Pharmaceutical Logistics Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 – 2030

The Global Pharmaceutical Logistics Market Size accounted for USD 81.2 Billion in 2021 and is projected to achieve a market size of USD 173.6 Billion by 2030 rising at a CAGR of 8.8% from 2022 to 2030. Growth in pharmaceutical sector coupled with the transformation in logistics industry fuels the global pharmaceutical logistics market growth. The increasing adoption of advanced technologies in healthcare logistics is a popular trend in pharmaceutical logistics market that is strengthening the industry growth in the coming years.

Pharmaceutical Logistics Market Report Statistics

• Global pharmaceutical logistics market revenue is estimated to reach USD 173.6 Billion by 2030 with a CAGR of 8.8% from 2022 to 2030
• Europe pharmaceutical logistics market share accounted for over 36% shares in 2021
• According to the our analysis, the global pharmaceutical manufacturing is expected to reach a whopping value of USD 1,560 Billion by 2030
• Asia-Pacific pharmaceutical logistics market growth will register fastest CAGR from 2022 to 2030
• Based on component, storage pharmaceutical logistics gathered over 64% of the overall market share in 2021
• Increasing demand for pharmaceuticals in emerging nations will fuel the global pharmaceutical logistics market value

Pharmaceutical logistics involves transporting pharmaceutical products by road, sea & air, and distributing the right quantity of products to right customer and end users at right time with right quality. It requires specific equipment, storage facilities, harmonized handling procedures, strong cooperation among the cold chain operators.

Logistics has a vital role in handling and transportation of pharmaceutical products that meets the requirements of manufacturers, importers and distributors. Some basic components that are used for safe pharmaceutical transportation are proper hygiene packing, security/safety, temperature, storage and recordkeeping.

Global Pharmaceutical Logistics Market Dynamics

Market Drivers

• Growing prevalence of chronic disorders
• Rising demand for reverse logistics
• Surge in international trade activities
• Positive impact of COVID-19 on pharmaceutical logistics industry

Market Restraints

• Lack of standardization in pharma logistics
• High logistics cost and poor infrastructure

Market Opportunities

• Growing adoption of advanced technologies
• Robust demand for temperature-sensitive pharmaceutical drugs

Pharmaceutical Logistics Market Report Coverage

Covid-19 Impact on Pharmaceutical Logistics Industry

Rise in consumption of medicine and usage of medical devices is triggering factor in increase of sales due to pandemic. Rapid discovery and development of vaccines (Covaxin/Covishiled/Sputnik V/Sinovac) for covid19 and distributing it to entire world would require logistic services in order make availability of vaccine across the globe.

Rapid approval of many emergency drugs to treat patients may lead to import of many pharmaceutical products without any registration. Countries like CIS regions Government has lifted ban on import of crucial drugs to control the emergency pandemic situation.

The growth of the market for pharmaceutical logistics is also attributed to the increasing demand for sanitizers, PPE kits, surgical masks, and Over-The-Counter (OTC) medicines such as Vitamins, Minerals, and Supplements, common cough & cold drugs and other immunity boosting products.

Pharmaceutical Logistics Market Insights

The rapid shift in the inclination towards pharmaceutical products is amongst the significant factor expected to fuel the growth and demand of pharmaceutical logistics market. The increase in sales and consumption of pharmaceutical products which has been caused by high prevalence of chronic diseases like diabetes, cardiovascular diseases & genetic problems and high growth in the target patient population are factors also anticipated to push the growth in the global pharmaceutical logistics market.

Expansion in pharmaceutical digital businesses, upgrading to developments in E-commerce, Evolving technology transportation changes according to pharmaceutical products and medical equipment requirements would have a positive impact on pharmaceutical logistics.

Frequent Fluctuations in sea and air freight rates, warehouse charges, less container requirements for few customers depends on goods and customized transportation requirements for special pharmaceutical products is the main restraining factor.

In ability to adopt evolving technology in transportation, Stringent Government Trade and regulation policies in Import & Export and rules from drug controller departments may lead to restraints.

Pharmaceutical Logistics Market Segmentation

The worldwide pharmaceutical logistics market is split based on type, component, application, procedure, and geography.

Pharmaceutical Logistics Market By Type

• Cold Chain Logistics
• Non-Cold chain Logistics

According to our pharmaceutical logistics industry analysis, cold chain logistic service is most used one and has the major revenue share due to additional protection, fragile protection, protection from sunlight, and temperature control system depends on regions. The increasing use of telematics in cold chain pharmaceutical logistics is assisting companies in improving the efficiency, connectivity, and safety of transport cargoes.

Pharmaceutical Logistics Market By Component

• Transportation
• Storage
• Monitoring components

Among components, transportation occupies the major revenue share. Packaging and transportation from the factory to the consumer play an important role in pharmaceutical logistics, and the process must be well maintained and monitored. Furthermore, the products are GPS tracked while being transported, as well as remote temperature monitoring in accordance with good distribution practice (GDP) guidelines, making sure safe transportation and delivery of the products.

Pharmaceutical Logistics Market By Application

• Chemical
• Bio-Pharma
• Specialized Pharma Products

As per our pharmaceutical logistics market forecast, the chemical application dominated the market with majority of the share in 2021. In addition, the segment is expected to continue its dominance during the forecast timeframe from 2022 to 2030. The utmost quantity of chemicals required in pharmaceuticals fuels the demand for chemicals application. However, the bio-pharma and specialized pharma products are likely to gain a substantial growth rate owing to their rising demand and advancements in logistics sector to handle these products.

Pharmaceutical Logistics Market By Procedure

• Picking
• Retrieval Systems
• Handling Systems

The pharmaceutical logistics industry is divided in picking, retrieval systems, and handling systems by procedure segment. Among them, picking sub-segment is expected to generate significant market share during the projected timeframe from 2022 to 2030. On the other hand, handling systems is likely to attain a considerable growth rate in the coming years.

Pharmaceutical Logistics Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Mexico
• Brazil
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

The Middle East & Africa (MEA)

• Gulf Cooperation Council (GCC)
• South Africa
• Rest of the Middle East & Africa

Pharmaceutical Logistics Market Regional Analysis

The major contributors of economies are Germany, France, Belgium and Switzerland in Europe and these have the more number of patented molecule companies in major therapeutic segments. The companies exporting bulk amount of drugs to ROW markets. On other hand USA has large number of patented molecules which too contributes major economies.

India and china are the major contributors of economy in APAC. India is well known for generic market of formulations whereas China is the major exporter of APIs.

China is the major producer of Insulin and Paracetamol in the world, Easy availing of voyage and aviation from India and China to many countries is a driving factor.

Pharmaceutical Logistics Market Players

Pharmaceutical Logistics market is highly competitive due to large number of players, in developing countries the market is occupied by the local logistic services. The global pharmaceutical logistics companies operating in the market are XPO Logistics, Agility, UPS Supply chain logistics, DHL supply chain, JB hunt transport services, Ryder Supply chain solutions, Expeditors international Washington, C.H Robinson Worldwide, Penske Logistics, NFI Logistics, Kuehne + Nagel Americas, Nippon Express, Americold, FedEx supply chain, GEODIS North America (OHL), Lineage  Logistics, Kenco Logistic Services LLC.