Asia-Pacific Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

Asia-Pacific Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

According to Triton’s research report, the Asia-Pacific pharmaceutical logistics market is estimated to progress at a CAGR of 8.45% during the forecast period 2024-2032.

The Asia-Pacific region, characterized by its significant aging population and rising prevalence of chronic diseases, is witnessing substantial growth in its pharmaceutical logistics market. This growth is fueled by increased healthcare spending and government investments in R&D, particularly in emerging markets like China and India. For instance, China’s healthcare expenditure witnessed significant growth in 2021, recording double the expenditure from 2015 at around $1.2 trillion.

Further, India’s National Health Policy of 2017 aims to increase public health expenditure to 2.5% of the GDP by 2025, emphasizing improvements in primary and preventive care. Heightened health awareness and improved life expectancy contribute to the expanding pharmaceutical industry, thereby increasing the demand for efficient pharmaceutical logistics services.

China leads the regional market, recording $7394.62 million in 2023

Since joining the World Trade Organization, China’s pharmaceutical industry has advanced significantly. In 2021, Chinese pharma companies saw a remarkable 18.7% year-on-year revenue increase, the highest in five years. This has boosted the demand for pharmaceutical logistics services.

There is also a notable trend among large local companies to upgrade their blister packaging equipment. This shift has made China a major market for high-speed blister packaging machines, which has significantly boosted the operations of pharmaceutical logistics companies.

Pharmaceutical distribution companies have improved their logistics capacities, enabling better drug distribution services in urban areas. For instance, Shanghai has witnessed developments with the establishment of advanced logistics centers to handle varied pharmaceutical products, including temperature-sensitive drugs, leveraging advanced technology for storage and distribution.

Market Forecast for Japan & India

Japan hosts one of the world’s largest pharmaceutical sectors, with healthcare expenditures comprising about 11.5% of its GDP in 2022, as per the World Bank. Further, OECD data suggests that health expenditure was around $5251 in 2022. As of 2023, the pharmaceutical sector, including both prescription and non-prescription drugs, is valued at around $107 billion. Notably, anti-tumor agents have been the leading category of medications in Japan. Hence, the rise in healthcare spending and the pharmaceutical sector drives the demand for pharmaceutical logistics services.

India stands as the leading supplier of generic medicines, providing around 20% of the global supply. In March 2022, pharmaceutical exports from India reached around $2.4 billion. Key segments of India’s pharmaceutical industry include generics, active pharmaceutical ingredients (APIs), vaccines, over-the-counter (OTC) medicines, biosimilars, and custom research manufacturing (CRM). Drug formulations and biologics dominate its pharmaceutical exports, comprising about 75% of the total. Such dominance supports India’s fast growth in the pharmaceutical logistics market.

The market is segmented in terms of logistics type, component, pharma type, and therapy area. The logistics type further includes non-cold and cold chain logistics.

Non-cold chain logistics in the pharmaceutical industry involves the storage and transportation of products that do not require temperature control. These pharmaceuticals are stable at room temperature, generally between 20°C and 25°C. Examples include over-the-counter medications, generic drugs, and certain prescription medicines, which can be safely stored and transported at these ambient temperatures.

The notable firms in the pharmaceutical logistics market include FedEx Corporation, Marken, SEKO Logistics, Kuehne + Nagel, Medline Industries LP, and United Parcel Service (UPS).

SEKO Logistics offers supply chain solutions in logistics, transportation, forwarding, and warehousing. The company offers innovative IT systems for seamless information flow and supply chain transparency. The company is renowned for its reliable, time-sensitive healthcare logistics services, catering to biotechnology, clinical trials, medical device manufacturers, and pharmaceutical firms. It specializes in the transportation of surgical, diagnostic, medical, and imaging equipment, as well as pharmaceutical products and clinical trial samples. SEKO operates through 120 offices across 40 countries, demonstrating its extensive global reach.

Latest from the Company:

In November 2023, SEKO Logistics established operations in India and Malaysia, expanding its positioning in Southeast Asia. The company stated its major focus to be freight forwarding and out of gauge cargo handling.