The global pharmaceutical warehousing market is evaluated at US$58.573 billion for the year 2019 and is projected to grow at a CAGR of 5.20% to reach the market size of US$83.512 billion by the year 2026.
A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities or towns. Pharmaceutical warehousing, therefore, is much more than the simple storage of products. It is an operation that preserves the integrity of drugs that affect health and wellbeing. Stored goods can include any pharmaceutical drugs raw materials, packing materials, and finished goods associated pharmaceutical sector.
Warehouse management systems can be deployed by specialized, knowledgeable companies to ensure all the benefits and potential savings. Pharmaceutical companies have automated solutions to tackle quality and operational challenges without the need for human contact. Such systems for warehouses can optimize the storage space utilization, improve the productivity of processes, decrease operating costs and maintain a strategic competitive edge for stocking inventory.
Market outlook and key drivers.
The ongoing product innovation & development in the pharma sector and development of energy-efficient warehousing enhance the opportunity of the global Pharmaceutical Warehousing Market. In addition, rising awareness and concern about health coupled with an increasing number of diseases propel the demand for pharmaceuticals products while increasing the pharmaceutical warehousing market growth.
Factors such as optimizing the management and operations of a pharma warehouse facility by performing various functions such as FIFO rules, batch traceability, expiry dates of medicines, quality control, pick by voice, and RF directed warehouse inventory management, which will fuel the growth of Pharmaceutical Warehousing Market.
The pharmaceutical manufacturing companies are increasingly outsourcing packaging and labeling activities from third-party providers. Many pharmaceutical companies are expanding their operations in untapped regions including Sub-Saharan Africa and South America. Herein, the preference for local warehousing solution providers with high expertise in pharmaceuticals is of great importance to drug manufacturers. However, the deteriorating service levels and loss of control are significant threats that are faced in outsourcing operations.
Furthermore, pharmaceutical warehousing also performs various functions such as warehouse designing, inventory tracking, stock receiving, pick and pack, shipping, labor management, and dock management and provides services including inventory locator, inventory pick supervisor, a shelf life supervisor, and inventory management tools. This can fuel the growth of the market.
Further warehouse providing smooth operations in warehouse management by improving inventory accuracy, product-related planning by integrating warehouse management system with support inbound and outbound transport and logistics services have been driving the overall market growth during the forecast period.
GLOBAL Pharmaceutical warehousing market, US$ billion, 2020 to 2026
Source: Knowledge Sourcing Intelligence Analysis
The sector is majorly regulated by the FDA.
Pharmaceuticals are stringently regulated by the Food and Drug Administration (FDA). The FDA’s regulatory standards for the industry are referred to as Current Good Manufacturing Practice (CGMPs) standards. These standards apply to warehouses, processes, and the drugs themselves. CGMPs related warehousing factors such as drugs must be stored to prevent contamination, and be positioned to allow for inspection and cleaning of the area, each lot of drug products must be identified with a distinctive code, and the lot’s status must be identified, written procedures must describe the distribution process for each drug. This includes procedures for recalls.
Written procedures must describe the appropriate storage conditions for each drug. A major pharmaceutical warehousing challenge involves these appropriate storage conditions. Different drugs can have vastly different requirements in terms of temperature, humidity, and lighting. The warehousing provider must ensure that the storage of each drug is in line with its specific requirements defined by the manufacturer. This can involve temperature-controlled warehousing which requires state-of-the-art control and monitoring equipment to keep the space within specific environmental parameters.
Factors expected to hamper the market growth in the coming years.
Rising need for pharmaceutical products in day-to-day life. Moreover, the rise in government initiatives to enhance pharmaceutical warehousing, focus on manufacturing, research, and increase in research funding contribute to the growth of the market for pharmaceutical warehousing. However, stringent FDA rules & regulations towards pharmaceutical warehousing and the high cost of monitoring equipment to keep the space within specific environmental parameters as well as infrastructure may hamper market growth during the forecast period.
The advent of COVID-19 had a positive impact on the market of pharmaceutical warehousing as the demand for pharmaceutical drugs increased during the year. With the COVID-19 pandemic, the trade of conventional and over-the-counter (OTC) drugs has increased, globally. Expansion in demand for cellular therapies, vaccines, and blood products in the pharmaceutical industry is driving the growth of the biopharmaceutical warehousing market across the world. The extension of the cold chain logistics via air transportation is the fastest way of shipping pharmaceutical products with negligible product damage, which is highly desired for transporting temperature-sensitive biologic drugs and vaccines, which in turn is expected to increase the demand for warehousing of the drugs in the coming years.
Global Pharmaceutical WAREHOUSING MARKET share, by geography
Source: Knowledge Sourcing Intelligence Analysis
|Market size value in 2019||US$58.573 billion|
|Market size value in 2026||US$83.512 billion|
|Growth Rate||CAGR of 5.20% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type of Services, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Agility, Air Canada, CEVA Logistics, DB Schenker, Deutsche Post AG, FedEx, LifeConEx, Marken, United Parcel Service of America, Inc., VersaCold Logistics Services|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the pharmaceutical warehousing market size by 2026?
A1. The pharmaceutical warehousing market is projected to reach a market size of US$83.512 billion in 2026.
Q2. What is the size of global pharmaceutical warehousing market?
A2. Pharmaceutical Warehousing Market was valued at US$58.573 billion in 2019.
Q3. What are the growth prospects for the pharmaceutical warehousing market?
A3. The global pharmaceutical warehousing market is projected to grow at a CAGR of 5.20% over the forecast period.
Q4. Who are the major players in the pharmaceutical warehousing market?
A4. Prominent key market players in the pharmaceutical warehousing market include Agility, Air Canada, CEVA Logistics, DB Schenker, Deutsche Post AG, FedEx, LifeConEx, Marken, United Parcel Service of America, Inc., among others.
Q5. What factors are anticipated to drive the pharmaceutical warehousing market growth?
A5. The ongoing product innovation & development in the pharma sector and the development of energy-efficient warehousing enhance the opportunity of the pharmaceutical warehousing market.