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.

Pharmaceutical Logistics Market

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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.

Pharmaceutical Logistics Market Seg

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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.

Pharmaceutical Logistics Market Table

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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.

INTRODUCTION
    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
                                                                                                                                          Research Process

                                                                                                                                          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

                                                                                                                                          research-methodology1

                                                                                                                                          Primary Research

                                                                                                                                          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 Research

                                                                                                                                          Secondary 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 Estimation

                                                                                                                                          Both, 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

                                                                                                                                          research-methodology2

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