Market Trends of Germany Pharmaceutical 3PL Industry
This section covers the major market trends shaping the Germany Pharmaceutical 3PL market according to our research experts:
Incresing Popularity of Online Pharmacies to Support the Market Growth
In recent years, online pharmacies have grown in popularity due to the rising internet penetration and the increasing prevalence of chronic diseases in developing countries. Due to the availability of high-speed internet and the rising awareness of online over-the-counter benefits, Germany is the fastest-growing market in Europe. Online pharmacy is one of Europe's most popular advancements in both emerging and established countries. The Online pharmacy sector benefitted from the COVID-19 pandemic. Customers flocked in droves and began to exhibit a keen interest in online drug transactions. Initiatives taken by the German government in the healthcare sector are also supporting the online pharmacy industry. One of them, the electronic prescription process is intended to save healthcare providers and patients time, effort, and travel in the German healthcare system in the future. It is also intended to increase the safety of drug therapy for patients.
Once the rollout process has been completed nationwide, the obligation to prescribe digitally will then also apply to all healthcare providers across Germany: patients will then receive a prescription code together with intake and dosage instructions displayed in the gematik app after their medical consultation or video consultation. They can choose to show and redeem the prescription code at a pharmacy of their choice or redeem it at an online pharmacy for delivery. apo.com Group is currently the fastest-growing online pharmacy group in Germany. While the online pharmacy market grew by only 1.4% in 2022 during the current crisis and following Corona, the apo.com Group brands grew by over 30%. This enabled the group to increase its market share from 7% to over 11% in 2022. With the increasing popularity of online pharmacies in Germany the 3PL demand for pharmaceuticals will continue to rise.
Biopharmaceuticals to Contribute in Market Expansion
Biopharmaceuticals are drugs whose active ingredients are produced with the help of genetically modified organisms. Biopharmaceuticals can relieve or permanently cure many diseases for which there were previously no or only partially successful treatment options. These include anemia, multiple sclerosis, and rheumatism. In the areas of immunology, metabolism, oncology, and diseases of the central nervous system, new product innovations are constantly being added. Germany is the second-largest producer of European Union (EU) certified active biopharmaceutical substances; Nationwide sales of biopharmaceuticals amounted to around EUR 14.6 billion (USD 15.86 billion) in 2020 out of around EUR 47.5 billion (USD 51.60 billion) in total pharmaceutical sales. In 2020, sales of biopharmaceuticals in Germany increased by around 6% compared to the previous year. In 2021, sales of biopharmaceuticals in Germany increased by around 10.2% compared to the previous year 2020. Nationwide sales of biopharmaceuticals amounted to around EUR 16.1 billion (USD 17.49 billion) in 2021 out of around EUR 51.4 billion (USD 55.84 billion) in total pharmaceutical sales.
The biopharma cluster in South Germany is a leading biotech hub and the global foundation of biopharmaceutical development and production. Nearly half of all EU-certified, active biopharmaceutical ingredients in Germany are produced in the BioPharma Cluster South Germany. The region between the German city of Ulm and Lake Constance is one of the highest-grossing and most important research, development, and production areas of the country's pharmaceutical industry. It has more than 100 biotechnological, pharmaceutical and medical technology companies and research institutions. Biotechnology is becoming a branch of the future, leading the way for the entire pharmaceutical sector. In Germany alone, the number of approved biopharmaceuticals has doubled between 2005 and 2018 to a total of now 311 certified ingredients. This indicates a positive outlook for the biopharmaceuticals sector in Germany. The growth of biopharmaceuticals in Germany will increase the demand for pharmaceutical 3PL services in the country adding to the market growth.
