Market Size of Pharmaceutical Logistics Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 531.42 Billion |
| Market Size (2029) | USD 695.53 Billion |
| CAGR (2024 - 2029) | 5.53 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
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?
Pharmaceutical Logistics Market Analysis
The Pharmaceutical Logistics Market size in terms of Equal-5.53 is expected to grow from USD 531.42 billion in 2024 to USD 695.53 billion by 2029, at a CAGR of 5.53% during the forecast period (2024-2029).
- Pharmaceutical manufacturing companies are increasingly turning to third-party providers for packaging and labeling services. Many of these companies are expanding their operations into previously untapped regions like Sub-Saharan Africa and South America. However, they emphasize the importance of partnering with local logistics providers who possess strong expertise in pharmaceuticals. Despite the benefits, there are concerns about potential service quality deterioration and loss of control associated with outsourcing.
- The demand for sea and air freight pharmaceutical logistics is expected to drive industry growth in the coming years. Sea freight, in particular, offers cost savings of up to 80% and reduces staffing needs while also minimizing packaging, storage, and carbon footprint. Air freight logistics are increasingly used for long-distance and intercontinental distribution of valuable vaccines and medicines, further contributing to industry expansion. The market is also witnessing increased demand for over-the-counter (OTC) medications such as vitamins, minerals, supplements (VMS), common cold and cough remedies, gastrointestinal drugs, and dermatology treatments.
- Furthermore, there is a growing need for fast-track assistance in the healthcare sector, which is boosting the pharmaceutical logistics market. The establishment of a single-source distribution channel is seen as a way to reduce distribution costs and enhance efficiency in pharmaceutical logistics.
