Pharmaceutical Drugs & Biologics Logistics: Global Market Strategies & Opportunities to 2021 – A $96.1 Billion Opportunity –

The “Pharmaceutical
Drugs and Biologics Logistics Global Market Strategies and Opportunities
to 2021” report has been added to’s

The global pharmaceutical drugs and biologics logistics market grew from
$70.2 billion in 2013 to $79.9 billion in 2017 at a compound annual
growth rate (CAGR) of 3.3%. It is expected to grow from $79.9 billion in
2017 to $96.1 billion in 2021 at a CAGR of 4.7%.

Growth will result from increasing demand for drugs in general and in
particular for temperature-sensitive biopharmaceutical products such as
vaccines and blood plasma products.

The pharmaceutical drugs and biologics logistics market has benefitted
from rising pharmaceutical sales. Governments across the globe are
continuously establishing new healthcare reforms triggering the growth
of the pharmaceutical market, and rising income levels and urbanization
in emerging economies also fuel its growth.

The advantages to pharmaceutical manufacturers of outsourcing to
logistics service providers are another driver. Low cost and greater
visibility in the drug distribution chain are the main advantages of
outsourcing logistics services and these are becoming an integral part
of pharmaceutical companies’ business strategy.

Factors that could hinder the growth of this market include poor
infrastructure for cold chain logistics, skills shortages in the
industry and unstable regulatory environments in emerging countries.

The market may also be negatively affected by increased regulation on
temperature-sensitive pharmaceutical products distribution. For example,
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.
Complying with greater regulation raises logistics costs and may make
distribution of some products to some markets uneconomic.

The market has been segmented by type of service, mode of
transport, type of pharmaceutical and therapeutic area

By type of service, non-cold-chain logistics segment was the larger
segment in 2017, accounting for about 83% of the market. This was mainly
due to the fact that a majority of pharmaceutical drugs do not require
temperature control and are shipped as general cargo.

By mode of transport, air transportation was the largest segment in in
2017, accounting for about 71% of the market. This was mainly due to the
speed, reliability and efficiency in delivering high-value,
time-sensitive, temperature-controlled cargo provided by air

By type of pharmaceutical, the pharmaceutical drugs segment was the
largest segment in the pharmaceutical drugs and biologics logistics
market in 2017 accounting for about 87% of the market. This was mainly
due to the relative affordability pharmaceutical drugs and earlier stage
of development of the biologics industry.

By therapeutic area, musculoskeletal was the largest segment in the
pharmaceutical drugs and logistics market in 2017 accounting for 13.92%
of the market. The fastest-growing segments were cold-chain logistics,
sea-transportation, and biologics.

The logistics competitive landscape has two aspects to it. There are a
few large companies 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

Pharmaceutical logistics companies are also increasingly focusing on
providing sea-based logistics services to reduce transportation costs
for their customers. For example, in 2015, ZIM Integrated Shipping
Services Ltd., an Israel-based ocean carrier, successfully conducted a
pilot program with Teva Pharmaceuticals, to expand its fleet of
refrigerated containers for ocean freight.

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