The COVID-19 pandemic has caused worldwide disruptions, affecting both individuals and businesses, with a notable impact on the pharmaceutical industry. The industry has faced challenges from both the demand and supply perspectives. On the supply side, the production of pharmaceutical drugs and the provision of raw materials have been negatively impacted. This is due to the strict lockdowns enforced by governments around the world, which have also led to restrictions on cross-border trade in key countries like China, India, the U.S., and others. In response to the rapid global spread of the virus, the U.S. Food and Drug Administration (FDA) and governments in countries like India, UK, France, Italy, Brazil, and others initially approved the use of certain medicines, such as Hydroxychloroquine and Paracetamol, for treating COVID-19. This necessitated strong logistics systems to transport these medicines between countries, in compliance with local government regulations. The unprecedented spread of the virus also led to a significant increase in demand for medical supplies, such as personal protective equipment (PPE) and other medical kits. This, in turn, fueled the demand for global pharmaceutical logistics services. The pandemic has prompted key pharmaceutical companies and vaccine producers to invest heavily in research and trials to develop effective vaccines. More than 60 companies worldwide have been conducting clinical trials for COVID-19 vaccines. A few vaccines, such as Sputnik V, Covishield, Covaxin, and mRNA, have been approved for emergency use in key countries like India, Russia, the UK, and the U.S., among others. Following the approval of these vaccines, vaccine producers have been actively seeking to distribute these vaccines both domestically and internationally. This has positively impacted the demand for pharma logistics services. The anticipated development of other large-scale vaccines is expected to sustain the demand for pharma logistics in the future.
Over-the-counter (OTC) drugs, which are medicines that can be bought without a prescription, are known for their effectiveness and safety when used as per the instructions on their labels. These drugs are commonly used to treat conditions like fever, sore throat, diarrhea, cough, cold, minor aches and pains, and allergies, among others. In addition, many lifestyle drugs that cater to the needs of the modern individual in terms of age, beauty, intelligence, and personality are also OTC products. The demand for OTC drugs is projected to see substantial growth, particularly in emerging countries such as China, India, Brazil, and South Africa. This growth is attributed to a combination of factors including a rapidly growing population, an increasing prevalence of diseases and infections, a higher propensity for self-medication among the population, and the easy availability of OTC drugs through pharmacies and retail outlets. For example, according to a 2020 analysis by GVR, India’s OTC drugs market is expected to grow at a compound annual growth rate (CAGR) of more than 9% over the next seven years, surpassing a market value of USD 7 billion by 2027. As a result, the rapidly growing consumption of OTC drugs among consumers is expected to drive demand for transportation and logistics services during the forecast period. In developed countries like the U.S., OTC drugs are a staple in nearly every medicine store, serving as a first-line treatment for consumers with minor illnesses. Research conducted by the Consumer Healthcare Products Association (CHPA) shows that consumers in the U.S. spend more than USD 40 billion on OTC products each year. It has also been observed that OTC drugs in the U.S. save nearly USD 25 billion compared to prescription medicines. In 2018, large retailers such as Walmart partnered with Anthem, a health insurance provider, to help enrolled individuals utilize their OTC plan allowances for the purchase of OTC items at Walmart.com and Walmart stores.
Distribution plays a crucial role in the supply chain management of pharmaceutical products. Companies in the pharma logistics market are required to adhere to strict regulations to ensure the quality and safety of the pharmaceutical products. Risks such as batch mix-ups and contamination or cross-contamination of drugs during transport exist. To mitigate these risks, logistics companies must comply with guidelines related to Good Distribution Practices (GDP). Several organizations, including the World Health Organisation (WHO), European Union (EU), and Food & Drug Administration (FDA), have established GDP regulations and other local and regional provisions. These are designed to ensure the safety and integrity of drugs during distribution and logistics. The primary aim of these regulations is to ensure that pharmaceutical goods are consistently stored, shipped, and marketed under appropriate conditions. This helps maintain their reliability and ensures patient safety. GDP guarantees product safety and ensures that the same quality and quantity are delivered during supply chain operations. Managing the quality of drugs during transport can be challenging due to their specific storage conditions and limited shelf life. Different forms of medicine, such as tablets, injectables, and syrups, need to be stored and transported under different environmental conditions, as not all medicines can be handled with general compliance. Under GDP guidelines, individuals and outlets involved in any aspect of the storage and distribution of pharmaceutical products must undergo several processes. For GDP compliance, the warehouse facility and the route must be validated and documented. Each time goods are transported from the factory to the warehouse, a sample must be removed and tested in the laboratory before the entire batch is dispatched.
This section will provide insights into the contents included in this pharmaceutical logistics market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Market drivers and restraints
Key market opportunities prioritized
Latest strategic developments
Market size, estimates, and forecast from 2017 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance
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