary compounded drugs, resulting in market expansion.

Category-wise Insights

Which Product Segment is Driving Growth of the Global Market?

“High Demand for CNS Agents Driving Market Growth”

The CNS agents segment is expected to hold the highest share of around 37.3% of the segment by the end of 2023.

The most typical disorders in canines and felines with CNS inflammation include impaired limb coordination, behavioral issues, seizures, and blindness.

Blindness, seizures, changes in behavior, and abnormal limb coordination are frequently observed in canines and felines and can effectively be treated by CNS agents. In terms of animal drug compounding, CNS drugs account for the most demand as they are the most frequently prescribed medication for treating neurological conditions in animals.

How Livestock Animals Are Driving Up the Sales for Global Market?

“Rising Demand for Vet Compounded Drugs among Livestock Breeders”

The livestock animal segment is expected to hold the highest share of around 53.2% of the segment by the end of 2023.

Livestock breeders are nowadays concerned about livestock diseases. These diseases affect the health of cattle which results in less productivity. Breeders are effectively utilizing compounded medications since they are more effective and have fewer adverse effects, as a result, animal compounded drugs will be utilized more frequently in the future.

Why Oral Formulations are More Dominant in the Global Scenario?

“Increasing Shift towards Oral Formulations”

The oral formulation segment is expected to hold the larger share of about 83.5% by the end of 2023.

The oral method of administration is often used in both domestic pets and livestock animals, as these are reliable, safe, and have fewer side effects. Highly palatable solid formulations that can be administered to dogs and cats from a bowl or the owner's hand are needed more and more for companion animals. These dosage forms represent a growing trend in veterinary formulations that has important consequences for medical requirements, such as simplicity of use and compliance, particularly for medications that need to be used over an extended period.

Competition Landscape

Animal drug compounding companies constantly employ techniques including establishing collaboration and acquisition agreements to increase their market penetration and increase their revenue share. Leading animal medicine compounding companies are implementing attractive marketing tactics to increase consumer demand for their products.

Key instances include:

• In Dec 2020, a definitive acquisition agreement was completed by Wedgewood Pharmacy and Partners Group to make a new majority shareholder, taking the place of New Harbor Capital.
• In October 2022, Medisca announced expansion plans to lease a separate 60,000 square foot building, to consolidate its packaging and distribution activities in Plattsburgh, New York.

Similarly, the team at Persistence Market Research has tracked recent developments related to companies in the animal drug compounding market, which are available in the full report

Animal Drug Compounding Industry Report Scope

Key Segments Covered in Animal Drug Compounding Industry Research

Product:

• CNS Agents
• Anti-Infective Agents
• Hormones and Substitutes
• Anti-inflammatory Agents
• Others

Animal:

• Companion Animal
  • Cats
  • Dogs
  • Others
• Livestock Animals

Formulation:

• Oral
• Injectable
• Others

Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa

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