Europe Pharmaceutical Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Europe Pharmaceutical Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The size of Europe Pharmaceutical Logistics Market is USD 81.6 billion in the current year and is anticipated to register a CAGR of over 3% during the forecast period.

• The demand for pharmaceutical logistics in Europe is mainly driven by the increasing demand for drugs and vaccines, fueled by the COVID-19 pandemic and increasing investments by leading pharmaceutical firms. The COVID-19 pandemic increased the trade of conventional and over-the-counter (OTC) drugs in Europe. Enhancement in the production rate of biologics, hormone medications, vaccines, complex proteins, and temperature-specific byproducts requiring cold chain shipment also witnessed significant growth in the European pharmaceutical logistics market. There is a strong and competitive pharmaceutical industry in Europe.
• Moreover, increasing demand for cellular therapies, vaccines, and blood products in the pharmaceutical industry is driving the growth of the region's pharmaceutical logistics market. The increase in demand for reverse logistics in the pharmaceutical sector, the rise in demand for temperature-sensitive pharmaceutical drugs, and the increase in the use of RFID technologies for pharmaceutical logistics are upcoming trends in the pharmaceutical logistics market in Europe.
• The growing pharmaceutical sales are expected to propel the growth of the healthcare logistics market. Increasing sales of pharmaceuticals are expected to boost the demand for logistics as the pharmaceutical products or drugs should be stored and transported to pharmacies, drug stores, and others, thus increasing the demand for transportation or healthcare logistics.

Europe is the second-biggest biopharmaceuticals market in the world. The increasing populace and persistent sicknesses are pushing market development. The reception and openness, accessibility of biopharmaceuticals for the treatment and conclusion of illnesses, and mindfulness connected with medication have boosted the European market.

In the recent year, the European Commission (EC) launched public input on its proposed pharmaceutical strategy for Europe to ensure the region's supply of safe and affordable medicines to meet patients' needs and support the European pharmaceutical industry in order to remain an innovator and world leader.

Pharmaceutical manufacturers increasingly focus on product quality and sensitivity. Factors such as the development of complex biological-based medicines and shipments of hormone treatments, vaccines, and complex proteins require specific results in need of specialized transportation and warehousing. Temperature-controlled logistics of pharmaceutical products and medical devices is a significantly growing part of the healthcare logistics industry. Moreover, increase in need for effective cold chain logistics services to maintain the quality of goods fuels the growth of the pharmaceutical logistics market.

In addition, the entire cold chain supply chain and logistics for pharmaceutical industry is becoming more strategic and reliable. These high-value pharmaceutical products are mostly shipped via cold chain solutions across the entire distribution network, thus driving the growth of the market.

During 2021, Swiss company Novartis was the leading European pharmaceutical company in terms of prescription (Rx) drug sales with sales figures of approximately USD 51.13 billion.

More sales would push the need for appropriate logistics to transport products to pharmacies, drug stores, and others, thereby creating larger demand for pharmaceutical logistics.

Germany is the biggest pharmaceutical market in Europe and the fourth-biggest in the world, as per Germany Trade and Invest (GTAI). The nation is viewed as one of the world's driving spots for pharmaceutical manufacture, and its highly skilled labor force empowers pharmaceutical organizations to chip away at additional convoluted and demanding goods like biosimilars while keeping up with high production quality.

The absolute German pharmaceutical market facility and pharmacy store segment grew by more than 7% to EUR 49.5 billion (USD 54.57 billion) in 2020, including immunizations and diagnostics. As indicated by an industry report, the sum by counting units, like tablets, sachets, and injections, decreased somewhat (- 0.6 %) to EUR 97.5 billion (USD 107.48 billion). Every center and pharmacy store portion saw a 6-7% increase in sales. The sum consumed in clinics diminished by 10%, while deals in the drugstore industry stayed unaltered, per the report.

Moreover, in 2021, about 32 percent of EU pharmaceutical exports went to the United States. In 2021, Germany's leading destination for pharmaceuticals was the United States, with an import value of over 17.8 billion euros (USD 19.62 billion). Switzerland followed, importing pharmaceuticals from Germany valued at approximately 8.4 billion euros (USD 9.26 billion). The value of pharmaceuticals imported into Germany was approximately 71 billion euros (USD 78.27 billion) in 2021. This results in Germany having a positive trade balance in pharmaceuticals since its exports are worth more than the value of imports. Furthermore, the German pharmaceutical market generated revenues of some 56.5 billion euros (USD 62.28 billion) in 2021, which made it the leading pharmaceutical market in Europe.

The European pharmaceutical logistics market is highly competitive and fragmented and consists of regional and international market players. A few existing major players in the market include DHL Supply Chain, FedEx, Kuehne + Nagel International AG, United Parcel Service, and CH Robinson. Some major domestic players include Eurotranspharma, Centre Specialties Pharmaceutiques, PostNL Pharma & Care, and Trans-o-Flex Schnell-Lieferdienst GmbH.

These companies are implementing next-generation logistics solution technologies into their services, such as automation, artificial intelligence and machine learning (AI and ML), blockchain, transportation management systems, and others, to increase supply chain productivity, reduce costs and avoid errors.

For instance, in April 2021, France-based CEVA Logistics launched the FOR PATIENTS healthcare logistics sub-brand. This new temperature-sensitive solution offers complete logistics solutions to healthcare and pharmaceutical companies in temperature-controlled facilities worldwide. CEVA will provide visibility and tracking solutions for real-time decisions through embedded location and temperature IoT devices.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support