Pharmaceutical Drugs Logistics Market Characteristics
The pharmaceutical drugs logistics market involves establishments dealing in the logistics of pharmaceutical and biologic drugs from the manufacturer to the end-user. It includes transportation, warehousing, inventory management and other logistics functions. The pharmaceutical industry utilizes logistics services to distribute medicinal products to different end-users.
Pharmaceutical Drugs Logistics Market Competitive Landscape
Major pharmaceutical and biologics logistics companies include Deutsche Post DHL, FedEx Corporation, Panalpina World Transport, UPS, and DB Schenker .
There are a few large companies in global pharmaceutical drugs and biologics logistics market such as FedEx, UBS, and DHL that have a strong global presence, but the domestic logistics markets within countries that include pick-up and delivery for these large players is very fragmented. The large companies are increasingly acquiring smaller players in order to extend their geographical presence and proprietary knowledge. For example, In March 2017, Kuehne + Nagel, a global transport and logistics company based in Switzerland, acquired Zet Farma, a Turkey-based national market leader in pharmaceutical logistics, and Ferlito Pharma Logistics, an Italian major player in pharmaceutical logistics. Global pharmaceutical drugs and biologics logistics companies are continuing to realign their portfolios and pursue profitable inorganic growth opportunities. In addition, M&A interest is likely to be fueled by stronger corporate balance sheets, liquid debt markets, and continued favorable interest rates.
Pharmaceutical Drugs Logistics Market Size
The global pharmaceutical drugs logistics market is expected to reach $95 billion by 2021, growing at a CAGR less than 5% in the forecast period. This is mainly due to the growth in the pharmaceutical drugs logistics market is mainly attributed to the global economic growth, increasing pharmaceutical sales, growing healthcare reforms, and outsourcing trends in the pharmaceutical industry.
One of the key drivers of the market includes -Outsourcing trends in the pharmaceutical industry ,Pharmaceutical and biotechnology companies are increasingly outsourcing drug manufacturing activities to third-parties. The increasing trend in pharmaceutical outsourcing creates an additional step in the overall drug distribution chain. In some cases, contract manufacturers and their partners may be present in different geographies, thus creating need for efficient cold chain packing, storage and transportation of drugs. The global pharmaceutical outsourcing market grew at a CAGR of about 9% and was valued at around $130 billion in 2014.This acted as a driver for the pharmaceutical logistics market.
However, the global pharmaceutical drugs logistics market is expected to face restraints from several factors such as stringent regulations in drug distribution, poor infrastructure for cold chain logistics and skill shortages in the market.
One of the key restraints of the market includes-Stringent regulations on drug distribution ,the increased regulation on temperature-sensitive pharmaceutical products is a major challenge faced by pharmaceutical logistics companies. Over the last decade, there has been an increasing concern about the safety of refrigerated medicines, with greater scrutiny from agencies such as the US Food and Drug Administration (FDA), the Center for Disease Control and Prevention (CDC) and the World Health Organization (WHO).vii In the EU, about 80% of pharmaceutical products require temperature-controlled transportation. The EU guidelines on Good Distribution Practice (GDP) for medicinal products came into effect in 2013, and ensure that product integrity is maintained throughout, including the distribution of drugs. The Drug Supply Chain Security Act in the US requires drug manufacturers to implement serializations, traceability and data reporting to help secure the drug distribution chain and increase consumer safety. These regulations acted as a restraint on the pharmaceutical drugs and biologics logistics market.
Pharmaceutical Drugs Logistics Market Segmentation
The global pharmaceutical drugs logistics market is segmented on the basis of type of service, mode of transport, pharmaceutical type, therapeutic area and geography.
By Type Of Service - The global pharmaceutical drugs logistics market is segmented into cold chain logistics and non-cold chain logistics
Among these segments, the non-cold chain logistics segment accounted for the largest segment in the pharmaceutical drugs and biologics logistics market.
By Mode Of Transport - The pharmaceutical drugs logistics industry is segmented into air transportation, ocean transportation and land transportation. Among these segments, the air transportation segment accounted for the largest share in the pharmaceutical and biologics logistics by transport mode market.
By Pharmaceutical Type - The global pharmaceutical drugs logistics market was segmented into pharmaceutical drugs logistics and biologics logistics. Among these two segments, the pharmaceutical drugs segment accounted for the largest segment in the pharmaceutical drugs and biologics logistics market.
By Therapeutic Area- The pharmaceutical drugs industry is segmented into musculoskeletal, cardiovascular, oncology, anti-infective, metabolic disorders, central nervous system, genito-urinary, respiratory, gastro-intestinal, hematology, dermatology and ophthalmology.
Among these segments, musculoskeletal was the largest segment in the pharmaceutical drugs and logistics by therapeutic market.
By Geography- The global pharmaceutical drugs logistics market is segmented into North America, South America, Western Europe, Eastern Europe, Asia Pacific, Middle East and Africa. Among these regions, the North American pharmaceutical drugs logistics market accounts for the largest segment share in the global pharmaceutical drugs logistics market, accounting for about almost 37% of the total.
Pharmaceutical Drugs Logistics Market Trends
Several trends witnessed in the global pharmaceutical and biologics logistics industry include increasing consolidation in the industry, shift towards ocean shipments and integration of advanced technologies such as Block chain and IoT in pharmaceutical logistics.
Potential Opportunities In The Pharmaceutical Drugs Logistics Market
With growing demand of distribution of pharmaceuticals and biologics in emerging economies, rising pharmaceutical sales and outsourcing trends witnessed in the pharmaceutical industry, the scope and potential for the global pharmaceutical and biologics logistics industry is expected to significantly increase in the forecast period.