Pharmaceutical logistics refers to the handling and distribution of pharmaceutical drugs and medical devices at various stages from manufacturing to retail. The pharmaceutical industry has seen significant growth in recent years due to increasing demand for medicines globally. However, the supply chain of pharmaceutical products is very complex due to strict temperature control and legal compliance requirements. Effective logistics is crucial for just-in-time delivery of drugs and medical supplies across different countries.
The Global Pharmaceutical Logistics Market is estimated to be valued at US$ 99.7 BN in 2024 and is expected to exhibit a CAGR of 9.1% over the forecast period 2024 to 2031.
Pharmaceutical logistics involve transportation of drugs at regulated temperature conditions using refrigerated vehicles, air freight and cold storage warehousing. Large pharmaceutical companies rely on third party logistics providers for efficient distribution of products on a global scale. Key functions include procurement, inventory management, transport management and order fulfillment. Pharmaceutical logistics require meticulous documentation, temperature monitoring and tracking systems to ensure product safety and quality. Growing globalization of healthcare has increased demand for cross border deliveries of drugs manufactured in different locations. This has boosted the need for robust logistics infrastructure and services.
Key Takeaways
Key players operating in The Global Pharmaceutical Logistics Market are Maersk, United Parcel Service of America, Inc., AWL India Private Limited, DHL Group, Kuehne+Nagel, DB Schenker, CEVA Logistics, SLB Performance, YUSEN LOGISTICS CO., LTD., NextPharma Logistics GmbH, Skandi, Movianto, Continental Carriers, Varuna Group, Sugamgroup, V-Xpress, Avvashya CCI Logistics Private Limited, Agility and Cencora, Inc. The market is highly competitive due to presence of major international logistics companies with global presence and integrated service offerings.
Growing chronic disease burden globally is fueling increasing demand for medicines and medical supplies across regions. Pharmaceutical exports and imports between developing and developed countries is driving the need for cross-border logistics services. Technological advancements like automation, use of RFID tags, track and trace systems and warehouse management software are helping boost efficiency in pharmaceutical supply chain operations.
Market Trends
Growing adoption of temperature-controlled logistics: Strict regulations regarding storage and transport of drugs at mandated temperatures is boosting adoption of active and passive temperature-controlled logistics systems. This includes use of refrigerated vehicles, containers and climate-controlled warehouses.
Digitization of supply chain: Pharma companies are investing in digital technologies like blockchain, IoT sensors and cloud computing solutions to gain real-time visibility and optimize operations. This is improving inventory management and helping meet compliance needs.
Market Opportunities
Cold chain infrastructure expansion: Developing regions lack adequate cold chain storage and distribution infrastructure for pharmaceuticals. This offers opportunities to setup advanced temperature-monitored warehouses and distribution hubs.
Last-mile deliveries: Meeting evolving delivery needs for small volume pharma shipments through on-demand transportation and drone deliveries present growth potential.
Covid-19 Impact on Global Pharmaceutical Logistics Market:
The Covid-19 pandemic has significantly impacted the growth of the global pharmaceutical logistics market. During the initial months of the pandemic in 2020, the supply chain of pharmaceutical products was disrupted significantly as factories and transport halted operations due to lockdowns imposed by various governments across the world. This caused major shortages and delays in the supply of medicines and other medical supplies globally. However, pharmaceutical logistics emerged as an essential service and operations resumed gradually with strict safety protocols.
- Post resumption of operations, the demand for pharmaceutical logistics services skyrocketed, especially for vaccines and other Covid treatment drugs. Distribution networks were put under intense pressure to handle the surge in volumes and tight timelines. Logistic providers responded swiftly by ramping up capacities, reworking networks and improving infrastructure to meet the urgent demands arising due to the pandemic situation. Real-time tracking, temperature-controlled transportation and storage emerged as key focus areas.
- Going forward, the pandemic has highlighted the importance of resilient supply chains and readiness for contingencies in the pharmaceutical sector. Factors like inventory management, dual sourcing, digitization and multi-modal transport capabilities are likely to gain more prominence. International collaborations for equitable vaccine distribution will remain crucial to combat future health crises effectively. While short-term disruptions occurred, Covid-19 has opened up new opportunities for growth and innovation in the pharmaceutical logistics industry in the long run.
Value concentration in North America:
The North American region accounts for the largest share of the global pharmaceutical logistics market in terms of value. Advanced healthcare infrastructure, sizeable pharmaceutical production bases and growing biologics sector contribute to the region's dominance. Major market players such as United Parcel Service of America and FedEx have strong presence and distribution networks across the US and Canada, enabling efficient logistics operations. Moreover, presence of leading biotech and pharmaceutical companies supports outsourcing of logistics activities to third-party specialist providers. These factors have made North America a heavyweight in the global pharmaceutical logistics industry.
Fastest growth in Asia Pacific:
Asia Pacific region is poised to be the fastest growing market for pharmaceutical logistics during the forecast period. Rapid economic development, increasing domestic pharmaceutical production and rising healthcare spending are driving growth. Additionally, growth in the contract manufacturing industry and willingness of global pharmaceutical giants to outsource manufacturing activities to the low-cost nations in Asia pacific create significant opportunities for logistics services. Moreover, the region has large patient population suffering from chronic diseases, necessitating reliable distribution of pharmacy products. Countries like India, China, Japan, South Korea, Taiwan, and Singapore are expected to fuel pharmaceutical logistics expansion across Asia Pacific.
Get More Insights On Global Pharmaceutical Logistics Market
Cold Chain Logistics Market report published by Value Market Research, which studies the future outlook of the market.
It includes the size, share, growth, trends, key players, segments and regional analysis in detail during the study year 2020-2027.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the cold chain logistics market include AmeriCold Logistics, LLC, Lineage Logistics Holdings, LLC, VersaCold Logistics Services, AGRO Merchants Group, LLC, Nichirei Logistics Group Inc., Preferred Freezer Services, Congebec Logistics Inc., Burris Logistics Inc., Conestoga Cold Storage, Tippmann Group.
This section consists of a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Cold Chain Logistics Market Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/cold-chain-logistics-market/download-sampleMarket DynamicsThe global cold chain logistics market is witnessing an uptrend with worldwide trade and supply chains growth.
Growing e-commerce of food and pharmaceuticals products and expanding shipping and import & export of food and drugs & pharmaceuticals products primarily drive the global cold chain logistics market.
The growing need to transport perishable and temperature sensitive products safely over long distances and technological advancement is accelerating demand for cold chain logistics.
