Europe Pharmaceutical Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe Pharmaceutical Logistics Market is Segmented by Product (Generic Drugs and Branded Drugs), Mode of Operation (Cold Chain Transport and Non-cold Chain Transport), Application (Biopharma and Chemical Pharma), Mode of Transport (Air Shipping, Rail Shipping, Road Shipping, Sea Shipping), and Geography (Germany, UK, Netherlands, France, Italy, Spain, Poland, Belgium, Sweden, and Rest of Europe).

Market Snapshot

Europe Pharmaceutical Logistics Market Summary
Study Period: 2018-2027
Base Year: 2021
CAGR: >4 %
Europe Pharmaceutical Logistics Market Major Players

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Market Overview

The European pharmaceutical logistics market is expected to record a CAGR of more than 4% during the forecast period. Increasing demand for cellular therapies, vaccines, and blood products in the pharmaceutical industry is driving the growth of the European pharmaceutical logistics market. The demand for pharmaceutical logistics in Europe is mainly being driven by the increase in demand for drugs and vaccines, fueled by the COVID-19 pandemic and increasing investments by leading pharmaceutical firms.

Owing to the COVID-19 pandemic, the trade of conventional and over-the-counter (OTC) drugs increased in Europe. Enhancement in the production rate of biologics, hormone medications, vaccines, complex proteins, and temperature-specific byproducts requiring cold chain shipment also witnessed significant growth in the European pharmaceutical logistics market. There is a strong and competitive pharmaceutical industry in Europe. Together with other public and private actors, it serves public health and acts as a driver of job creation, trade, and science.

The pharmaceutical sector requires logistics for complete management of acquiring, storing, and moving its resources to end users as per their needs. The European Association for Logistics and Transportation in Healthcare (EALTH) is an association that aims to achieve the same in Europe. Europe is the largest regional market for pharmaceutical logistics. The significant growth in pharmaceutical products’ trade across key European countries is responsible for the region's high market share. The growing importance of fast-track assistance in the healthcare sector is a key driver of pharmaceutical logistics.

Scope of the Report

Pharmaceutical logistics involves the processes and activities of procurement, warehousing, inventory management, and transporting products while maintaining stability in medicine quality during inventory management and delivery. The report provides a comprehensive background analysis of the European pharmaceutical logistics market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry’s competitive landscape. Additionally, the COVID-19 pandemic’s impact has been incorporated and considered in the study.

The European pharmaceutical logistics market is segmented by product (generic drugs and branded drugs), mode of operation (cold chain transport and non-cold chain transport), application (biopharma and chemical pharma), mode of transport (air shipping, rail shipping, road shipping, sea shipping), and geography (Germany, UK, Netherlands, France, Italy, Spain, Poland, Belgium, Sweden, and Rest of Europe).

By Product
Generic Drugs
Branded Drugs
By Mode of Operation
Cold Chain Transport
Non-cold Chain Transport
By Application
Biopharma
Chemical Pharma
By Mode of Transport
Air Shipping
Rail Shipping
Road Shipping
Sea Shipping
By Geography
Germany
UK
Netherlands
France
Italy
Spain
Poland
Belgium
Sweden
Rest of Europe

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Key Market Trends

Growing European Pharmaceutical Industry

Europe is the center of the pharmaceutical industry. Many of Europe’s drug manufacturers are organized within the European Federation of Pharmaceutical Industries and Association (EFPIA). Currently, it includes 36 national pharma associations and 39 of the leading pharmaceutical companies in Europe. In 2020, it was estimated that EFPIA members generated about EUR 310 billion in production value. Additionally, the trade balance was a positive EUR 155 billion, underlining the continent’s role as a major exporter of pharmaceutical goods. Increasing population and chronic diseases are propelling the pharmaceutical logistics market’s growth. Western Europe is home to more than 33% of the global manufacturing facilities.

The development of complex biological-based medicines and shipment of hormone treatments, vaccines, and complex proteins that require cold chain refinements result in a need for temperature-controlled transportation and warehousing. In addition, an increase in the need for effective cold chain logistics services to maintain the quality of goods fuels the market’s growth. In June 2020, the European Commission (EC) launched for public input its proposed pharmaceutical strategy to ensure Europe's supply of safe and affordable medicines to meet patients' needs and support the European pharmaceutical industry in remaining an innovator and world leader.

Europe Pharmaceutical Logistics Market - Projected global pharmaceutical market growth between 2021 and 2025 - in (%), by region

Increase in Pharmaceutical Exports from Germany

With over 40 countries, Europe boasts of one of the most diverse logistics sectors globally, with goods transported within and around 45 land borders by air, road, sea, and rail. The logistics sector in Europe is dominated by Germany, the UK, and France. In terms of sea freight, European ports represent vital parts of global supply chains, with ports such as Hamburg, Rotterdam, and Antwerp handling roughly between 118 and 450 million ton of cargo each year.

Germany was the leading pharmaceutical market in Europe, with total revenue of over EUR 42.5 billion in 2020. France and Italy followed with revenues of EUR 31.7 billion and EUR 28 billion, respectively. Spain and Poland rounded off the top five largest EU markets. When the German pharmaceutical market’s revenue is broken down, prescription drugs account for the majority of the revenue. Prescription medication accounted for approximately EUR 32 billion in revenue in 2020. Over a fifteen-year period, the value of pharmaceutical exports from Germany has skyrocketed. The leading destination for these exports is the US, with an export value of over EUR 16 billion, followed by the Netherlands, with a value of over EUR 8 billion.

Europe Pharmaceutical Logistics Market - Pharmacy market revenue in Germany in 2020, by drug category (in EUR million)

Competitive Landscape

The European pharmaceutical logistics market is highly competitive and fragmented. The European region has the presence of both regional and international market players. Companies in the industry are focusing on decreasing their distribution cost by creating a single source distribution channel, thus driving the growth of pharmaceutical logistics. Several companies are engaging in mergers and acquisitions to expand their geographical presence and proprietary knowledge. The competition in the pharma logistics sector is escalating, and service providers are seeking an edge by continuously adapting to the changing marketplace.

With pharmaceutical sales increasing worldwide, the demand for pharmaceutical logistics service providers has also increased in line with increasing sales. The opportunity for logistics service providers is likely to grow rapidly over the coming years. Some of the existing major players in the market include DHL Supply Chain, FedEx, Kuehne + Nagel International AG, United Parcel Service, and CH Robinson. Some of the major domestic players include Eurotranspharma, Centre Specialites Pharmaceutiques, PostNL Pharma & Care, and Trans-o-Flex Schnell-Lieferdienst GmbH.

Recent Developments

In November 2021, Eurotranspharma, a logistics and supply chain company in Europe, acquired Mitters SRO, a carrier and long-time partner of Walden Group. Eurotranspharma is continuing its expansion and development strategy by capitalizing on local expertise and adhering to local healthcare market standards.

In January 2022, logistics and supply chain company DHL Supply Chain announced the addition of 13 new Volvo FH Liquefied Natural Gas (LNG) tractor units to its fleet as part of its GoGreen plan and commitment to finding innovative solutions to reduce its environmental impact.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Pharmaceutical Value Chain/Supply Chain Analysis

    3. 4.3 Technological Trends

    4. 4.4 Investment Scenarios

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Insights into 3PL market in Europe (Market Size and Forecast)

    7. 4.7 Impact of COVID-19 on Pharmaceutical Logistics Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitutes

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product

      1. 6.1.1 Generic Drugs

      2. 6.1.2 Branded Drugs

    2. 6.2 By Mode of Operation

      1. 6.2.1 Cold Chain Transport

      2. 6.2.2 Non-cold Chain Transport

    3. 6.3 By Application

      1. 6.3.1 Biopharma

      2. 6.3.2 Chemical Pharma

    4. 6.4 By Mode of Transport

      1. 6.4.1 Air Shipping

      2. 6.4.2 Rail Shipping

      3. 6.4.3 Road Shipping

      4. 6.4.4 Sea Shipping

    5. 6.5 By Geography

      1. 6.5.1 Germany

      2. 6.5.2 UK

      3. 6.5.3 Netherlands

      4. 6.5.4 France

      5. 6.5.5 Italy

      6. 6.5.6 Spain

      7. 6.5.7 Poland

      8. 6.5.8 Belgium

      9. 6.5.9 Sweden

      10. 6.5.10 Rest of Europe

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Market Concentration Overview

    2. 7.2 Company Profiles

      1. 7.2.1 DHL Supply Chain

      2. 7.2.2 FedEx

      3. 7.2.3 Kuehne + Nagel International AG

      4. 7.2.4 United Parcel Service Inc.

      5. 7.2.5 CH Robinson Worldwide Inc.

      6. 7.2.6 CEVA Logistics

      7. 7.2.7 DB Schenker

      8. 7.2.8 Agility Logistics

      9. 7.2.9 Eurotranspharma

      10. 7.2.10 CSP

      11. 7.2.11 Trans-o-flex GmbH

      12. 7.2.12 PostNL Pharma & Care

      13. 7.2.13 Astra Logistic Ltd*

    3. *List Not Exhaustive
    4. 7.3 Other Companies

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. DISCLAIMER

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Frequently Asked Questions

The Europe Pharmaceutical Logistics Market market is studied from 2018 - 2027.

The Europe Pharmaceutical Logistics Market is growing at a CAGR of >4% over the next 5 years.

DHL, FedEx, Kuehne + Nagel International AG, United Parcel Service, C. H. Robinson are the major companies operating in Europe Pharmaceutical Logistics Market.

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