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Animal Drug Compounding Global Market Report 2025
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Animal drug compounding involves the process of customizing and altering the ingredients of multiple medicines to create a personalized medication suitable for the specific needs of individual animals or groups of animals. This practice is crucial in veterinary medicine for providing tailored medical treatment to animals.

The primary products of animal drug compounding include anti-infective agents, anti-inflammatory agents, hormones and substitutes, central nervous system (CNS) agents, and other specialized products. Anti-infective agents encompass medications such as antibiotics, antivirals, and antifungals, used to prevent and treat various infections in animals. These agents play a vital role in eliminating infectious germs and controlling the spread of infections among animals. Animal drug compounding is applicable to various types of animals, including companion animals and livestock, and can be administered through different routes such as oral, injectable, topical, among others. This practice is commonly employed in veterinary hospitals, clinics, and diagnostic centers dedicated to veterinary care.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a considerable impact on the veterinary healthcare sector, particularly in the supply of pharmaceuticals, medical devices, and animal care products. Increased duties on imported veterinary medicines, diagnostic equipment, surgical tools, and pet care supplies have driven up operational costs for veterinary clinics, animal hospitals, and livestock health providers, forcing them to either raise service charges or absorb reduced profit margins. The livestock and agricultural industries are facing similar pressures, as tariffs on feed additives, vaccines, and breeding equipment push up production costs and complicate animal health management. Furthermore, retaliatory tariffs in major export markets have weakened demand for U.S.-manufactured veterinary products, adding to revenue challenges. To navigate these headwinds, the sector must now focus on local sourcing, preventive healthcare strategies, and digital veterinary solutions to control costs while continuing to deliver quality animal care.

The animal drug compounding market research report is one of a series of new reports from The Business Research Company that provides animal drug compounding market statistics, including animal drug compounding industry global market size, regional shares, competitors with an animal drug compounding market share, detailed animal drug compounding market segments, market trends and opportunities, and any further data you may need to thrive in the animal drug compounding industry. This animal drug compounding market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The animal drug compounding market size has grown strongly in recent years. It will grow from $1.67 billion in 2024 to $1.79 billion in 2025 at a compound annual growth rate (CAGR) of 7.0%. The growth in the historic period can be attributed to regulatory landscape, veterinary practices, market awareness, limited commercial options, veterinary collaboration.

The animal drug compounding market size is expected to see strong growth in the next few years. It will grow to $2.38 billion in 2029 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to regulatory developments, pet ownership trends, specialized veterinary care, globalization of veterinary services, advancements in veterinary medicine. Major trends in the forecast period include focus on flavoring and palatability, demand for specialized dosage forms, collaboration between veterinarians and compounding pharmacists, focus on pain management solutions, growing role in veterinary hospice care.

The forecast of 7.4% growth over the next five years remains unchanged from the previous projection for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Import duties on pharmaceutical-grade excipients such as lactose monohydrate and sterile water will squeeze profit margins for U.S. veterinary compounders serving niche species and dosage needs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

An increase in the rate of animal adoption is anticipated to boost the growth of the animal drug compounding market in the future. Animal adoption refers to acquiring pets through rescue organizations rather than purchasing them from pet stores or breeders. Adopted animals often come with pre-existing health issues or may require medications that are not available in standard formulations, leading to a higher demand for customized medications for these animals. As more pet owners seek tailored medications for their adopted pets, the necessity for animal drug compounding rises. For example, in October 2023, Novuna, a UK-based financial services company, reported that approximately 10,070 dogs were adopted, marking an 11.06% increase compared to 2022. Consequently, the rise in animal adoption rates is driving the growth of the animal drug compounding market.

Increasing pet expenditure is expected to further propel the growth of the animal drug compounding market. Pet expenditure encompasses the total amount spent on various aspects of pet ownership and care. This spending contributes to the demand for tailored medications that address the unique needs of individual animals, thereby encouraging compounding pharmacies to continue offering these specialized services in veterinary care. For instance, in October 2023, the North American Pet Health Insurance Association (NAPHIA), a US-based trade organization, stated that in 2022, pet owners in the United States spent $136.8 billion on their dogs, cats, birds, and other companion animals, with this figure projected to increase to $143.6 billion in 2023. Therefore, the rising pet expenditure is driving the growth of the animal drug compounding market.

Major companies in the animal drug compounding market are creating innovative products, such as feline-friendly formulations, to improve the safety and effectiveness of medications specifically designed for cats. Feline-friendly formulations are products tailored to be safe, effective, and appealing to cats. For instance, in September 2024, Wedgewood, a US-based veterinary pharmaceutical company, launched compounded molnupiravir. This antiviral medication is specifically formulated to treat Feline Infectious Peritonitis (FIP) in cats. Wedgewood offers various dosages of feline-friendly molnupiravir to address different forms of FIP, including effusive, non-effusive, neurological, and ocular types. This includes producing a range of dosages and flavors, such as flavored oral oil suspensions and capsules, to cater to the unique needs of individual feline patients.

Leading entities within the animal drug compounding market are actively engaging in partnerships to bolster their revenues and market positioning. Brava, a tech-driven network of compounding pharmacies, collaborates with veterinarians, offering innovative tools, expert pharmacy support, and exceptional customer care. In October 2022, Veterinary Growth Partners, a prominent US-based veterinary services organization representing over 6,000 veterinary practices, designated Brava as its preferred veterinary compounding pharmacy provider. This partnership strives to enhance personalized care in veterinary compounding, streamline processes to ensure regulatory compliance, and deliver top-notch compounding pharmacy solutions.

In May 2024, MixLab, a US-based pharmaceutical laboratory, acquired Nexgen Animal Health for an undisclosed amount. This acquisition aims to expand MixLab's veterinary compounding services to include large animals while enhancing the pharmacy experience through advanced technology and increased capacity. Nexgen Animal Health, also based in the US, specializes in formulating innovative products and drug compounds for animals.

Major companies operating in the animal drug compounding market include Wedgewood Pharmacy LLC, Triangle Compounding Pharmacy Inc., Davis Islands Pharmacy & Compounding Lab, Custom Med Compounding Pharmacy, Central Compounding Center South LLC, Wellness Compounding Pharmacy of Cary LLC, Miller's Pharmacy, Caringbah Compounding Pharmacy Pty. Ltd., Smith Drug and Compounding Inc., Specialist Compounding Pharmacy Pte Ltd., Tache Pharmacy & Medical Supplies, Hoye's Pharmacy, Vertisis Custom Pharmacy LLC, Smith-Caldwell Drug Store Inc., Sixth Avenue Medical Pharmacy, Pharmaca Integrative Pharmacy Inc., Akina Animal Health, Letco Medical LLC, The Pet Apothecary LLC, Vetsource Inc., Roadrunner Pharmacy, Medisca Inc., BCP Veterinary Pharmacy, VetRxDirect LLC, Diamondback Drugs, Vetcentric Pty. Ltd., Pet Health Pharmacy, PetMed Express Inc., PetRx2Go, South Wellness Pharmacy

North America was the largest region in the animal drug compounding market in 2024. The regions covered in the animal drug compounding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the animal drug compounding market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The animal drug compounding market consists of sales of flavored medications, suppositories, and ophthalmic preparations. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Animal Drug Compounding Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on animal drug compounding market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

Where is the largest and fastest growing market for animal drug compounding ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The animal drug compounding market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

Scope

Table of Contents

1. Executive Summary

2. Animal Drug Compounding Market Characteristics

3. Animal Drug Compounding Market Trends And Strategies

4. Animal Drug Compounding Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics, Trade Wars and Tariffs, And Covid And Recovery On The Market

5. Global Animal Drug Compounding Growth Analysis And Strategic Analysis Framework

6. Animal Drug Compounding Market Segmentation

7. Animal Drug Compounding Market Regional And Country Analysis

8. Asia-Pacific Animal Drug Compounding Market

9. China Animal Drug Compounding Market

10. India Animal Drug Compounding Market

11. Japan Animal Drug Compounding Market

12. Australia Animal Drug Compounding Market

13. Indonesia Animal Drug Compounding Market

14. South Korea Animal Drug Compounding Market

15. Western Europe Animal Drug Compounding Market

16. UK Animal Drug Compounding Market

17. Germany Animal Drug Compounding Market

18. France Animal Drug Compounding Market

19. Italy Animal Drug Compounding Market

20. Spain Animal Drug Compounding Market

21. Eastern Europe Animal Drug Compounding Market

22. Russia Animal Drug Compounding Market

23. North America Animal Drug Compounding Market

24. USA Animal Drug Compounding Market

25. Canada Animal Drug Compounding Market

26. South America Animal Drug Compounding Market

27. Brazil Animal Drug Compounding Market

28. Middle East Animal Drug Compounding Market

29. Africa Animal Drug Compounding Market

30. Animal Drug Compounding Market Competitive Landscape And Company Profiles

31. Animal Drug Compounding Market Other Major And Innovative Companies

32. Global Animal Drug Compounding Market Competitive Benchmarking And Dashboard

33. Key Mergers And Acquisitions In The Animal Drug Compounding Market

34. Recent Developments In The Animal Drug Compounding Market

35. Animal Drug Compounding Market High Potential Countries, Segments and Strategies

36. Appendix

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