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

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

The size of Pharmaceutical Logistics market is USD 83.5 billion in the current year and is anticipated to register a CAGR of over 5% during the forecast period. The short-term effect of COVID-19 on the market was crucial for the pharmaceutical logistics sector's high growth rate across the globe.

• Pharmaceutical manufacturing companies are increasingly outsourcing packaging and labeling activities to third-party providers. Many pharmaceutical companies are expanding their operations in untapped regions, including Sub-Saharan Africa and South America. Further, the preference for local logistics providers with high pharmaceutical expertise is significant to drug manufacturers. However, deteriorating service levels and losing control are significant threats during 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 reduces 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 of this industry.
• The rising demand for over-the-counter (OTC) medications such as vitamins, minerals, and supplements (VMS), medicines for the common cold and cough, gastrointestinal drugs, and dermatology treatments is another factor contributing to the market's expansion.
• The escalating relevance of fast-track assistance in the healthcare industry is also driving the market for pharmaceutical logistics. The need for pharmaceutical logistics has increased by creating a single-source distribution channel that lowers the distribution cost.

The cold chain logistics segment is expected to witness a significant growth rate during the forecast period. This growth is attributable to the rising demand for ambient products, such as the ongoing distribution of COVID-19 vaccines, which requires accurate temperature-control logistics services to maintain the product's efficacy.

Furthermore, the stringent government regulations to maintain accurate temperatures for highly temperature-sensitive pharmaceutical products are expected to boost segment growth through 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 manufacturing and distribution, which helps maintain the effectiveness and quality of the medicines. Thus, pharma companies are using temperature-controlled transportation and cold storage systems.

With the remarkable advancements in supply chain management and integration technologies, it is now possible to easily integrate effective cold-chain logistics and transport temperature-controlled or temperature-sensitive goods. Supply chain businesses' growth has been driven by the development of cold chain logistics and has maintained the product's quality while keeping the pharmaceuticals safe to use. The cold chain logistics provided by hard chain firms are paving the way for a promising future in the temperature-controlled logistics sector.

Since more online home care providers provide on-demand distribution services, the on-demand healthcare industry is rapidly expanding in response to the advancement of technology. Because of its improved accessibility and practical treatment options, the practice of receiving healthcare services at home became more common throughout the pandemic and is currently growing. In 2022 and Beyond, point-of-care diagnostics, online pharmacy, and remote monitoring are three crucial growth factors. Agility and an on-demand distribution method allow life sciences and pharmaceutical enterprises to scale up or down in response to consumer needs. This kind of service will encourage sharing the individualized healthcare that each client wants. Direct-to-patient delivery techniques are becoming common in the pharmaceutical industry for both medication delivery and diagnostics. Moreover, several businesses established subscription plans, making it possible for everyone to receive the appropriate medication at the appropriate time. To assure prompt delivery and order fulfillment, industries also work to introduce direct-to-hospital, direct-to-pharmacy, and B2B eCommerce models. A B2B integration platform with EDI (electronic data exchange) capabilities can help pharma companies realize the full potential of these new models. Businesses can engage with their trade partners at various stages of the supply chain thanks to B2B integration solutions, which help to guarantee reliable distribution recycling.

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, pharmaceutical logistics companies are continuously undertaking strategic initiatives such as mergers and acquisitions. Furthermore, the companies in the market of pharmaceutical logistics are investing in technologies such as telematics, remote sensing and monitoring, and GPS and GIS integration in transporting cargo, thereby providing customers with safe and convenient pharmaceutical logistics services.

• The market estimate (ME) sheet in Excel format
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