Market Trends of Europe Pharmaceutical Cold Chain Logistics Industry
Growing European Pharmaceutical Industry
- Europe is the second-largest biopharmaceuticals market in the world. The increasing population and chronic diseases are propelling the growth of the market studied. The adoption and accessibility, availability of biopharmaceuticals for the treatment and diagnosis of diseases, and awareness related to medicine raised the European market. Western Europe contains more than 33% of manufacturing facilities worldwide. Biopharma products have higher efficiency with safety than other products.
- In the European Union, about 80% of pharma products now require temperature-controlled transportation. For years, pharmaceutical mandates in most countries required products to be maintained within manufacturer-established guidelines only in storage. However, the European Union issued guidelines on Good Distribution Practices for medicinal products for human use, extending temperature requirements to transportation and expanding coverage to include over-the-counter drugs.
- To fulfill such needs, several warehouses comprising cold chain systems are designed to ensure the ideal storage and transportation conditions for temperature-sensitive products. Moreover, businesses invest millions of dollars in their cold chain operations to create effective, efficient, and reliable processes, as end-to-end cold chain security is the weak link in the system.
- In addition, temperature-controlled logistics of pharmaceutical products and medical devices is a significantly growing part of the healthcare logistics industry. Further, the development of complex biological-based medicines and shipment of hormone treatments, vaccines, and complex proteins that require cold chain refinements result in the need for temperature-controlled transportation and warehousing. In addition, an increase in the need for effective cold chain logistics services to maintain the quality of goods fuels the growth of the market studied.
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Increased Demand for Cold Chain Logistics Market
- As more and more people move to cities, there is a growing demand for fresh and prepared foods, which need to be transported and stored in a refrigerated environment; the e-commerce sales of food and beverages are growing rapidly in Europe, and this is driving demand for cold chain logistics to deliver these products to consumers doorsteps.
- In addition to these factors, the COVID-19 pandemic also highlighted the importance of cold chain logistics for the safe and efficient distribution of essential goods, such as food and medicine.
- Investors are building new cold storage facilities in strategic locations across Europe to meet the demand for temperature-controlled storage capacity. For example, in March 2023, Lineage Logistics announced the acquisition of a new facility in Belgium to expand its presence in the European market. Investors are also investing in transportation infrastructure to improve the efficiency and reliability of cold-chain transportation. For instance, in 2022, Maersk announced the launch of a new reefer container service that provides end-to-end visibility and control for the transportation of temperature-sensitive goods.
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