Press Release

Biopharmaceutical Third-party Logistics Market to Grow with a CAGR of 6.08% through 2028

Increase in the biopharmaceutical sector and increase in the globalization of biopharmaceutical operations is expected to drive the Global Biopharmaceutical Third-party Logistics Market growth in the forecast period, 2024-2028.

 

According to TechSci Research report, “Biopharmaceutical Third-party Logistics Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Biopharmaceutical Third-party Logistics Market stood at USD 125.91 billion in 2022 and is anticipated to grow with a CAGR of 6.08% in the forecast period, 2024-2028. The awareness among individuals regarding Biopharmaceutical Third-party Logistics has led to favorable market conditions for the global Biopharmaceutical Third-party Logistics market. Several factors contribute to the growth of various Biopharmaceutical Third-party Logistics products.

The pharmaceutical industry is in a constant state of evolution. Advancements in research, development, and manufacturing techniques have given rise to a plethora of innovative biopharmaceutical products. These breakthroughs often come with specific storage and transportation requirements, such as temperature-sensitive products and stringent regulatory compliance. As a result, biopharmaceutical companies are increasingly outsourcing their logistics needs to specialize 3PL providers who possess the expertise and infrastructure to ensure the safe and compliant delivery of these sensitive products.

Global Biopharmaceutical Third-party Logistics Market is driven by a convergence of factors that reflect the dynamic nature of the biopharmaceutical industry. As pharmaceutical companies continue to innovate, expand globally, prioritize regulatory compliance, and seek cost-efficient solutions, the demand for reliable 3PL services will only intensify. The strategic partnership between biopharmaceutical companies and 3PL providers is poised to play a pivotal role in shaping the future of the industry, which will further fuel market growth.

In November 2023: SF Express expanded its international network by opening new branches in the United States, Canada, and Mexico. The company also launched new international shipping routes to Europe and South America.

Biopharmaceutical Third-party Logistics serve as hormones, coenzymes, and antioxidants, all of which are vital for proper bodily functions. Factors such as evolving dietary preferences, busy lifestyles, increased employment levels, and growing awareness of the health benefits of Biopharmaceutical Third-party Logistics are expected to positively impact the global Biopharmaceutical Third-party Logistics market.

In today's fast-paced world, speed can be a matter of life and death. Patients often depend on timely access to critical medications, vaccines, and biologics. Biopharmaceutical 3PL providers are experts in streamlining logistics processes. They excel in rapid order fulfillment, ensuring that pharmaceutical products reach their destinations swiftly and efficiently. This speed is vital for emergency situations and for meeting tight delivery schedules, especially in the case of perishable or time-sensitive medications. In a fast-paced world where biopharmaceutical companies operate on a global scale, 3PL providers offer the necessary infrastructure and expertise for international distribution. They have access to extensive networks of transportation and warehousing facilities, allowing for the rapid movement of products across borders. This global reach ensures that life-saving drugs can reach patients worldwide quickly, even in remote or underserved regions. Many biopharmaceutical products, such as vaccines, biologics, and certain drugs, are highly sensitive to temperature variations. Biopharmaceutical 3PL providers specialize in cold chain logistics, which involves maintaining precise temperature control throughout the supply chain. This expertise ensures that temperature-sensitive products remain effective and safe, even during long-distance transportation. In a fast-paced world, where products need to be delivered quickly, maintaining temperature integrity is essential. The biopharmaceutical industry operates under stringent regulatory standards. Biopharmaceutical 3PL providers are well-versed in these regulations, including Good Distribution Practices (GDP) and Good Manufacturing Practices (GMP). They have the knowledge and processes in place to ensure strict compliance, which is critical for delivering products without delays or regulatory issues.

           

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The biopharmaceutical industry has witnessed remarkable growth and innovation. This rapid expansion has led to an increased demand for efficient and reliable logistics solutions to handle the intricate needs of the sector. Biopharmaceutical companies are increasingly turning to third-party logistics (3PL) providers to navigate the complex supply chain challenges they face. In this comprehensive article, we delve into the four major drivers propelling the growth of the Global Biopharmaceutical Third-party Logistics Market.

In recent times, the urgent need for vaccine distribution, as seen during the COVID-19 pandemic, has highlighted the importance of Biopharmaceutical 3PL. 3PL providers have played a pivotal role in ensuring the efficient and timely delivery of vaccines to global populations, contributing to global vaccination efforts. The biopharmaceutical industry has evolved rapidly, introducing complex supply chain challenges. Biopharmaceutical 3PL providers specialize in managing these complexities, from temperature-sensitive products to regulatory compliance, ensuring smooth operations. Biopharmaceutical companies operate on a global scale, necessitating logistics solutions that can seamlessly handle international distribution. 3PL providers have the global networks and expertise required to manage the intricacies of cross-border transportation and compliance. However, the Regulatory Complexity and Compliance Challenges may hinder market growth. Moreover, challenges related to Temperature and Security Risks and Supply Chain Disruptions and Resilience may pose obstacles to the Biopharmaceutical Third-party Logistics market in the near future.

The Global Biopharmaceutical Third-party Logistics Market is segmented into type, application, source, form, distribution channel, regional distribution, and company.

Based on its formulation, the tablets segment has emerged as the predominant market leader, as adults worldwide prefer the convenience of consuming Biopharmaceutical Third-party Logistics in tablet form. While the addition of natural coatings enhances dissolution, factors such as efficacy and quality play a crucial role in absorption. These elements are expected to drive the demand for tablet-based Biopharmaceutical Third-party Logistics throughout the forecast period. Tablets offer one of the most convenient ways to consume these supplements, available for both prescription and over-the-counter use, with a wide range of Biopharmaceutical Third-party Logistics options. However, there is a projected faster growth rate for Biopharmaceutical Third-party Logistics gummies during the forecast period, as they are increasingly favored by the elderly and children due to their soft texture and diverse flavors. Tablets remain the most widely used and cost-effective type of Biopharmaceutical Third-party Logistics, enabling manufacturers to maximize dosage within a given space while also boasting a longer shelf life compared to capsules. Softgels, powder, and capsule forms of Biopharmaceutical Third-party Logistics are also expected to experience significant growth during the forecast period. It is worth noting that capsule forms rank as the second most consumed type of supplement globally.

Based on region, North America segment is expected to grow during the forecast period.  The commanding position can be attributed to North America's supremacy within the biologics and pharmaceutical drugs sector, as well as the uptick in biopharmaceutical imports and exports. Furthermore, owing to the region's robust healthcare expenditure, the adoption of cutting-edge technologies has reached remarkable levels. Consequently, North American pharmaceutical firms are increasingly entrusting third-party logistics (3PL) service providers to enhance their warehousing and transportation capabilities, a trend that is propelling regional growth.

The Asia-Pacific market is poised to be the fastest-growing market, offering lucrative growth opportunities for Biopharmaceutical Third-party Logistics players during the forecast period. Factors such as The rapid growth of the pharmaceutical sector can be attributed to several key factors. Firstly, there is an increasing demand for medications, particularly driven by the aging population. Simultaneously, the adoption of advanced healthcare services and favorable economic conditions in emerging markets like China and India have played a pivotal role in driving this growth trajectory. Also, a notable trend on the horizon is the impending expiration of numerous drug patents. This development is expected to lead to a significant shift in drug sales, transitioning from original brand manufacturers to generic counterparts. Consequently, this shift is poised to have a positive impact on pharmaceutical product sales as well as import and export activities within the industry. The rising incidence of various diseases is fueling the demand for biologics and pharmaceuticals. For example, the Asia Pacific region has witnessed a surge in demand for insulin, primarily due to the increasing number of patients diagnosed with type 2 diabetes. This underscores the growing need for essential medications in the pharmaceutical market.

 

Major companies operating in Global Biopharmaceutical Third-party Logistics Market are:

  • DHL International GmbH.
  • SF Express Co.
  • United Parcel Service of America, Inc.
  • AmerisourceBergen Corporation
  • DB Schenker
  • Kuehne and Nagel AG
  • Kerry Logistics Network Ltd.
  • Agility Co

 

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“The Personalized Medicine and Biologics and increasing Sustainability Initiatives are key drivers of the Biopharmaceutical Third-party Logistics market. In recent years, the rowth of personalized medicine and biologics demands specialized logistics solutions to cater to the unique requirements of these therapies. Moreover, the growing consumer emphasis on preventative healthcare products has enhanced production and marketing efforts. To meet the demands of the market, manufacturers are increasingly incorporating cutting-edge technologies with high production efficiency. Rising consumer acceptance and continuous product innovation will further ensure the growth of the Biopharmaceutical Third-party Logistics and supplements market in the coming years.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Biopharmaceutical Third-party Logistics Market – Global Industry Size, Share, Trends, Opportunity, & Forecast 2018-2028 Segmented By Supply Chain (Cold Chain, Non-cold Chain), By Service Type (Transportation, Warehousing & Storage, Other), By Region, Competition”, has evaluated the future growth potential of Global Biopharmaceutical Third-party Logistics Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Biopharmaceutical Third-party Logistics Market.

 

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Biopharmaceutical Third-party Logistics Market – Global Industry Size, Share, Trends, Opportunity, & Forecast 2018-2028 Segmented By Supply Chain (Cold Chain, Non-cold Chain), By Service Type (Transportation, Warehousing & Storage, Other), By Region, Competition

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Continuous evolution of the biopharmaceutical industry and globalization of biopharmaceutical operations are factors driving the Global Biopharmaceutical Third-party Logistics market in the forecast period 2024-2028.

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