Market Trends of APAC Pharmaceutical Warehousing Industry
Increase in Cold Storage Warehouses is driving the market
- COVID-19 changed the way the supply chain operates. More advanced digital technologies are being adopted to enhance operational performance and address health issues. The evolving logistics industry scenario, the need for significant cost reduction, and optimal inventory management are expected to drive the growth of healthcare cold chain logistics in the Asia-Pacific region.
- In Southeast Asia, Japanese logistics companies are leveraging their decades of experience to build state-of-the-art warehouses equipped with features such as temperature controls to meet the ever-evolving needs of local customers. With rising incomes in Asia, customers expect faster delivery of their online orders. Consequently, warehouses must be automated to save time and equipped with stringent temperature controls to ensure freshness.
- Thailand boasts the most advanced warehouses in Asia. With a population of more than 269 million people, Indonesia holds considerable potential but has lagged in logistics development, partly due to the logistical challenges posed by the country’s many islands. Demand from domestically oriented businesses is on the rise.
- Companies are investing millions of dollars in developing efficient, effective, and dependable cold chain processes because cold chain security remains a weak point in the system. Furthermore, the number of cold warehouses in Asia-Pacific is increasing due to rising demands for food and pharmaceutical products in the region. Consequently, an increase in cold warehouses is expected to expand the Asia-Pacific cold chain logistics market.
Understand The Key Trends Shaping This Market
Download PDF
India will lead the warehouse space creation in the region
- In 2023, India is projected to account for more than one-third of all incremental warehousing space additions in the Asia Pacific. The country is expected to witness the most significant growth in warehouse and logistics supply within the region, projecting a 29 million square foot increase, constituting over one-third of the total projected 85 million square feet of logistics space in the region.
- Not only Bengaluru but also Delhi-NCR and Mumbai will lead the rental growth list in 2023. Mumbai is anticipated to experience a 4-6% increase in warehousing rentals, while Delhi-NCR is poised for the most substantial surge, growing between 5-7% year-on-year. Australia is expected to lead with a 12% increase in rentals.
- India's pharmaceutical industry is rapidly expanding and gaining prominence in the global pharma market. The Indian government has implemented various policies and schemes to promote cold storage in the country. These initiatives include allowing 100% Foreign Direct Investment (FDI), providing a 100% exemption for profit in food processing units for the first five years and 25% to 30% for the subsequent five years, along with a range of subsidies.
Get Analysis on Important Geographic Markets
Download PDF
