Pharmaceutical Logistics Market Projected to Grow to $106.8 Billion by 2031, Driven by Demand for Cold Chain and Outsourced Services

Pharmaceutical Logistics Market Projected to Grow to $106.8 Billion by 2031

A new report from Allied Market Research, titled "Pharmaceutical Logistics Market," reveals significant growth potential in the pharmaceutical logistics industry, with projections estimating the market will expand from $66 billion in 2021 to $106.8 billion by 2031. The report attributes this growth to a compound annual growth rate (CAGR) of 5.1% between 2022 and 2031.

Market Growth Drivers

According to the report, the Asia-Pacific region dominated the market in 2021, followed by North America, Europe, and LAMEA. Key factors propelling growth in Asia-Pacific include a strong government commitment to logistics infrastructure and the rising adoption of outsourced logistics services, especially in leading economies such as the U.S. and China. The region’s focus on developing its logistics capabilities is further boosting the market.

“The growth of the pharmaceutical sector, increased international trade, and the demand for reverse logistics are critical drivers of the pharmaceutical logistics market,” notes the Allied Market Research report.

Cold Chain and COVID-19 Impact on Market Demand

The COVID-19 pandemic has underscored the importance of reliable pharmaceutical logistics. As the healthcare and pharmaceutical sectors thrived during the pandemic, pharmaceutical logistics companies played a critical role in ensuring timely delivery of essential medications and supplies. The pandemic also accelerated investments in cold storage infrastructure to support increased demand for vaccines and medical-grade storage. Companies such as Zuellig Pharma announced expansions in cold storage capacity across key regions, including a $6 million facility in Cambodia and additional storage units in the Philippines, demonstrating the industry's response to global health needs.

The report highlights the segmented structure of the pharmaceutical logistics market, which is organized by operation (seaways, roadways, railways, airways, storage & services), business type (transportation, warehousing, value-added services), application (bio pharma, chemical pharma, specialty pharma), and type (cold chain and non-cold chain). Cold chain logistics, in particular, is projected to lead in growth, driven by the demand for temperature-sensitive pharmaceuticals.

Key Findings and Regional Insights

• Seaways operations are anticipated to dominate the pharmaceutical logistics sector globally.

• The transportation segment is expected to experience notable growth over the forecast period.

• Bio-pharma applications are projected to lead in global market share.

• Asia-Pacific is forecasted to register the highest CAGR due to strong government support and logistical advancements.

COVID-19’s Long-Term Influence on Pharmaceutical Logistics

The pandemic's effect on logistics has prompted pharmaceutical companies to adopt faster, cost-effective transportation solutions, which is expected to continue impacting logistics strategies. The industry has also seen a shift in focus from B2B to B2C logistics due to e-commerce growth, creating new challenges and opportunities within the pharmaceutical logistics market.

Leading Industry Players

Key players in the pharmaceutical logistics market include 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. These companies have expanded their services to meet evolving demands and emerging market needs.

About Allied Market Research:

Allied Market Research provides detailed insights and analysis on various markets, assisting businesses and stakeholders with strategic decision-making. The "Pharmaceutical Logistics Market" report is available for purchase, with options for further inquiries at Allied Market Research’s website.