Compounding Chemotherapy Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Drug Type (Cytotoxic Drugs, Hormonal Agents, Immunomodulatory Agents, Targeted Therapies, Supportive Care Drugs), By Route of Administration (Intravenous, Oral, Subcutaneous, Intramuscular, Intrathecal), By Cancer Type (Breast Cancer, Lung Cancer, Colorectal Cancer, Prostate Cancer, Leukemia, Lymphoma), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.31 Billion
CAGR (2026-2031)	5.23%
Fastest Growing Segment	Online Pharmacies
Largest Market	North America
Market Size (2031)	USD 7.21 Billion

Market Overview

The Global Compounding Chemotherapy Market will grow from USD 5.31 Billion in 2025 to USD 7.21 Billion by 2031 at a 5.23% CAGR. Compounding chemotherapy entails the preparation of personalized antineoplastic medications within sterile environments to meet the specific dosing and formulation requirements of individual cancer patients. This practice allows for precise adjustments based on physiological parameters, ensuring treatments are tailored rather than limited to mass-produced, fixed-dose regimens. The primary drivers supporting market growth include the rising global incidence of cancer and the increasing clinical preference for precision medicine, which necessitates customized therapeutic protocols to optimize efficacy and manage toxicity. Furthermore, the expanding geriatric population requires the flexible dosage modifications that compounded solutions provide, thereby sustaining demand independent of broader pharmaceutical trends.

However, significant challenges regarding supply chain stability and drug availability threaten to impede market expansion. The scarcity of essential raw materials and sterile injectables frequently disrupts compounding workflows, leading to treatment delays and increased operational complexity. This issue is underscored by recent industrial data highlighting the persistence of supply deficits. According to the American Society of Health-System Pharmacists, in April 2025, there were 270 active drug shortages, with sterile chemotherapy injectables identified as being particularly vulnerable to these disruptions. Such shortages constrain the capacity of compounding facilities to maintain consistent production, presenting a substantial barrier to continuous market growth.

Key Market Drivers

The Rising Global Incidence and Prevalence of Cancer acts as the fundamental catalyst expanding the scope of the global compounding chemotherapy market. As the demographic burden of oncological diseases intensifies, there is a parallel surge in the clinical requirement for antineoplastic treatments that extends beyond standard commercial manufacturing capabilities. Compounding pharmacies are increasingly essential for bridging the gap between mass-produced drugs and the unique therapeutic needs of patients, particularly for those requiring precise dosage adjustments based on body surface area or non-standard formulations. According to the World Health Organization, February 2025, in the 'Cancer' fact sheet, cancer remains a leading cause of death globally, accounting for nearly 10 million deaths, a statistic that underscores the critical volume of patients necessitating adaptable and accessible chemotherapy options.

Simultaneously, the Recurrent Shortages of Commercial Chemotherapy Drugs significantly propel the reliance on outsourcing facilities and specialized compounders. When conventional pharmaceutical supply chains falter due to manufacturing disruptions or regulatory hurdles, hospitals turn to 503B compounding facilities to secure essential medications, such as cisplatin and carboplatin, to ensure continuity of care. The impact of these commercial failures is profound; according to Penn Medicine, December 2024, in a national data analysis, prescription rates for specific chemotherapy agents fell by 15.1% at the peak of recent supply disruptions, highlighting the volatility of commercial access. This instability drives substantial growth for compounding entities that can mitigate these deficits. Reflecting this demand, according to Fagron, March 2025, in the 'Annual Report 2024', the company reported a 17% increase in REBITDA, explicitly noting that robust demand for their compounding services was further bolstered by persistent drug shortages.

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Key Market Challenges

Supply chain instability regarding raw materials and sterile injectables constitutes a formidable barrier to the expansion of the compounding chemotherapy sector. Compounding facilities rely heavily on a consistent inflow of specific antineoplastic agents to create personalized regimens. When global manufacturing consolidates or quality control issues halt production at major active pharmaceutical ingredient (API) facilities, compounding pharmacists face immediate inventory deficits. This inability to source base ingredients forces operational slowdowns, as facilities cannot execute the precise dosage adjustments that define their value proposition, effectively neutralizing the core advantage of the compounding model.

The persistence of these deficits directly reduces market throughput and revenue potential. According to the European Association of Hospital Pharmacists, in late 2025, nearly 64% of surveyed hospital pharmacists reported delays in patient therapies due to medicine shortages, with oncology drugs identified as one of the most frequently affected categories. Such unpredictability compels healthcare providers to ration care or revert to standard fixed-dose alternatives to ensure treatment continuity. Consequently, the market faces stunted growth as the inability to guarantee continuous supply undermines the reliability required for time-sensitive cancer treatments.

Key Market Trends

The widespread adoption of robotic compounding automation is fundamentally reshaping the sector by enhancing the precision of sterile preparation and minimizing healthcare worker exposure to hazardous antineoplastic agents. Hospitals and specialized pharmacies are increasingly integrating automated workflows to mitigate human error in complex volumetric calculations, ensuring that cytotoxicity risks are contained within closed environments. This technological shift is evidenced by the growing penetration of advanced verification systems; according to the American Society of Health-System Pharmacists, May 2024, in the 'National Survey of Pharmacy Practice in Hospital Settings', technologies to assist sterile product preparation are now utilized in 62.8% of hospitals, underscoring the critical transition toward automated safety protocols.

Simultaneously, the market is experiencing significant growth in home-based chemotherapy infusion services, driven by a paradigm shift toward patient-centric care models that prioritize convenience and reduced hospitalization costs. This trend alleviates the logistical burden on overcrowded oncology centers while allowing immunocompromised patients to receive treatment in lower-risk environments. The escalating demand for these remote capabilities is reflected in the financial performance of major providers; according to Option Care Health, February 2025, in the 'Fourth Quarter and Full Year 2024 Financial Results', the company reported a net revenue increase of 16.2% for the full year 2024, a surge attributed to the expanding utilization of home and alternate site infusion therapies.

Segmental Insights

The Online Pharmacies segment has emerged as the fastest-growing component of the Global Compounding Chemotherapy Market, primarily driven by the accelerating digitization of healthcare distribution channels. This expansion is fueled by the rising demand for convenience and the efficient home delivery of prescribed oral oncological formulations and supportive care medications. Additionally, the proliferation of internet-based medical services facilitates broader access to specialized compounded treatments, particularly for patients in remote areas. This shift significantly reduces the logistical burden on patients, aligning with the wider industry trend toward home-based disease management.

Regional Insights

North America holds a dominant position in the Global Compounding Chemotherapy Market, driven by the rising prevalence of cancer and an extensive healthcare infrastructure. The region faces periodic shortages of commercial oncology drugs, creating a critical need for compounded sterile preparations to maintain treatment continuity. This market expansion is further stabilized by the Food and Drug Administration (FDA), particularly through the oversight of 503B outsourcing facilities which standardize quality for large-scale production. Additionally, the strong presence of specialized compounding pharmacies enables the timely delivery of personalized chemotherapy regimens across the region.

Recent Developments

• In December 2024, Baxter International Inc. announced the launch of Cyclophosphamide Injection in the United States as part of a significant expansion of its injectable pharmaceuticals portfolio. This new offering serves as a critical alkylating agent indicated for the treatment of various malignant diseases in both adult and pediatric patients. The release of this chemotherapy drug emphasizes the company's commitment to addressing unmet patient needs in oncology by providing high-quality, ready-to-use formulations. These pre-prepared medications are designed to streamline pharmacy workflows, reduce the risk of contamination during compounding, and ensure a consistent supply for healthcare providers managing complex cancer treatments.
• In December 2024, Equashield announced a strategic partnership with Pharmacy Stars, a provider of cloud-based compliance solutions, to enhance safety protocols in hazardous drug compounding. This collaboration focuses on integrating the company's closed system transfer devices (CSTDs) with advanced quality management software to ensure strict adherence to safety standards during the preparation of chemotherapy agents. The partnership aims to streamline pharmacy operations by reducing the risk of occupational exposure to hazardous drugs while improving regulatory compliance. This joint effort reflects a growing industry emphasis on combining medical technology with digital solutions to protect healthcare workers and patients in oncology settings.
• In July 2024, QuVa Pharma, Inc. completed the acquisition of a healthcare software informatics platform to strengthen its integrated pharmacy support services. This strategic collaboration combines the company's extensive 503B sterile compounding capabilities with advanced machine learning and predictive analytics. The integration is specifically designed to help hospitals and health systems proactively identify and manage drug shortages, a persistent challenge in the administration of chemotherapy and other critical therapies. By leveraging data-driven insights, the company aims to improve inventory management and ensure improved access to essential ready-to-administer medications for patient care.
• In May 2024, Fagron Sterile Services US announced a major expansion of its 503B outsourcing manufacturing campus located in Wichita, Kansas. The strategic project involves a 40% increase in the facility's operational square footage to significantly boost production capacity for essential sterile medications, including specific formulations used in oncology and critical care. Alongside the manufacturing expansion, the company revealed plans for a new state-of-the-art quality control testing laboratory. This infrastructure investment aims to optimize process flows and enhance the reliability of the supply chain for hospitals and ambulatory surgery centers that depend on outsourced compounded preparations.

Key Market Players

• Pfizer Inc.
• Baxter International Inc.
• Grifols SA
• Comecer S.P.A.
• Arxium Inc.
• Dedalus Group
• B. Braun Melsungen AG
• Omnicell Technologies Inc.
• The Metrix Company
• Sterline S.R.L

By Drug Type	By Route of Administration	By Cancer Type	By Distribution Channel	By Region
Cytotoxic Drugs Hormonal Agents Immunomodulatory Agents Targeted Therapies Supportive Care Drugs	Intravenous Oral Subcutaneous Intramuscular Intrathecal	Breast Cancer Lung Cancer Colorectal Cancer Prostate Cancer Leukemia Lymphoma	Hospital Pharmacies Retail Pharmacies Online Pharmacies	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Compounding Chemotherapy Market, By Drug Type:

• Cytotoxic Drugs
• Hormonal Agents
• Immunomodulatory Agents
• Targeted Therapies
• Supportive Care Drugs

• Compounding Chemotherapy Market, By Route of Administration:

• Intravenous
• Oral
• Subcutaneous
• Intramuscular
• Intrathecal

• Compounding Chemotherapy Market, By Cancer Type:

• Breast Cancer
• Lung Cancer
• Colorectal Cancer
• Prostate Cancer
• Leukemia
• Lymphoma

• Compounding Chemotherapy Market, By Distribution Channel:

• Hospital Pharmacies
• Retail Pharmacies
• Online Pharmacies

• Compounding Chemotherapy 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