China Pharmaceutical Warehousing Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 13.25 Billion |
| Market Size (2029) | USD 19.62 Billion |
| CAGR (2024 - 2029) | 8.17 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
China Pharmaceutical Warehousing Market Analysis
The China Pharmaceutical Warehousing Market size is estimated at USD 13.25 billion in 2024, and is expected to reach USD 19.62 billion by 2029, at a CAGR of 8.17% during the forecast period (2024-2029).
Driven by biotechnology and innovative drug development, the Chinese pharmaceutical market is undergoing a significant transformation. This shift is largely propelled by strategic initiatives from the Chinese government, notably the "Healthy China 2030" plan, which seeks to bolster public health and champion scientific innovation.
China's biotechnology sector is on a rapid ascent, buoyed by hefty investments in research and development (R&D) and a supportive regulatory landscape. The market boasts a vibrant ecosystem where biotech startups, major pharmaceutical firms, and academic institutions collaborate, pushing the boundaries of medical research and pioneering new therapies.
A notable trend in China's biotechnology landscape is the infusion of artificial intelligence (AI) and big data analytics into drug development. Companies such as WuXi AppTec harness AI to refine drug discovery, streamline clinical trials, and bolster precision medicine strategies. Thanks to AI-driven platforms, WuXi AppTec has not only sped up the identification of promising drug candidates but also heightened the efficiency of its R&D endeavors.
Moreover, China's regulatory reforms, notably the expedited approval process for innovative drugs, have paved the way for swifter market entry of groundbreaking therapies, fostering an environment ripe for continuous innovation. The market is increasingly gravitating towards biosimilars and biopharmaceuticals, which not only provide cost-effective treatment alternatives but also broaden access to cutting-edge therapeutics.
Policies backing the expansion of digital health technologies have been rolled out by the Chinese government. Furthermore, initiatives such as the National Health Informatization Development Plan are working towards a unified health information system, seamlessly integrating data from diverse digital health platforms to boost data interoperability and healthcare coordination.
In June 2023, the FDA was contemplating a move to allow online pharmacies to dispense prescription drugs. This potential shift could pave the way for e-commerce giants like Alibaba and JD to tap into a burgeoning market. Discussions about this policy have been circulating since mid-last year, and its approval could unlock a market exceeding CNY 1 trillion (approximately USD 161 billion). Such a move would not only divert sales from traditional hospitals to online pharmacies but also challenge the longstanding dominance of state-run hospitals and distributors in the market.
The transformation of the Chinese pharmaceutical market also extends to the warehousing sector. With the rapid growth of the pharmaceutical industry, there is an increasing demand for advanced warehousing solutions to ensure the efficient storage and distribution of pharmaceutical products.
The Chinese pharmaceutical warehousing market is evolving to meet these needs, incorporating state-of-the-art technologies such as automated storage and retrieval systems (AS/RS), temperature-controlled environments, and real-time inventory management systems.
These advancements are crucial for maintaining the integrity and quality of pharmaceutical products throughout the supply chain. As the market continues to expand, the development of sophisticated warehousing infrastructure will play a pivotal role in supporting the overall growth and efficiency of the Chinese pharmaceutical industry.
China Pharmaceutical Warehousing Market Trends
Increase In Cold Chain Warehouse Development
In the first half of 2024, the volume of cold chain logistics hit 220 million tons, a rise of 4.4%. Concurrently, revenue from cold chain logistics climbed to CNY 277.9 billion (USD 38.9 billion), reflecting a 3.4% uptick compared to the same timeframe last year.
By June 2024, China's cold storage capacity expanded to 237 million cubic meters, showcasing a year-on-year growth of 7.73%. This year alone saw the addition of 9.42 million cubic meters in new cold storage capacity. In the first half of 2024, the leasing volume for cold storage across the nation surpassed 29 million cubic meters, marking an increase of over 8%.
The rising production and consumption of temperature-sensitive items, such as biologics, vaccines, and specialty drugs, underscore the need for expansive cold storage facilities. Biologics, unlike conventional drugs, are intricate substances sourced from biological entities, including humans and animals. These biological products encompass a wide spectrum, from vaccines to blood components.
Frequently utilized in advanced treatments, biologics exhibit heightened sensitivity to even minor fluctuations in their physical environment. Consequently, to cater to the surging demand for these products, pharmaceutical and healthcare firms must emphasize swift and dependable supply chain solutions.
In October 2024, the China National Medical Products Administration (NMPA) unveiled a pilot initiative permitting non-end-to-end manufacturing of biologics. Historically, the NMPA mandated that biologics undergo end-to-end production at a singular manufacturing site.
Essentially, this means both the drug substance and its corresponding product should ideally be produced within the same facility. However, the domestic biopharmaceutical sector has been pushing for a relaxation of this rule, particularly in light of the fact that foreign biologics manufacturers have been granted the leeway to produce the drug substance and its product at distinct locations.
The significant increase in cold chain warehouse development highlights the growing importance of efficient pharmaceutical warehousing in China. As the demand for temperature-sensitive products continues to rise, the expansion of cold storage facilities will play a crucial role in ensuring the integrity and availability of these critical products. This trend underscores the need for ongoing investment and innovation in cold chain logistics to support the pharmaceutical industry's evolving requirements.
Increase in Development of Pharmaceutical Manufactures
Chinese policymakers are actively working to attract foreign investment by relaxing regulations, a move aimed at fostering innovation. This marks a departure from their previous stance, which imposed restrictions on cross-border research and development. Notably, the government spotlighted "innovative drugs" in its work report for the first time this year. In 2023 alone, there were over 220 licensing and partnership deals for innovative drugs, amounting to a substantial RMB 266 billion (approximately USD 37 billion).
The Chinese government has rolled out several initiatives to bolster the healthcare sector and promote international collaboration. International players in the CGT arena are eyeing opportunities and considering actions like investments, establishing new entities, mergers, and acquisitions, or even relocating to four designated FTZs. These ventures span a wide array of CGT-related domains, from iPSCs and CAR-T to mRNA, gene sequencing, and in vitro diagnostics (IVD/LDT).
Thanks to the new Circular, biopharmaceutical firms in China can now directly draw foreign investments. By setting up or moving subsidiaries to the four FTZs, they sidestep the previously mandatory variable interest entity (VIE) structure.
In a significant move, an Indianapolis-based firm is set to invest a whopping USD 212 million in November 2024, expanding its Suzhou plant. This expansion will elevate its cumulative investment in Suzhou since 1996 to a staggering 15 billion yuan (USD 2.1 billion). This decision follows China's green light for its major weight loss drug, Zepbound, in July 2024. Shortly after, the firm launched a medical innovation center in Beijing and announced plans for a Gateway Labs, marking its inaugural innovation incubator outside the U.S.
In September 2024, Bayer, the German pharmaceutical giant, inaugurated a life science incubator in Shanghai, lauding China's innovation prowess as "among the world’s top two." Just a month earlier, Roche Diagnostics, a Swiss behemoth's division, unveiled a massive USD 420 million project — its largest investment to date — to enhance its manufacturing facility in Suzhou.
These strategic investments shine a light on a unique opportunity within the Chinese market. Despite challenges like an economic slowdown, stiff domestic competition, and geopolitical strains causing hesitance in sectors from tech to automotive, the pharmaceutical realm remains a beacon. Many foreign entities still perceive avenues for profit and fruitful collaborations with local biotechs.
Part of Beijing's initiative to liberalize the healthcare sector is driven by a desire to ensure its aging populace has access to premier global medicines. This liberalization has also spurred an increase in the development of pharmaceutical manufacturing facilities, significantly impacting the Chinese pharmaceutical warehousing market.
China Pharmaceutical Warehousing Industry Overview
China’s pharmaceutical warehousing market is one of the most competitive and fastest-growing in the world. It is due to the country’s growing healthcare sector, growing pharmaceutical manufacturing, and changing distribution strategies. As the pharmaceutical industry in China continues to grow, companies that can provide seamless warehousing, effective distribution, and cutting-edge solutions will gain a competitive advantage in this highly competitive market. The market is highly fragmented, with many local and International players operating in the market, such as Sinopharm Logistics, DHL, CJ Rokin Logistics, etc.
China Pharmaceutical Warehousing Market Leaders
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Sinopharm Logistics
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S F Express
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DHL
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Kerry Logistics
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Yunda Holdings
*Disclaimer: Major Players sorted in no particular order
China Pharmaceutical Warehousing Market News
- November 2024: Lakeside Holding a U.S.-based cross-border supply chain solution provider has acquired Hupan Pharmaceutical (Hubei) Co., through its subsidiary Sichuan Hupan Jincheng Enterprise Management Co., The acquisition, valued at RMB 4.0 million (USD 0.6 million), is expected to add approximately USD 7 million in annual revenue to Lakeside.
- April 2024: Sumitomo Pharma Co., Ltd. announced that Sumitomo Pharma Trading (Suzhou) Co., Ltd. was established in China in April 2024 as a wholly owned subsidiary of Sumitomo Pharma (China) Co., Ltd. which is a wholly owned subsidiary of Sumitomo Pharma Co., Ltd.
China Pharmaceutical Warehousing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview (Current Market Scenario of Market and Economy)
4.2 Government Regulations and Initiatives
4.3 Technological Trends
4.4 Market Dynamics
4.4.1 Market Drivers
4.4.1.1 Rapidly Expanding Pharmaceutical Industry
4.4.1.2 Population Growth is one of the main drivers for the warehousing market
4.4.2 Market Restraints/ Challenges
4.4.2.1 Supply Chain Disruptions
4.4.2.2 Temperature Controlled and Cold Chain Management
4.4.3 Market Opportunities
4.4.3.1 Technological Innovations
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Powers of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of Geopolitics and Pandemic on the Market
5. MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Storage
5.1.2 Distribution
5.1.3 Inventory Management
5.1.4 Packaging
5.1.5 Others
5.2 By Mode
5.2.1 Cold Chain Warehouse
5.2.2 Non-Cold Chain Warehouse
5.3 By End User
5.3.1 Pharmaceutical Companies
5.3.2 Hospital and Clinics
5.3.3 Research Institiutes and Government Agencies
5.3.4 Others
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Sinopharm Logistics
6.2.2 SF Express
6.2.3 Kerry Logistics
6.2.4 Yunda Holding
6.2.5 CJ Rokin Logistics
6.2.6 DHL Supply Chain
6.2.7 DB Schenker
6.2.8 Nippon Express
6.2.9 Yamato Holdings
6.2.10 CJ Rokin Logistics
6.2.11 SF Express
6.2.12 JD Logistics*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, By Activity)
8.2 Economic Statistics - Transport and Storage Sector Contribution to Economy
8.3 Export and Import Statistics of Related Pharmaceutical Products
China Pharmaceutical Warehousing Industry Segmentation
Pharmaceutical warehousing refers to the systematic storing of medicinal products and related items. Pharmaceutical warehousing is used in the pharmaceutical industry to store active ingredients and other volatile substances that need to be stored in a controlled environment in order to be safe and effective.
The report provides a comprehensive background analysis of the China Pharmaceutical Warehousing Market market. It covers the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the Impact of Geopolitics and Pandemic on the Market is incorporated and considered during the study.
The China pharmaceutical warehousing market is segmented by service type (storage, distribution, inventory management, packaging and others) and by mode (cold chain warehouse, non-cold chain warehouse), and by end user (pharmaceutical companies, hospital and clinics, research institutes and government agencies and others). The report offers market size and forecasts for the China pharmaceutical warehousing market in value (USD) for all the above segments.
| By Service Type | |
| Storage | |
| Distribution | |
| Inventory Management | |
| Packaging | |
| Others |
| By Mode | |
| Cold Chain Warehouse | |
| Non-Cold Chain Warehouse |
| By End User | |
| Pharmaceutical Companies | |
| Hospital and Clinics | |
| Research Institiutes and Government Agencies | |
| Others |
China Pharmaceutical Warehousing Market Research FAQs
How big is the China Pharmaceutical Warehousing Market?
The China Pharmaceutical Warehousing Market size is expected to reach USD 13.25 billion in 2024 and grow at a CAGR of 8.17% to reach USD 19.62 billion by 2029.
What is the current China Pharmaceutical Warehousing Market size?
In 2024, the China Pharmaceutical Warehousing Market size is expected to reach USD 13.25 billion.
Who are the key players in China Pharmaceutical Warehousing Market?
Sinopharm Logistics, S F Express, DHL, Kerry Logistics and Yunda Holdings are the major companies operating in the China Pharmaceutical Warehousing Market.
What years does this China Pharmaceutical Warehousing Market cover, and what was the market size in 2023?
In 2023, the China Pharmaceutical Warehousing Market size was estimated at USD 12.17 billion. The report covers the China Pharmaceutical Warehousing Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Pharmaceutical Warehousing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Pharmaceutical Warehousing Industry Report
Statistics for the 2024 China Pharmaceutical Warehousing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Pharmaceutical Warehousing analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
China Pharmaceutical Warehousing Market Report Snapshots
