Global Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

Global Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

According to Triton Market Research’s report, the Global Pharmaceutical Logistics Market is estimated to advance with a CAGR of 7.67% during the forecast period 2024-2032. The pharmaceutical logistics market size was $94856.53 million in 2023 and is expected to reach a revenue of $185139.34 million by 2032.

PHARMACEUTICAL LOGISTICS MARKET ANALYSIS

The pharmaceutical logistics industry has witnessed significant growth due to increasing demand for pharmaceutical logistics services. Key players in this market include pharmaceutical logistics companies and 3PL providers. These companies offer services such as transportation, warehousing, and distribution of pharmaceutical products. Pharmaceutical cold chain logistics is crucial, ensuring the safe and effective delivery of temperature-sensitive medications and biological products.

Effective logistics management is essential for timely product delivery, inventory management, and regulatory compliance. Companies are adopting advanced technologies like real-time tracking, data analytics, and automation to streamline operations and enhance supply chain visibility. Advanced supply chain pharmaceutical logistics providers specialize in managing the supply chain for pharmaceutical companies, offering customized solutions tailored to their specific needs. These services include order management, shipment consolidation, and reverse logistics.

PHARMACEUTICAL LOGISTICS MARKET PERFORMANCE: DRIVERS, CHALLENGES, AND OPPORTUNITIES

Meeting Rising Demand Via Pharmaceutical Logistics:

The pharmaceutical logistics market is largely supported by the escalating demand for temperature-regulated solutions to maintain the quality and efficacy of drugs, particularly biologics and mRNA substances, during manufacturing and distribution. The COVID-19 pandemic significantly drove this demand, with the rapid rollout of mRNA vaccines necessitating robust cold chain logistics and cryogenic labeling capabilities. Companies like DHL are investing heavily in expanding their temperature-controlled facilities and infrastructure. For instance, as per a press release by DHL in February 2023, DHL Global Forwarding invested $8.0 million in a new 40,000-square-foot warehouse in North Carolina, US, offering multiple temperature-controlled chambers for cold-chain products.

Tackling Transparency, Compliance, and Operational Challenges through Pharma Logistics

A major challenge in the market is the necessity for real-time transparency and reliability, which is crucial for tracking products, identifying supply chain inefficiencies, meeting regulatory requirements, and maintaining quality. However, achieving these goals is hindered by the complexity of supply chains, technical limitations, and the need for cooperation and data sharing among stakeholders.

Embracing Advanced Therapies, Digital Transformation, and Global Expansion in Pharma Logistics

The studied market is witnessing rising opportunities in cell and gene therapy logistics, supported by the increasing global demand for advanced therapies. Major pharmaceutical companies are actively investing and pursuing mergers & acquisitions in this space, spurring the need for specialized logistics services catering to cryogenic shipments and stringent handling requirements. Leading logistics providers like AmerisourceBergen and CRYOPDP are well-positioned to address these challenges.

GLOBAL PHARMACEUTICAL LOGISTICS MARKET SEGMENTATION:

Market by Component:

Storage

Warehouse

Refrigerated Containers

Transportation

Overland Logistics

Sea Freight Logistics

Air Freight Logistics

Monitoring components

Hardware

Sensors

RFID Devices

Telematics

Networking devices

Software

Market by Pharma Type:

Branded Drugs

Generic Drugs

OTC

Branded drugs have high margins for manufacturers but lower margins for wholesalers and pharmacies. They are favored in some markets due to relationships with doctors and better reimbursement despite higher costs. Generic manufacturers capture significant generic drug expenditure, whereas branded manufacturers secure substantial prescription drug spending. When patents expire, generics can be filed via Abbreviated New Drug Applications (ANDAs), which are increasing. Over-the-counter (OTC) medicine usage surged during COVID-19, leading to increased reliance on pharmacists and demand for OTC products.

Market by Therapy Area:

Communicable Diseases

Oncology

Diabetes

Cardiovascular Diseases

Autoimmune Diseases

Neurological Disorders

Pain Management

Respiratory Diseases

Other Therapy Areas

Market by Logistics Type:

Non-Cold Chain Logistics

Cold Chain Logistics

Non-Cold Chain Logistics in Pharma deals with storing and moving meds not needing temp control, like many OTC drugs and generics. It is vital for temperature-sensitive pharmaceuticals, ensuring meds like vaccines stay effective by maintaining low temperature throughout handling.

KEY PHARMACEUTICAL LOGISTICS COMPANIES INSIGHTS

The companies’ insights help dive into data about the key players in the pharmaceutical logistics market. The strategic initiatives for each of the companies considered have been covered in detail. Some of the key strategic initiatives are:

Business Expansions & Divestitures (February 2024): FedEx Express

FedEx Express (FedEx) expanded its footprint in the Middle East with its new Middle East, Indian Subcontinent and Africa (MEISA) state-of-the-art hub at Dubai World Central (DWC) Airport in Dubai South.

Acquisitions & Mergers (March 2024): Kuehne+Nagel

Kuehne+Nagel acquired City Zone Express, a subsidiary of Chasen Holdings Ltd, a Singapore-based company. City Zone Express, founded in 2006, operates in Malaysia, Singapore, Vietnam, Thailand, and China, with over 500 employees. The acquisition will enhance Kuehne+Nagel’s cross-border road logistics services in Asia.