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LI23068697 |
Pages: 280 |
Jun 2023 |
The outsourcing of logistics and supply chain management services by biopharmaceutical businesses to specialized service providers is referred to as the biopharmaceutical third-party logistics market. These third-party logistics businesses provide a variety of services, including order fulfilment for biopharmaceutical goods, distribution, inventory management, and warehousing. The development and production of medicines, vaccines, and other medical items are greatly aided by the biopharmaceutical industry. These items frequently have rigorous handling and temperature requirements, and their delivery necessitates compliance with strict rules and quality standards.
Several reasons have contributed to the tremendous rise of the biopharmaceutical third-party logistics industry in recent years. These include the need for cost optimization and efficiency improvements, the globalization of the biopharmaceutical business, the complexity of supply chains that are becoming increasingly complicated, and the rising need for specialized logistics services. In addition to outsourcing logistics tasks to specialized third-party logistics providers, biopharmaceutical businesses are increasingly concentrating on their core strengths of research, development, and production.
The global biopharmaceutical third-party logistics market size was $127.8 billion in 2022 and is predicted to grow with a CAGR of 6.2%, by generating a revenue of $232.1 billion by 2032.
The market for third-party logistics for biopharmaceuticals has been significantly impacted by the COVID-19 pandemic. Even while the pandemic posed difficulties, it brought attention to the crucial part that third-party logistics providers play in assisting the supply chain for biologic products. Pharmaceutical products, like vaccinations, antiviral treatments, and other necessary medications, saw an increase in demand as a result of the pandemic. The biopharmaceutical supply chain was under pressure as a result of the rising demand, necessitating effective logistics and distribution skills.
The third-party logistics sector for biopharmaceuticals is anticipated to have a number of modifications and changes following COVID-19. The pandemic made clear how critical real-time transparency and visibility are to the biopharmaceutical supply chain. In order to improve supply chain visibility, biopharmaceutical businesses and third-party logistics providers will probably concentrate on using cutting-edge tracking systems, data analytics, and digital platforms. Better demand forecasting, proactive risk management, and inventory management will all be made possible as a result. In all industries, including biopharmaceutical logistics, the COVID-19 pandemic has expedited the adoption of digital products and technologies. Following COVID-19, there will be a greater integration of robotics, automation, and digital platforms to boost efficiency and streamline logistics.
With more parties participating in the supply chain, the biopharmaceutical sector has grown more complicated. The requirement for specialized handling of temperature-sensitive items and the globalization of manufacturing and distribution are some of the reasons that contribute to this complexity. Companies in the biopharmaceutical industry rely on Third-party Logistics providers to handle this complexity and guarantee the efficient movement of goods across the supply chain. Companies in the biopharmaceutical industry are putting more emphasis on their core skills, such as the creation, production, and research of medications and treatments. Biopharmaceutical firms are able to concentrate on their core business operations while utilizing the skills and resources of specialized logistics partners by outsourcing logistics and supply chain management to third-party logistics providers. Vaccines, biologics, and other specialized medications are examples of temperature-sensitive goods in the biopharmaceutical sector. The need for cold chain logistics, which assures the effectiveness and integrity of items that are sensitive to temperature, is growing. To meet this expanding need, biopharmaceutical third-party logistics suppliers with specialized cold chain infrastructure and expertise are well-positioned.
To know more about global biopharmaceutical third-party logistics market drivers, get in touch with our analysts here.
Vaccines, biologics, and other medications that are sensitive to temperature and need specialized temperature-controlled storage and transportation. It might be difficult to keep the required temperature range throughout the supply chain, particularly in areas with poor infrastructure or harsh weather. The necessity for specialized cold chain logistics increases the complexity and expense of third-party logistics providers' operations. Strict regulatory standards, such as Good Manufacturing Practises (GMP), Good Distribution Practises (GDP), and different country-specific rules, apply to the biopharmaceutical business. The handling of biopharmaceutical items by third-party logistics providers requires strict adherence to these laws. The complicated regulatory environment makes it more difficult and expensive for third-party logistics suppliers to operate, necessitating investments in knowledge, infrastructure, and quality control systems.
The need for biopharmaceutical goods, such as vaccines, biologics, and individualized medications, is rising on a global scale. Opportunities for biopharmaceutical third-party logistics providers to handle the logistics and supply chain needs of these products are created by this rising demand. By increasing their capacity and capabilities, third-party logistics suppliers can meet the growing demand and forge enduring relationships with biopharmaceutical firms. Specialty medications, which are used to treat uncommon diseases or particular patient populations, are becoming more popular in the biopharmaceutical sector. These medications frequently call for specialized distribution, handling, and patient support services. By providing specialized logistical solutions and patient-centered services to assist the delivery of specialty medications, biopharmaceutical third-party logistics suppliers may embrace the opportunity. Technological developments give biopharmaceutical third-party logistics providers the chance to improve their businesses and offer value-added services. The visibility of the supply chain may be increased, inventory management can be optimized, and proactive risk management is made possible through Internet of Things (IoT) devices, real-time tracking systems, and data analytics. By utilizing these technologies, third-party logistics suppliers may stand out from the competition and offer cutting-edge solutions to biopharmaceutical businesses.
To know more about global biopharmaceutical third-party logistics market opportunities, get in touch with our analysts here.
The non-cold chain sub-segment accounted for the highest market share in 2022. In the biopharmaceutical third-party logistics sector, non-cold chain logistics refers to a broad range of services that do not need temperature-controlled handling. This covers the distribution and transportation of pharmaceuticals that are not temperature-sensitive, such as tablets, capsules, and non-biological medicines. To suit the demands of biopharmaceutical firms for these items, non-cold chain logistics providers concentrate on effective inventory management, order fulfilment, warehousing, and shipping services. In the biopharmaceutical industry, third-party logistics suppliers are essential for order fulfilment and distribution. They oversee the selection, packaging, and delivery of biopharmaceutical goods to a range of locations, including hospitals, clinics, pharmacies, and wholesalers. This entails making sure that orders are processed accurately, delivered on schedule, and have the right paperwork to comply with regulations. A wider range of services relating to inventory management, order fulfilment, distribution, reverse logistics, and value-added services are included in non-cold chain logistics.
The warehousing & storage sub-segment accounted for the highest market share in 2022. Providers of third-party logistics services for the biopharmaceutical sector make investments in specialized warehouses that are tailored to the particular needs of the sector. To accommodate temperature-sensitive biopharmaceutical products, these facilities are outfitted with cutting-edge temperature control equipment, including refrigeration and cold storage capabilities. To maintain product quality, integrity, and compliance, such facilities comply to strict regulatory standards including Good Distribution Practises (GDP) and Good Manufacturing Practises (GMP). Temperature-controlled storage options are frequently part of the warehousing and storage services offered in the biopharmaceutical third-party logistics sector. To maintain the efficacy and stability of temperature-sensitive items like vaccines, biologics, and specialty pharmaceuticals, these facilities offer precise temperature management within designated ranges. To track and maintain the necessary storage conditions, cutting-edge monitoring systems are used, guaranteeing that products stay within approved temperature ranges for the duration of their storage time. Along with warehousing and storage, third-party logistics providers for the biopharmaceutical industry frequently provide value-added services. To satisfy the unique needs of biopharmaceutical businesses, these services could include kitting, packaging, labelling, serialization, and customization. Value-added services increase the effectiveness of the supply chain, ease the load on the internal operations of biopharmaceutical businesses, and facilitate seamless product distribution.
The North America biopharmaceutical third-party logistics market generated the highest revenue in 2022. A sizeable portion of the worldwide biopharmaceutical third-party logistics market is held by North America. The demand for effective logistics and supply chain solutions is driven by the region's thriving biopharmaceutical sector, which comprises pharmaceutical corporations, biotechnology firms, and academic institutions. The industry is still expanding as a result of the rising demand for biopharmaceutical goods such vaccines, biologics, and specialty medications. In North America, the Food and Drug Administration (FDA) in the U.S. and Health Canada both enforce strict regulatory standards on the biopharmaceutical business. For biopharmaceutical Third-party Logistics suppliers working in the area, compliance with regulatory norms, such as Good Manufacturing Practices (GMP) and Good Distribution Practices (GDP), is crucial. The logistical practices and quality control procedures of Third-party Logistics providers are shaped by this regulatory environment, assuring the secure and legal handling of biopharmaceutical products. There are opportunities for market expansion due to factors such rising healthcare costs, the creation of novel biopharmaceutical products, and the demand for specialized logistics services. The region's sophisticated healthcare infrastructure, robust regulatory environment, technology breakthroughs, and strategic alliances are advantageous to North America.
Investment and product development are common strategies followed by major market players. The major players are consolidating, which will enable them to adopt contemporary innovations from local or small businesses and increase their global footprint. For instance, United Parcel Service of America, Inc. said in August 2020 that it is building two enormous freezer farms capable of super-cooling lakhs of doses of Covid-19 vaccine in anticipation of the day when the medication will need to be sent around the world at a high rate of speed.
Some of the leading biopharmaceutical third-party logistics market players are DHL International GmbH, FedEx, SF Express, United Parcel Service of America, Inc., AmerisourceBergen Corp., DB Schenker, Kuehne and Nagel, Kerry Logistics Network Ltd., Agility, and McKesson Corporation.
| Aspect | Particulars |
| Historical Market Estimations | 2021 |
| Base Year for Market Estimation | 2022 |
| Forecast Timeline for Market Projection | 2023-2032 |
| Geographical Scope | North America, Europe, Asia-Pacific, and LAMEA |
| Segmentation by Supply chain |
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| Segmentation by Service type |
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| Key Companies Profiled |
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