Bio-Pharma Logistics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 7.50 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
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?
Bio-Pharma Logistics Market Analysis
The size of the Bio-Pharma Logistics Market is USD 82.3 billion in the current year and is anticipated to register a CAGR of over 7.5% during the forecast period.
- With the COVID-19 pandemic, the conventional and over-the-counter (OTC) drug trade increased globally. The expansion in demand for cellular therapies, vaccines, and blood products in the biopharmaceutical industry is driving the growth of the biopharmaceutical logistics market worldwide. Extending cold chain logistics via air transportation is the fastest shipping of pharmaceutical products with negligible product damage. It is highly desired for transporting temperature-sensitive biologic drugs and vaccines.
- With overall revenue growth of roughly 16% in the first quarter of 2022, the biopharma industry continued its thorough recovery from the pandemic. Twelve of the industry's top 23 companies achieved double-digit growth, with the top five all fueled by huge sales of COVID-19 products, each exceeding a 50% revenue increase compared with the first quarter of 2021.
- Improved real-time visibility during all handling, transportation, and delivery segments keeps costs low and reliability high while helping time- and temperature-sensitive biopharmaceuticals to go the distance without incident. Many specialized third-party logistics (3PL) providers in the pharma cold chain can track and transmit data using next-generation solutions, smart-label technology, and other monitoring advances. The data is related to temperature and time, exposure to light, pressure, vibration, humidity, tilt, and the number and duration of every open-door event, and transmit the data via cloud-based platforms. Today, such monitoring systems can be applied to cargo containers, individual pallets, and even individual product packages whenever necessary. Modeling based on real-time and historical data is helping companies to both map out more effective delivery routes and to pivot rapidly when disruptions do arise.
- To meet the demand, UPS Healthcare mapped roughly 500 new trade lanes worldwide in 2021 and scaled dry ice production, using more than 3 million pounds to help safely move the vaccines in 2021.
Bio-Pharma Logistics Market Trends
Temperature-sensitive Pharmaceutical Drugs Sales Driving the Cold Chain Logistics
Worldwide, spending on biopharma cold chain logistics is rising steadily with the increase in sales of temperature-sensitive pharmaceutical drugs. The rising investments in the expansion of the biopharmaceutical industry and the government support for the industry are fuelling the demand. Several medicines are temperature sensitive and need special attention during transportation. Moreover, developing mobile applications that can notify temperature excursions and allow monitoring of the temperature in real time is fuelling growth.
With the launch of its Los Angeles hub, Tower Cold Chain confirms it is on track to double the size of its global network during 2022. Each new hub helps pharmaceutical businesses and airlines access Tower's robust, reliable, and reusable temperature-controlled containers. The latest hub, located 18 miles from LAX International Airport, gives Tower its first location on the West Coast of America, a key region in terms of access across the Pacific and into South America.
According to data from the Medical Logistics Branch of the China Federation of Things, the cold vaccine chain market was about CNY 48.14 billion (USD 7 billion) in 2021, a year-on-year increase of 23.3%. In recent years, the country invested a lot of resources to strengthen the construction of cold vaccine chains and traceability systems nationwide.
As the third-largest pharmaceutical industry, India serves more than half the global demand for pharmaceuticals and vaccines, around 40% of calls for generic medicines in the US, and one-fourth of the total demand for drugs in the UK. The industry is predicted to add an extra 1.5 to 2 lakh pallet capacity for frozen and chilled commodities in the coming years. Although the Indian government permitted 100% FDI in pharma, the parched cold chain sector needs a boost in infrastructure to support the rampant industry growth.
Increase in Sales of Biotech Drugs Driving the Market
Recently, many pharmaceutical industries adopted biotech because of the low cost of biotech products. After the COVID-19 outbreak, infectious diseases are driving the biotech/pharma market, especially the biotech sector. Companies are focused on new drug development so they can be prepared for any unexpected outbreak.
The drug and biotech sector bounced back in the second half of 2022 from a rather weak performance in the first half. An uptick in M&A deals, strong earnings performance, new drug approvals, a favorable regulatory environment, and pipeline successes helped the second-half turnaround. Drug/biotech companies are also likely to see significant advances in innovation in 2023.
India is among the top 12 destinations for biotechnology worldwide. The number of biotech startup registrations surged nationwide in 2021, with around 1,128 new startups registered, the highest in a single year since 2015. Estimates put the total number of biotechnology startups at 5,365 as of 2021. The number of startups is expected to touch 10,000 by 2024. India includes 665 FDA-approved plants in the US, 44% of the global abbreviated new drug applications (ANDA), and more than 1,400 manufacturing plants, which comply with WHO's requirements. The country is also the world's third-largest producer of recombinant Hepatitis B vaccine.
Expanding generic drug competition and declining demand for COVID-19 vaccines and therapies reduced the aggregate market capitalization of the top 20 biopharmaceutical companies by 9.1%. According to an industry report, the total value was USD 3.45 trillion in Q2 2022, dropping to USD 3.14 trillion in Q3 2022.
Bio-Pharma Logistics Industry Overview
The market is highly competitive, with many companies striving to offer services, like cloud-based supply chain solutions and a secured supply chain function, in the sector. The market is expected to grow during the forecast period due to increased demand for temperature-sensitive pharmaceutical drugs, growing bio-pharma in Asia-Pacific, and many other factors driving the market. In addition, the big players are undergoing consolidation that may help them accept modern technologies from small or regional players and expand their global presence. Some major industry players are Deutsche Post DHL, Kuehne + Nagel, DB Schenker FedEx, UPS (Marken), Agility, DSV, and others.
Bio-Pharma Logistics Market Leaders
Deutsche Post DHL Group
Kuehne + Nagel
UPS (Marken)
FedEx
DB Schenker
*Disclaimer: Major Players sorted in no particular order
Bio-Pharma Logistics Market News
June 2022: GXO opens a state-of-the-art warehouse for the pharmaceutical sector. Located in Caleppio di Settala (Milan), the 20,000 sq m facility was equipped with industry-leading technology and environmental systems. Using state-of-the-art, energy-efficient equipment will allow GXO to keep the entire warehouse at a controlled temperature, with different ranges depending on the needs of specific products and activities.
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.
Bio-Pharma Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain/Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Spotlight on the Bio-pharmaceutical Industry
4.7 Insights into Logistics and Distribution Costs
4.8 Insights into Refrigerated Warehouses
4.9 Brief on the Cold Chain Packaging Market
4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Transportation
5.1.2 Warehousing and Distribution
5.1.3 Value Added Services
5.2 By Type of Operation
5.2.1 Cold Chain
5.2.2 Non-cold Chain
5.3 By Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Deutsche Post DHL Group
6.2.2 Kuehne + Nagel
6.2.3 UPS (Marken)
6.2.4 DB Schenker
6.2.5 FedEx
6.2.6 Nippon Express
6.2.7 World Courier
6.2.8 SF Express
6.2.9 DSV
6.2.10 CEVA
6.2.11 Agility
6.2.12 Americold Logistics
6.2.13 Kerry Logistics
6.2.14 CH Robinson
6.2.15 Air Canada Cargo*
- *List Not Exhaustive
6.3 Other Companies (Key Information/Overview)
6.3.1 Lineage Logistics, United States Cold Storage, AGRO Merchants Group LLC, Nichirei Logistics Group Inc., Kloosterboer, NewCold Advanced Cold Logistics, VersaCold Logistics Services, and Cloverleaf Cold Storage Co.*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
8.1 Macroeconomic Indicators
8.2 Export and Import Statistics of Related Pharmaceutical Products
Bio-Pharma Logistics Industry Segmentation
Biopharmaceuticals are complex medicines made from living cells or organisms, often produced using cutting-edge biotechnological methods. Bio-pharma logistics refers to the transportation and storage of these consignments. The report covers a complete assessment of the Bio-Pharma Logistics Market. It includes an assessment of the economy market overview, market size estimation for key segments, and emerging trends in the market segments. The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Bio-Pharma Logistics Market is depicted through the profiles of active key players. The report also covers the impact of COVID-19 on the market and future projections.
The Bio-Pharma Logistics Market is segmented by service (transportation, warehousing and distribution, and value-added services), type of operation (cold chain and non-cold chain), and geography (North America, Europe, Asia Pacific, South America, and Middle-East and Africa). The report offers market sizes and forecasts in value (USD billion) for all the above segments.
| By Service | |
| Transportation | |
| Warehousing and Distribution | |
| Value Added Services |
| By Type of Operation | |
| Cold Chain | |
| Non-cold Chain |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Bio-Pharma Logistics Market Research FAQs
What is the current Bio-Pharma Logistics Market size?
The Bio-Pharma Logistics Market is projected to register a CAGR of greater than 7.5% during the forecast period (2024-2029)
Who are the key players in Bio-Pharma Logistics Market?
Deutsche Post DHL Group, Kuehne + Nagel, UPS (Marken), FedEx and DB Schenker are the major companies operating in the Bio-Pharma Logistics Market.
Which is the fastest growing region in Bio-Pharma Logistics Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Bio-Pharma Logistics Market?
In 2024, the North America accounts for the largest market share in Bio-Pharma Logistics Market.
What years does this Bio-Pharma Logistics Market cover?
The report covers the Bio-Pharma Logistics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Bio-Pharma Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Biopharmaceutical Logistics Industry Report
Statistics for the 2023 Biopharmaceutical Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Biopharmaceutical Logistics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
