April 18, 2024
Bio-pharma Logistics Market

Bio-pharma Logistics Market is Estimated to Witness High Growth Owing to Increasing Outsourcing of Logistics Services

The bio-pharma logistics market involves transportation and warehousing services for temperature-sensitive pharmaceutical and biological products. These products require specialized packaging and strict temperature controls to ensure product safety and efficacy during transportation and storage. Advantages of cold chain logistics include maintaining product integrity, quality, and efficacy through proper temperature control. The need for bio-pharma logistics is driven by the growing biopharmaceutical industry and increasing demand for temperature-controlled logistics of vaccines, biologics, and other drugs.

The Global bio-pharma logistics market is estimated to be valued at US$ 115.44 Mn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the bio-pharma logistics market are DENTSPLY Implants, Straumann AG, Bicon Dental Implants, Anthogyr, KYOCERA Medical Corporation, Lifecore Dental Implants, Zest Anchors, Implant Innovations Inc, BioHorizons IPH, Inc., Neobiotech USA. Inc., Sweden & Martina, TBR Implants Group, Global D, and MOZO-GRAU, S.A. The bio-pharma logistics market offers opportunities for temperature-controlled packaging providers and cold chain service providers to cater to the industry. With increasing globalization of clinical trials and pharmaceutical distribution networks, cross-border logistics will be a key focus area over the coming years.

The key opportunities in the market include the growth of healthcare infrastructure and investments in temperature-controlled warehouses and transportation fleets in emerging markets. The market is also driven by the increasing trend of outsourcing logistics activities by pharmaceutical manufacturers to third-party logistics providers. This offers opportunities for specialized bio-pharma logistics services providers to expand their service offerings. Furthermore, the demand for specialized packaging solutions for drugs and biologics will also increase with the growth of the industry.

The increasing global footprint of pharmaceutical companies and expansion of clinical trials is driving the need for reliable cross-border logistics networks. This is encouraging market players to strengthen their international transportation and warehouse capabilities. Investments in digitization, route optimization, and multimodal transportation are also gaining traction to enhance supply chain visibility and better manage global product distribution.

Market drivers

A key driver for the Bio-pharma Logistics Market Growth is the increasing outsourcing of logistics activities by pharmaceutical manufacturers. This is allowing logistics companies to offer end-to-end cold chain transportation and value-added services. Furthermore, the demand for temperature-controlled logistics is also driven by the growth of biologics and cell and gene therapy products requiring stringent thermal management during shipping and storage. Growing investments by logistics providers in specialized equipment such as thermal containers and real-time product monitoring technologies will further support the cold chain requirements of the bio-pharmaceutical industry.

PEST Analysis

Political: Regulations regarding transportation, storage and handling of pharma products. Requirements for temperature control and maintaining supply chain integrity.

Social: Growing health awareness and demand for innovative healthcare products driving growth. Ageing population relying more on medications.

Economic: Funding for R&D in pharma industry and healthcare. Cost pressures in logistics to enhance efficiency.

Technological: Adoption of automation, robotics, IoT, blockchain and analytics in logistics operations. Advancements in packaging, temperature control and monitoring solutions.

North America dominates the market currently in terms of value owing to advanced healthcare infrastructure and growing biopharma industry. Europe and Asia Pacific regions are majorly investing in building healthcare logistics networks and offer significant growth opportunities.

The Asia Pacific region is witnessing the fastest growth currently for the bio-pharma logistics market supported by improving access to healthcare and rising incomes. Countries like China, India, Japan and South Korea are witnessing double digit annual growth rates in logistics volume for biopharma shipments with increasing local manufacturing and exports.

Europe is another rapidly growing geographical region beyond North America due to universal healthcare, cross border trade and investments towards pharma warehousing and transportation facilities especially in Germany, UK, France and Italy.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it