Pharmaceutical Drugs And Biologics Logistics Market Definition
The pharmaceutical drugs and biologics market consists of sales of pharmaceutical drugs and biologics logistics services by entities (organizations, sole traders and partnerships) that provide pharmaceutical drugs and biologics logistics services. Pharmaceutical drugs and biologics logistics is the logistics of pharmaceutical and biologic drugs from the manufacturer to the end-user. It includes transportation, warehousing, inventory management and other logistics functions.
Pharmaceutical Drugs And Biologics Logistics Market Size
The global pharmaceutical drugs and biologics logistics market reached a value of nearly $90,300.0 million in 2020, having increased at a compound annual growth rate (CAGR) of 4.1% since 2015. The market is expected to reach $102,899.4 million by 2025, and $ 130,037.9 million by 2030.
Growth in the historic period resulted from Increase in pharmaceutical sales, healthcare reforms, increase in outsourcing in the pharmaceutical industry, rapid growth in elderly population, strong economic growth in emerging markets, and rise in healthcare expenditure. Factors that negatively affected growth in the historic period were stringent regulations on drug distribution, poor infrastructure for cold chain logistics, regulatory challenges, and high costs of drug approval.
Going forward, growing demand for and supply of temperature-sensitive products, distribution chain cost cutting measures, improving consistency and efficiency through logistics service providers, technological advances, new methods for drug discovery, large pool of undiagnosed population, and covid-19 pandemic will drive the growth. Factors that could hinder the growth of the pharmaceutical drugs and biologics logistics market in the future include underdeveloped logistics infrastructure, skill shortages, reduction in free trade, and development of oral biologics.
Pharmaceutical Drugs And Biologics Logistics Market Trends
Major trends influencing the pharmaceutical drugs and biologics logistics market include:
Reusable Packaging For Shipping Pharmaceuticals
Pharmaceutical logistics companies are encouraging the use of reusable packaging to transport pharmaceutical products. Reusable packaging can be made by combining aluminium-coated polyurethane, semi-active intelligent temperature-controlled containers, vacuum insulated panels and expanded polypropylene containers. Reusable containers result in lower carbon footprints than single-use packaging for pharmaceutical products, especially at high volumes. Reusable temperature-controlled packaging is also cost-efficient as compared to disposable packaging.
For example, in 2018, Peli BioThermal, a UK based company that is engaged in providing temperature-controlled, thermally-protected packaging and service solutions to the life sciences industry, launched an on demand rental program that allows the clients to receive and return the reusable Credo™ line of temperature-controlled packaging.
Pharmaceutical Drugs And Biologics Logistics Market Segmentation
The pharmaceutical drugs and biologics logistics market is also segmented by mode of transport into land transportation, air transportation, and ocean transportation. The land transportation market was the largest segment of the pharmaceutical drugs and biologics logistics market segmented by mode of transport, accounting for 53.3% of the total in 2020.
The pharmaceutical drugs and biologics logistics market is also segmented by pharmaceutical type into pharmaceutical drugs, and biologics. The pharmaceutical drugs was the largest segment of the pharmaceutical drugs and biologics logistics market segmented by pharmaceutical type, accounting for 89.1% of the total in 2020.
The pharmaceutical drugs and biologics logistics market is also further segmented by therapeutic area into metabolic disorders drugs, anti-infective drugs, central nervous system drugs, respiratory diseases drugs, cardiovascular drugs, musculoskeletal disorders drugs, oncology drugs, hematology drugs, monoclonal antibodies (mabs), genito-urinary drugs, gastrointestinal drugs, therapeutic proteins, dermatology drugs, vaccines, and ophthalmology drugs.
By Geography North America is the largest market for pharmaceutical drugs and biologics logistics, accounting for almost 38% of the global market. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, Asia-Pacific and South America will be the fastest growing regions in this market.
Pharmaceutical Drugs And Biologics Logistics Competitive Landscape
The global pharmaceuticals and biologics logistics market is fairly fragmented, with a large number of small players. The top ten competitors in the market made up to 21% of the total market in 2019. Major players in the market include FedEx, UPS Inc., Kuehne + Nagel, DB Schenker, and DSV Panalpina.