The global pharmaceutical logistics market is growing at a considerable CAGR of 8.0% during the forecast period. Increasing developed modes of transportation, decreasing distribution costs are two of the prime factors affecting and driving the market. Additionally, the increasing supply chain globalization along with growing demand related with over counter (OTC) medicines are also estimated to be the key factors that are contributing significantly towards the growth of the market. However, a changing price policy across the globe is the major factor constraint that is hindering the growth of the global pharmaceutical logistics market. 

Moreover, the emerging focus on deliveries through air drones also is one of the key factors that are creating opportunities in the market. New product launches in the market are likely to drive the growth of the global pharmaceutical logistics market. For instance, in January 2021, Deutsche Post AG had enlarged its medical and pharmaceutical logistics capacity in Germany. The company elaborated its Life Sciences & Healthcare (LSH) facility for around 2,500 square meters. The center is considered to be nearest to the airport along with houses in order to effectively store and handle temperature-controlled pharmaceutical and medical products that include vaccinations.

Impact of COVID-19 Pandemic on the Global Pharmaceutical Logistics Market

The global pharmaceutical logistics market is hardly hit by the COVID-19 pandemic since December 2019. The COVID-19 pandemic had brought a lot of disruption across the globe. Due to the Covid-19 pandemic, the various transportation activities were also halted which had adversely impacted the growth of the market.

Segmental Outlook 

The global pharmaceutical logistics market is segmented based on type and components. Based on type, the market is segmented into cold chain logistics and non-cold chain logistics. Further, based on components the market is segmented into storage, transportation, and monitoring.

Global Pharmaceutical Logistics Market Share by Components 2020 (%)

Based on components, storage holds a significant share in the market. This is owing to the need and demand associated with pharma products storage facilities in order to protect it along with packing and shipping of the order. Efficient storage provides an important economic benefit to the business as well as to the customers. Therefore, the high demands of warehousing for storage purposes along with other offerings are set to drive the growth of the segment in the global pharmaceutical logistics market.

Regional Outlooks

The global pharmaceutical logistics market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. North America held a considerable share in the global pharmaceutical logistics market. In North America, the rising demand and consumption of generic drugs are one of the prime factors affecting the growth of the market in the region. Additionally, the increasing reforms in the healthcare sector that favor generic drugs and the existence of a large number of players are some other main factors that are providing support to the growth of the market in the region.

Global Pharmaceutical Logistics Market, by Region 2021-2027

Asia-Pacific will have Considerable Growth in the Global Pharmaceutical Logistics Market

Asia-Pacific region is expected to witness significant growth opportunities for the market. Increasing demand related to OTC medicines across the region is likely to drive the growth of the regional market. Additionally, key market companies expanding their reach along with healthcare developments in the emerging region, especially in South Korea, China and India are also impacting the growth of the market. Additionally, increasing usage of the railway as means of transportation for a better result is another factor that is also affecting the growth of the market.

Market Player Outlook

Key players of the global pharmaceutical logistics market are Deutsche Post AG, Kuehne+Nagel, FedEx, Kerry Logistics Network Ltd., Nippon Express Co., Ltd. To survive in the market, these players adopt different marketing strategies such as product launches and mergers and acquisitions. For instance, in April 2021, DSV Panalpina acquired the logistics division of Kuwait's Agility Public Warehousing Co. for around $4.1 billion. Through this acquisition, the company will look forward to build scale in a fragmented freight transport market.

In October 2020, Kuehne+Nagel had done an agreement with one of the global manufacturers in the design and production of technologically advanced systems for the world’s top pharmaceutical and biotechnology companies named West Pharmaceuticals for providing solutions that will work fulfilling the customer’s needs through this multi-year contract. Additionally, the company had done the investment in a custom-built facility for the management of West Pharmaceutical’s contract logistics and road logistics services as well.

In May 2019, FedEx which is one of the express transportation companies in the Asia-Pacific region had introduced a temperature-controlled cold chain shipping solution. The new Medpak VIoC solution offers superior temperature integrity, finest convenience along with higher cost efficiencies for supporting its healthcare customers in order to do shipping for temperature-sensitive shipments. The Medpak VIoC solution is also considered high-performance reusable thermal packaging that is validated to ISTA (International Safe Transit Association) 7D standards as it offers 96-hours temperature stability. Additionally, it comes with SenseAware that is a sensor-based device, which supports monitoring the location of the shipment along with the present situation of the contents as it will be informing about any sort of deviations if it’s there. It is been offered in Japan, Korea, and Singapore and the company is planning to expand it in other countries as well.

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

    • Key companies operating in the global pharmaceutical logistics market based on the availability of data, information related to new product launches, and relevant news is also available in the report.

   • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where in the market.