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Pharmaceutical Logistics Market Analysis

  • Report ID: GMI8549
  • Published Date: Mar 2024
  • Report Format: PDF

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.
 

Pharmaceutical Logistics Market Share, By Application, 2023

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.
 

U.S. Pharmaceutical Logistics Market Size, 2022 -2032, (USD Billion)

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.
 

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of pharmaceutical logistics reached USD 91.4 billion in 2023 and is set to witness 6% CAGR from 2024 to 2032, owing to the rising demand for pharmaceuticals, fueling the need for transporting and storing medications worldwide.

The non-cold chain segment is expected to register 59% share by 2032, due to a large percentage of medications not requiring rigorous temperature control during transit and storage.

North America market is poised to surpass USD 30.5 billion by 2032, attributed to a robust ecosystem of research institutions, pharmaceutical companies, and a high volume of drug development and manufacturing in the region.

C.H. Robinson, CEVA Logistics, DB Schenker, DHL, DSV Global, FedEx, Kuehne + Nagel, Maersk, Nippon Express, and UPS, are some of the major pharmaceutical logistics companies worldwide.

Pharmaceutical Logistics Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 350
  • Countries covered: 25
  • Pages: 220
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