Pharmaceutical Logistics Market Expected to Reach $106.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Pharmaceutical Logistics Market," The pharmaceutical logistics market was valued at $66 billion in 2021, and is estimated to reach $106.8 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.

In 2021, Asia-Pacific region is dominating the market in terms of revenue, followed by North America, Europe, and LAMEA. U.S. and China dominated the pharmaceutical logistics market during the forecast period. Increased adoption of outsourced logistics services in the region is driving the growth of the market in Asia-Pacific. Moreover, high government support for development of logistics infrastructure in the region is also boosting the market growth.

There are prominent key factors that drive the growth of the pharmaceutical logistics market, such as growth in pharmaceutical sector, increase in international trade activities, and increase in demand for reverse logistics in pharmaceutical sector. The global logistics have experienced tremendous transformation in the past few years. Owing to the COVID-19 pandemic, the shippers are focusing on using faster and cost-effective method of shipping the cargo, which is expected to fuel the market for pharmaceutical logistics. Moreover, numerous healthcare service providing companies are focusing on expansion of their refrigerated warehouse capacity, which in turn contributes in the growth of the pharmaceutical logistics industry. For instance, in 2020, Zuellig Pharma announced that it will significantly expand its refrigerated warehouse or cold storage warehouse capacity in key regional markets over the next 12 months. In Cambodia, it is expected to build a new $6 million 6,300 square meters warehouse, which was expected to be fully operational by 2021. The new warehouse will be Cambodia’s largest pharmaceutical warehouse and company will enhance its cold storage capacity by four times. In Philippines, the company will add 10 medical grade freezers to augment its capacity in -80 degree Celsius storage such developments are expected to propel the pharmaceutical logistics market.

The pharmaceutical logistics market is segmented on the basis of operation, business type, application, type and region. By operation, it is divided into seaways, roadways, railways, airways, and storage & services. By business type, it is divided into transportation, warehousing, and value-added services. By application, it is segmented into bio pharma, chemical pharma, and specialty pharma. By type, it is divided into cold chain, and non-cold chain. By region, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

COVID-19 Impact Analysis

• The outbreak of COVID-19 has resulted in flight cancellations, travel bans, and quarantines, which made massive slowing of the supply chain and logistics activities across the world.
• Although, there are some industries that are struggling due to the pandemic, but some are thriving such as healthcare & pharmaceuticals, e-commerce, and daily essentials goods industry, which are expected to affect the logistics industry positively during the COVID-19 outbreak globally. As B2B logistics industry suffered and came to a halt, B2C emerged during the pandemic, owing to the growth of online and e-commerce industry. COVID-19 pandemic had a positive impact on pharmaceutical logistics market, since the demand for pharma products has increased.
• Moreover, the job of pharmaceutical logistics company was very crucial during this period for timely delivery of drugs, so that hospitals do not have any shortage. Furthermore, there was a lot of import & export of drugs and equipment from all across the world, which had to be taken care by pharmaceutical logistics. In addition, the vaccine distribution for COVID-19 is expected to drive the demand for pharmaceutical logistics and it will take a long time get fully complete.
• Thus, COVID-19 driven the demand for pharmaceutical logistics market than before the pandemic. In addition, there has been increasing demand for healthcare and pharmaceutical supplies such as hospital supplies, gloves, sanitizers, among others propelling the growth of the pharmaceutical logistics market during the pandemic.

KEY FINDINGS OF THE STUDY

• By operation, the seaways segment is projected to lead the global pharmaceutical logistics market
• By business type, the transportation segment is expected to register a significant growth during the forecast period.
• By application, the bio pharma segment is projected to lead the global pharmaceutical logistics market
• By type, the cold chain segment is projected to lead the global pharmaceutical logistics market
• Region-wise, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

The key players that operate in this pharmaceutical logistics market are Agility, Ceva Logistics, CJ Century Logistics, CWT Ltd, DB Schenker, DHL Supply Chain, Gemadept, Keppel Logistics, Kerry Logistics, Kuehne + Nagel, Singapore Post, Tiong Nam Logistics, WHA Corp., Ych Group and Yusen Logistics.