Germany Pharmaceutical 3PL Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.01 Billion |
| Market Size (2029) | USD 2.49 Billion |
| CAGR (2024 - 2029) | 4.47 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Germany Pharmaceutical 3PL Market Analysis
The Germany Pharmaceutical 3PL Market size is estimated at USD 2.01 billion in 2024, and is expected to reach USD 2.49 billion by 2029, growing at a CAGR of 4.47% during the forecast period (2024-2029).
- COVID-19 obviously had a positive impact on the market. The German pharmaceutical market's clinic and pharmacy section had grown by over 7% to EUR 49.5 billion in 2020 (USD 55.9 billion). Vaccines and diagnostics are also included in this section. According to an industry report, the amount of counting units, such as tablets, sachets, and injections, decreased slightly (-0.6 %) to 97.5 billion counting units. From March to May 2020, exports of Germany's pharmaceutical industry climbed 14.3% Y-o-Y to EUR 22.1 billion (USD 25.3 billion), according to the Federal Statistical Office (Destatis). This increased the demand for pharmaceutical 3PL services in Germany during the pandemic.
- According to Germany Trade and Invest (GTAI), Germany has the largest pharmaceutical market in Europe and the fourth largest globally. The country is regarded as one of the world's leading pharmaceutical manufacturing locations, and its highly skilled workforce enables pharmaceutical companies to work on more complex and demanding commodities such as biosimilars while maintaining high production quality. Germany remains the second-largest producer of active biopharmaceutical substances approved by the European Union (EU). South Germany's BioPharma Cluster is one of the world's major biopharmaceutical development and production hubs. The cluster is one of the major European production sites for active biopharmaceutical components approved in Europe.
- In 2020, Germany accounted for 4.5% of global pharmaceutical production. Pharmaceutical value-added output is estimated to have grown by 4% in 2022 and is forecasted to grow by more than 2% in 2023, after increasing by 5.2% in 2021. Healthcare growth remained robust in 2022. Covid-19 vaccines have mainly driven demand, while at the same time, producers of cold medicines have recorded lower sales, as physical distancing and mask-wearing reduced the number of related diseases. There is still a backlog of non-Covid related medical treatments and spending on drugs. However, a rebound is underway, and non-Covid related pharmaceuticals output will benefit 2023.
- Mid-and long-term demand for pharmaceuticals will be driven by demographic developments. The progressive aging of Germanys population will require an increase in medical treatments, in particular for chronic diseases. This will mainly benefit producers of specialty products, but also manufacturers of generic drugs. In turn, contributing to 3PL demand. The German healthcare market is highly regulated, and the legislative pressure on pharmaceutical businesses to lower their sales prices of drugs for end-consumers is not overly high. Profit margins of both producers and pharmacies have increased in 2021, which encourages new players to enter the pharma sector. With more players entering the pharma sector in Germany the demand for 3PL services will continue to increase. Seeing the positive outlook of the market, 3PLs from neighboring countries are entering the market through mergers and acquisitions to benefit from the market growth. For example, Geodis expanded its premium express services with the acquisition of Trans-o-Flex, based in Weinheim, Germany. Privately held Trans-o-Flex has around 80 locations in Germany and Austria that are rated with certified good distribution practices (GDPs), and has been serving pharma, cosmetics, automotive, and high-tech industries with time-definite and temperature-controlled delivery. According to Geodis, this acquisition will position Geodis as a leading player in the healthcare market and will significantly enhance its delivery capabilities in Germany, a country at the heart of global trade.
Germany Pharmaceutical 3PL Market Trends
This section covers the major market trends shaping the Germany Pharmaceutical 3PL market according to our research experts:
Incresing Popularity of Online Pharmacies to Support the Market Growth
In recent years, online pharmacies have grown in popularity due to the rising internet penetration and the increasing prevalence of chronic diseases in developing countries. Due to the availability of high-speed internet and the rising awareness of online over-the-counter benefits, Germany is the fastest-growing market in Europe. Online pharmacy is one of Europe's most popular advancements in both emerging and established countries. The Online pharmacy sector benefitted from the COVID-19 pandemic. Customers flocked in droves and began to exhibit a keen interest in online drug transactions. Initiatives taken by the German government in the healthcare sector are also supporting the online pharmacy industry. One of them, the electronic prescription process is intended to save healthcare providers and patients time, effort, and travel in the German healthcare system in the future. It is also intended to increase the safety of drug therapy for patients.
Once the rollout process has been completed nationwide, the obligation to prescribe digitally will then also apply to all healthcare providers across Germany: patients will then receive a prescription code together with intake and dosage instructions displayed in the gematik app after their medical consultation or video consultation. They can choose to show and redeem the prescription code at a pharmacy of their choice or redeem it at an online pharmacy for delivery. apo.com Group is currently the fastest-growing online pharmacy group in Germany. While the online pharmacy market grew by only 1.4% in 2022 during the current crisis and following Corona, the apo.com Group brands grew by over 30%. This enabled the group to increase its market share from 7% to over 11% in 2022. With the increasing popularity of online pharmacies in Germany the 3PL demand for pharmaceuticals will continue to rise.
Biopharmaceuticals to Contribute in Market Expansion
Biopharmaceuticals are drugs whose active ingredients are produced with the help of genetically modified organisms. Biopharmaceuticals can relieve or permanently cure many diseases for which there were previously no or only partially successful treatment options. These include anemia, multiple sclerosis, and rheumatism. In the areas of immunology, metabolism, oncology, and diseases of the central nervous system, new product innovations are constantly being added. Germany is the second-largest producer of European Union (EU) certified active biopharmaceutical substances; Nationwide sales of biopharmaceuticals amounted to around EUR 14.6 billion (USD 15.86 billion) in 2020 out of around EUR 47.5 billion (USD 51.60 billion) in total pharmaceutical sales. In 2020, sales of biopharmaceuticals in Germany increased by around 6% compared to the previous year. In 2021, sales of biopharmaceuticals in Germany increased by around 10.2% compared to the previous year 2020. Nationwide sales of biopharmaceuticals amounted to around EUR 16.1 billion (USD 17.49 billion) in 2021 out of around EUR 51.4 billion (USD 55.84 billion) in total pharmaceutical sales.
The biopharma cluster in South Germany is a leading biotech hub and the global foundation of biopharmaceutical development and production. Nearly half of all EU-certified, active biopharmaceutical ingredients in Germany are produced in the BioPharma Cluster South Germany. The region between the German city of Ulm and Lake Constance is one of the highest-grossing and most important research, development, and production areas of the country's pharmaceutical industry. It has more than 100 biotechnological, pharmaceutical and medical technology companies and research institutions. Biotechnology is becoming a branch of the future, leading the way for the entire pharmaceutical sector. In Germany alone, the number of approved biopharmaceuticals has doubled between 2005 and 2018 to a total of now 311 certified ingredients. This indicates a positive outlook for the biopharmaceuticals sector in Germany. The growth of biopharmaceuticals in Germany will increase the demand for pharmaceutical 3PL services in the country adding to the market growth.
Germany Pharmaceutical 3PL Industry Overview
The German pharmaceutical third-party logistics (3PL) market is competitive in nature. As pharmaceutical logistics requires a high level of specialization, government approvals, cutting-edge technology, a wider network coverage, and a lot of know-how, given the delicacy of the goods transported, the market has a comparatively smaller number of players. The leading players in the market include DHL Logistics, Ceva Logistics, MSK Pharma Logistics, and Biotech and Pharma Logistics. These players offer faster transportation opportunities and warehousing with specialized storage facilities, gaining a competitive advantage. The market is fragmented in nature considering that the major players do not hold most of the market share.
Germany Pharmaceutical 3PL Market Leaders
DHL Logistics
Biotech and Pharma Logistics
Rhenus Logistics
Ceva Logistics
MSK Pharma Logistics
*Disclaimer: Major Players sorted in no particular order
Germany Pharmaceutical 3PL Market News
- May 2022: Germany-based logistics group, GDP Network Solutions, is launching a new single-parcel shipping service in July 2022.This new service will support the pharma and healthcare industries through the timely delivery of temperature-controlled medical and high-value products. Starting in July, GDP's customers will have the opportunity to handle not only the dispatch of pallets but also individual parcels via their network, In March 2020, 10 logistics companies founded GDP Network Solutions which specializes in the pharma and healthcare sector and meets the requirements of the GDP guidelines at every stage of the supply chain.
- August 2022: DHL Supply Chain further expanded its Life Sciences & Healthcare (LSH) Campus in Florstadt near Frankfurt Airport.The new branch adds a third logistics center to the multi-user campus specializing in pharmaceutical and medical products. The new 32,000 sq m center is within walking distance of both the existing warehouse, which DHL has operated since 2015 for a major pharmaceutical company and a second site that opened in January 2018 and serves various customers in the medical and healthcare sector. The multi-user campus simultaneously offers space for various customers requiring efficient logistics in Germany, Europe, or worldwide.
Germany Pharmaceutical 3PL Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Market
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Drivers
4.3 Marrket Restraints
4.4 Market Opportunities
4.5 Industry Supply Chain/Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Government Initiatives and Regulations in the Market
4.8 Pharmaceutical E-commerce Market in Germany
4.9 Technological Trends in the Market
4.10 Spotlight on Packaging of Pharmaceuticals (Global and Regional Trends)
4.11 Impact of COVID-19 on Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By Temperature Control
5.2.1 Controlled/Cold Chain Logistics
5.2.2 Non-controlled/Non-Cold Chain Logistics
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 DHL Logistics
6.2.2 Biotech and Pharma Logistics
6.2.3 Rhenus Logistics
6.2.4 Ceva Logistics
6.2.5 DB Schenker
6.2.6 Pfenning Logistics
6.2.7 FedEx Logistics
6.2.8 MSK Pharma Logistics
6.2.9 Eurotranspharma
6.2.10 Trans-o-flex GmbH*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
Germany Pharmaceutical 3PL Industry Segmentation
The study captures the market value of the German pharmaceutical 3PL market. The report provides a comprehensive background analysis of the German pharmaceutical 3PL market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.
The German Pharmaceutical 3PL Market is segmented by Service (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution), and by Temperature Control (Controlled/Cold Chain Logistics, and Non-controlled/Non-Cold Chain Logistics). The report offers market sizes and forecast in value (USD billion) for all the above segments.
| By Service | |
| Domestic Transportation Management | |
| International Transportation Management | |
| Value-added Warehousing and Distribution |
| By Temperature Control | |
| Controlled/Cold Chain Logistics | |
| Non-controlled/Non-Cold Chain Logistics |
Germany Pharmaceutical 3PL Market Research FAQs
How big is the Germany Pharmaceutical 3PL Market?
The Germany Pharmaceutical 3PL Market size is expected to reach USD 2.01 billion in 2024 and grow at a CAGR of 4.47% to reach USD 2.49 billion by 2029.
What is the current Germany Pharmaceutical 3PL Market size?
In 2024, the Germany Pharmaceutical 3PL Market size is expected to reach USD 2.01 billion.
Who are the key players in Germany Pharmaceutical 3PL Market?
DHL Logistics, Biotech and Pharma Logistics, Rhenus Logistics, Ceva Logistics and MSK Pharma Logistics are the major companies operating in the Germany Pharmaceutical 3PL Market.
What years does this Germany Pharmaceutical 3PL Market cover, and what was the market size in 2023?
In 2023, the Germany Pharmaceutical 3PL Market size was estimated at USD 1.92 billion. The report covers the Germany Pharmaceutical 3PL Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Germany Pharmaceutical 3PL Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Germany Pharmaceutical 3PL Industry Report
Statistics for the 2024 Germany Pharmaceutical 3PL market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany Pharmaceutical 3PL analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
