The veterinary drugs compounding market involves compounding of customized doses of drugs and medicines for veterinary care. Compounding allows tailoring drug doses and formulations for individual animal patient needs based on species, breed, size, medical conditions and veterinarian prescription. This ensures the administration of optimum and accurate drug dosages. Compounded medications provide clinically relevant options for unique medical cases and conditions where commercially available drugs may not be feasible or suitable.
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. Key players are focusing on enhancing their product portfolios through strategic mergers and acquisitions.
The demand for compounded veterinary drugs is growing due to rising pet ownership and increasing animal health expenditures. Growing awareness about tailored medication and individual animal care needs is further propelling the market growth. According to the APPA National Pet Owners Survey, around 85 million cats and around 78 million dogs are owned in the United States alone, indicating vast market potential.
The veterinary drugs compounding market is witnessing increasing globalization with market players expanding their operations across international markets. For instance, in August 2022, Kaytee, a key player in the avian, small animal and pet supply industry acquired Vetafarm, an Australia based manufacturer of animal health products, to strengthen its global presence.
Market key trends
Customization is a major trend being witnessed in the veterinary drugs compounding market. Compounding pharmacies are tailoring medications based on specific health conditions, allergies or medical histories of individual animals. This allows achieving optimum drug efficacy with minimal side effects. For example, medications for animals with allergies to certain preservatives or dyes in commercial products can be compounded without those allergens. Similarly, drugs in specific forms like transdermal gels or liquids can be compounded for pets that have difficulty swallowing tablets. The customizable nature of compounded drugs is driving higher preference and market demand.
Porter’s Analysis
Threat of new entrants: Low barriers to entry as the manufacturing of veterinary drugs compounding does not require huge capital investments. However, established market players have significant competitive advantages with respect to economies of scale, brand recognition, and distributional channels.
Bargaining power of buyers: High given the fragmented nature of buyers in the veterinary drugs compounding market. Buyers have various alternatives and options to choose from in the market.
Bargaining power of suppliers: Moderate to high as key raw material suppliers have significant control over prices and supply. However, easy availability of raw materials prevent suppliers from complete control.
Threat of new substitutes: Low as no cost-effective substitutes are available for compounded drugs custom-made for specific animal health conditions and needs.
Competitive rivalry: High as the market is crowded with global and regional players competing on the basis of product quality, price, innovation, and distribution networks.
North America dominates the market in terms of value owing to growing disease burden in companion animals, increasing pet insurance purchases, and rising animal healthcare expenditure in the region. Asia Pacific region is expected to grow at the fastest rate during the forecast period due to rising disposable income, improving veterinary infrastructure and increasing awareness among pet owners about animal health.
The veterinary drugs compounding market is fragmented with presence of both global and regional market players. The key players are focused on new product launches, mergers, and acquisitions to strengthen their market presence.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it