APAC Pharmaceutical Warehousing Market Size (2024 - 2029)

The APAC Pharmaceutical Warehousing Market is experiencing significant growth, driven by advancements in technologies such as IoT, blockchain, and data analytics, which enhance supply chain performance. The market's expansion is influenced by the recovery of the pharmaceutical supply chain, following epidemic prevention and control measures and progressive liberalization. In China, despite public hospitals dominating drug sales, there is a notable shift towards retail pharmacies and an outflow of prescriptions, reflecting changing consumption patterns. The demand for pharmaceutical warehousing is further propelled by rising healthcare costs, the prevalence of chronic diseases, and the increasing focus on cold chain storage to extend product shelf life, particularly in the wake of COVID-19.

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Market Size of APAC Pharmaceutical Warehousing Industry

APAC Pharmaceutical Warehousing Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 37.57 Billion
Market Size (2029) USD 58.87 Billion
CAGR (2024 - 2029) 9.40 %
Market Concentration Low

Major Players

APAC Pharmaceutical Warehousing Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Pharmaceutical Warehousing Market Analysis

The APAC Pharmaceutical Warehousing Market size is estimated at USD 37.57 billion in 2024, and is expected to reach USD 58.87 billion by 2029, growing at a CAGR of 9.40% during the forecast period (2024-2029).

  • The market is seeing the emergence of new technologies such as the Internet of Things (IoT), blockchain, and data analytics to improve visibility, traceability, and overall supply chain performance.
  • The pharmaceutical industry has moved into a new phase of rapid integration. As a result of the overall progress of epidemic prevention and control and progressive liberalization, overall pharmaceutical supply chain development has started to recover.
  • As we look ahead to 2023, the 100-year transformation and the 100-year pandemic are inextricably linked. Domestic development faces the triple challenge of declining demand, supply shocks, and weakening expectations.
  • In China, Total sales of all three major end-of-life drugs increased slightly in 2022, by approximately 1.1%. Public hospitals continue to dominate the market, although their overall market share is decreasing due to the effects of national medical reform policies.
  • In China, Public hospitals account for approximately 61.8 percent of drug sales in 2022, while retail pharmacies account for approximately 29.0 percent, and medical and drug sales account for approximately 9.2 percent. Drug consumption started to shift away from the hospital and toward the outside market, with a clear trend of prescription outflow.
  • The increase in demand is driven by the increasing cost of healthcare in the region, the increasing prevalence of generic substitutes, and the prevalence of chronic diseases like diabetes, cancer, and cardiovascular diseases like hypertension, all of which result in high treatment costs.
  • Cold chain expansion was expected to see a surge in demand as cold chain manufacturers shifted their focus from production to storage to extend the shelf life of their products due to COVID-19's impact on the global healthcare cold chain supply chain, as well as the pandemic’s restrictions on commerce.

APAC Pharmaceutical Warehousing Industry Segmentation

Pharmaceutical warehousing refers to the systematic storing of medicinal products and related items. Pharmaceutical warehousing is used in the pharmaceutical industry to store active ingredients and other volatile substances that need to be stored in a controlled environment in order to be safe and effective.

The Asia-Pacific (APAC) pharmaceutical warehousing market is segmented by type (cold chain warehouses and non-cold chain warehouses), by application (pharmaceutical factory, pharmacy, hospital, and other applications), and by region (China, Japan, India, Thailand, Vietnam, Australia, and rest of the Asia-Pacific). 

The report offers market size and forecasts for the Asia-Pacific pharmaceutical warehousing market in value (USD) for all the above segments.

BY Type
Cold Chain Warehouse
Non-Cold Chain Warehouse
By Application
Pharmaceutical Factory
Pharmacy
Hospital
Other Applications
By Geography
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Vietnam
Thailand
Rest-of-APAC
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APAC Pharmaceutical Warehousing Market Size Summary

The APAC pharmaceutical warehousing market is experiencing significant growth, driven by the rapid expansion of the pharmaceutical industry in the region. This growth is fueled by the increasing demand for efficient warehousing and distribution solutions, as well as the adoption of advanced technologies like IoT, blockchain, and data analytics. These technologies are enhancing visibility, traceability, and supply chain performance, which are crucial for meeting the evolving needs of the pharmaceutical sector. The market is also witnessing a shift in drug consumption patterns, with a move away from public hospitals towards retail pharmacies and other channels, influenced by national medical reform policies and the rising prevalence of chronic diseases. The COVID-19 pandemic has further accelerated the need for robust cold chain logistics, as the demand for temperature-controlled storage solutions has surged to ensure the longevity and safety of pharmaceutical products.

In the Asia-Pacific region, countries like India, China, and Malaysia are emerging as key players in the pharmaceutical warehousing market. India, in particular, is expected to see substantial growth in warehousing space, supported by government initiatives promoting cold storage and foreign investment. Malaysia is becoming a hub for multinational pharmaceutical companies due to its strategic location, favorable business environment, and improved infrastructure. The region's logistics industry is also evolving, with companies investing heavily in automated and temperature-controlled warehouses to meet the demands of a growing customer base. As the market continues to expand, international and local players are competing to establish a strong presence, with countries like Vietnam also emerging as potential hubs for pharmaceutical companies. The dynamic nature of the market presents both challenges and opportunities, with companies needing to adapt quickly to changing regulations and market conditions to maintain a competitive edge.

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APAC Pharmaceutical Warehousing Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview (Current Market Scenario of Market and Economy)

    2. 1.2 Government Regulations and Initiatives

    3. 1.3 Technological Trends

    4. 1.4 Impact of Covid-19 on the market

    5. 1.5 Market Dynamics

      1. 1.5.1 Market Drivers

        1. 1.5.1.1 Rapidly Expanding Pharmaceutical Industry

        2. 1.5.1.2 Government Regulations and Intiatives

      2. 1.5.2 Market Restraints/ Challenges

        1. 1.5.2.1 Supply Chain Disruptions

        2. 1.5.2.2 Temperature Controlled and Cold Chain Management

      3. 1.5.3 Market Opportunities

        1. 1.5.3.1 Technological Innovations

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Powers of Buyers/Consumers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 BY Type

      1. 2.1.1 Cold Chain Warehouse

      2. 2.1.2 Non-Cold Chain Warehouse

    2. 2.2 By Application

      1. 2.2.1 Pharmaceutical Factory

      2. 2.2.2 Pharmacy

      3. 2.2.3 Hospital

      4. 2.2.4 Other Applications

    3. 2.3 By Geography

      1. 2.3.1 Asia-Pacific

        1. 2.3.1.1 Australia

        2. 2.3.1.2 China

        3. 2.3.1.3 India

        4. 2.3.1.4 Indonesia

        5. 2.3.1.5 Japan

        6. 2.3.1.6 Malaysia

        7. 2.3.1.7 Vietnam

        8. 2.3.1.8 Thailand

        9. 2.3.1.9 Rest-of-APAC

APAC Pharmaceutical Warehousing Market Size FAQs

The APAC Pharmaceutical Warehousing Market size is expected to reach USD 37.57 billion in 2024 and grow at a CAGR of 9.40% to reach USD 58.87 billion by 2029.

In 2024, the APAC Pharmaceutical Warehousing Market size is expected to reach USD 37.57 billion.

APAC Pharmaceutical Warehousing Market Report Snapshots

APAC Pharmaceutical Warehousing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)