Pharmaceutical Logistics Market Size (2024 - 2029)

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 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.