Pharmaceutical Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Pharmaceutical Logistics Companies and the market is segmented by Product (Generic Drugs and Branded Drugs), By Mode of Operation (Cold Chain Transport and Non-Cold Chain Transport), By Application (Bio Pharma, Chemical Pharma, and Specialized Pharma), By Mode of Transport (Air, Rail, Road, and Sea) and By Geography (North America, Europe, APAC, Latin America, and Rest of the World). The report offers market size and forecasts for Global Pharmaceutical Logistics Market in value (USD) for all the above segments.

Pharmaceutical Logistics Market Size

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Pharmaceutical Logistics Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 5.53 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Pharmaceutical Logistics Market Analysis

The pharmaceutical logistics market size is expected to grow from USD 503.57 billion in 2023 to USD 659.08 billion by 2028, at a CAGR of 5.53% during the forecast period (2023-2028).

The short-term effect of COVID-19 on the market was crucial for the pharmaceutical logistics sector's high growth rate across the globe.

  • Pharmaceutical manufacturing companies are increasingly outsourcing packaging and labeling activities to third-party providers. Many pharmaceutical companies are expanding their operations in untapped regions, including Sub-Saharan Africa and South America. Further, the preference for local logistics providers with high pharmaceutical expertise is significant to drug manufacturers. However, deteriorating service levels and losing control are significant threats during outsourcing operations.
  • The increasing demand for sea and air freight pharmaceutical logistics is anticipated to propel industry growth over the forecast period. The transportation of pharma products by sea reduces the transportation cost by up to 80% and reduces staffing requirements. Additionally, it conserves the packaging and storage needs while reducing the carbon footprint of logistics operations. The increasing use of air freight logistics for long-distance and intercontinental distribution of valuable vaccines and medicines is expected to fuel the growth of this industry.
  • The 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 is another factor contributing to the market's expansion.
  • The escalating relevance of fast-track assistance in the healthcare industry is also driving the market for pharmaceutical logistics. The need for pharmaceutical logistics has increased by creating a single-source distribution channel that lowers the distribution cost.

Pharmaceutical Logistics Market Trends

Increasing Demand for Cold Chain Logistics in the Sector

The cold chain logistics segment is expected to witness a significant growth rate during the forecast period. This growth is attributable to the rising demand for ambient products, such as the ongoing distribution of COVID-19 vaccines, which requires accurate temperature-control logistics services to maintain the product's efficacy.

Furthermore, the stringent government regulations to maintain accurate temperatures for highly temperature-sensitive pharmaceutical products are expected to boost segment growth through the forecast period.

The growing adoption of telematics in cold chain pharmaceutical logistics is helping companies to enhance the efficiency, connectivity, and safety of transport cargoes. Most biological and medical products require a temperature-controlled environment during manufacturing and distribution, which helps maintain the effectiveness and quality of the medicines. Thus, pharma companies are using temperature-controlled transportation and cold storage systems.

With the remarkable advancements in supply chain management and integration technologies, it is now possible to easily integrate effective cold-chain logistics and transport temperature-controlled or temperature-sensitive goods. Supply chain businesses' growth has been driven by the development of cold chain logistics and has maintained the product's quality while keeping the pharmaceuticals safe to use. The cold chain logistics provided by hard chain firms are paving the way for a promising future in the temperature-controlled logistics sector.

Pharmaceutical Logistics Market  - Biopharma Cold Chain Logistics Spending

On-Demand Delivery Boost Pharmaceutical Logistics Market

Since more online home care providers provide on-demand distribution services, the on-demand healthcare industry is rapidly expanding in response to the advancement of technology. Because of its improved accessibility and practical treatment options, the practice of receiving healthcare services at home became more common throughout the pandemic and is currently growing. In 2022 and Beyond, point-of-care diagnostics, online pharmacy, and remote monitoring are three crucial growth factors. Agility and an on-demand distribution method allow life sciences and pharmaceutical enterprises to scale up or down in response to consumer needs. This kind of service will encourage sharing the individualized healthcare that each client wants. 

Direct-to-patient delivery techniques are becoming common in the pharmaceutical industry for both medication delivery and diagnostics. Moreover, several businesses established subscription plans, making it possible for everyone to receive the appropriate medication at the appropriate time. To assure prompt delivery and order fulfillment, industries also work to introduce direct-to-hospital, direct-to-pharmacy, and B2B eCommerce models. A B2B integration platform with EDI (electronic data exchange) capabilities can help pharma companies realize the full potential of these new models. Businesses can engage with their trade partners at various stages of the supply chain thanks to B2B integration solutions, which help to guarantee reliable distribution recycling.

Pharmaceutical Logistics Market - Countries With the Highest Online Pharmacy Revenue

Pharmaceutical Logistics Industry Overview

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. To maintain their position in the market, pharmaceutical logistics companies are continuously undertaking strategic initiatives such as mergers and acquisitions. 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.

Pharmaceutical Logistics Market Leaders

  1. Deutsche Post DHL

  2. Kuehne + Nagel

  3. UPS (Marken)

  4. DB Group

  5. FedEx

*Disclaimer: Major Players sorted in no particular order

Pharmaceutical Logistics Market Concentration
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Pharmaceutical Logistics Market News

  • October 2023: UPS Healthcare debuts healthcare logistics service in Europe. The logistics service is taking another step in becoming a leader in healthcare and pharmaceutical logistics. UPS Healthcare has announced the launch of UPS Pickup Point locations, a new reverse logistics service for health laboratory customers, across the UK, Germany, Italy, France, and Spain.
  • March 2023: Global law firm Dentons has advised transport and logistics company GEODIS on the acquisition of logistics service provider trans-o-flex, which specializes in the temperature-controlled transport of pharmaceutical and high-tech products. GEODIS intends to further develop its integrated freight network in Germany with the acquisition.

Pharmaceutical Logistics Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Key Deliverables of the Study

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. MARKET INSIGHTS AND DYNAMICS

    1. 3.1 Current Market Scenario

    2. 3.2 Government Initiatives and Regulatory Aspects

    3. 3.3 Technological Trends in the Industry

    4. 3.4 Market Dynamics

      1. 3.4.1 Drivers

      2. 3.4.2 Restraints

      3. 3.4.3 Opportunities

    5. 3.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 3.5.1 Bargaining Power of Suppliers

      2. 3.5.2 Bargaining Power of Consumers/Buyers

      3. 3.5.3 Threat of New Entrants

      4. 3.5.4 Threat of Substitute Products

      5. 3.5.5 Intensity of Competitive Rivalry

    6. 3.6 Value Chain / Supply Chain Analysis

    7. 3.7 Impact of COVID-19 on the Market

  4. 4. MARKET SEGMENTATION

    1. 4.1 By Product

      1. 4.1.1 Generic Drugs

      2. 4.1.2 Branded Drugs

    2. 4.2 By Mode of Operation

      1. 4.2.1 Cold Chain Transport

      2. 4.2.2 Non-Cold Chain Transport

    3. 4.3 By Application

      1. 4.3.1 Bio Pharma

      2. 4.3.2 Chemical Pharma

      3. 4.3.3 Specialized Pharma

    4. 4.4 By Mode of Transport

      1. 4.4.1 Air Shipping

      2. 4.4.2 Rail Shipping

      3. 4.4.3 Road Shipping

      4. 4.4.4 Sea Shipping

    5. 4.5 Geography

      1. 4.5.1 North America

        1. 4.5.1.1 United States

        2. 4.5.1.2 Canada

      2. 4.5.2 Europe

        1. 4.5.2.1 United Kingdom

        2. 4.5.2.2 Germany

        3. 4.5.2.3 France

        4. 4.5.2.4 Italy

        5. 4.5.2.5 Rest of Europe

      3. 4.5.3 Asia-Pacific

        1. 4.5.3.1 China

        2. 4.5.3.2 India

        3. 4.5.3.3 Japan

        4. 4.5.3.4 South Korea

        5. 4.5.3.5 Rest of Asia-Pacific

      4. 4.5.4 Latin America

        1. 4.5.4.1 Brazil

        2. 4.5.4.2 Argentina

        3. 4.5.4.3 Rest of Latin America

      5. 4.5.5 Rest of the World

  5. 5. COMPETITIVE LANDSCAPE

    1. 5.1 Overview (Market Concentration and Major Players)

    2. 5.2 Company Profiles

      1. 5.2.1 Deutsche Post DHL

      2. 5.2.2 Kuehne + Nagel

      3. 5.2.3 UPS (Marken)

      4. 5.2.4 DB Group

      5. 5.2.5 FedEx

      6. 5.2.6 Nippon Express

      7. 5.2.7 World Courier

      8. 5.2.8 SF Express

      9. 5.2.9 CEVA Logistics

      10. 5.2.10 Agility

      11. 5.2.11 DSV

      12. 5.2.12 Kerry Logistics

      13. 5.2.13 C.H. Robinson

      14. 5.2.14 Air Canada Cargo

      15. 5.2.15 Lineage Logistics

      16. 5.2.16 United States Cold Storage

      17. 5.2.17 Americold Logistics, LLC

      18. 5.2.18 Nichirei Logistics Group, Inc.

      19. 5.2.19 Kloosterboer

      20. 5.2.20 NewCold Advanced Cold Logistics

      21. 5.2.21 VersaCold Logistics Services

      22. 5.2.22 Cloverleaf Cold Storage Co.*

    3. *List Not Exhaustive
  6. 6. MARKET OPPORTUNITIES AND FUTURE OF THE MARKET

  7. 7. APPENDIX

  8. 8. DISCLAIMER

**Subject to Availability
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Pharmaceutical Logistics Industry Segmentation

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.

A complete background analysis of the Global Pharmaceutical Logistics Market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for critical segments, emerging trends in the market segments, market dynamics, and the impact of COVID-19 is covered in the report.

Global Pharmaceutical Logistics Market is segmented by product (generic drugs and branded drugs), by mode of operation (cold chain transport and non-cold chain transport), by application (bio pharma, chemical pharma, and specialized pharma), by mode of transport (air, rail, road, and sea) and by geography (North America, Europe, APAC, Latin America, And Rest of the World). The report offers market size and forecasts for Pharmaceutical Logistics Market in value (USD) for all the above segments.

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 Shipping
Rail Shipping
Road Shipping
Sea Shipping
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Rest of the World
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Pharmaceutical Logistics Market Research Faqs

The Pharmaceutical Logistics Market is projected to register a CAGR of 5.53% during the forecast period (2024-2029)

Deutsche Post DHL, Kuehne + Nagel, UPS (Marken), DB Group and FedEx are the major companies operating in the Pharmaceutical Logistics Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Pharmaceutical Logistics Market.

The report covers the Pharmaceutical Logistics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Pharmaceutical Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Pharmaceutical Logistics Industry Report

Statistics for the 2024 Pharma Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Pharma 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.

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Pharmaceutical Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)