Pharmaceutical Logistics Market Analysis and Overview :
The Pharmaceutical Logistics Market is currently valued at USD 83.5 billion in the year 2022, registering a CAGR of 4.76% over the forecast period 2023-2030.
Get Complete Analysis Of The Report - Download Free Sample PDF
Pharmaceutical logistics involves manufacturing, processing, and shipping materials and resources. Pharmaceutical Logistics companies also undertake activities related to handling finished products for customers. Transporting healthcare products by different modes needs the establishment of complex logistical methods to maintain a pharmaceutical shipment's integrity. It requires specific equipment, storage facilities, harmonized handling procedures, and strong cooperation among the cold chain partners. For pharmaceutical companies, logistics companies play a vital role in their functioning.
The increasing demand for sea and air freight pharmaceutical logistics and rising demand for over-the-counter (OTC) medications such as vitamins, minerals, and supplements (VMS), medicines for the common cold and cough, gastrointestinal drugs, and dermatology treatments are anticipated to propel industry growth over the forecast period.
Pharmaceutical Logistics Market Latest Trends
The sensitivity and value of healthcare products demand top-quality transportation service as the lives of patients, doctors, and hospitals depend on it. Pharmaceutical companies are increasingly looking to build partnerships with logistics companies, and not just the engagement of a transportation vendor. They want to have complete trust and confidence that the time and temperature-sensitive shipments are well taken care of. Even when shipments don’t go as planned, customers want to be assured that their transportation partners are flexible and provide for the security of the shipment with countermeasures in place that can be swiftly implemented.
Segmentation :
The Pharmaceutical Logistics Market is segmented
By Product :
- Generic Drugs
- Branded Drugs
By Mode of Operation :
- Cold Chain Transport
- Non-Cold Chain Transport
By Application :
- Bio Pharma
- Chemical Pharma
- Specialized Pharma
By Mode of Transport :
- Air
- Rail
- Road
- Sea
Geography
- North America
- Europe
- APAC
- Latin America
- Rest of the World
The report offers market size and forecasts for the Global Pharmaceutical Logistics Market in value (USD Billion) for all the above segments.
For Detailed Market Segmentation - Download Free Sample PDF
Driver Growth in the Pharmaceutical Sector
Pharmaceutical manufacturers increasingly focus on product quality and sensitivity. Factors such as the development of complex biological-based medicines and shipments of hormone treatments, vaccines, and complex proteins require specific results in need of special transportation and warehousing.
Temperature-controlled logistics of pharmaceutical products and medical devices is a significantly growing part of the healthcare logistics industry. Moreover, the increase in the need for effective cold-chain logistics services to maintain the quality of goods fuels the growth of the pharmaceutical logistics market.
Mounting Demand for Over-the-counter (OTC) Medicines
The growth of the market is also attributed to the increasing demand for Over-the-Counter (OTC) medicines such as Vitamins, Minerals, and Supplements (VMS), common cough and cold drugs, gastrointestinal drugs, and dermatology products. The rising importance of fast-track assistance in the healthcare sector is also driving the market for pharmaceutical logistics. Moreover, decreasing the distribution cost by creating a single source distribution channel further increases the demand for pharmaceutical logistics.
Restraints :
Lack of standardization in pharmaceutical logistics and storage.
Pharmaceutical logistics and storage demand comes from many sources with specific needs. The lack of standards and accreditations poses significant challenges to the pharmaceutical industry where quality and flexibility of available warehousing space is a major concern at present.
Covid-19 Impact on Pharmaceutical Logistics Market.
The outbreak of COVID-19 has resulted in flight cancellations, travel bans, and quarantines, which have massive slowing of the supply chain and logistics activities across the world. Although some industries are struggling due to the pandemic, some are thriving such as healthcare & and pharmaceuticals, e-commerce, and the daily essentials goods industry, which are expected to affect the logistics industry positively during the COVID-19 outbreak globally.
As the B2B logistics industry suffered and came to a halt, B2C emerged during the pandemic, owing to the growth of the online and e-commerce industry. The COVID-19 pandemic had a positive impact on the pharmaceutical logistics market since the demand for pharma products has increased. Moreover, the job of a pharmaceutical logistics company was very crucial during this period for timely delivery of drugs, so that hospitals do not have any shortage. Furthermore, there was a lot of import & and export of drugs and equipment from all across the world, which had to be taken care of by pharmaceutical logistics. In addition, the vaccine distribution for COVID-19 is expected to drive the demand for pharmaceutical logistics and it will take a long time to get fully complete. Thus, COVID-19 has driven the demand for the market than before the pandemic. In addition, there has been increasing demand for healthcare and pharmaceutical supplies such as hospital supplies, gloves, and sanitizers, among others propelling the growth of the pharmaceutical logistics industry during the pandemic.
Segmental Analysis Generic Drugs Segment is Expected to Witness Significant Growth Over the Forecast Period
A generic drug is a medication created to be the same as an already marketed brand-name drug in dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use. The pharmaceutical supply chain involves the process of sourcing raw materials, manufacturing, distributing, and delivering medications to patients. The high usage of generic drugs is creating an increasing supply of raw materials, thereby driving the growth of the studied segment.
Cold Chain Transport Segment is Expected to Witness High Growth Over the Forecast Period.
Cold chain services include temperature-controlled storage, packaging, and distribution facilities at ambient, refrigerated, frozen, ultra-frozen, vapor-phase liquid nitrogen, and liquid-phase liquid nitrogen conditions. The growing usage of pharmaceutical products like spirits, elixirs, tinctures, Ointments, creams, pastes, jellies, and solid pharmaceuticals including pills, tablets, lozenges, and suppositories, the demand for cold chain transport is growing, as these products require temperature-controlled storage area, thereby driving the growth of the studied segment.
BioPharma Segment is Expected to Witness High Growth Over the Forecast Period.
Biopharmaceutical logistics is the logistics of pharmaceuticals, medical and surgical supplies, vaccines, medical devices and equipment, and other products needed to support doctors, nurses, and other health and dental care providers. Furthermore, the recent developments in this segment are expected to contribute to the studied segment growth. For instance, in July 2022, Pharmaceutical freight specialist Tower Cold Chain expanded its global reach and service capabilities in the Asia-Pacific (APAC) region by opening its latest hub in Incheon, South Korea. Through this expansion, Tower’s Incheon service center will support an increased import and export shipment volume in the region, ensuring the availability and proximity of Tower’s range of robust, reliable, reusable temperature-controlled containers to pharmaceutical businesses, airlines, and 3PL providers. Thus, the segment is expected to witness significant growth over the forecast period.
North America Region By Geography is Expected to Witness Significant Growth Over the Forecast Period.
The region is expected to witness significant growth over the forecast period, owing to the high demand for OTC medicines among a huge population and the presence of many key players in the region. For instance, in October 2018, FedEx acquired Manton Air-Sea Pty Ltd., a logistics service provider company. The acquisition helped FedEx to fortify its geographical footprints across the Asia Pacific region. Additionally, in January 2019, FedEx announced the acquisition of International Express Business from Flying Cargo Group in Israel. The acquisition is aimed at strengthening FedEx’s portfolio and regional presence, providing customers with the benefits of the company’s global network. Thus, the region is expected to witness significant growth over the forecast period.
Get Complete Analysis Of The Report - Download Free Sample PDF
Pharmaceutical Logistics Market Competitive Landscape
The market is highly fragmented, with many companies across the globe. Some of the top names in this industry include DHL, DB Group, and FedEx. Furthermore, the companies in the market of pharmaceutical logistics are investing in technologies such as telematics, remote sensing and monitoring, and GPS and GIS integration in transporting cargo, thereby providing customers with safe and convenient pharmaceutical logistics services. Some of the major players working in this market segment are :-
Key Players :
- Deutsche Post DHL
- Kuehne + Nagel
- UPS (Marken)
- DB Group
- FedEx
- Nippon Express
- World Courier
- SF Express
- CEVA Logistics
- Agility DSV
Recent Development
1) November 2022: UPS acquires healthcare logistics provider Bomi Group to expand its temperature-controlled facilities. With this acquisition, the UPS Healthcare network in Europe and Latin America will gain access to temperature-controlled facilities in 14 countries and over 3,000 highly qualified Bomi Group team members.
2) March 2022: Lineage Logistics LLC, the world's largest and most innovative temperature-controlled industrial REIT and logistics solutions, provides acquired MTC Logistics, a leading cold-chain provider in four strategic locations on or near the ports of Baltimore, MD, Wilmington, DE, and Mobile, AL. These facilities will expand Lineage's current footprint, which already includes over 400 strategically positioned facilities with a combined capacity of over 2 billion cubic feet across 19 nations.
Frequently Asked Questions (FAQ) :
Q1. How big is the Pharmaceutical Logistics Market ?
The Pharmaceutical Logistics Market is currently valued at USD 83.5 billion in the year 2022, registering a CAGR of 4.76% over the forecast period 2023-2030.
Q2. What is the Growth Rate of the Pharmaceutical Logistics Market ?
Pharmaceutical Logistics Market is expected to grow at a CAGR of 4.76%.
Q3. What are the factors on which the Pharmaceutical Logistics Market research is based on?
By Product, By Mode of Operation, By Application, By Mode of Transport and Geography are the factors on which the Pharmaceutical Logistics Market research is based.
Q4. What Positive Impact did COVID-19 have on the Pharmaceutical Logistics Market ?
COVID-19 pandemic had a positive impact on the pharmaceutical logistics market since the demand for pharma products has increased.
Study Assumptions and Market Definition
Scope of the Study
RESEARCH METHODOLOGY
EXECUTIVE SUMMARY
MARKET DYNAMICS
Market Overview
Market Drivers
Growth in the Pharmaceutical Sector
Mounting Demand for Over the Counter (OTC) Medicines
Market Restraints
Lack of Standardization in Pharmaceutical Logistics and Storage
Porter's Five Force Analysis
Threat of New Entrants
Bargaining Power of Buyers/Consumers
Bargaining Power of Suppliers
Threat of Substitute Products
Intensity of Competitive Rivalry
MARKET SEGMENTATION (Market Size by Value - USD million)
By Product
Generic Drugs
Branded Drugs
By Mode of Operation
Cold Chain Transport
Non-Cold Chain Transport
By Application
Bio Pharma
Chemical Pharma
Specialized Pharma
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa
GCC
South Africa
Rest of Middle East and Africa
South America
Brazil
Argentina
Rest of South America
COMPETITIVE LANDSCAPE
Company Profiles
Deutsche Post DHL
Kuehne + Nagel
UPS (Marken)
DB Group
FedEx
Nippon Express
World Courier
SF Express
CEVA Logistics
Agility
MARKET OPPORTUNITIES AND FUTURE TRENDS
Data Library Research are conducted by industry experts who offer insight on industry structure, market segmentations technology assessment and competitive landscape (CL), and penetration, as well as on emerging trends. Their analysis is based on primary interviews (~ 80%) and secondary research (~ 20%) as well as years of professional expertise in their respective industries. Adding to this, by analysing historical trends and current market positions, our analysts predict where the market will be headed for the next five years. Furthermore, the varying trends of segment & categories geographically presented are also studied and the estimated based on the primary & secondary research.
In this particular report from the supply side Data Library Research has conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and SOFT) of the companies that active & prominent as well as the midsized organization
FIGURE 1: DLR RESEARH PROCESS
Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and Friend’s study of the Global Extra Neutral Alcohol. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, sec filings, journals, white papers, SOFT presentations, and company web sites.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the Global market and to estimate the size of various other dependent submarkets in the overall Extra Neutral Alcohol. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research.
Forecast Model
