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The pharmaceutical logistics market size is estimated to grow at a CAGR of 2.46% between 2023 and 2028. The market size is forecast to increase by USD 11.96 billion. The market's growth depends on several factors such as the growing global pharmaceutical sales, the increasing government initiatives, and the rising seaborne pharmaceutical transportation.
This pharmaceutical logistics market report extensively covers market segmentation by type (non-cold chain logistics and cold chain logistics), service (storage and transportation), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing global pharmaceutical sales is the key factor driving market growth. The global pharmaceutical market includes prescription drugs and over-the-counter drugs and is expected to witness substantial growth. Global pharmaceutical sales are expected to reach USD 1.4 trillion by 2024. Furthermore, the incidence of chronic diseases and the need for improved medical assistance are rising. There is a dire need for more advanced equipment to effectively deal with the growing number of patients.
In addition, factors such as increasing healthcare awareness and growing medicinal knowledge among people with the help of the Internet are increasing the sales of over-the-counter drugs. Over-the-counter drug producers improve their sales by underestimating consumer needs and offering specific medicines for addressing minor conditions. Hence, such factors are expected to drive the growth of the market during the forecast period.
High demand for personalized medicine is the primary trend shaping market growth. Personalized medicine often involves the development and distribution of specialized medications such as gene therapies, immunotherapies, and targeted therapies. These treatments may have unique storage and transportation requirements, which necessitate specialized pharmaceutical logistics services.
Moreover, due to the unique nature of personalized medicine, effective inventory management and traceability are crucial. Logistics providers have the capability to manage and track individualized treatments. The increasing adoption of personalized medicine presents both opportunities and challenges for pharmaceutical logistics, which may impede the growth of the global pharmaceutical logistics market during the forecast period.
The high cost associated with pharmaceutical logistics is a challenge that affects market growth. The cost of building a cold storage facility or temperature-controlled warehouse includes the cost of setting up a warehouse, which is highly dependent on the cost of the land. The decision to set up a refrigerated warehouse is a strategic decision that must be made after due consideration of factors such as location, transport connectivity, and the price of the land.
Furthermore, another important part of the cost structure is the high infrastructure cost of building or constructing a new refrigerated warehouse. The cost of setting up a refrigerated warehouse is usually more than USD 140 per square feet, which is approximately 2.5 times more than the cost of setting up a conventional warehouse. Hence, the high cost associated with pharmaceutical logistics may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Pharmaceutical Logistics Market Customer Landscape
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The non-cold chain logistics segment is estimated to witness significant growth during the forecast period. Non-cold chain logistics in the pharmaceutical industry refers to the transportation and distribution of pharmaceutical products that do not require strict temperature control. The pharmaceutical industry requires various packaging materials, such as blister packs, bottles, labels, and inserts, which are typically not sensitive to temperature and can be shipped under standard logistics conditions.
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The non-cold chain logistics segment was the largest segment and was valued at USD 65.10 billion in 2018. Non-cold chain logistics are important for the efficient distribution of a broad range of pharmaceutical products, including oral medications, topical creams, medical devices, and non-perishable medical supplies. Hence, these factors are expected to drive the growth of the non-cold chain logistics segment in the global pharmaceutical logistics market is expected to witness high growth during the forecast period.
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APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC region is home to a large and growing population. This demographic factor has increased the demand for pharmaceuticals and healthcare services, leading to a higher demand for pharmaceutical logistics to support the distribution of medicines, medical equipment, and related products.
Furthermore, the pharmaceutical industry in APAC is subject to strict regulatory requirements, which include transportation and storage conditions. Compliance with these regulations necessitates specialized logistics services, which is expected to have a positive impact on the growth of the global pharmaceutical logistics market during the forecast period.
The outbreak of COVID-19 in 2020 positively impacted the growth of the pharmaceutical logistics market in the region. The pandemic led to an increased demand for critical pharmaceutical products such as vaccines, antiviral drugs, and personal protective equipment (PPE). Moreover, in 2021, the initiation of large-scale vaccination drives and medicines resulted in a decline in the number of COVID-19 cases, which led to the lifting of lockdown restrictions in the APAC region. Furthermore, the pharmaceutical logistics industry has been quick to adopt advanced technologies such as IoT (Internet of Things), RFID (Radio-Frequency Identification), and blockchain for real-time tracking, monitoring, and ensuring the integrity of pharmaceutical products during transportation which may fuel the growth of the regional market in focus during the forecast period.
The pharmaceutical logistics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Pharmaceutical Logistics Market Scope |
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Report Coverage |
Details |
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Page number |
155 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.46% |
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Market Growth 2024-2028 |
USD 11.96 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.32 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 45% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Abu Dhabi Ports PJSC, AP Moller Maersk AS, AWL India Pvt. Ltd., CJ CheilJedang Corp., CMA CGM SA Group, DB Schenker, Deutsche Post AG, DSV AS, FedEx Corp., Gemadept Corp., GEODIS, Kuehne Nagel Management AG, Nippon Yusen Kabushiki Kaisha, Pharma Logistics LLC, SF Express Co. Ltd., Tiong Nam Logistics Holdings Berhad, United Parcel Service Inc., Varuna Group, WHA Corp. PCL, and YCH Group |
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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. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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