GLOBAL PHARMACEUTICAL LOGISTICS MARKET
One of the key challenges for the entire world is efficient vaccine supply chain, COVID-19 pandemic has brought pharmaceutical logistics into the limelight. The Global Pharmaceutical Logistics Market is expected to grow at a CAGR of XX%.
The market growth is attributed to the increasing demand for the household healthcare products and raising importance of fast-track assistance. Additionally, there is a growing need for maintaining the cold chain integrity for pharmaceutical products and decreasing the distribution cost by creating a single source distribution channel is further boosting the demand of pharmaceutical logistics. Research suggests that logistics costs comprise of about 45-55% of the costs in the Indian Pharmaceutical supply chain from factory to shelf. Logistics has long been considered as a basic supporting function within the life sciences sector.
During the period of 2000-2016, the global pharmaceutical air trade has more than doubled. The demand for pharmaceutical logistics is growing in U.S. on account of the increasing sales of generic drugs, as well as reforms in the healthcare sector favouring generics. The market in the North America region is significantly fragmented owing to the presence of a large number of regional and international companies.
PHARMACEUTICAL LOGISTICS MARKET OVERVIEW
The need for healthcare cold chain logistics is primarily felt in three major segments: biopharmaceuticals, vaccines and clinical trials. Biopharmaceuticals are generally complex protein molecules and their efficacy requires temperature specific logistics. Any abrupt temperature change may lead to loss of chemical activity and make biopharmaceuticals harmful for human body. Moreover, increasing number of clinical trials employing temperature sensitive materials like blood sample, tissue sample and certain drugs, has stimulated the market growth.
Also, demand for vaccines has increased, owing to the mass immunization programmes conducted by various government and non-government organizations. Like biopharmaceuticals, vaccines are also temperature sensitive and their potency may reduce on exposure to temperature variations. Driven by the increasing outsourcing trends in the pharmaceutical and biopharmaceutical industry, the cold chain logistics demand for drugs, vaccines and clinical trial materials is expected to increase significantly.
On the basis of product, vaccines drive the demand for healthcare cold chain logistics market, followed by clinical trials and biopharmaceuticals.
On the basis of segment, transportation accounts for more than half of the global cold chain logistic services. Other major segments are packaging and instrumentation. On the basis of region, North America is the largest market, followed by Asia-Pacific, Europe and others.
Asia-Pacific is the fastest growing region, owing to the developing economies of China, India, South Korea, which are emerging as major destinations for outsourcing clinical trials, drug manufacturing and pathology testing.
PHARMACEUTICAL LOGISTICS MARKET SEGMENTATION
Mode Of Transport
- Air cargo
- Ocean cargo
- Road transport
- End to End transport services
- Bulk drug handlers
- Chemicals & Other raw materials
- Biological material and organs
- Hazardous cargo
PHARMACEUTICAL LOGISTICS TRENDS IN THE MARKET
Much of the supply chain of pharmaceuticals are routed through China for the APIs (Active Pharmaceutical Ingredients), the US government has requested the FDA (Food and Drug Authority) to determine the key APIs that are needed for the manufacturing of advanced drugs that are routed through China.
US government plans to design alternate strategy for these APIs, one of the important strategies of the US government is to start manufacturing these APIs in the US soil or under the CUSMA agreement let Canada or Mexico manufacture these ingredients, Global pharma transport through air shipments would critically be affected, with Canada and Mexico in the picture the US road transport players get a great opportunity for growth.
COVID-19 Vaccine Is The Biggest Driver
Till the end of 2022 or mid-2023, the biggest revenue generator for the pharmaceuticals logistics market, with vaccine in short supply this might even end till the end of 2024, India, China and the US being the largest vaccine makers most of the global air cargo industry involved would be routed through these nations, domestically the coronavirus vaccine would be the biggest contributor to the market, but the growth rates vary dramatically between nations due to the infrastructure capabilities.
Africa would have the slowest cold chain growth and Europe being the fastest growth market for the cold chain players.
Increase In Non-Cold Chain Products
Non cold chain products exhibit higher sales over cold chain products in general all over the world. The non-cold chain spending is expected to grow at a CAGR of 2%. A nominal increase in the cold-chain products is also expected due to the ongoing transition to bio-based products, rigorous preconditions of life science shipments coupled with the growing globalization of the pharmaceutical trade.
Cold-chain products require colder temperatures throughout the storage, handling, and transportation processes to maintain product integrity. Biopharma products are manufactured or extracted from various biological sources such as vaccines, blood and its components, as well as gene therapies.
Penetration Of Digital Supply Chain
The market is highly competitive with many companies striving to offer cloud-based supply chain solutions and a secured supply chain function. These kinds of technological implementation help manufacturers in verifying the authenticity of the drugs, thus avoiding the production of counterfeit drugs and medical devices.
- Air Canada
- PCI Pharma Services
- Continental Cargo OÜ
- CEVA Logistics
- Schenker AG
- Deutsche Post AG
- Kerry Logistics Network Limited
- Genco Shipping & Trading
- AGRO Merchants Group
- United Parcel Service of America, Inc
- VersaCold Logistics Services
- AmerisourceBergen Corporation
- KUEHNE + NAGEL
- YUSEN LOGISTICS CO, LTD
- SF Express
- PANALPINA WORLD TRANSPORT (HOLDING) LTD
- C.H. Robinson Worldwide, Inc