Pharmaceutical Logistics Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 531.42 Billion |
| Market Size (2029) | USD 695.53 Billion |
| CAGR (2024 - 2029) | 5.53 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Pharmaceutical Logistics Market Analysis
The Pharmaceutical Logistics Market size is estimated at USD 531.42 billion in 2024, and is expected to reach USD 695.53 billion by 2029, growing at a CAGR of 5.53% during the forecast period (2024-2029).
- Pharmaceutical manufacturing companies are increasingly turning to third-party providers for packaging and labeling services. Many of these companies are expanding their operations into previously untapped regions like Sub-Saharan Africa and South America. However, they emphasize the importance of partnering with local logistics providers who possess strong expertise in pharmaceuticals. Despite the benefits, there are concerns about potential service quality deterioration and loss of control associated with outsourcing.
- The demand for sea and air freight pharmaceutical logistics is expected to drive industry growth in the coming years. Sea freight, in particular, offers cost savings of up to 80% and reduces staffing needs while also minimizing packaging, storage, and carbon footprint. Air freight logistics are increasingly used for long-distance and intercontinental distribution of valuable vaccines and medicines, further contributing to industry expansion. The market is also witnessing increased demand for over-the-counter (OTC) medications such as vitamins, minerals, supplements (VMS), common cold and cough remedies, gastrointestinal drugs, and dermatology treatments.
- Furthermore, there is a growing need for fast-track assistance in the healthcare sector, which is boosting the pharmaceutical logistics market. The establishment of a single-source distribution channel is seen as a way to reduce distribution costs and enhance efficiency in pharmaceutical logistics.
Pharmaceutical Logistics Market Trends
Increasing Demand for Cold Chain Logistics in the Sector
- The cold chain logistics sector is poised for significant growth in the coming years. This expansion is primarily driven by increasing demand for ambient products, such as vaccines, necessitating precise temperature-controlled logistics to ensure product efficacy during distribution.
- Government regulations mandating accurate temperature maintenance for highly temperature-sensitive pharmaceuticals are also expected to contribute to the segment's growth. The adoption of telematics in cold-chain pharmaceutical logistics is on the rise, enabling companies to improve efficiency, connectivity, and safety in cargo transportation. Given the requirement for temperature-controlled environments in the manufacturing and distribution of biological and medical products, pharmaceutical companies are increasingly relying on temperature-controlled transportation and cold storage systems.
- Recent advancements in supply chain management and integration technologies have facilitated the seamless integration of effective cold-chain logistics for transporting temperature-sensitive goods. This has led to the growth of supply chain businesses while ensuring the quality and safety of pharmaceutical products. Overall, the provision of cold chain logistics by specialized firms is driving growth in the temperature-controlled logistics sector, promising a bright future for the industry.
Asia-Pacific is Poised to Witness the Highest Growth Rate
- Asia-Pacific is poised to witness the highest growth rate in the future, primarily driven by a surge in demand for pharmaceutical products and substantial investments in healthcare infrastructure. For example, New Delhi, India, witnessed investments of INR 25,813 crore and the addition of 56,171 new jobs as of September 2023 under the production-linked incentive scheme for pharmaceuticals, as announced by the government of India.
- Asia-Pacific is home to some of the world's largest and fastest-growing pharmaceutical markets, including China, India, Japan, and South Korea. The increasing demand for healthcare services and pharmaceutical products in these countries drives the need for efficient logistics solutions to ensure timely delivery.
- Investments in transportation infrastructure, such as airports, seaports, and road networks, are improving logistics capabilities across the region. Modernization efforts aim to streamline the movement of pharmaceutical goods, reducing transit times and enhancing supply chain efficiency.
Pharmaceutical Logistics Industry Overview
The market is highly fragmented, with the presence of many companies across the globe. Some of the top names in this industry include DHL, DB Group, and FedEx. To maintain their position in the market, pharmaceutical logistics companies are continuously undertaking strategic initiatives such as mergers and acquisitions. Furthermore, players are investing in technologies such as telematics, remote sensing and monitoring, and GPS and GIS integration in transporting cargo, thereby providing customers with safe and convenient pharmaceutical logistics services.
Pharmaceutical Logistics Market Leaders
-
Deutsche Post DHL
-
Kuehne + Nagel
-
UPS (Marken)
-
DB Group
-
FedEx
*Disclaimer: Major Players sorted in no particular order
Pharmaceutical Logistics Market News
- August 2023: UPS Healthcare (a global logistics service provider) expanded its UPS Premier service to India, marking another step in ongoing service and technology upgrades to meet the growing needs of critical time and temperature-sensitive healthcare shipments. This expansion allows Indian customers to access UPS Premier Gold service benefits, including "first-in, first-off" prioritization, built-in service recovery features within the UPS global network, and 24/7 control tower monitoring.
- May 2023: DHL (a global logistics company) opened its newest Indianapolis facility. The facility is spread across more than 30,000 square-foot new end-of-runway centers at the Indianapolis International Airport. Under this end-to-end expansion process, the company ships pharmaceuticals and other life-sciences products without the need for specialized temperature-controlled unit loading devices, maintaining quality control.
Pharmaceutical Logistics Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Key Deliverables of the Study
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. MARKET INSIGHTS AND DYNAMICS
- 3.1 Current Market Scenario
- 3.2 Government Initiatives and Regulatory Aspects
- 3.3 Technological Trends in the Industry
-
3.4 Market Dynamics
- 3.4.1 Market Drivers
- 3.4.1.1 Online Pharmacies to Facilitate Growth
- 3.4.1.2 Increasing Demand for Over-the-counter (OTC) Medicines
- 3.4.2 Market Restraints
- 3.4.2.1 High Cost of Logistics
- 3.4.2.2 Stringent Government Regulations
- 3.4.3 Market Opportunities
- 3.4.3.1 Increasing Investments in Drone Technology for Medication Delivery
-
3.5 Industry Attractiveness - Porter's Five Forces Analysis
- 3.5.1 Bargaining Power of Suppliers
- 3.5.2 Bargaining Power of Consumers/Buyers
- 3.5.3 Threat of New Entrants
- 3.5.4 Threat of Substitute Products
- 3.5.5 Intensity of Competitive Rivalry
- 3.6 Value Chain/Supply Chain Analysis
- 3.7 Impact of COVID-19 on the Market
4. MARKET SEGMENTATION
-
4.1 By Product
- 4.1.1 Generic Drugs
- 4.1.2 Branded Drugs
-
4.2 By Mode of Operation
- 4.2.1 Cold Chain Transport
- 4.2.2 Non-Cold Chain Transport
-
4.3 By Application
- 4.3.1 Biopharma
- 4.3.2 Chemical Pharma
- 4.3.3 Specialized Pharma
-
4.4 By Mode of Transport
- 4.4.1 Air Shipping
- 4.4.2 Rail Shipping
- 4.4.3 Road Shipping
- 4.4.4 Sea Shipping
-
4.5 Geography
- 4.5.1 North America
- 4.5.1.1 United States
- 4.5.1.2 Canada
- 4.5.2 Europe
- 4.5.2.1 United Kingdom
- 4.5.2.2 Germany
- 4.5.2.3 France
- 4.5.2.4 Italy
- 4.5.2.5 Rest of Europe
- 4.5.3 Asia-Pacific
- 4.5.3.1 China
- 4.5.3.2 India
- 4.5.3.3 Japan
- 4.5.3.4 South Korea
- 4.5.3.5 Rest of Asia-Pacific
- 4.5.4 Latin America
- 4.5.4.1 Brazil
- 4.5.4.2 Argentina
- 4.5.4.3 Rest of Latin America
- 4.5.5 Rest of the World
5. COMPETITIVE LANDSCAPE
- 5.1 Overview (Market Concentration and Major Players)
-
5.2 Company Profiles
- 5.2.1 Deutsche Post DHL
- 5.2.2 Kuehne + Nagel
- 5.2.3 UPS (Marken)
- 5.2.4 DB Group
- 5.2.5 FedEx
- 5.2.6 Nippon Express
- 5.2.7 World Courier
- 5.2.8 SF Express
- 5.2.9 CEVA Logistics
- 5.2.10 Agility
- 5.2.11 DSV
- 5.2.12 Kerry Logistics
- 5.2.13 C.H. Robinson
- 5.2.14 Air Canada Cargo
- 5.2.15 Lineage Logistics
- 5.2.16 United States Cold Storage
- 5.2.17 Americold Logistics LLC
- 5.2.18 Nichirei Logistics Group Inc.
- 5.2.19 Kloosterboer
- 5.2.20 NewCold Advanced Cold Logistics
- 5.2.21 VersaCold Logistics Services
- 5.2.22 Cloverleaf Cold Storage Co.*
- *List Not Exhaustive
- 5.3 Other Companies
6. FUTURE OF THE MARKET
7. APPENDIX
8. DISCLAIMER
Pharmaceutical Logistics Industry Segmentation
Pharmaceutical logistics involves manufacturing, processing, and shipping materials and resources. Pharmaceutical logistics companies also undertake activities related to handling finished products for customers.
Transporting healthcare products by different modes requires the establishment of complex logistical methods to maintain the integrity of a pharmaceutical shipment. It requires specific equipment, storage facilities, harmonized handling procedures, and strong cooperation among the cold chain partners. Logistics companies play a vital role in the functioning of pharmaceutical companies.
A complete background analysis of the global pharmaceutical logistics market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for critical segments, emerging trends in the market segments, market dynamics, and the impact of COVID-19, is covered in the report.
The report covers pharma logistics companies, and the market is segmented by product (generic drugs and branded drugs), mode of operation (cold chain transport and non-cold chain transport), application (biopharma, chemical pharma, and specialized pharma), mode of transport (air, rail, road, and sea), and geography (North America, Europe, Asia-Pacific, Latin America, and the Rest of the World). The report offers the market size in value terms in USD for all the segments mentioned above.
| By Product | Generic Drugs | |
| Branded Drugs | ||
| By Mode of Operation | Cold Chain Transport | |
| Non-Cold Chain Transport | ||
| By Application | Biopharma | |
| Chemical Pharma | ||
| Specialized Pharma | ||
| By Mode of Transport | Air Shipping | |
| Rail Shipping | ||
| Road Shipping | ||
| Sea Shipping | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Italy | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Argentina | ||
| Rest of Latin America | ||
| Geography | Rest of the World |
Pharmaceutical Logistics Market Research Faqs
How big is the Pharmaceutical Logistics Market?
The Pharmaceutical Logistics Market size is expected to reach USD 531.42 billion in 2024 and grow at a CAGR of 5.53% to reach USD 695.53 billion by 2029.
What is the current Pharmaceutical Logistics Market size?
In 2024, the Pharmaceutical Logistics Market size is expected to reach USD 531.42 billion.
Who are the key players in Pharmaceutical Logistics Market?
Deutsche Post DHL, Kuehne + Nagel, UPS (Marken), DB Group and FedEx are the major companies operating in the Pharmaceutical Logistics Market.
Which is the fastest growing region in Pharmaceutical Logistics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Pharmaceutical Logistics Market?
In 2024, the North America accounts for the largest market share in Pharmaceutical Logistics Market.
What years does this Pharmaceutical Logistics Market cover, and what was the market size in 2023?
In 2023, the Pharmaceutical Logistics Market size was estimated at USD 502.03 billion. The report covers the Pharmaceutical Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Pharmaceutical Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which component segment accounted for the highest share in the Pharmaceutical Logistics Market?
Based on component storage segment accounted for the highest share in the Pharmaceutical Logistics Market.
Pharmaceutical Logistics Industry Report
The global pharmaceutical logistics market is experiencing significant growth, driven by the increasing demand for both cold chain and non-cold chain logistics solutions. This market is segmented into storage and transportation, with storage facilities crucial for maintaining the efficacy of pharmaceutical products post-production. The transportation segment is witnessing rapid growth, facilitated by advancements in air freight, sea freight, and overland logistics, essential for distributing sensitive pharmaceuticals. Regionally, Europe leads due to robust healthcare regulations and high demand for generic medicines, especially in the UK, Germany, and France. Meanwhile, the Asia-Pacific region is the fastest-growing market, spurred by economic advancements and rising healthcare needs in countries like China and India. The market is highly fragmented with intense competition among numerous regional and multinational players. Strategic mergers, acquisitions, and partnerships are common as companies aim to expand their geographic reach and enhance service offerings. The market's growth is also supported by the need for efficient logistics solutions to ensure the integrity of pharmaceutical products, driven by increasing global healthcare demands and regulatory requirements for safe and timely delivery. For detailed statistics and a market forecast outlook, refer to Mordor Intelligence™ Industry Reports, which offer a comprehensive analysis and free report PDF downloads.
