Animal Drug Compounding Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Anti-infective Agents, Anti-inflammatory Agents, Hormones & Substitutes, CNS Agents, Others), By Animal Type (Companion Animal, Livestock Animal), By Route of Administration (Oral, Injectable, Topical, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.77 Billion
CAGR (2026-2031)	8.33%
Fastest Growing Segment	Companion Animal
Largest Market	North America
Market Size (2031)	USD 2.86 Billion

Market Overview

The Global Animal Drug Compounding Market will grow from USD 1.77 Billion in 2025 to USD 2.86 Billion by 2031 at a 8.33% CAGR. Animal drug compounding is the specialized practice of manipulating pharmaceutical ingredients by licensed professionals to create customized medications for animals when FDA-approved drugs are unsuitable or unavailable. The growth of this market is fundamentally driven by the increasing medicalization of companion animals and the clinical necessity for species-specific dosage forms and flavorings to ensure strict adherence to treatment regimens. These drivers are distinct from temporary market shifts, as they represent a permanent evolution in the standard of veterinary care required by pet owners and livestock producers.

One significant challenge impeding market expansion is the intensifying regulatory scrutiny regarding the use of bulk drug substances, which imposes stringent compliance burdens on compounding pharmacies and limits the availability of certain preparations. Despite these regulatory headwinds, the economic foundation of the sector remains robust due to sustained consumer investment in animal health. According to the American Pet Products Association, in 2024, expenditures for veterinary care and product sales in the United States totaled $39.8 billion. This substantial financial commitment underscores the resilience of the market and the continued demand for tailored veterinary pharmacotherapy.

Key Market Drivers

Shortages and Discontinuation of Commercial Veterinary Drugs directly fuel the Global Animal Drug Compounding Market by creating an immediate void in therapeutic options that only customized preparations can fill. As pharmaceutical manufacturers discontinue older, less profitable formulations or encounter severe supply chain disruptions, veterinarians are increasingly forced to rely on compounding pharmacies to maintain continuity of care for critical treatments. This reliance is intensifying due to the widening gap between commercial availability and clinical need. According to the Canadian Veterinary Medical Association, November 2025, veterinarians in Canada effectively no longer have access to 40% of the medications they previously utilized for patient care. Consequently, the compounding sector has transitioned from a supplementary service to an essential infrastructure, ensuring that manufacturing volatility does not compromise animal health outcomes or leave life-threatening conditions untreated.

Simultaneously, the Rising Pet Adoption and Humanization of Companion Animals is fundamentally altering the volume and complexity of pharmaceutical demand. Pet owners, viewing their animals as integral family members, are pursuing advanced medical interventions and seeking species-specific formulations, such as flavored liquids or transdermal gels, that improve compliance and quality of life. This cultural shift is evidenced by substantial increases in ownership rates. According to Animal Medicines Australia, September 2025, pet ownership has surged to reach 73% of households nationwide. This demographic expansion supports a resilient economic environment for animal health products, further illustrated by the broader market's strength where, according to Zoetis Inc., November 2025, the company reported third-quarter revenue of $2.4 billion driven by sustained demand for companion animal therapies.

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Key Market Challenges

The primary challenge impeding the growth of the Global Animal Drug Compounding Market is the intensifying regulatory scrutiny regarding the use of bulk drug substances. Regulatory bodies are strictly enforcing guidelines that limit the ability of pharmacists to create medications from bulk active ingredients, requiring them to prioritize FDA-approved commercial products even when those options may not ideally suit a specific animal's needs. This creates a substantial barrier to market expansion, as compounding pharmacies must shoulder increased operational costs and administrative workloads to prove compliance. Consequently, many facilities are forced to narrow their product offerings or exit the animal health segment entirely, reducing the overall availability of customized veterinary pharmacotherapy.

This restrictive environment directly impacts the market's ability to respond to supply chain gaps. For instance, according to the Alliance for Pharmacy Compounding, in 2024, 28% of surveyed compounding pharmacies reported preparing amoxicillin suspension specifically to mitigate commercial shortages. When regulations limit the usage of bulk substances, they curtail the flexibility required to address such critical deficiencies. By imposing these stringent limitations, the industry faces a bottleneck where the supply of tailored medications cannot adequately scale to meet the evolving demands of veterinarians and livestock producers, thereby stalling overall market growth.

Key Market Trends

The expansion of 503B outsourcing facilities for office-use stock is fundamentally reshaping the supply chain as veterinarians seek compliant pathways to maintain inventory amid tightening regulations on traditional compounding. Unlike 503A pharmacies restricted to patient-specific prescriptions, 503B facilities operate under federal Good Manufacturing Practices (cGMP), allowing them to manufacture bulk preparations with extended shelf lives that clinics can legally stock for immediate administration. This structural shift is driving capital investment into facility upgrades to meet the heightened demand for standardized, regulatory-compliant veterinary medications. According to JobsOhio, September 2024, Wedgewood Connect Ohio announced a capital investment of $5.5 million to expand its FDA-registered 503B outsourcing facility, directly increasing its capacity to manufacture and distribute these critical bulk formulations.

Simultaneously, market consolidation through strategic mergers and acquisitions is accelerating as major competitors integrate specialized capabilities and expand their geographic footprints. Leading firms are acquiring regional pharmacies and technology platforms to capture a larger share of the fragmented compounding landscape and streamline operations across both human and veterinary segments. This aggregation allows companies to leverage economies of scale while diversifying their portfolios to include sterile, non-sterile, and hazardous compounding services under a single corporate umbrella. This trend is exemplified by recent high-value transactions; for instance, according to DVM360, December 2024, Grey Wolf Animal Health Corp acquired the Compounding Pharmacy of Manitoba for $22.5 million to bolster its pharmacy business unit and expand its service capacity in the Canadian market.

Segmental Insights

The Companion Animal segment is identified as the fastest-growing category within the global animal drug compounding market. This upward trajectory is driven by high rates of pet ownership and the increasing demand for customized formulations, such as flavored medications or precise dosages, which facilitate easier administration. Additionally, the rising prevalence of chronic conditions in aging pets creates a sustained need for specialized treatments unavailable in commercial forms. Regulatory bodies like the US FDA have supported this sector by establishing clearer guidelines for non-food-producing animals, thereby stabilizing the market environment and reinforcing the availability of essential therapies.

Regional Insights

North America maintains a dominant position in the animal drug compounding market due to high rates of pet ownership and increased spending on veterinary services. The region is supported by a robust healthcare infrastructure and a strong network of compounding pharmacies that meet the demand for customized medications. Additionally, the United States Food and Drug Administration provides specific regulatory guidance regarding the compounding of animal drugs from bulk substances, creating a structured environment that fosters market stability. These factors, combined with heightened awareness of animal health standards, drive the sustained expansion of the regional market.

Recent Developments

• In January 2025, Mixlab expanded its footprint in the Midwest by acquiring The Pet Apothecary and the veterinary business of SBH Medical. These transactions allowed the company to triple its veterinary partnerships in the region and establish a new pharmacy hub in Milwaukee. The organization planned to deploy its digital prescription management platform across these new operations to streamline administrative tasks for veterinarians and ensure faster delivery for pet owners. This move represented the company’s continued strategy to grow its national network and enhance the accessibility of compounded animal medications through targeted regional investments.
• In December 2024, Covetrus opened an expanded pharmaceutical compounding facility in Phoenix, Arizona, to increase its production capacity. The new fifty thousand square-foot center was designed to enhance supply chain reliability and support the delivery of customized medications to veterinary practices and pet owners. Supported by a collaboration with Epicur Pharma, the facility incorporated modern automation to ensure high standards of quality and efficiency in drug preparation. This infrastructure investment aimed to double the company’s compounding space in the region, reflecting its commitment to meeting the diverse therapeutic needs of animals through tailored pharmaceutical solutions.
• In June 2024, Stokes Pharmacy partnered with the Bova Group to launch a compounded treatment for Feline Infectious Peritonitis in the United States. The collaboration introduced Bova GS-441524, an oral antiviral medication, to the domestic market, providing veterinarians with a regulated option for a condition that previously lacked accessible legal therapeutics. This initiative allowed the company to distribute a medication with verified quality standards, addressing a significant unmet medical need for cats. The partnership facilitated the immediate availability of this life-saving drug, marking a notable development in the therapeutic landscape for feline viral diseases.
• In May 2024, Mixlab acquired NexGen Animal Health to extend its veterinary compounding capabilities into the large animal sector. This strategic transaction enabled the company to offer formulations for equine, exotic, and zoo species, complementing its existing services for companion pets. By integrating the Texas-based facility, Mixlab aimed to utilize its proprietary technology to improve operational efficiency and the customer experience for veterinarians and animal owners. The expansion added a fourth location to the company's network, supporting its goal to address the growing demand for personalized animal medications and strengthening its presence in the market.

Key Market Players

• Wedgewood Village Pharmacy, LLC
• Vimian Group AB
• Pharmaca Health Intelligence Ltd
• Akina Animal Health
• Triangle Compounding Pharmacy
• Davis Islands Pharmacy & Compounding Lab
• Custom Med Compounding Pharmacy
• Central Compounding Center South
• Wellness Compounding Pharmacy of Cary
• Millers Pharmacy

By Product	By Animal Type	By Route of Administration	By Region
Anti-infective Agents Anti-inflammatory Agents Hormones & Substitutes CNS Agents Others	Companion Animal Livestock Animal	Oral Injectable Topical Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Animal Drug Compounding Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Animal Drug Compounding Market, By Product:

• Anti-infective Agents
• Anti-inflammatory Agents
• Hormones & Substitutes
• CNS Agents
• Others

• Animal Drug Compounding Market, By Animal Type:

• Companion Animal
• Livestock Animal

• Animal Drug Compounding Market, By Route of Administration:

• Oral
• Injectable
• Topical
• Others

• Animal Drug Compounding Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE