Market Trends of Europe Healthcare Cold Chain Logistics Industry
The OTC Pharmaceuticals Consumption is Projected to Grow Significantly
A notable increase in health awareness among consumers in Europe has been noticed during the pandemic. By empowering people and making better ways of accessing healthcare, self-care has the potential to meet these challenges. The growth of European healthcare cold chain logistics is a result of these reasons.
People are looking proactively for ways to manage their health, which has led to a growth in the demand for self-care and OTC pharmaceuticals. Consequently, OTC pharmaceutical consumption in Europe has become more accessible to consumers as a result of the development of e-commerce platforms. The growth of this segment can be attributed to the convenience of individuals buying healthcare products through electronic platforms. As per industry experts, in 2023, OTC pharmaceuticals consumption increased from USD 50.46 billion in 2022 to USD 52.72 billion in 2023 and is projected to reach USD 54.79 billion in 2024.
Governments across the region are also supporting market players. For instance, in November 2023, the Swedish Government expanded the use of naloxone spray that reverses opioid overdose. To offer a wider range of medicines for common illnesses such as pain relief, cough and cold, allergies, digestive disorders, and more, pharmaceutical companies in Europe are expanding their OTC product portfolio. As a result, stringent and efficient cold chain logistics systems are increasingly in demand.
Germany is Set to Lead Pharmaceuticals Production
In 2022, pharmaceutical production in Germany was valued at its highest at EUR 37.4 billion (USD 40.31 billion). According to Strategy 4.0, published in November 2023, the German Government is also discussing a new Pharma Strategy with a number of reforms to improve the conditions for the pharmaceutical industry in Germany.
The increase in pharmaceutical production is due to the growing instances of chronic diseases and increased emphasis on prevention and self-medication for disease. In addition, the country's growth has been driven by an increase in the use of OTC medicines.
In addition, government support for research and development helps speed up the development of medicines. In 2022, according to a 2023 article published by Eurostat, across the EU, the total government budget allocations for R&D (GBARD) stood at EUR 117.37 billion (USD 126.52 billion), equivalent to 0.74% of GDP. An increase of 5.4% compared with 2021.
