Pharmaceutical Logistics Market Research Report 2024
Pharmaceutical Logistics Market Global Industry Analysis and Forecast (2024-2032) By Product (Generic Drugs, Branded Drugs), Mode of Operation (Cold Chain Transport, Non-Cold Chain Transport), Mode of Transport (Air, Rail, Road, Sea), Service (Transportation, Storage, Monitoring), Application (Bio Pharma, Chemical Pharma, Specialized Pharma), And Region
Pharmaceutical Logistics Market Synopsis
Pharmaceutical Logistics Market Size Was Valued at USD 91.82 Billion in 2023 and is Projected to Reach USD 189.76 Billion by 2032, Growing at a CAGR of 8.4% From 2024-2032.
Pharmaceutical logistics refers to organizing, executing, and overseeing the effective movement and storage of medications and healthcare items from production to consumption, which gives a guarantee until the products are delivered to the consumer in optimal condition.Pharmaceutical logistics, plays a vital role in saving lives and improving patient outcomes by ensuring the timely and secure delivery of pharmaceutical products. Efficient inventory and cold chain management effectively cut down on product waste, leading to lower costs and less environmental impact.Pharmaceutical logistics Improved visibility of the supply chain allows manufacturers, distributors, and healthcare providers to make informed decisions and address any disruptions promptly. Enhanced productivity in pharmaceutical logistics enhances transportation routes, diminishes transit durations, and simplifies distribution procedures, resulting in improved efficiency and reduced costs.
Pharmaceutical logistics firms are required to follow stringent regulations to guarantee that products are managed, stored, and shipped by applicable laws and standards. Pharmaceutical logistics is important in aiding clinical trials by guaranteeing the safe and punctual delivery of investigational products to trialPharmaceutical logistics firms play a major role during natural disasters and humanitarian crises by guaranteeing the swift delivery of necessary medication to impacted regions. Economic growth is fueled by the pharmaceutical logistics sector, which plays a key role in creating jobs, driving economic expansion, and aiding the growth of local communities.Pharmaceutical logistics are used in Cold Chain Management including transporting temperature-sensitive items like vaccines, biologics, and specific medications.
Top Active Players Involved Are:
“DHL Supply Chain (Germany), UPS Healthcare (United States), Kuehne + Nagel (Switzerland), DB Schenker (Germany), FedEx Express (United States), SF Express (China), Nippon Express (Japan), Agility Logistics (Kuwait), CEVA Logistics (France), Panalpina (Switzerland), DSV Panalpina (Denmark), XPO Logistics (United States), Yusen Logistics (Japan), Geodis (France), Sinotrans (China), Bolloré Logistics (France), Hellmann Worldwide Logistics (Germany), Expeditors International (United States), DACHSER (Germany), CJ Logistics (South Korea), Kerry Logistics (Hong Kong), GEFCO (France), C.H. Robinson (United States), DB Cargo (Germany), Logwin (Luxembourg) and Other Active Players. and Other Active Players.”
Pharmaceutical Logistics Market Trend Analysis
Increase in Demand for Temperature-Sensitive Pharmaceutical Drugs
- The Rising need for temperature-sensitive pharmaceutical medications is a key factor in the pharmaceutical logistics industry. The increasing need for specialized medications sensitive to temperature fluctuations is linked to the increasing occurrence of chronic diseases like cancer, diabetes, and autoimmune disorders. It is necessary to store and transport temperature-sensitive drugs like biologics, vaccines, and certain medications within a specific temperature range to ensure their effectiveness.
- The increase in the need for these medications has caused a higher demand for specific shipping services to maintain the quality of the products during the entire distribution process. Providers of pharmaceutical logistics need to make investments in infrastructure that is capable of controlling temperatures, such as refrigerated warehouses, transportation for cold chain products, and monitoring systems.
- The growth of heat-sensitive medications like gene therapies and personalized medicines is projected to increase the need for specific pharmaceutical shipping services. The successful delivery of these groundbreaking treatments to patients often centers on the precise temperature control required, highlighting the importance of logistics in the process.
- Pharmaceutical logistics companies are adjusting to cater to the specific requirements of temperature-sensitive pharmaceutical drugs, investing in technologies, and enhancing their proficiency in cold chain management to guarantee the secure and effective transportation of these crucial products. Hence, in this way Increase in Demand for Temperature-Sensitive Pharmaceutical Drugs acts as a Driver in the Pharmaceutical Logistics Market.
Opportunity
Rise in Pharmaceutical Research and Development Innovation
- The increase in innovation in pharmaceutical research and development offers a substantial opportunity in the pharmaceutical logistics industry. Pharmaceutical companies are investing in advanced research and development, leading to the creation of novel treatments that necessitate specialized logistics and transportation.
- Advanced logistic solutions are necessary due to the specific handling and storage needs of innovative treatments like personalized medicines, gene therapies, and biologics. Pharmaceutical logistics companies can adjust to evolving demands and provide personalized solutions.
- The rise in pharmaceutical research and development is also leading to a rise in clinical trials, which demands the transportation of important materials like biological samples and experimental drugs. Pharmaceutical logistics companies that provide secure, temperature-controlled, and trackable transportation services.
- The increasing focus on research and development is leading to the advancement of innovative pharmaceutical manufacturing technologies like continuous manufacturing and 3D printing, necessitating logistics providers to adjust their supply chain approaches. Pharmaceutical logistics companies can keep up with technological advancements and provide adaptable logistics solutions. Hence in this way, the Rise in Pharmaceutical Research and Development Innovation acts as an opportunity in the Pharmaceutical Logistics Market.
Pharmaceutical Logistics Market Segment Analysis:
Pharmaceutical Logistics market is segmented based on Product, Mode of Operation, Mode of Transport, Service, and Application.
By Mode of Transport, the Cold Chain Transport Segment Is Expected to Dominate the Market During the Forecast Period
- The pharmaceutical logistics market is anticipated to be led by the cold chain transport sector in terms of mode of transport, as a result of the rising need for temperature-controlled pharmaceutical products. Products like vaccines, biologics, and specific medications need to be kept at a constant refrigerated or frozen temperature during transportation to preserve their effectiveness and stability.
- Cold chain transport guarantees the safety and effectiveness of temperature-sensitive products by maintaining a controlled environment, crucial for their integrity. Pharmaceutical companies are making significant investments in cold chain logistics to make sure their products are transported with adherence to stringent temperature control standards.
- The expansion of the biopharmaceutical sector, which depends largely on cold-chain logistics, is increasing the need for cold-chain transportation services. The rise in temperature-controlled packaging, refrigerated vehicles, and advanced monitoring systems is also adding to the prevalence of cold chain transport in the pharmaceutical logistics industry.
- The Regulatory bodies are implementing more stringent regulations for the shipping of pharmaceutical items, resulting in a heightened emphasis on cold chain logistics. Pharmaceutical companies seek logistics providers that can provide dependable, safe, and temperature-controlled transportation services to ensure adherence to regulations. Hence, in this way By Mode of Transport, the Cold Chain Transport Segment Is Expected to Dominate the Pharmaceutical Market.
By Application, Chemical Pharma Segment Held the Largest Share In 2023
- The Pharmaceutical logistics market is mainly controlled by the chemical pharma sector because of the intricate and delicate characteristics of pharmaceutical goods. These items need specific care, storage, and transportation to keep their strength and effectiveness. The sector of chemical pharmaceuticals requires careful handling and meticulous attention to detail during the transportation of APIs, intermediates, and finished products.
- Pharmaceutical firms contract out their logistics tasks to specialized third-party logistics (3PL) providers that possess the necessary knowledge and resources to manage these delicate products. These third-party logistics (3PL) companies dedicate significant resources to temperature-controlled warehouses, refrigerated vehicles, and advanced tracking systems to maintain the quality of products across the entire supply chain.
- The chemical-pharmaceutical sector is subject to extensive regulations, requiring logistics providers to adhere to strict guidelines like Good Manufacturing Practices (GMP) and Good Distribution Practices (GDP) to maintain product quality and safety. This level of investment in staff training, equipment, and facilities is necessary due to the high value and volume of pharmaceutical products being transported.
- The chemical pharma industry is known for its high degree of customization, as numerous pharmaceutical companies need personalized logistics solutions that cater to their unique products and supply chain requirements. Logistics providers need to be highly flexible and adaptable to quickly respond to fluctuations in demand and disruptions in the supply chain. Hence in this way, By Application, the Chemical Pharma Segment Held the Largest in the Pharmaceutical Logistics Market.
Pharmaceutical Logistics Market Regional Insights:
Asia Pacific is Expected to Dominate the Market Over the Forecast Period
- The pharmaceutical logistics market in the Asia Pacific region is set to lead due to the fast growth of the pharmaceutical industry, fueled by rising healthcare spending, growing medicine demand, and increased investments in research and development. The area is where you can find some of the most densely populated countries in the world, such as China and India, with a rising number of patients and improving healthcare accessibility.
- The pharmaceutical industry has a wide and varied market in the Asia Pacific region, with each country having distinct regulations and logistical hurdles to overcome. As a consequence, pharmaceutical companies are setting up factories and supply chains in the area, creating a need for logistics services capable of managing the intricacies of pharmaceutical transportation.
- The increasing middle class in the area is creating a need for top-notch pharmaceutical products that are sensitive to temperature, necessitating specialized logistics services to preserve their effectiveness. The area's logistics infrastructure is quickly advancing, with investments in airports, seaports, and transportation networks, which makes it an appealing choice for pharmaceutical companies to set up their logistics operations.
- The pharmaceutical sector in the area is in the process of being more outsourced as companies aim to lower expenses and enhance effectiveness through collaborations with contract manufacturers and logistics providers. This movement is increasing the need for pharmaceutical logistics services that are specialized and capable of managing the intricacies of pharmaceutical transportation and storage. Hence, in this way, Asia Pacific is Expected to Dominate the Pharmaceutical Market.
Pharmaceutical Logistics Market Active Players
- DHL Supply Chain (Germany)
- UPS Healthcare (United States)
- Kuehne + Nagel (Switzerland)
- DB Schenker (Germany)
- FEDEX Express (United States)
- SF Express (China)
- Nippon Express (Japan)
- Agility Logistics (Kuwait)
- CEVA Logistics (France)
- Panalpina (Switzerland)
- DSV Panalpina (Denmark)
- XPO Logistics (United States)
- Yusen Logistics (Japan)
- Geodis (France)
- Sinotrans (China)
- Bolloré Logistics (France)
- Hellmann Worldwide Logistics (Germany)
- Expeditors International (United States)
- Dachser (Germany)
- CJ Logistics (South Korea)
- Kerry Logistics (Hong Kong)
- GEFCO (France)
- H. Robinson (United States)
- DB Cargo (Germany)
- Logwin (Luxembourg) and Other Active Players
Key Industry Developments in the Pharmaceutical Logistics Market:
- In March 2024, Khalifa Economic Zones Abu Dhabi – KEZAD Group, the largest operator of integrated and purpose-built economic zones, and the UAE-based Pharmatrade announced the opening of Pharmatrade’s Abu Dhabi Logistics Centre. With the new logistics center, the company plans to ramp up the storage and distribution of its Pharmaceutical and Medical Device range of products to serve the UAE’s healthcare sector.
- In March 2024, Noramco launched a North American pharma supply chain services provider the integration of Noramco, Purisys, and Halo Pharma will reduce logistics costs and boost regulatory compliance. The strategic move aims to address the US's escalating drug shortages and quality concerns by improving supply chain performance and increasing domestic production. Noramco is a global supplier of commercial APIs, supporting treatments including pain management and drug abuse treatment. Purisys focuses on clinical API development and manufacturing services, focusing on controlled substances and pharmaceutical reference standards. Halo Pharma offers manufacturing services for various dosage forms, serving both brand and generic pharmaceutical clients from development to commercialization.
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Pharmaceutical Logistics Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
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Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 91.82 Bn. |
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Forecast Period 2024-32 CAGR: |
8.4 % |
Market Size in 2032: |
USD 189.76 Bn. |
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Segments Covered: |
By Product |
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By Mode of Operation |
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By Mode Of Transport |
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By Service |
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By Application |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics
3.1.1 Drivers
3.1.2 Restraints
3.1.3 Opportunities
3.1.4 Challenges
3.2 Market Trend Analysis
3.3 PESTLE Analysis
3.4 Porter's Five Forces Analysis
3.5 Industry Value Chain Analysis
3.6 Ecosystem
3.7 Regulatory Landscape
3.8 Price Trend Analysis
3.9 Patent Analysis
3.10 Technology Evolution
3.11 Investment Pockets
3.12 Import-Export Analysis
Chapter 4: Pharmaceutical Logistics Market by By Product
4.1 Pharmaceutical Logistics Market Snapshot and Growth Engine
4.2 Pharmaceutical Logistics Market Overview
4.3 Generic Drugs
4.3.1 Introduction and Market Overview
4.3.2 Historic and Forecasted Market
Frequently Asked Questions
What would be the forecast period in the Pharmaceutical Logistics Market research report?
The forecast period in the Pharmaceutical Logistics Market research report is 2024-2032.
Who are the key players in the Pharmaceutical Logistics Market?
DHL Supply Chain (Germany), UPS Healthcare (United States), Kuehne + Nagel (Switzerland), DB Schenker (Germany), FedEx Express (United States), SF Express (China), Nippon Express (Japan), Agility Logistics (Kuwait), CEVA Logistics (France), Panalpina (Switzerland), DSV Panalpina (Denmark), XPO Logistics (United States), Yusen Logistics (Japan), Geodis (France), Sinotrans (China), Bolloré Logistics (France), Hellmann Worldwide Logistics (Germany), Expeditors International (United States), DACHSER (Germany), CJ Logistics (South Korea), Kerry Logistics (Hong Kong), GEFCO (France), C.H. Robinson (United States), DB Cargo (Germany), Logwin (Luxembourg) and Other Active Players.
What are the segments of the Pharmaceutical Logistics Market?
The Pharmaceutical Logistics Market is segmented into Product, Mode of Operation, Mode of Transport, Service, Application, and region. By Product, the market is categorized into Generic Drugs and branded Drugs. By Mode of Operation, the market is categorized into Cold Chain Transport, Non-Cold Chain Transport. By Mode Of Transport, the market is categorized into Air, Rail, Road, and Sea. By Application, The Market Is Categorized into Bio Pharma, Chemical Pharma, and Specialized Pharma. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
What is the Pharmaceutical Logistics Market?
Pharmaceutical logistics refers to organizing, executing, and overseeing the effective movement and storage of medications and healthcare items from production to consumption, which gives a guarantee until the products are delivered to the consumer in optimal condition.
How big is the Pharmaceutical Logistics Market?
Pharmaceutical Logistics Market Size Was Valued at USD 91.82 Billion in 2023 and is Projected to Reach USD 189.76 Billion by 2032, Growing at a CAGR of 8.4% From 2024-2032.
