Global Pharmaceutical Logistics Market Grows by USD 4.79 Billion in 2023 - Promising Growth Opportunities Ahead, According to Makreo Research

The global pharmaceutical logistics market exhibited substantial growth in 2023, increasing by USD 4.79 billion and reflecting a robust compound annual growth rate (CAGR) of 7.42% over the past five years. This surge is attributed to pharmaceutical companies and healthcare providers strengthening their supply chains and logistics capabilities in response to unprecedented global health challenges. Technological advancements and digitalization have significantly enhanced supply chain visibility and efficiency, enabling improved tracking and monitoring of pharmaceutical shipments.

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Global Pharmaceutical Logistics Market Size and Forecast (2018-2029) -
https://www.makreo.com/report/global-pharmaceutical-logistics-market-size-and-forecast-2018-2029

► Market Overview: Dominance of Non-Temperature-Controlled Logistics
As of 2023, non-temperature-controlled logistics is dominant in the pharmaceutical logistics sector. However, the pharmaceutical cold chain has witnessed transformative advancements, including introducing innovative technologies such as refrigerated ocean containers, cellular-connected data loggers, and high-performance reusable packaging for ultracold shipments.

► Regional Insights: Leading Players in the Global Market
The United States continues to lead the global pharmaceutical market, driven by its numerous major pharmaceutical companies. While China has emerged as a key player, it faces declining growth rates, similar to other sectors. Brazil showcased robust annual growth among emerging markets in 2022. Leading European firms, including Novartis, Roche, AstraZeneca, and Sanofi, are pivotal in shaping the industry's landscape. The pharmaceutical industry relies heavily on research and development, with companies investing around 20% or more of their sales revenue in R&D. The COVID-19 pandemic highlighted the contributions of companies like GSK, Pfizer, Merck & Co., and Sanofi, propelling the industry's significant growth, resulting in global pharmaceutical revenues reaching USD 1.48 trillion in 2022.

► Navigating Complexities: The Challenges of Pharmaceutical Logistics
The pharmaceutical supply chain faces harsh realities, including the following challenges:
• Temperature-Controlled Logistics Failures: An estimated annual loss of approximately USD 35 billion results from failures in temperature-controlled logistics. The increasing complexity of pharma supply chains, driven by global manufacturing and distribution methods, introduces risks such as temperature deviations, theft, counterfeiting, incorrect handling, and potential hazards.

• Theft and Financial Losses: The EU reports annual losses of EUR 8.2 billion from theft, with damages of around EUR 31 million in Europe due to pharmaceutical theft during transport.

• Temperature Deviations: The WHO estimates that costs for temperature-controlled pharmaceuticals reached USD 35.4 billion in 2014. Temperature excursions are only acceptable if product quality is preserved, relying on robust product stability data. Temperature-controlled logistics ensure that critical products, like AstraZeneca's COVID-19 vaccine, are transported and stored within stable temperature and humidity levels, specifically between 2-8°C.

► Growth Opportunities in the European Pharmaceutical Logistics Market
The European pharmaceutical logistics market is poised for significant growth, driven by advancements in healthcare infrastructure, increased pharmaceutical production, and the need for efficient supply chain solutions. Key European ports, including Rotterdam, Antwerp, and Hamburg, play a crucial role in pharmaceutical logistics, offering robust infrastructure and connectivity that facilitate the seamless movement of pharmaceutical goods across the continent.

Seaborne Cargo and Port Activity in the EU (2022)
• Seaborne Cargo Volume: In 2022, ports across the European Union managed approximately 3.5 billion metric tons of seaborne cargo, marking a 4% increase from the previous year.

• Leading Ports: Rotterdam, Antwerp, and Hamburg retained their positions as the top three ports in Europe in 2022, driven by their strategic locations and advanced infrastructure.

► North American Pharmaceuticals Logistics Market Performance
Pharmaceutical logistics in North America is dynamic, with logistics executives addressing increasing demands for special handling amid heightened cost pressures. In the U.S., pharmaceutical logistics represents a significant industry, accounting for over one-third of total global pharmaceutical spending despite having slightly less than 339 million people.

► The Essential Role of Pharmaceutical Distributors
Pharmaceutical distributors play a pivotal role in the U.S. healthcare system, managing 92% of sales and linking 1,300 manufacturers to over 180,000 sales points. The U.S. and Europe lead global shipments of medicines, life sciences, and medical devices. The global pharmaceutical logistics market reached a value of USD 25.15 billion in 2023, driven by continuous growth observed between 2021 and 2022, with promising future growth prospects.

► Market Dynamics in Asia-Pacific Pharmaceuticals Logistics
The Asia-Pacific region is emerging as a hub for clinical trials, benefiting from a large patient pool, diverse demographics, and cost-effective environments. China leads this segment, accounting for 53% of planned clinical trials, followed by India (17%) and Australia (12%). Regulatory compliance, technological advancements, and cost savings position this region for significant growth.

► Key Highlights of the Asia-Pacific Pharmaceutical Logistics Market
• Regulatory Compliance: Strict guidelines for temperature-sensitive pharmaceuticals have been implemented by regulatory bodies.

• Technological Advancements: The rise of IoT and RFID technologies is enhancing temperature monitoring and anti-counterfeiting measures.

• Cost Benefits: Pharmaceutical logistics in the Asia-Pacific region is 30%-40% less expensive compared to the U.S. and Europe.

► Foreign Investment Trends in Korean Logistics
Foreign Direct Investment (FDI) in logistics and distribution reached USD 1.831 billion in 2020, with a notable 38.7% year-on-year increase. Greenfield investments accounted for 92% of total FDI, with significant contributions from countries including Hong Kong, the U.S., China, and Singapore.

► The UAE's Rising Role in Pharmaceutical Logistics
The UAE is becoming a dominant player in pharmaceutical logistics, contributing a substantial 14% to its GDP in 2024. Its strategic location, advanced infrastructure, and favorable business policies attract major pharmaceutical companies, solidifying the region's reputation as a trade hub.

► Scope of the Study
Makreo Research has released an in-depth analysis titled "Global Pharmaceutical Logistics Market Size and Forecast (2018-2029): Analysis by Drug Type, Mode of Transportation, and Geography." This report comprehensively examines the pharmaceutical logistics industry across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. It analyzes current and historical market performance and regulatory landscapes in key countries, including China, Japan, South Korea, India, Australia, Germany, France, the UK, Italy, Spain, the U.S., Canada, Brazil, Saudi Arabia, South Africa, and Qatar.

This report provides an in-depth analysis of major players in the global pharmaceutical logistics market, covering aspects like mergers and acquisitions, funding histories, and detailed company profiles. Additionally, it addresses key logistical challenges, demographic trends, and notable facts relevant to the market, equipping stakeholders and industry experts with a deep understanding of the evolving dynamics within this crucial and rapidly expanding sector.

► Period of Study
2018 - 2023: Past and Present Scenario
2023: Base Year of Study
2024 - 2029: Future Outlook

► Regions and Countries Covered:
- Asia-Pacific (APAC): China, Japan, South Korea, India, Australia
- Europe: Germany, France, the UK, Italy, Spain
- North America: US, Canada
- Latin America & Middle East and North Africa: Brazil, Columbia, South -Africa, Saudi Arabia, UAE and Qatar.

► Companies Covered:
- Cencora, Inc.
- DHL Group
- DB Schenker
- CEVA Logistics
- United Parcel Service
- FedEx
- Kuehne Nagel
- AP Moller Maersk
- Singapore Post
- ABS Logistics

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Makreo Research is a leading market research and consulting firm based in India, specializing in Syndicated Research, Custom Research, Consulting, and Market Surveys. With expertise in navigating complex market dynamics, we empower businesses to achieve success. Our services span a wide range of industries and geographies, including North America, LATAM, Europe, Asia-Pacific, Oceania, MENA, and more.

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