Pharmaceutical Logistics Market Size - By Offering (Cold Chain, Non-cold Chain), Service (Transportation, Storage, Monitoring), Mode of Transportation (Air, Sea, Road, Rail), Application (Biopharma, Chemical Pharma, Specialty Pharma) & Forecast, 2024 - 2032

Pharmaceutical Logistics Market Size

Pharmaceutical Logistics Market size was valued at USD 91.4 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 and 2032. The rising demand for pharmaceuticals is fueling the need for transporting and storing medications. This results in a greater volume of medications passing through the logistics network, requiring effective management from storage facilities to final distribution sites.
 

The increasing popularity of biologics, tailored medications, and temperature-sensitive vaccinations, along with traditional medications, necessitates sophisticated handling and logistical solutions. This wider range of goods with specialized needs broadens the pharmaceutical logistics environment.  
 

For instance, in February 2024, Viatris, a pharmaceutical company, anticipates robust sales for the year, citing the heightened demand for branded medications as a key factor driving this projection. The increasing sales are influenced by factors including the rising popularity of branded pharmaceuticals, market shifts favoring specific drug types, and the potential success of new product introductions or expansions. This positive outlook underscores the overall expansion of the pharmaceutical sector, which is expected to drive growth in the market.
 

The stringent regulations for cold chain logistics serve as a significant growth factor for the pharmaceutical logistics market. Stricter standards controlling temperature control, storage conditions, and handling methods across the supply chain compel pharmaceutical businesses to rely on logistics suppliers with the necessary experience and infrastructure to ensure compliance. This increases the demand for specialist cold chain logistics services. To comply with laws, logistics companies need to invest in specialized equipment such as temperature-controlled vehicles, refrigerated warehouses, and real-time temperature monitoring systems. This investment enhances the market's ability to manage a growing number of temperature-sensitive medications.
 

Stringent regulations also assist in ensuring that medications remain within the appropriate temperature range throughout shipping and storage. This reduces the danger of spoilage, deterioration, and loss of efficacy, ensuring the quality and safety of pharmaceuticals delivered to patients. For instance, in October 2023, the EU revised its Good Distribution Practice (GDP) guidelines to strengthen oversight of pharmaceuticals. The updated guidelines focus on tighter regulation of the cold chain, emphasizing the need for comprehensive personnel training, thorough risk assessments, and temperature mapping of storage & transport facilities to maintain consistent temperature control.
 

The high operational costs are hindering the pharmaceutical logistics market growth. Maintaining temperature-controlled storage facilities, refrigerated vehicles, and specialized packing materials increases operational costs dramatically as compared to traditional logistics. The handling of medications demands skilled personnel who possess expertise in specialized regulations, storage protocols, and the potential consequences of mishandling. This advanced training adds further costs for logistics companies. Implementing real-time tracking systems, data loggers, and other monitoring tools to assure product integrity across the supply chain involves investments in modern technology, further increasing operational expenses.
 

Pharmaceutical Logistics Market Trends

The pharmaceutical logistics industry has witnessed significant technological advancements. GPS technology, sensor-based systems, and data recorders allow for real-time tracking of goods throughout the supply chain. This gives vital insights into location, temperature, and other critical parameters, enabling timely intervention in the event of abnormalities. Advanced data analysis tools can detect trends and anticipate possible problems such as delays or interruptions. This enables proactive decision-making, route optimization, and timely delivery of medications. Automating warehouse operations and using robots to handle sensitive drugs can speed up processes, reduce human errors, and increase the overall efficiency.
 

The development of innovative packing materials with improved insulating qualities and temperature monitoring capabilities aids in maintaining constant temperatures throughout transportation and storage. For instance, in August 2023, Mahindra Logistics enhanced its pharmaceutical operations by prioritizing customization to meet the specific demands of the industry. The company offers bespoke logistics solutions at every step of the supply chain for pharmaceutical and life sciences companies. These solutions include tech-enabled services for end-to-end visibility, temperature-controlled warehousing, and built-to-suit infrastructure with multiple SKUs.
 

Pharmaceutical Logistics Market Analysis

Based on offerings, the market is divided into cold chain and non-cold chain. The non-cold chain segment is expected to hold around 59% of the market share by 2032. A large percentage of medications do not require rigorous temperature control during transit and storage. This includes over-the-counter medicines, some antibiotics, and a wide range of generic pharmaceuticals. Non-cold chain items may be carried and stored with ordinary logistics infrastructure, eliminating the need for special equipment, temperature-controlled facilities, and unique handling processes and reducing operational expenses for logistics companies. The logistics infrastructure for non-cold chain items is already well-developed and widely available across the world. This existing infrastructure may be easily used to transport and store a wider range of medications without requiring any extra expenditure, boosting segment growth.
 

Based on applications, the pharmaceutical logistics market is categorized into biopharma, chemical pharma, and specialty pharma. The biopharma segment accounted for 46% of the market share in 2023. The global increase in cancer, autoimmune diseases, and diabetes has led to a growing demand for biopharmaceuticals, which often serve as the primary therapeutic options for these conditions. Biopharmaceuticals require complex production procedures and special handling measures throughout the supply chain.
 

This complexity needs competence in cold chain management, aseptic handling, and compliance with tight standards, increasing reliance on specialized bio-pharma logistics suppliers. As a result, biopharmaceuticals are often more expensive, resulting in higher transportation costs and a greater market share for biopharma logistics.
 

North America pharmaceutical logistics market size to cross USD 30.5 billion by 2032. The U.S. houses the world's largest pharmaceutical market, with a robust ecosystem of research institutions, pharmaceutical companies, and a high volume of drug development and manufacturing. North America has substantial healthcare spending, which fuels the demand for diverse pharmaceutical items and requires effective logistical systems for their distribution.
 

Regulatory bodies such as the U.S. Food and Drug Administration (FDA) play a crucial role in enforcing strict storage, transportation, and handling regulations, particularly for temperature-sensitive pharmaceuticals. This necessitates specialized cold chain infrastructure and professional logistics suppliers who follow these rules. Lastly, the expanding elderly population in North America raises the demand for a variety of pharmaceuticals for chronic illness therapies as well as specialized drugs, requiring the implementation of efficient pharmaceutical logistics.

U.S. pharmaceutical logistics market will expand at 5% CAGR through 2032, due to the growing demand for pharmaceutical products, including vaccines and specialty drugs, requiring efficient and reliable logistics solutions. The industry must ensure temperature-controlled transportation and storage to maintain the integrity of products, which has led to the development of advanced cold chain logistics. Technological advancements such as real-time tracking and automation enhance the efficiency and safety of supply chains. Additionally, the rise of e-commerce and direct-to-consumer pharmaceutical sales has expanded the need for quick and reliable delivery services. The COVID-19 pandemic underscored the importance of resilient and adaptable pharmaceutical logistics networks, further driving industry growth.
 

Pharmaceutical Logistics Market Share

UPS and FedEx dominate the market with around 10% of the market share. UPS makes significant investments in cutting-edge technology solutions such as real-time tracking & monitoring systems, IoT sensors, and blockchain-enabled platforms. These investments aim to ensure complete visibility, transparency, and security for pharmaceutical shipments across the supply chain.
 

FedEx offers thorough training initiatives and certifications for its workforce engaged in pharmaceutical logistics. These programs ensure adherence to industry regulations, proper handling practices, and safety protocols, offering service excellence and dependability.
 

Pharmaceutical Logistics Market Companies

Major companies operating in the pharmaceutical logistics industry are:

• C.H. Robinson
• CEVA Logistics
• DB Schenker
• DHL
• DSV Global
• FedEx
• Kuehne + Nagel
• Maersk
• Nippon Express
• UPS
   

Pharmaceutical Logistics Industry News

• In January 2024, NX Netherlands received the IATA CEIV Pharma certification for its warehouse located near Amsterdam Airport Schiphol. This certification signifies that NX Netherlands met the stringent standards set by the International Air Transport Association (IATA) for handling pharmaceutical products, ensuring the safe and high-quality transportation of pharmaceuticals.
   
• In January 2024, Turkish Cargo unveiled innovative pharmaceutical logistics solutions, showcasing a commitment to excellence in handling pharmaceuticals and medical consignments. The company holds an IATA CEIV Pharma certificate, ensuring diligent transportation of all pharmaceutical products.
   

The pharmaceutical logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Offering

• Cold chain
• Non-cold chain

Market, By Service

• Transportation
  • Sea freight Logistics
  • Airfreight Logistics
  • Overland Logistics
• Storage
  • Warehouse
  • Refrigerated containers
• Monitoring
  • Hardware
    • Sensors
    • RFID Devices
    • Telematics
    • Networking Devices
  • Software

Market, By Mode of Transportation

• Air
• Sea
• Road
• Rail

Market, By Application

• Biopharma
  • Cold chain
  • Non-cold chain
• Chemical pharma
  • Cold chain
  • Non-cold chain
• Specialty pharma
  • Cold chain
  • Non-cold chain

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA