Middle East And Africa Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

Middle East And Africa Pharmaceutical Logistics Market: Forecast Analysis 2024-2032

Triton Market Research’s report suggests that the Middle East and Africa pharmaceutical logistics market is set to progress with a CAGR of 7.37% during the forecasted period 2024-2032.

The rising awareness about healthcare and increasing per capita income have significantly boosted the demand for healthcare services. The rapid population growth has further fueled the need for pharmaceuticals, attracting multinational pharmaceutical companies. The Middle East, in particular, heavily relies on pharmaceutical imports from countries like the UK, Switzerland, the US, France, and Germany. For instance, the UAE sources its pharmaceutical products from seventy-two countries, with ten countries accounting for 80% of its total imports. This dependence underscores the growing necessity for efficient pharmaceutical logistics services to meet the increasing demands.

Turkey dominates the regional market, recording $817.77 million in 2023

Pharmaceutical logistics companies play a crucial role alongside pharmaceutical firms in the storage and distribution of drugs, which has increased strategic initiatives among contenders. For instance, Turkish Cargo launched three innovative products for pharmaceutical logistics: TK Pharma Standard, TK Pharma Extra, and TK Pharma Advanced.

Turkey is home to more than 300 domestic and international pharmaceutical companies operating as producers and importers, primarily concentrated in Istanbul.

In 2020, Turkey imported approximately $5 billion worth of pharmaceutical products, making it one of the top 25 importers worldwide. This surge in exports is fueling the growth of Turkey’s pharmaceutical logistics market.

Market Forecast for United Arab Emirates and Saudi Arabia

The pharmaceutical logistics market in the United Arab Emirates (UAE) has experienced notable growth, positioning the country as a key player in the global pharmaceutical supply chain. Major companies like Sanofi, Novartis, and Pfizer have been drawn to the UAE due to its strategic location, advanced logistics infrastructure, and favorable business climate. For instance, Emirates Cargo reported nearly double-digit annual growth, with revenue from pharmaceutical transport surpassing AED 2 billion for the first time in 2021-22.

In Saudi Arabia, the government’s encouragement of generic substitution to control costs significantly boosts the pharmaceutical logistics market. Additionally, pharmaceutical transport relies heavily on road freight due to its low entry barriers. The market is primarily dependent on imports, with the government’s Vision 2030 economic policy allowing 100% foreign direct investment in the pharmaceutical sector, fostering demand for pharmaceutical logistics.

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

Cold chain logistics is essential for preserving temperature-sensitive pharmaceutical products, ensuring they remain effective from manufacture to use. This meticulous process is vital for medications, vaccines, and biologics, which require strict temperature control to maintain their efficacy. The cold chain process encompasses multiple stages: manufacturing, packaging, storage, transportation, and distribution. Each stage demands careful planning and precise execution to maintain the required temperature. During transportation, products are typically shipped in temperature-controlled vehicles equipped with real-time monitoring devices.

The notable companies in the pharmaceutical logistics market consist of Agility Logistics, Cardinal Health Inc, DB Schenker, AP Moller–Maersk, Cencora (AmerisourceBergen), and CEVA Logistics.

Agility Logistics specializes in the construction, management, and leasing of various types of warehouses. The company also offers transportation, handling, distribution, and customs clearance services. Its business activities are categorized into two main segments: logistics & related services and infrastructure. In the logistics and related services segment, Agility provides a range of solutions, including freight forwarding, contract logistics, transportation, project logistics, and logistics for fairs and events. Agility operates globally, including in the Middle East and Africa. It is publicly traded on Boursa Kuwait and the Dubai Stock Exchange.

Latest from the Company:

In November 2023, Agility announced that the warehouses at its Agility Logistics Park in Abidjan became the first in Côte d’Ivoire and West Africa to receive EDGE Advanced certification for green buildings.