Compounding pharmacies combine, mix, or alter ingredients to create customized medicines for patients who have specific needs that commercial drug products do not meet. Compounding pharmacies in Netherlands prepare custom medications prescribed by a licensed medical practitioner for patients with unique needs, such as variations in dosage, delivery system, formulation, or ingredients compared to standard, commercially available pharmaceuticals. This individualized approach enables patients' needs to be better met and improves medication efficacy and compliance.
The Netherlands Compounding Pharmacies Market is estimated to be valued at US$ 599.62 Mn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity to meet unmet medical needs is driving the growth of Netherlands Compounding Pharmacies market. Compounding pharmacies play a vital role in formulating medications tailored to individual patient needs, especially for people who have allergies or require specific dosage forms like liquids. As commercial medications do not always address niche medical conditions or adverse drug reactions, compounded medications are increasingly utilized and hold promise to meet several unmet patient needs. This further cements the importance of compounding in patient care. Expanding the applications of compounding has immense potential to benefit more patients in Netherlands.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the Netherlands compounding pharmacies market size is moderate. It requires significant capital investment and regulatory compliance to start a compounding pharmacy. However, low brand loyalty among customers and strong market growth provide opportunities for new entrants.
Bargaining power of buyers: The bargaining power of buyers is high. There are many compounding pharmacies operating in the country providing substitutable products to customers. This gives buyers the ability to switch between pharmacies easily based on pricing and service.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Active pharmaceutical ingredients and other raw materials required for compounding are supplied by a limited number of manufacturers globally. However, the availability of alternative suppliers prevents any single supplier from significantly influencing prices.
Threat of new substitutes: The threat of new substitutes is low. Compounded medications often provide custom formulations not available commercially. Technological advances may introduce new commercial drug formulations in the future but substitutes are unlikely to completely replace compounded drugs.
Competitive rivalry: Competitive rivalry is high due to the large presence of local and international compounding pharmacies in the country. Pharmacies compete on factors like product quality, pricing, customer service, and distribution network.
SWOT Analysis
Strengths: Expertise in specialized compounding, ability to customize formulations, high focus on product quality and safety
Weaknesses: Higher costs than mass-produced drugs, regulatory challenges of validation for specialized compounds
Opportunities: Growing elderly population with complex medication needs, increasing acceptance of compounded drugs, expansion to foreign markets
Threats: Reimbursement uncertainties, compliance issues could impact brand image, price pressures from generic drug manufacturers
Key Takeaways
The Netherlands compounding pharmacies market is expected to witness steady growth over the forecast period supported by the rising geriatric population, increasing prevalence of chronic diseases, and growing acceptance of customized medications. Compounding pharmacies in the country have established strong regulatory compliance practices and focus on specialized capabilities to meet complex medication needs. The Netherlands Compounding Pharmacies Market is estimated to be valued at US$ 599.62 Mn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Regional analysis: The Netherlands accounts for the majority share of the Europe compounding pharmacies market currently. Growing healthcare expenditure per capita and high standards of living have boosted access to compounded drugs in the country. Urban centers like Amsterdam have emerged as prominent hubs for major pharmacy chains to establish regional distribution networks.
Key players: Key players operating in the Netherlands compounding pharmacies market are GE Healthcare, Invacare Corporation, Inogen, IUC Medical (Smiths Medical), HERSILL S.L., Fisher & Paykel Healthcare Limited, Philips Respironics, Inc., DeVilbiss Healthcare, Tecno-Gaz Industries, Allied Healthcare Products, Inc., Teleflex Incorporated, Chart Industries, ResMedDrägerwerk AG & Co. KGaALinde, CAIRE. Major players focus on expanding therapeutic expertise and collaborating with local pharmacists.
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