Market Size of Germany Pharmaceutical 3PL Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 2.01 Billion |
Market Size (2029) | USD 2.49 Billion |
CAGR (2024 - 2029) | 4.47 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Germany Pharmaceutical 3PL Market Analysis
The Germany Pharmaceutical 3PL Market size is estimated at USD 2.01 billion in 2024, and is expected to reach USD 2.49 billion by 2029, growing at a CAGR of 4.47% during the forecast period (2024-2029).
- COVID-19 obviously had a positive impact on the market. The German pharmaceutical market's clinic and pharmacy section had grown by over 7% to EUR 49.5 billion in 2020 (USD 55.9 billion). Vaccines and diagnostics are also included in this section. According to an industry report, the amount of counting units, such as tablets, sachets, and injections, decreased slightly (-0.6 %) to 97.5 billion counting units. From March to May 2020, exports of Germany's pharmaceutical industry climbed 14.3% Y-o-Y to EUR 22.1 billion (USD 25.3 billion), according to the Federal Statistical Office (Destatis). This increased the demand for pharmaceutical 3PL services in Germany during the pandemic.
- According to Germany Trade and Invest (GTAI), Germany has the largest pharmaceutical market in Europe and the fourth largest globally. The country is regarded as one of the world's leading pharmaceutical manufacturing locations, and its highly skilled workforce enables pharmaceutical companies to work on more complex and demanding commodities such as biosimilars while maintaining high production quality. Germany remains the second-largest producer of active biopharmaceutical substances approved by the European Union (EU). South Germany's BioPharma Cluster is one of the world's major biopharmaceutical development and production hubs. The cluster is one of the major European production sites for active biopharmaceutical components approved in Europe.
- In 2020, Germany accounted for 4.5% of global pharmaceutical production. Pharmaceutical value-added output is estimated to have grown by 4% in 2022 and is forecasted to grow by more than 2% in 2023, after increasing by 5.2% in 2021. Healthcare growth remained robust in 2022. Covid-19 vaccines have mainly driven demand, while at the same time, producers of cold medicines have recorded lower sales, as physical distancing and mask-wearing reduced the number of related diseases. There is still a backlog of non-Covid related medical treatments and spending on drugs. However, a rebound is underway, and non-Covid related pharmaceuticals output will benefit 2023.
- Mid-and long-term demand for pharmaceuticals will be driven by demographic developments. The progressive aging of Germanys population will require an increase in medical treatments, in particular for chronic diseases. This will mainly benefit producers of specialty products, but also manufacturers of generic drugs. In turn, contributing to 3PL demand. The German healthcare market is highly regulated, and the legislative pressure on pharmaceutical businesses to lower their sales prices of drugs for end-consumers is not overly high. Profit margins of both producers and pharmacies have increased in 2021, which encourages new players to enter the pharma sector. With more players entering the pharma sector in Germany the demand for 3PL services will continue to increase. Seeing the positive outlook of the market, 3PLs from neighboring countries are entering the market through mergers and acquisitions to benefit from the market growth. For example, Geodis expanded its premium express services with the acquisition of Trans-o-Flex, based in Weinheim, Germany. Privately held Trans-o-Flex has around 80 locations in Germany and Austria that are rated with certified good distribution practices (GDPs), and has been serving pharma, cosmetics, automotive, and high-tech industries with time-definite and temperature-controlled delivery. According to Geodis, this acquisition will position Geodis as a leading player in the healthcare market and will significantly enhance its delivery capabilities in Germany, a country at the heart of global trade.
Germany Pharmaceutical 3PL Industry Segmentation
The study captures the market value of the German pharmaceutical 3PL market. The report provides a comprehensive background analysis of the German pharmaceutical 3PL market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.
The German Pharmaceutical 3PL Market is segmented by Service (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution), and by Temperature Control (Controlled/Cold Chain Logistics, and Non-controlled/Non-Cold Chain Logistics). The report offers market sizes and forecast in value (USD billion) for all the above segments.
By Service | |
Domestic Transportation Management | |
International Transportation Management | |
Value-added Warehousing and Distribution |
By Temperature Control | |
Controlled/Cold Chain Logistics | |
Non-controlled/Non-Cold Chain Logistics |
Germany Pharmaceutical 3PL Market Size Summary
The German pharmaceutical third-party logistics (3PL) market is poised for growth, driven by the country's robust pharmaceutical industry, which is the largest in Europe and fourth globally. Germany's pharmaceutical sector benefits from a highly skilled workforce and advanced manufacturing capabilities, particularly in biopharmaceuticals and biosimilars. The BioPharma Cluster in South Germany is a significant hub for biopharmaceutical development and production, contributing to the country's status as a leading producer of active biopharmaceutical substances approved by the European Union. The market's expansion is further supported by demographic trends, such as an aging population that increases the demand for medical treatments, particularly for chronic diseases. This demographic shift is expected to boost the demand for both specialty and generic pharmaceuticals, thereby driving the need for 3PL services.
The COVID-19 pandemic has positively impacted the German pharmaceutical 3PL market, as the demand for vaccines and diagnostics surged, leading to increased exports and a heightened need for logistics services. The rise of online pharmacies, accelerated by the pandemic, has also contributed to the growing demand for 3PL services, as more consumers turn to digital platforms for their pharmaceutical needs. The market is characterized by a competitive landscape with key players like DHL Logistics, Ceva Logistics, and MSK Pharma Logistics offering specialized services to meet the stringent requirements of pharmaceutical logistics. These companies are expanding their capabilities, such as DHL's expansion of its Life Sciences & Healthcare Campus, to cater to the increasing demand for efficient and reliable pharmaceutical logistics solutions. The market's growth is further fueled by strategic mergers and acquisitions, as seen with Geodis's acquisition of Trans-o-Flex, enhancing its presence in the German healthcare market.
Germany Pharmaceutical 3PL Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Current Market Scenario
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1.2 Market Drivers
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1.3 Marrket Restraints
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1.4 Market Opportunities
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1.5 Industry Supply Chain/Value Chain Analysis
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Suppliers
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1.6.2 Bargaining Power of Consumers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Government Initiatives and Regulations in the Market
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1.8 Pharmaceutical E-commerce Market in Germany
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1.9 Technological Trends in the Market
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1.10 Spotlight on Packaging of Pharmaceuticals (Global and Regional Trends)
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1.11 Impact of COVID-19 on Market
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 Domestic Transportation Management
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2.1.2 International Transportation Management
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2.1.3 Value-added Warehousing and Distribution
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2.2 By Temperature Control
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2.2.1 Controlled/Cold Chain Logistics
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2.2.2 Non-controlled/Non-Cold Chain Logistics
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Germany Pharmaceutical 3PL Market Size FAQs
How big is the Germany Pharmaceutical 3PL Market?
The Germany Pharmaceutical 3PL Market size is expected to reach USD 2.01 billion in 2024 and grow at a CAGR of 4.47% to reach USD 2.49 billion by 2029.
What is the current Germany Pharmaceutical 3PL Market size?
In 2024, the Germany Pharmaceutical 3PL Market size is expected to reach USD 2.01 billion.