Global Animal Drug Compounding Market Assessment, By Product [Anti-infective Agents, Anti-inflammatory Agents, Hormones and Substitutes, CNS Agents, Others], By Animal Type [Companion Animals, Livestock Animals], By Route of Administration [Oral, Injectable, Topical], By Dosage Form [Suspensions, Solutions, Capsules], By Region, Opportunities and Forecast, 2018-2032F 

Global animal drug compounding market is projected to witness a CAGR of 7.88% during the forecast period 2025-2032, growing from USD 1.98 billion in 2024 to USD 3.64 billion in 2032. 

Animal Drug Compounding Market Size, Share, Growth Forecast 2032

Global animal drug compounding market is projected to witness a CAGR of 7.88% during the forecast period 2025-2032, growing from USD 1.98 billion in 2024 to USD 3.64 billion in 2032. The animal drug compounding market is experiencing rapid growth due to the rising demand for compounded medications, which include converting tablets into flavored liquids, adjusting dosages for different species or sizes, or creating topical gels and chews.
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Details
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Base Year
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2024
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Forecast Period
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2025-2032F
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Historical Period
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2018-2023
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Projected Growth Rate
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CAGR of 7.88% between 2024 and 2032
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Revenue Forecast in 2032
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USD 3.64 billion
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The animal drug compounding market is steadily gaining prominence as veterinary healthcare providers and pet owners seek customized pharmaceutical products that address the individual needs of their animals. Licensed pharmacists, along with veterinarians, prepare medications through compounding procedures, which enable them to develop custom dosage forms, strengths, and drug combinations that standard commercial products do not offer. The market serves as an essential solution for animal care situations where standard medications fail because they are either inappropriate or no longer available. The use of compounded medications has grown in both companion and livestock animal health services to achieve better treatment results while making it easier for animals to take their medications and protect their well-being. The administration of these essential drugs becomes necessary when pets display allergic reactions to inactive components in standard medications, or when weight-based dosing requires individualized measurement, or when pets need flavored medication to improve administration. Pet wellness expenditures continue to rise alongside the global growth of the pet population, leading to increased demand for customized veterinary medications. The expanding complexities of veterinary treatments that involve dermatology, endocrinology, oncology, neurology, and chronic pain management have significantly increased the need for personalized therapeutic solutions. The pet humanization trend and the expansion of the global compounding pharmacy network continue to fuel market growth.
For instance, in September 2024, WEDGEWOOD PHARMACY introduced compounded molnupiravir into its formulary as a new therapy for first- and second-line treatment of Feline Infectious Peritonitis (FIP). The original human medical compound was specially flavored and prepared to make it suitable for cats. WEDGEWOOD PHARMACY stands as the inaugural U.S. veterinary compounding pharmacy to offer cat-friendly molnupiravir formulations, which include different dosage options that address various FIP types, including Effusive, Non-effusive, Neurological, and Ocular. The preparations come in both flavored suspension and capsule forms.
<h2>Rising Pet Ownership Trend and Humanization of Pets Boost Market Demand</h2>
Pet ownership trends, along with the rising humanization of pets, are the primary forces driving the expansion of the animal drug compounding market. The growing number of pet owners who treat their animals as family members drives a substantial market need for healthcare products that offer personalization. The current pet owner population prioritizes individualized treatment approaches through dose modifications, flavor customization, and diverse administration options, which enhance therapeutic outcomes. The developing emotional connection between people and their pets now requires veterinary care services to match human medical standards. Compounded medications offer adaptable solutions when standard pharmaceutical products fail to meet patient needs or when products become unavailable or discontinued. For example, compounding enables the development of customized liquid medications and topical gels which match the individual characteristics of feline patients and canine patients according to their size, breed and health conditions. Customized pharmaceutical solutions enhance patient comfort and treatment effectiveness while simplifying medication administration for patients with persistent and complex health conditions. The rising number of pets and the demand for tailored treatment solutions have made compounding pharmacies essential in veterinary medical practice. The expanding pet care culture drives market growth, emphasizing the need for individualized pharmaceutical solutions to meet the demands of modern pet owners.
For instance, according to the American Pet Products Association's (APPA) survey report, as of March 2025, 94 million U.S. households now own at least one pet, up from 82 million in 2023. The rising population of pet ownership increases the demand for animal drug compounding to enhance the medication solutions for their pets and provide them with a higher quality of life.
<h2>Advancement in Compounding Technology Fuels Market Growth</h2>
Advancements in compounding technology significantly fuel the growth of the animal drug compounding market by enhancing the precision of medication preparation while increasing efficiency and safety. The use of automated equipment in modern compounding pharmacies, including precision mixers and capsule fillers, together with electronic balances, leads to improved consistency and accuracy in custom drug formulations. Technology minimizes human errors and ensures accurate dosing, while also enhancing processing speed, making compounded medications more dependable and easier for veterinarians and pet owners to obtain. The pharmaceutical industry has developed new excipients and delivery systems that include transdermal gels, along with flavored suspensions and medicated treats, which now offer multiple administration methods while enhancing palatability for companion animals. Pharmacies optimize their operations and maintain proper safety standards through advanced software solutions, which enable inventory tracking, prescription management, and regulatory compliance. The installation of sterile compounding facilities, along with quality assurance protocols, ensures that veterinary and human health standards are consistently met for all medications. Veterinary professionals show increased confidence in compounded medications due to these technological advancements, which enhance both production speed and quality. Technological advancements drive the global growth of animal drug compounding services while improving their reliability.
For instance, in January 2025, Covetrus Inc. launched a cloud-based compounding prescription platform called the Covetrus Platform, which comprises an integrated solution set designed to meet the needs of contemporary veterinary operations. The Covetrus Platform collaborates with the expanding VetSuite network to deliver comprehensive veterinary clinic capabilities nationwide.
<h2>Oral Route of Administration Segment Holds the Largest Market Share</h2>
The oral route of administration holds the largest market share in the animal drug compounding market due to its universal approval and species versatility, as well as its user-friendly nature. Veterinarians, along with pet owners, often select flavored liquids, chewable tablets, capsules, and pastes as their preferred oral medications because these options simplify the administration of drugs to companion animals, including dogs and cats. Compounding pharmacies create customized medications that improve taste to increase animal compliance for those animals that resist medication intake. Chronic conditions need this method because it provides ongoing daily medication for arthritis infections and endocrine disorders. The flexibility of oral formulations stems from their ability to customize doses according to weight, species, and individual health requirements, resulting in cost savings. Through oral delivery, pharmacists can access numerous active pharmaceutical ingredients (APIs) to develop individualized treatment options that are more effective than commercial drugs or when commercial products are not available. The advancement of flavor masking techniques, combined with improvements in formulation stability, has enhanced both the performance and storage duration of compounded oral medications. The increasing demand for customized pet medications, together with easy administration techniques, sustains oral administration as the leading method in animal drug compounding markets.
For instance, in October 2023, Evonik Industries AG launched EUDRACAP, a ready-to-use oral capsule filler designed for use in preclinical trials. This technical-grade capsule is suitable for passing through the gastrointestinal tract of preclinical animal models. The company also introduced this on the clinical and commercial stages using the EUDRACAP platform.&nbsp;
North America Dominates Animal Drug Compounding Market Size
North America dominates the animal drug compounding market due to its advanced veterinary healthcare facilities, high pet ownership rates, and supportive regulations. The United States holds a significant portion of the market due to its growing demand for personalized pet medications that cater to specific health conditions, dosage requirements, and species-specific formulations. Veterinary professionals, along with pet owners, turn to compounded medications as their first choice when commercial drugs become unavailable, unsuitable, or discontinued. The regional market receives additional strength from Wedgewood Pharmacy and other leading compounding pharmacies. The regional market is bolstered by Wedgewood Pharmacy and other leading compounding pharmacies, which offer a range of dosage forms, flavors, and delivery methods for both companion animals and livestock. The region maintains established distribution networks, along with professional veterinary associations, which continually invest in veterinary compounding techniques and training. Regulatory bodies such as the U.S. FDA develop operational rules for pharmacies while promoting safety standards for compounded medications. The growing awareness of pet health needs, combined with the rise of chronic disease management and pet humanization trends, is driving market demand for customized medical solutions. The combination of various market elements establishes North America as the primary force in the worldwide animal drug compounding industry.
For instance, in December 2024, Grey Wolf Animal Health Corp., a Toronto-based company, completed the acquisition of Compounding Pharmacy of Manitoba. Grey Wolf enhances its ability to provide custom veterinary drugs through the growth of its pharmacy business unit and expanded capacity to deliver veterinary and human compounding services. Through its acquisition of Trutina and Compounding Pharmacy of Manitoba, Grey Wolf expands its customer base while increasing access to specialized animal medications and driving market growth.
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Impact of U.S. Tariffs on Animal Drug Compounding Market
The implementation of U.S. tariffs on pharmaceutical ingredients and raw materials imported from overseas has a significant impact on the animal drug compounding industry. Several compounded medications rely on receiving their active pharmaceutical ingredients (APIs) and excipients from suppliers in China and India. Tariffs increase the expense of imported goods, which raises production costs for veterinary compounding pharmacies. Higher production costs result in elevated prices for compounded medications, which pet owners and veterinary facilities must pay. Smaller veterinary compounding operations encounter difficulties when increasing prices due to their reliance on tight profit margins, which sustain their individualized animal medication offerings. Supply chain restrictions that block access to ingredients lead to medication delays, which in turn postpone necessary medical treatments. The transition toward domestic sourcing by providers results in higher expenses or reduced product availability. The implementation of tariffs generates financial strain on compounding pharmacies while endangering both the affordability and availability of animal medical care.
Report Scope
&ldquo;Global&nbsp;Animal Drug Compounding&nbsp;Market Assessment, Opportunities and Forecast, 2018-2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global animal drug compounding market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Details
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Segments Covered
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Product, Animal Type, Route of Administration, Dosage Form
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Regions Covered
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North America, Europe, South America, Asia-Pacific, Middle East and Africa
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Key Companies Profiled
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Partners Group, Vimian Group AB, Akina Animal Health, Davis Islands Pharmacy and Compounding Lab, Custom Med Compounding Pharmacy, Central Compounding Center South, Wellness Pharmacy of Cary, Kubat HealthCare, Medisca Inc., Chiron Pharmaceuticals Private Limited
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report, the&nbsp;global&nbsp;animal drug compounding market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>By Product
<ul>
<li>Anti-infective Agents</li>
<li>Anti-inflammatory Agents</li>
<li>Hormones and Substitutes</li>
<li>CNS Agents</li>
<li>Others</li>
</ul>
</li>
<li>By Animal Type
<ul>
<li>Companion Animals
<ul>
<li>Dogs</li>
<li>Cats</li>
<li>Horses</li>
<li>Others</li>
</ul>
</li>
<li>Livestock Animals</li>
</ul>
</li>
<li>By Route of Administration
<ul>
<li>Oral</li>
<li>Injectable</li>
<li>Topical</li>
</ul>
</li>
<li>By Dosage Form
<ul>
<li>Suspensions</li>
<li>Solutions</li>
<li>Capsules</li>
</ul>
</li>
<li>By Region
<ul>
<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>South America</li>
<li>Middle East and Africa</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
The competitive landscape operates through innovation, acquisitions, and service expansion. Custom formulation delivery, compounding technology, quality assurance, and training investment drive company growth. Strategic partnerships, combined with geographical expansion, enable companies to achieve a broader market reach. Their competitive advantage is strengthened through species-specific solutions and delivery forms that meet compliance requirements and stringent regulatory standards. The market outlook appears positive, as personalized veterinary care shows increasing demand, while R&amp;D investments are expected to continue driving both market growth and product differentiation.
In May 2024, Mixlab, Inc. acquired NexGen Animal Health, enabling the expansion of its advanced compounding pharmacy operations from companion animal services to include extensive animal health services. Mixlab aims to utilize its technology platform to enhance pharmacy services for large animal practitioners and owners, while improving production efficiency and supporting ongoing development.
Key Players Operating in Global Animal Drug Compounding Market are:
<ul>
<li>Partners Group</li>
<li>Vimian Group AB</li>
<li>Akina Animal Health</li>
<li>Davis Islands Pharmacy and Compounding Lab</li>
<li>Custom Med Compounding Pharmacy</li>
<li>Central Compounding Center South</li>
<li>Wellness Pharmacy of Cary</li>
<li>Kubat HealthCare</li>
<li>Medisca Inc.</li>
<li>Chiron Pharmaceuticals Private Limited</li>
</ul>
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Global Animal Drug Compounding Market Assessment, Opportunities and Forecast, 2018-2032F

The global animal drug compounding market can be attributed to the rising pet ownership, increasing demand for customized treatments, and drug shortages, all of which aim to ensure safe, effective, and palatable animal medications.

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