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The pharmaceuticals wholesale and distribution market size is estimated to grow at a CAGR of 8.92% between 2022 and 2027. The market size is forecast to increase by USD 776.32 billion. The growth of the market depends on several factors such as increasing government initiatives for pharmaceutical products, increasing government initiatives for pharmaceutical products, and rising seaborne pharmaceutical transportation. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by type (branded drugs and generic drugs), end-user (retail pharmacies, hospital pharmacies, and others), and geography (North America, Asia, Europe, and Rest of World (ROW)). It also includes an in-depth analysis of drivers, trends, and challenges.
Pharmaceuticals Wholesale and Distribution Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The rising geriatric population and new product launches by pharmaceutical manufacturers are the significant factors driving market growth. By 2024, the global pharmaceutical market includes prescription drugs and over-the-counter drugs and is anticipated to experience significant growth, and sales are expected to reach USD 1.4 trillion. The incidence of chronic diseases and the requirement for enhanced medical assistance are increasing. There is a dire need for more cutting-edge equipment to effectively deal with the rising number of patients. As a result, there will be new developments in medical devices and efficient transportation solutions for devices and equipment in the healthcare industry.
Factors such as the increasing healthcare awareness and the growing medicinal knowledge among people with the help of the Internet are increasing the sales of over-the-counter drugs. Moreover, over-the-counter drug manufacturers are introducing specific medicines for treating minor ailments by understanding consumer requirements, which, in turn, enriches their sales. The growth in pharmaceutical sales is anticipated to accelerate the growth of the global pharmaceutical wholesale and distribution market during the forecast period.
Drones refer to unmanned aerial vehicles (UAVs) that are remotely controlled by a drone pilot. The functions and applications of drones are rising beyond military use to the logistics sector, particularly for delivery operations in remote or rural areas. Also, it can overcome the difficulty of an inefficient road or railway infrastructure. They can deliver essential pharmaceutical supplies to hard-to-reach remote destinations. The increased use of drones for the delivery of healthcare supplies is expected to improve market opportunities for global pharmaceutical wholesale and distribution players.
In addition, the use of drones will also support logistics companies in customizing their supply chain model effectively based on real-time information received from UAVs. Therefore, the adoption of drones mainly to deliver essential pharmaceutical supplies such as pharmaceutical drugs and medicines will positively impact the growth of the global market in focus during the forecast period.
As customers prefer shorter lead times, selecting the right supply chain model is important and critical, whereas logistics companies seek to keep the operational cost as low as possible. For sustaining the physical and chemical properties of the products, healthcare supplies need special care and attention, specific packaging, and a customized supply chain. Logistics intricacies vary with infrastructure based on topography, technological advances, and region/country-specific regulations and policies. Moreover, customization of the supply chain is based on multiple parameters, such as freight rate, freight volume, distribution network complexity, the distance between the source and destination, and the criticality of the delivery. Pharmaceutical manufacturers must share adequate information for designing a supply chain model.
However, if pharmaceutical manufacturers are more concerned about sharing confidential data with logistics service providers, information sharing will be affected. Also, the difference between urban and rural areas in terms of infrastructure required for an efficient logistics network makes the designing of a supply chain model highly intricate. Such factors will limit the growth of the pharmaceutical wholesale and distribution market during the forecast period.
The market share growth by branded segment will be significant during the forecast period. Branded drugs are medicines that are discovered and developed by pharmaceutical companies and they manufacture and finalize these drugs based on comprehensive research and development results. United States Food and Drug Administration (FDA) approves the drug based on the information provided by the pharmaceutical company on their dosage form, chemistry, safety, efficacy, manufacturing methodology, and labeling, as well as packaging.
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The branded drugs segment was valued at USD 571.58 billion in 2017. The initial expenses incurred on the research and development of these drugs and their testing advance their selling price. These drugs are preferred over generic drugs by consumers as counterfeits of generic drugs are easily available in the market although their prices are high. Despite the unprecedented challenges faced by global organizations and pharmaceutical companies, the Center for Drug Evaluation and Research (CDER) approved 53 novel drugs, either as new molecular entities (NMEs) under New Drug Applications (NDAs) or as new therapeutic biologics under Biologics License Applications (BLAs) in 2020. For instance, new drugs approved by the US FDA are Novartis AGs Kisqali (ribociclib), F. Hoffmann-La Roche Ltd.s Ocrevus (ocrelizumab), and Veklury (remdesivir) injection. The global pharmaceutical wholesale and distribution market is anticipated to grow with such approval of new drugs during the forecast period.
End-user Segment Analysis:
Based on end-users, the market has been segmented into retail pharmacies, hospital pharmacies, and others. The retail pharmacies will account for the largest share of this segment.? In 2022, retail pharmacies had the largest share of the global pharmaceuticals wholesale and distribution market. Retail pharmacies are increasingly emphasizing automation and technology to streamline operations, lower errors, and improve customer service. With greater convenience and accessibility, online and mobile app-based prescription ordering and refill services have become more common to customers. The retail pharmacy landscape is likely to continue to grow as new technologies are adopted, consumer anticipations change and healthcare needs evolve. Such factors will have a positive impact on the growth of the global market in focus during the forecast period.
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North America is estimated to contribute 48% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In North America, the pharmaceutical wholesale and distribution market is anticipated to experience significant growth. In North America, the US is the significant revenue contributor to the market, due to the presence of several existing companies in the country, such as AmerisourceBergen Corp. (AmerisourceBergen), Cardinal Health Inc. (Cardinal Health), and Dakota Drug.
Furthermore, factors such as the growing introduction of new branded pharmaceutical drugs in the market and the demand for FDA-approved generic medicines, especially from the geriatric population in the region, will improve the growth of the pharmaceutical wholesale and distribution market in the region during the forecast period.
Owing to the outbreak of COVID-19 in the region, the demand for pharmaceutical drugs increased significantly in 2020. However, the major growth in the demand for generic and branded medicines, which are effective in curing congestion and fever, has led pharmaceutical retailers to produce solutions to continue their supply of such medicines. Large-scale vaccination drives were initiated across the region, which led to the lifting of lockdown restrictions in 2022. The companies in the market in focus in the region have expanded their investments to improve their distribution and wholesale channels and are developing their partnerships to strengthen their positions in the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A.F. Hauser Pharmaceutical Inc. - The company offers pharmaceuticals wholesale and distribution services that supply generic drugs with the highest quality, offering low prices, while never sacrificing a uniquely personal approach in servicing client accounts.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
A.F. Hauser Pharmaceutical Inc., Alfresa Holdings Corp., AmerisourceBergen Corp., Attain Med Inc., Cardinal Health Inc., China Resources Pharmaceutical Group Ltd., Dakota Drug Inc., FFF Enterprises Inc., J M Smith Corp., McKesson Corp., Medipal Holdings Corp., Medline Industries LP, Morris and Dickson Co. LLC, Mutual Drug, Owens and Minor Inc., PHOENIX Pharmahandel GmbH and Co KG, Shanghai Fosun Pharmaceutical Group Co. Ltd., Sinopharm Group Co. Ltd., SUZUKEN Co. Ltd., and The Cigna Group
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The pharmaceuticals wholesale and distribution market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Pharmaceuticals Wholesale And Distribution Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.92% |
Market growth 2023-2027 |
USD 776.32 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.89 |
Regional analysis |
North America, Asia, Europe, and Rest of World (ROW) |
Performing market contribution |
North America at 48% |
Key countries |
US, Canada, Germany, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A.F. Hauser Pharmaceutical Inc., Alfresa Holdings Corp., AmerisourceBergen Corp., Attain Med Inc., Cardinal Health Inc., China Resources Pharmaceutical Group Ltd., Dakota Drug Inc., FFF Enterprises Inc., J M Smith Corp., McKesson Corp., Medipal Holdings Corp., Medline Industries LP, Morris and Dickson Co. LLC, Mutual Drug, Owens and Minor Inc., PHOENIX Pharmahandel GmbH and Co KG, Shanghai Fosun Pharmaceutical Group Co. Ltd., Sinopharm Group Co. Ltd., SUZUKEN Co. Ltd., and The Cigna Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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