Pharmaceutical Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Pharmaceutical Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Pharmaceutical Logistics Market size in terms of Equal-5.53 is expected to grow from USD 531.42 billion in 2024 to USD 695.53 billion by 2029, at a CAGR of 5.53% during the forecast period (2024-2029).

Key Highlights

• Pharmaceutical manufacturing companies are increasingly turning to third-party providers for packaging and labeling services. Many of these companies are expanding their operations into previously untapped regions like Sub-Saharan Africa and South America. However, they emphasize the importance of partnering with local logistics providers who possess strong expertise in pharmaceuticals. Despite the benefits, there are concerns about potential service quality deterioration and loss of control associated with outsourcing.
• The demand for sea and air freight pharmaceutical logistics is expected to drive industry growth in the coming years. Sea freight, in particular, offers cost savings of up to 80% and reduces staffing needs while also minimizing packaging, storage, and carbon footprint. Air freight logistics are increasingly used for long-distance and intercontinental distribution of valuable vaccines and medicines, further contributing to industry expansion. The market is also witnessing increased demand for over-the-counter (OTC) medications such as vitamins, minerals, supplements (VMS), common cold and cough remedies, gastrointestinal drugs, and dermatology treatments.
• Furthermore, there is a growing need for fast-track assistance in the healthcare sector, which is boosting the pharmaceutical logistics market. The establishment of a single-source distribution channel is seen as a way to reduce distribution costs and enhance efficiency in pharmaceutical logistics.

Pharmaceutical Logistics Market Trends

Increasing Demand for Cold Chain Logistics in the Sector

• The cold chain logistics sector is poised for significant growth in the coming years. This expansion is primarily driven by increasing demand for ambient products, such as vaccines, necessitating precise temperature-controlled logistics to ensure product efficacy during distribution.
• Government regulations mandating accurate temperature maintenance for highly temperature-sensitive pharmaceuticals are also expected to contribute to the segment's growth. The adoption of telematics in cold-chain pharmaceutical logistics is on the rise, enabling companies to improve efficiency, connectivity, and safety in cargo transportation. Given the requirement for temperature-controlled environments in the manufacturing and distribution of biological and medical products, pharmaceutical companies are increasingly relying on temperature-controlled transportation and cold storage systems.
• Recent advancements in supply chain management and integration technologies have facilitated the seamless integration of effective cold-chain logistics for transporting temperature-sensitive goods. This has led to the growth of supply chain businesses while ensuring the quality and safety of pharmaceutical products. Overall, the provision of cold chain logistics by specialized firms is driving growth in the temperature-controlled logistics sector, promising a bright future for the industry.

Asia-Pacific is Poised to Witness the Highest Growth Rate

• Asia-Pacific is poised to witness the highest growth rate in the future, primarily driven by a surge in demand for pharmaceutical products and substantial investments in healthcare infrastructure. For example, New Delhi, India, witnessed investments of INR 25,813 crore and the addition of 56,171 new jobs as of September 2023 under the production-linked incentive scheme for pharmaceuticals, as announced by the government of India.
• Asia-Pacific is home to some of the world's largest and fastest-growing pharmaceutical markets, including China, India, Japan, and South Korea. The increasing demand for healthcare services and pharmaceutical products in these countries drives the need for efficient logistics solutions to ensure timely delivery.
• Investments in transportation infrastructure, such as airports, seaports, and road networks, are improving logistics capabilities across the region. Modernization efforts aim to streamline the movement of pharmaceutical goods, reducing transit times and enhancing supply chain efficiency.

Pharmaceutical Logistics Industry Overview

The market is highly fragmented, with the presence of 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, players 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.

Additional Benefits:

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