Market Size of UK Pharmaceutical Logistics Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 4.50 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
UK Pharmaceutical Logistics Market Analysis
The United Kingdom Pharmaceutical Logistics Market is valued at USD 7.5 Billion and is expected to register a CAGR of 4.5% during the forecast period. Due to Covid-19, the pharmaceutical sector experienced terrible, unheard-of transportation delays. As a result, our strategy has changed, giving ample time for both planning and preparation.
- In the United Kingdom, the pharmaceutical sector is a significant player. Pharmaceutical wholesalers in the UK had annual revenue of close to 55 billion British pounds in 2020. The pharmaceutical market in the United Kingdom ranks in the top 10 national markets in the world, accounting for about 2.6 per cent of the industry.
- AstraZeneca, situated in Cambridge, and GlaxoSmithKline, based in London, are the two leaders in the British pharmaceutical manufacturing sector. Based on market capitalization, GlaxoSmithKline held the top spot for a while among UK pharmaceutical firms. Even yet, AstraZeneca saw a considerable increase in sales as a result of working with an Oxford University team to create the COVID-19 vaccine. AstraZeneca was said to have a market capitalization of over 170 billion British pounds as of November 2022.
- Pharmaceutical producers pay more attention to the sensitivity and quality of their products. The demand for temperature-controlled transportation and warehousing is increased by variables including the development of sophisticated biological medicines and the dispatch of hormone treatments, vaccinations, and complex proteins that require cold chain enhancements.
- Additionally, the demand for temperature-controlled logistics of pharmaceutical products and medical devices is increasing, which is fueling the growth of the healthcare logistics market. The UK cold chain logistics market is expanding as a result of the rising demand for efficient cold chain logistics services to protect the quality of pharmaceutical products. Additionally, the British government is promoting the use of temperature-controlled warehousing and shipping for pharmaceutical products.
- Since pharmaceutical products such as biologics, vaccines, insulin, and other things need to be kept cold, the CEO of the Association of the British Pharmaceutical Industry, for instance, has requested that the UK government build new cold-chain storages. Therefore, it is projected that growth in the pharmaceutical sector will stimulate growth in the UK logistics business.
UK Pharmaceutical Logistics Industry Segmentation
Pharmaceutical logistics involves manufacturing, processing, and shipping materials and resources. Pharmaceutical Logistics companies also undertake activities related to handling finished products for customers.
Transporting healthcare products by different modes needs the establishment of complex logistical methods to maintain a pharmaceutical shipment's integrity. It requires specific equipment, storage facilities, harmonized handling procedures, and strong cooperation among the cold chain partners. For pharmaceutical companies, logistics companies play a vital role in their functioning.
The United Kingdom Pharmaceutical Logistics market is segmented By Product (Generic Drugs, Branded Drugs), By Mode of Operation (Cold Chain Transport, Non-Cold Chain Transport), By Application (Bio Pharma, Chemical Pharma), By Mode Of Transport (Air, Rail, Road, and Sea) The report offers market size and forecast for United Kingdom Pharmaceutical Logistics Market in value (USD billion) for all the above segments.
By Product | |
Generic Drugs | |
Branded Drugs |
By Operation | |
Cold Chain Transport | |
Non-cold Chain Transport |
By Application | |
Biopharma | |
Chemical Pharma |
By Transportation | |
Airways | |
Railways | |
Roadways | |
Seaways |
UK Pharmaceutical Logistics Market Size Summary
The United Kingdom pharmaceutical logistics market is a vital component of the country's healthcare infrastructure, playing a crucial role in the distribution and storage of pharmaceutical products. The market is characterized by its focus on temperature-sensitive logistics, driven by the need to maintain the integrity of biologics, vaccines, and other medical products that require precise temperature control. The demand for cold chain logistics is on the rise, fueled by the development of sophisticated biological medicines and the ongoing distribution of COVID-19 vaccinations. This segment is expected to experience significant growth during the forecast period, supported by government initiatives and the increasing adoption of advanced supply chain technologies such as telematics and GPS integration. The market is highly fragmented, with key players like Vision Logistics, Alloga, and Alliance Healthcare continuously engaging in strategic mergers and acquisitions to enhance their capabilities and expand their reach.
The pharmaceutical logistics sector in the UK is also witnessing a shift towards direct-to-patient delivery models, driven by the growth of the on-demand healthcare sector and advancements in technology. This trend is facilitated by the rise of online pharmacies, point-of-care diagnostics, and remote monitoring services, which offer greater accessibility and convenience to patients. Companies are increasingly investing in B2B integration platforms with electronic data interchange capabilities to streamline their operations and ensure timely delivery of medications. The market's growth is further supported by strategic acquisitions, such as UPS's acquisition of Bomi Group, which enhances its temperature-controlled logistics capabilities across Europe and Latin America. These developments underscore the importance of efficient and reliable logistics solutions in the pharmaceutical industry, as companies strive to meet the evolving demands of the healthcare market.
UK Pharmaceutical Logistics Market Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porters Five Force's Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Insights Into The 3PL Market in United Kingdom
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Product
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2.1.1 Generic Drugs
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2.1.2 Branded Drugs
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2.2 By Operation
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2.2.1 Cold Chain Transport
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2.2.2 Non-cold Chain Transport
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2.3 By Application
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2.3.1 Biopharma
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2.3.2 Chemical Pharma
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2.4 By Transportation
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2.4.1 Airways
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2.4.2 Railways
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2.4.3 Roadways
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2.4.4 Seaways
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UK Pharmaceutical Logistics Market Market Size FAQs
What is the current UK Pharmaceutical Logistics Market size?
The UK Pharmaceutical Logistics Market is projected to register a CAGR of 4.5% during the forecast period (2024-2029)
Who are the key players in UK Pharmaceutical Logistics Market ?
Vision Logistics, Alloga, Alliance Healthcare, Kammac and DFS Worldwide are the major companies operating in the UK Pharmaceutical Logistics Market .