The logistics is used in the pharmaceutical sector to handle the acquisition, storage, and transportation of resources. In this industry, logistics enables for the continual delivery of pharmaceuticals, equipment, and devices from suppliers and distributors located across the country. The pharmaceutical sector largely serves huge drugstore retail chains, medical goods wholesalers, as well as hospitals and clinics directly.
Due to the COVID-19 pandemic, the global Pharmaceutical Logistics market size is estimated to be worth US$ 95130 million in 2021 and is forecast to a readjusted size of US$ 156680 million by 2028 with a CAGR of 7.3% during the forecast period 2022-2028.
North America is the largest consumption place, with a consumption market share nearly 37%. Following North America, Europe is the second largest consumption place with the consumption market share of 31%. North America is leading the global pharmaceutical logistics market due to a strong presence of large companies. Rapid economic growth in Asia Pacific is expected to push the region to become the fastest-growing regional market during the forecast period. Other regions like Europe, South America, and the Middle East & Africa are also expected to hold sizeable shares in the market.
Market competition is intense. Deutsche Post DHL, UPS, Kuehne + Nagel, FedEx, DB Group, DSV and SF Express, etc. are the leaders of the industry, with about 15% market shares.
Global pharmaceutical logistics market is segmented into type and end user application. The product type includes cold chain logistics and non-cold chain logistics. The cold chain segment is expected to dominate the market due to the increasing demand for temperature-controlled products. The application segment consists of ground transportation, shipping, and air transport. Companies are increasingly adopting shipping for transportation as it reduces the cost up by 80%, carbon footprint, and brings down staffing requirements, packaging, and storage needs.
The pharmaceutical logistics consists of pharmaceuticals, medical supplies and equipment, medical devices both medical and surgical, and other products needed to support doctors, nurses, others involved in healthcare. This chain is a crucial aspect of the healthcare as the medical supplies are the basic and most expensive components among all. The stability of packaging is the governing factor in the market as medical supplies are at a higher risk of contamination, sterilization, or instability of ingredients, which is pushing the need to maintain and monitor them properly. The proper distribution of the drugs results in the growth of company’s reputation, profit, and customer satisfaction. Its availability in the market plays a major role for both company and government.
Over the year, digitization and improvement in logistics chains have led to the emergence of many new avenues in its management and distribution. Furthermore, increased demand for fast track assistance and household healthcare products has increased the demand for pharmaceutical logistics. Also, in order to decrease the distribution cost, companies are creating a single source distribution channels, which is further fueling the growth of the global pharmaceutical logistics market.
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