April 24, 2024
Pharmaceutical Logistics Market

Pharmaceutical Logistics Market to Witness High Growth Owing to Increasing Demand for Cold Chain Facilities

The global pharmaceutical logistics market provides transportation and storage of pharmaceutical products ranging from over-the-counter drugs to temperature-sensitive biopharmaceuticals. Effective distribution and storage are crucial for pharmaceutical products as they require time-bound delivery and maintenance of optimum temperature levels for preserving the efficacy as well as ensuring product safety. Pharmaceutical logistics involve cold chain facilities for transporting temperature-sensitive drugs through refrigerated vehicles and insulated packaging. Major players operating sophisticated temperature-controlled facilities, digital tracking, and last-mile deliveries are helping bolster the demand for pharmaceutical logistics.

The Global pharmaceutical logistics market is estimated to be valued at US$ 99.7 billion in 2024 and is expected to exhibit a CAGR of 9.1% over the forecast period from 2024 to 2031.

Growing consumption of pharmaceuticals and biopharmaceuticals along with stringent regulations regarding drug shipment and storage are the key factors augmenting the industry expansion. Key players operating in the global pharmaceutical logistics 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.

Key takeaways:

Key players: Key players operating in The 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.

Key opportunities: Advancements in cold chain facilities, batch-level monitoring systems, and multi-modal transport networks are expected to create lucrative opportunities for pharmaceutical logistics providers. Track-and-trace solutions using blockchain and IoT are also anticipated to open new growth avenues.

Global expansion: Leading players are investing in emerging pharma hubs in Asia, Africa, and Latin America to capitalize on the fast-growing pharma demand in these regions. Acquisitions and partnerships with regional players help global companies expand their reach and service offerings.

Market drivers: Increasing demand for cold chain facilities for temperature-sensitive drugs is a key market driver. The rapid growth of biopharmaceuticals and vaccines globally coupled with stringent regulations regarding drug shipment and storage is expected to fuel the demand for reliable pharmaceutical logistics over the forecast period from 2024 to 2031.

PEST Analysis
Political: The pharmaceutical logistics market is regulated by various global and domestic regulations related to transportation, storage and handling of pharmaceutical products. Changes in regulatory policies impacts the operations and costs of pharmaceutical logistics companies.

Economic: Fluctuations in economy impact spending on healthcare and pharmaceutical products. During economic downturns, healthcare costs are often reduced affecting demand for pharmaceutical logistics services.

Social: An aging global population and rising income levels in emerging markets are contributing to increasing demand for pharmaceuticals. This drives the need for efficient logistics to ensure uninterrupted supply of medicines worldwide.

Technological: Adoption of advanced technologies like IoT, AI, blockchain and automation are helping pharmaceutical logistics companies improve efficiencies, enhance transparency, reduce costs and better track medicines across the supply chain. Cold chain monitoring solutions ensure temperature-sensitive drugs are transported safely.

Geographical region with highest market share

North America holds the largest share of the global pharmaceutical logistics market in terms of value. This can be attributed to the presence of major pharmaceutical companies, stringent regulations regarding drug transportation and storage, and high healthcare spending in the region. The US accounts for the majority of the North American market owing to the world’s largest pharmaceutical industry being located in the country.

Fastest growing regional market

Asia Pacific is expected to be the fastest growing regional market for pharmaceutical logistics during the forecast period. This high growth can be attributed to rising income levels, increasing healthcare infrastructure and growing geriatric population in many Asian countries. Furthermore, expansion of international pharmaceutical firms into emerging Asian economies will drive the need for efficient logistics services to distribute drugs across the large and diverse region. countries like China, India and Japan will be the major revenue generators for pharmaceutical logistics companies in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it