|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Global Pharmaceutical Logistics market size is expected to show an annual growth rate of approximately 5% during the forecast period 2022-2027.
The short-term effect of COVID-19 on the market is a crucial factor for pharmaceutical logistics' speedy development across the globe. In the midst of the pandemic, governments all throughout the world are emphasizing healthcare facilities and ample medicinal supply for patients. Accordingly, the exchange of regular medications is expanding from one country to another. Also, the United States Food and Drug Administration (FDA) has endorsed Emergency Use Authorization for hydroxychloroquine, which is to be utilized by authorized medical care suppliers to treat adolescents and grown-ups hospitalized with COVID-19 who gauge in excess of 50 kg.
The pharmaceutical manufacturing companies are increasingly outsourcing packaging and labeling activities from third-party providers. Many pharmaceutical companies are expanding their operations in untapped regions, including Sub-Saharan Africa and South America. Herein, the preference for local logistics providers with high expertise in pharmaceuticals is of great importance to drug manufacturers. However, the deteriorating service levels and loss of control are significant threats that are faced in 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 brings down the 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 further.
Scope of the Report
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 above all, strong cooperation among the cold chain partners. 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 key 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 mode of transport (Air, Trucking, Ocean), By type of operation (Cold Chain, Non-Cold Chain), by Geography (North America, Europe, APAC, Latin America, and Rest of the World), by Drug Supply stage (Outsourced, In-House). The report offers market size and forecasts for Global Pharmaceutical Logistics Market in value (USD Billion) for all the above segments.
|By Mode of Transport|
|By Type of Operation|
|Rest of the World|
|By Drug Supply stage|
Key Market Trends
Non cold chain product sales exceed cold chain products in Pharmaceutical industry globally
The non-cold chain logistics segment dominated the market and accounted for the largest revenue of 75 USD billion in 2021. The segment is expected to have a considerable share in the next seven years owing to the increasing demand for non-cold chain pharma medicines and other products. The cold chain logistics segment is expected to witness a significant growth rate from 2022 to 2027. This growth is attributable to the rising demand for temperature-controlled products, such as the ongoing distribution of COVID-19 vaccines, which require accurate temperature control logistics services in order to maintain the products’ efficacy.
Furthermore, the stringent government regulations to maintain accurate temperature for highly temperature-sensitive pharmaceutical products are expected to boost segment growth over 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 the stage of manufacturing and distribution, which helps in maintaining the effectiveness and quality of the medicines. Thus, pharma companies are using temperature-controlled transportation and cold storage systems.
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US is the largest exporter of Pharmaceutical products by air transport
North America is the largest single pharma market region-wise, with Unites States contributing USD 555 billion in 2021. However, while mature markets like the US and Europe are saturated with growth mainly depending on new products and services, emerging markets such as Latin America, Asia, and Africa, still offer a high potential for growth with existing portfolios. They are therefore closely monitored by pharma companies.
Despite these promising developments, pharma distribution is still a major challenge, involving diverse region-specific market risks and issues. United States market faces high pricing of pharmaceuticals due to missing governmental price controls and limited access to lower-priced medicine from abroad. Regions such as Latin America, Africa, and Russia still struggle with geopolitical risks, corruption, and illicit medicine. The African continent, moreover, must cope with security issues, unstable political situations, and approx. 30% of counterfeit products. Although these challenges are rather obvious, they indicate that a detailed analysis is inevitable for pharmaceutical companies before entering those markets.
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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, the pharma companies are continuously undertaking strategic initiatives such as mergers and acquisitions. Furthermore, the companies in the market for pharmaceutical logistics are investing in technologies such as telematics, remote sensing and monitoring, and GPS and GIS integration in transport cargo, thereby providing the customers with safe and convenient pharmaceutical logistics services.
March 2022: Lineage Logistics LLC, the world’s largest and most innovative temperature-controlled industrial REIT and logistics solutions provider, has announced that it has acquired MTC Logistics, a leading cold-chain provider with four strategic locations on or near the ports of Baltimore, MD, Wilmington, DE and Mobile, AL. The financial terms of the transactions were not disclosed.
July 2021: QuickSTAT, a subsidiary of Kuehne+Nagel, has opened a new control tower and conditioning facility in Singapore. The investment is part of Kuehne+Nagel and QuickSTAT’s pharma and healthcare strategy to further expand their logistics capabilities to serve customers across the Asia-Pacific.
Table of Contents
1.1 Scope of the Study
1.2 Key Deliverables of the Study
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Government Initiatives and Regulatory Aspects
4.3 Technological Trends in the Industry
4.4 Market Dynamics
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers/Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Value Chain/ Supply Chain Analysis
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Mode of Transport
5.2 By Type of Operation
5.2.1 Cold chain
5.2.2 Non-cold chain
5.3.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.3.4 Latin America
188.8.131.52 Rest of Latin America
5.3.5 Rest of the World
5.4 By Drug Supply stage
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Deutsche Post DHL
6.2.2 Kuehne + Nagel
6.2.3 UPS (Marken)
6.2.4 DB Group
6.2.6 Nippon Express
6.2.7 World Courier
6.2.8 SF Express
6.2.13 Kerry Logistics
6.2.14 CH Robinson
6.2.15 Air Canada Cargo
6.2.16 Americold Logistics
6.2.17 Lineage Logistics
6.2.18 United States Cold Storage
6.2.19 AGRO Merchants Group, LLC
6.2.20 Nichirei Logistics Group, Inc.
6.2.22 NewCold Advanced Cold Logistics
6.2.23 VersaCold Logistics Services
6.2.24 Cloverleaf Cold Storage Co.*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Global Pharmaceutical Logistics Market market is studied from 2018 - 2027.
What is the growth rate of Global Pharmaceutical Logistics Market?
The Global Pharmaceutical Logistics Market is growing at a CAGR of >5% over the next 5 years.
Which region has highest growth rate in Global Pharmaceutical Logistics Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Pharmaceutical Logistics Market?
North America holds highest share in 2021.
Who are the key players in Global Pharmaceutical Logistics Market?
Deutsche Post DHL, Kuehne + Nagel, UPS (Marken), DB Group, FedEx are the major companies operating in Global Pharmaceutical Logistics Market.