Global Pharmaceutical Logistics Market Size and Forecast (2018-2029) - Analysis by Drug Type, Mode of Transportation, and Geography
Global Pharmaceutical Logistics Market Size
Global pharmaceutical logistics market recorded a growth rate of nearly ~6.0% in 2023 compared to the previous year. As of 2023, Europe leads the global pharmaceutical logistics market driven by its advanced logistics infrastructure and strong regulatory frameworks, which enhance efficiency in pharmaceutical distribution. The global pharmaceutical logistics market has grown substantially, reaching a significant milestone in 2023. This growth, fueled by increased demand for medical supplies and advancements in logistics technology, reflects a trend of steady expansion that began during the pandemic. Reliable and efficient logistics networks have become essential in addressing global health challenges, including the distribution of vaccines, treatments, and personal protective equipment (PPE). The market's upward trajectory has continued, driven by rising global healthcare needs and technological progress.
Pharmaceutical companies and healthcare providers have prioritized strengthening their supply chains to meet these unprecedented challenges. Advances in technology and digitalization have enhanced supply chain visibility and efficiency, enabling better tracking and monitoring of pharmaceutical shipments.
Global Pharmaceutical Logistics Market Revenue Forecast, 2024F – 2029F
Note: Please note that the data in the chart above is for illustrative purposes only. For accurate market size and trends, please reach out to us directly.
Intense Competition in the Global Pharmaceuticals Logistics Market
The market is experiencing intense competition among key players, such as Kuehne + Nagel, DHL, FedEx, DB Schenker, and UPS, who employ innovative strategies and expand their presence to meet evolving market demands. This competitive landscape is further shaped by numerous mergers, acquisitions, and strategic investments, redefining market dynamics. Major companies are engaging in mergers and acquisitions, while new startups are securing significant funding to compete effectively. These strategic moves are aimed at leveraging strengths, expanding market capabilities, and providing comprehensive solutions to consumers.
Global Pharmaceuticals Logistics Market by Drug Type, 2023
Note: Please note that the data in the chart above is for illustrative purposes only. For accurate market size and trends, please reach out to us directly.
Shifts in the Pharmaceutical Logistics Market Segments
The pharmaceutical logistics market is undergoing notable changes across its segments. The patented drugs segment, which currently holds a substantial share, is anticipated to decline due to patent expirations and increasing competition from generics and biosimilars. The loss of exclusivity for several blockbuster drugs, such as Humira and Enbrel, will further intensify this competition
Europe Pharmaceutical Logistics Market by Type of Services, 2023
Note: Please note that the data in the chart above is for illustrative purposes only. For accurate market size and trends, please reach out to us directly.
The pandemic greatly boosted the demand for pharmaceutical products and vaccines, fueling the growth of the pharmaceutical logistics market. The urgent need for rapid and efficient transportation of medical supplies and vaccines led to increased investments in this sector.
The heightened requirement for air and sea transportation of pharmaceutical products, particularly in emergencies, has significantly contributed to the growth of the pharmaceutical logistics market.
The growing popularity of biologics and biosimilars in Europe is expected to further drive the pharmaceutical logistics market, as these products often necessitate specialized handling and transportation.
Pharmaceutical Logistics and Market Performance in Germany
Bayer's Q1 2024 sales saw a slight decline, totaling around 13.8 billion euros. In contrast, STADA Arzneimittel experienced robust double-digit growth in sales and profits in 2023.
The German pharmaceutical logistics market is expected to expand significantly in 2024. Key factors contributing to this growth include an aging population, an increase in chronic diseases, advancements in healthcare infrastructure, and the growing demand for biologics and specialty pharmaceuticals. Additionally, the focus on patient-centric care is driving the need for efficient medication delivery systems.
Growth and Innovations in the U.S. Cold Chain Market
According to the Global Cold Chain Alliance (GCCA), as of 2021, the United States has approximately 4,600 temperature-controlled warehouses, with a combined capacity of around 1.6 billion square feet. The increasing demand for connected trucks, high-cube refrigerated trailers, and vehicles capable of transporting diverse products is driving the growth of cold chain services.
In response, U.S. cold storage service providers are enhancing efforts to protect temperature-controlled products from tampering or malicious actions, leading to a higher demand for monitoring components such as telematics and telemetry devices, sensors, data loggers, and networking devices.
Industry players are also utilizing RFID and Automatic Identification and Data Capture (AIDC) technologies to boost the efficiency of order fulfillment processes. The growing use of Bluetooth technology and RFID sensors in the logistics industry is expected to further accelerate the adoption of AIDC technologies.
Expansion and Enhancements in China's Pharmaceutical Logistics Market
In recent years, the Chinese pharmaceutical logistics market has experienced steady growth, with a notable surge during the COVID-19 pandemic. This market has shown a strong performance, achieving a compound annual growth rate of 6.31% from 2019 to 2023.
China has made substantial investments in improving pharmaceutical logistics, with a particular emphasis on cold chain logistics to enhance medical service access in rural and underserved areas. Moreover, regulatory reforms have streamlined drug approval processes and increased supply chain transparency, facilitating faster market entry for new drugs and more efficient logistics operations.
Japan's Pharmaceutical Market and Cold Chain Logistics: A Vital Growth Engine
Japan, the world's third-largest pharmaceutical market and a key export destination for U.S. pharmaceuticals, is promoting its healthcare industry as a vital growth engine. The country's cold chain logistics sector is experiencing remarkable growth, driven by the need for safe delivery of perishable goods, including pharmaceuticals. The rise in organized retail stores is further boosting demand for these logistics services.
India's Pharmaceutical Logistics: Booming Sector with Strong Export Performance
India's pharmaceutical logistics sector is booming due to rising chronic diseases and increased healthcare spending. Strong infrastructure is attracting global pharmaceutical companies, but optimizing cold chain networks and reducing import reliance are crucial for sustained success.
India's pharmaceutical exports reached USD 25.39 billion in 2022-23, with the U.S. accounting for over 31%. The sector's robust export performance supports significant foreign investment, attracting USD 22.37 billion between 2020 and 2023.
Key Acquisitions Driving Global Logistics Market Expansion
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DHL Group has finalized the acquisition of shares in Danzas AEI Emirates, rebranding all facilities under the DHL name. This integration includes the transfer of 1,100 logistics professionals and ownership of over 20 facilities, leading to enhanced and more streamlined logistics services across the UAE, GCC, and MEA (Middle East and Africa) region.
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Global logistics provider CEVA Logistics has completed the acquisition of Stellar Value Chain as of November 20, 2023. CEVA has acquired a 96% stake in the Mumbai-based warehousing and transportation specialists from an affiliate of private equity firm Warburg Pincus and other shareholders.
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UPS, in 2023, announced the completion of its acquisition of MNX Global Logistics (MNX), a specialist in time-critical logistics. This acquisition expands UPS's capabilities in time-sensitive logistics, particularly for healthcare customers across the US, Europe, and Asia. MNX's expertise in transporting radiopharmaceuticals and temperature-sensitive products will enhance UPS Healthcare's service offerings.
Top 5 Companies in Air Freight Logistics:
- Kuehne + Nagel
- DHL
- DSV
- DB Schenker
- UPS
Top 5 Companies in Contract Logistics:
- DHL
- Kuehne + Nagel
- Expeditors
- DSV
- DB Schenker
Scope of Global Pharmaceutical Logistics Market
Makreo Research has recently unveiled a detailed report titled “Global Pharmaceutical Logistics Market Size and Forecast (2018-2029): Analysis by Drug Type, Mode of Transportation, and Geography” This report offers an extensive review of the pharmaceutical logistics industry across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. It examines both current and historical market performance, with a specific emphasis on the regulatory environment in key countries including China, Japan, South Korea, India, Australia, Germany, France, the UK, Italy, Spain, the US, Canada, Brazil, Saudi Arabia, South Africa, and Qatar.
The report provides an in-depth analysis of major players in the global pharmaceutical logistics market, featuring prominent companies such as Cencora, Inc., DHL Group, DB Schenker, CEVA Logistics, United Parcel Service, FedEx, Kuehne Nagel, AP Moller Maersk, Singapore Post, and ABS Logistics. It includes a thorough examination of these companies, covering aspects like mergers and acquisitions, funding histories, and detailed company profiles.
Additionally, the report explores global, national, and state-level regulations affecting the pharmaceutical logistics sector, highlighting their impact on the industry. It addresses key logistical challenges, demographic trends, and significant factors influencing market dynamics, providing stakeholders and industry experts with valuable insights into this crucial and rapidly evolving sector.
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2018 - 2023: Past and Present Scenario
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2023: Base Year of Study
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2024 – 2029: Future Outlook
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China
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Japan
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South Korea
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India
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Australia
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Germany
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France
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UK
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Italy
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Spain
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US
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Canada
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Brazil
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Columbia
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South Africa
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Saudi Arabia
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UAE
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Qatar
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Mergers and Acquisitions
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Funding Timeline
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Company Profiles
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Cencora, Inc.
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DHL Group
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DB Schenker
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CEVA Logistics
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United Parcel Service
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FedEx
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Kuehne Nagel
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AP Moller Maersk
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Singapore Post
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ABS Logistics
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How has the global pharmaceutical logistics market performed in the past?
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Which are the leading countries in the pharmaceutical logistics market worldwide?
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Is North America leading in the pharmaceutical logistics market?
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Which country is leading in the European pharmaceutical supply chain?
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How is the pharmaceutical industry performing worldwide?
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Which drugs and therapies are most commonly transported within the global pharmaceutical logistics market?
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What are the main factors affecting the cost structure of pharmaceutical logistics globally?
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What are the future growth prospects and opportunities for the pharmaceutical logistics market in major countries across different continents?