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Surging Demand For Pharmaceutical Products Fuels Growth In The Pharmaceutical Logistics Market: Core Growth Enabler in the Pharmaceutical Logistics Market, 2025
Pharmaceutical Logistics
What Will the Pharmaceutical Logistics Industry Market Size Be by 2025?
The size of the pharmaceutical logistics market has seen swift growth in the last few years. This market is projected to expand from $125.6 billion in 2024 to $139.1 billion in 2025, with a compound annual growth rate (CAGR) of 10.8%. Factors like strict regulations, increased global trade in pharmaceuticals, the need for temperature-controlled logistics, e-commerce development, and the growth of the healthcare industry have all contributed to the growth documented in the historic period.
What's the Long-Term Growth Forecast for the Pharmaceutical Logistics Market Size Through 2029?
The dimensions of the pharmaceutical logistics market are predicted to expand swiftly in the forthcoming years, with expectations to reach a value of $216.57 billion in 2029, marking a compound annual growth rate (CAGR) of 11.7%. This growth during the predicted period can be associated with factors such as market broadening in emerging economies, implementation of risk mitigation strategies, enhancements in supply chain transparency, extension in healthcare sector, and advancements in the field of cold chain logistics. The period of forecast also highlights certain trends such as emphasis on safety and product integrity, optimisation of global supply chain network, green logistics initiatives, increasing demand for real-time tracking, and stringent regulatory compliance obligations.
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What Are the Key Growth Drivers Fueling the Pharmaceutical Logistics Market Expansion?
The pharmaceutical logistics market is expected to experience growth due to an increase in demand for pharmaceutical products. These products, which are subject to pharmaceutical legislation, consist of finished dosage forms of medication meant for human use. The logistical aspect aids these products in their procurement, storage, and movement of resources. In accordance with an article published by The National Center for Biotechnology Information (NCBI), US-based National Library of Medicine (NLM) in July 2024, there was a significant rise in total pharmaceutical expenditures in the US in 2023, reaching $722.5 billion. This represented a 13.6% increase compared to 2022. Consequently, this surge in demand for pharmaceutical products plays a significant role in propelling the growth of the pharmaceutical logistics market.
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What Are the Key Trends Driving Pharmaceutical Logistics Market Growth?
The trend of facility expansion is gaining traction in the pharmaceutical logistics market. This trend is driven by manufacturers in this industry who are working to extend their services to meet the logistics demands of the healthcare field. For example, in May 2023, UPS Healthcare, an American healthcare logistics provider, launched an 8,700-square-meter facility in West Singapore. The expanded facility is set to offer additional services such as packaging, labeling, return logistics, and local customs brokerage. Its location at Gul Circle makes it easily reachable to the PSA Terminals, the manufacturing cluster at Tuas Biomedical Park, and the upcoming seaport in Tuas. The capacity of the 8,700 m2 facility is equipped to meet the immediate and future logistics necessities of companies in the rapidly developing healthcare sector. Notably, it also includes temperature-controlled storage, suitable for storing healthcare products at temperatures ranging from -80 degrees to 25 degrees Celsius.
How Is the Pharmaceutical Logistics Market Segmented?
The pharmaceutical logistics market covered in this report is segmented -
1) By Type: Cold Chain Logistics, Non-Cold Chain Logistics
2) By Component: Storage, Transportation, Monitoring Components
3) By Procedure: Picking, Storage, Retrieval Systems, Handling Systems
4) By Transportation: Sea Freight, Air Freight, Overland
5) By Application: Bio Pharma, Chemical Pharma, Specialty Pharma
Subsegments:
1) By Cold Chain Logistics: Refrigerated Transport, Temperature-Controlled Warehousing, Cold Chain Monitoring Systems, Packaging Solutions For Cold Chain
2) By Non-Cold Chain Logistics: Standard Transport Services, Ambient Warehousing, General Packaging Solutions, Supply Chain Management Services
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Which Companies Are Leading the Charge in Pharmaceutical Logistics Market Innovation?
Major companies operating in the pharmaceutical logistics market include McKesson Corporation, AmerisourceBergen Corp, Cardinal Health Inc., Deutsche Post AG, FedEx Corp, Kuehne + Nagel International AG, SF Holding Co Ltd., CR Pharmaceutical Group Ltd., DSV Panalpina A/S, Schenker AG, C.H. Robinson Worldwide Inc., Alfresa Holdings Corp, Nippon Express Co Ltd., Air Canada Inc., Kerry Logistics Network Limited, Lineage Logistics Holding LLC., Flexport Inc., Nichirei Logistics Group Inc., Mainfreight Ltd., Americold Logistics LLC., NFI Industries Inc., Agility Public Warehousing Company K.S.C.P., Profarma Distribuidora de Produtos Farmaceuticos S.A., United States Cold Storage Inc., NewCold Advanced Cold Logistics BV, Cloverleaf Cold Storage Co, Kingworld Medicines Group Ltd, CEVA Logistics AG, Kloosterboer Group BV., MEDIPAL HOLDINGS Corp, B.C. Ice & Cold Storage Co
Which Regions Are Leading the Global Pharmaceutical Logistics Market in Revenue?
North America was the largest region in the pharmaceutical logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the pharmaceutical logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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