BIO-PHARMA LOGISTICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

• High costs associated with logistics services
• Global supply chain risks

Bio-pharma Logistics Market Drivers:

• Growing bio-pharmaceutical industry globally: The biopharmaceutical industry has been growing steadily over the past decade which is driven by the development of novel biologic drugs and therapies. The emergence of biologics such as monoclonal antibodies, recombinant proteins, and cell and gene therapies led to strong pipeline growth and new product approvals. This increased the need for temperature-controlled logistics in order to maintain product integrity during transportation and storage. For instance, in November 2022, Sarepta Therapeutics, Inc., a company focusing on precision genetic medicine for rare diseases, announced that the U.S. Food and Drug Administration (FDA) had accepted the company\'s Biologics License Application (BLA) to seek accelerated approval of SRP-9001 (delandistrogene moxeparvovec) for the treatment of ambulant individuals with Duchenne muscular dystrophy.
• Technological advancements in cold chain logistics solutions: Cold chain logistics is an integral part of bio-pharma product distribution to maintain product stability and efficacy. Advances in cold chain technologies such as temperature-controlled packaging, real-time monitoring systems, GPS trackers, IoT integration, and automation are helping in enhancing supply chain visibility, security, and efficiency. Advanced freezing techniques such as cryogenic freezing offer optimal preservation for biologics. Innovation in packaging solutions such as vacuum insulated panels (VIPs) and phase change materials provide extended thermal protection. The adoption of these technologies enables the transportation of time- and temperature-sensitive bio-pharma shipments across global distances. Technology investments by logistics providers to upgrade cold chain infrastructure are supporting the growth of the bio-pharma logistics market.

• Increased outsourcing of logistics operations by bio-pharma companies: Bio-pharma companies are increasing the outsourcing of supply chain activities to third-party logistics providers in order to optimize costs, enhance reliability, and gain access to specialized expertise. Logistics partners offer end-to-end services ranging from strategic planning to execution. Their expertise in compliant temperature-controlled distribution and trade lane knowledge reduces risks involved in bio-pharma product movement. Outsourcing logistics to established providers is also enabling bio-pharma companies to focus on core areas of drug development and manufacturing. The growing demand for outsourced logistics services is propelling the growth of the bio-pharma logistics market.

• Expanding pharmaceutical and biologic sales globally: Steady growth in pharmaceutical sales worldwide has augmented the transportation and distribution of drugs to various healthcare facilities and pharmacies, requiring efficient logistics networks. According to the World Health Organization (WHO), global expenditure on medicines will reach US$ 1.2 trillion by 2023, indicating significant commerce and trade flows. Moreover, higher drug costs of biologics compared to small molecules also increases logistics expenditure. The rise in pharma product movement across increasingly complex global supply chains is driving the growth of the bio-pharma logistics market.

Bio-pharma Logistics Market Opportunities:

• Expansion in emerging markets: Emerging pharmaceutical markets in developing countries provide significant expansion opportunities for bio-pharma logistics market players. Markets such as China, India, Brazil, Mexico, and Indonesia, with their large populations, rising incomes, and increasing healthcare expenditure, offers great potential. Investments by bio-pharma companies in these markets to serve the growing demand and favorable policy reforms are attracting logistics infrastructure development. Local partnerships, distribution infrastructure, and value-added services aligned with specific market needs will be the key success factors. Logistics players can leverage global expertise to expand in fast-growing emerging pharma markets.
• Surge in cell and gene therapies: Cell and gene therapies (CGTs) are emerging as a potentially disruptive drug class owing to their ability to treat root causes of diseases. The CGT pipeline expanded rapidly with over 1,000 candidates in development. While promising, CGTs pose significant distribution challenges owing to their extreme sensitivity. CGT logistics requires stringent temperature control, security, real-time monitoring, and rapid turnarounds. This necessitates investments in innovative cold chain and value-added solutions, presenting an opportunity for logistics firms.