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The global pharmaceutical logistics market was valued at €95,981.7 million in 2024, growing 5.3% year-on-year
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The growth was mainly due to increased demand for oncology and weight-loss drugs, according Ti Insight in an article written by Julia Swales
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In 2023, the market shrank by 1.4%, likely due to the pharmaceutical market normalizing following a period of extraordinary demand during the COVID-19 surge
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The strong underlying performance in the pharmaceutical logistics market is likely to continue, but “there are certain considerations” which could affect growth
The global pharmaceutical logistics market was valued at €95,981.7 million (US$112,089.35 million at 1€ = US$1.17) in 2024, growing 5.3% year-on-year.
The growth was mainly due to increased demand for oncology and weight-loss drugs.
In 2023, the market shrank by 1.4%. The decline was likely attributable to the base effect – the pharmaceutical market normalizing following a period of extraordinary demand during the COVID-19 surge.
In an article for Ti Insight, author Julia Swales said that a five-year compound annual growth rate of 4.7% was likely.
She said the pharmaceutical industry growth rate is “a fine balance between a number of factors, such as the pricing of new drugs, the loss of patent protection or competition from cheaper generics, as well as government-imposed price reductions.”
The United States, India, China and Europe stand out for significant pharma logistics market size growth.
In the US, growth has been driven by an aging population and a surge in demand for weight-loss drugs. It remains the center of worldwide pharmaceutical innovation, according to Swales.
Last year, the US FDA approved 63 new chemical entities (NCEs) and biologics, up from 53 in 2023, as well as eight gene therapies.
Drug pricing is likely to impact the US market going forward.
In India, large incentive programs have been initiated by the government to promote local production, while in China, authorities are encouraging more research and development (R&D) and funding to reduce reliance on generics and boost innovation in advanced drugs and biopharma.
In Europe, an aging population and an increase in chronic diseases remain the major drivers of growth in the pharmaceutical market. Local production will also benefit from Novo Nordisk and Eli Lilly’s investments across several European countries, as they expand the manufacturing of weight-loss drugs.
The strong underlying performance in the pharmaceutical logistics market is likely to continue, but “there are certain considerations” which could affect growth, said Swales.
Drug companies are focusing R&D into rare diseases rather than high-volume markets, and the number of drugs derived and developed by major companies is diminishing, as they increase their reliance on small, innovative companies.
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On a macroeconomic level, it is starting to become difficult for drug and biotech companies to raise capital, as markets “are now more risk-averse.”
Global politics continue to have an impact, and questions are being asked about how governments will be able to afford the increased burden of the rising demand for pharmaceuticals, Swales’ article in Ti Insight concluded.
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