GCC Pharmaceutical Logistics Market Analysis: Trends, Growth, and Competition - 2028

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GCC Pharmaceutical Logistics Market Analysis: Trends, Growth, and Competition - 2028

GCC Pharmaceutical Logistics Market Projected to Expand at 7% CAGR Through 2028

The GCC Pharmaceutical Logistics Market is likely to grow at a CAGR of around 7% during the forecast period, i.e., 2023-28. The growth of the market is likely to be driven primarily by the rising inclination towards biological drugs and the increasing prevalence of chronic diseases across GCC countries.

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Strategic Takeaways from the Report:

  • Market Sizing and Forecasting
  • Regulatory and Policy Influence
  • Competitive Trends and M&A Activity
  • Innovation Drivers and Disruptive Technologies
  • Investment Hotspots and Emerging Niches
  • Geographical Dynamics and Trade Flows

GCC Pharmaceutical Logistics Market Segment Overview & Classification

This market is categorized to offer targeted insights across various operational and consumer-related verticals.

Segment List:

By Mode of Transport (Route)

  • Air
  • Road
  • Sea

Of these three, Roads attained the largest share in the GCC Pharmaceutical Logistics Market during 2023-28. It owes to the increased local production of pharmaceutical products in countries like the UAE & Saudi Arabia to attract local & international companies to meet the needs of the domestic market. Besides, in GCC countries, almost all places are easily accessible via road. As a result, the demand for pharmaceutical logistics by road across the neighboring countries like Qatar, Kuwait, Oman, & Bahrain has propelled significantly in recent years.

By Product Type

  • General Drugs & Medicines
  • Surgical Goods & Medical Devices
  • Chemical Pharma Products
  • Bio-Pharma & Specialized Pharma Products

By Service Type

  • Transportation & Freight Forwarding
  • Warehousing
  • Cross-Docking
  • Value Added Services (Inventory management, Packaging, Labelling, etc.)
  • Others (Customs Brokerage, Marketing, Call Support)

By Storage Type

  • Refrigerated
  • Ultra-frozen (Less than 0°C)
  • Chilled (1°C - 10°C)
  • Air-conditioned (Above 11°C)
  • Ambient

Here, the demand for Refrigerated storage is projected to witness the highest growth in the market during 2023-28. It owes to the rising focus on bio-based products where there are many pre-conditions for the shipment of life science. Most pharmaceutical products, including vaccines, bio-products, and surgical goods, require refrigerated storage throughout handling & transportation to maintain product integrity. Hence, the need for refrigerated storage is likely to be significantly high in the forecast period.

By Logistics Provider Type

  • 3PL (Third-Party)
  • 4PL (Fourth-Party)
  • Integrated Logistics

By End Users

  • Hospitals
  • Laboratories
  • Pharmaceutical companies
  • Others

By Country

  • The UAE
  • Saudi Arabia
  • Qatar
  • Oman
  • Bahrain
  • Kuwait
  • Rest of GCC.

Amongst all countries across the GCC region, Saudi Arabia acquired the largest share of the Pharmaceutical Logistics Market in the previous few years. It attributes primarily to the rapid rise in the geriatric population of the country and burgeoning instances of chronic diseases like cancer, hypertension, diabetes, & cardiovascular, among others.

These divisions help clarify demand patterns and expected shifts.

Market Opportunities

Mounting Cases of Chronic Diseases & Unhealthy Eating Habits - The rising prevalence of chronic diseases like cancer, diabetes, heart issues, & kidney disorders across the GCC region is the prime aspect driving the GCC Pharmaceutical Logistics Market through 2028. Some major countries like Saudi Arabia, the UAE, Kuwait, etc., with a large population, have reported an upsurge in chronic disease patients. 

In addition, unhealthy eating habits and genetic disorders are primarily responsible for the growing diabetic population in the GCC. Lifestyle diseases have been rising across the region, due to which the demand for drugs has increased significantly. Due to these factors, the pharmaceutical logistics market in GCC is considerably growing as there is a notable demand for over-the-counter (OTC) drugs.

The leading market players have grasped lucrative opportunities to place their logistics services by home delivery of medicines, collaborating with hospitals, taking contract logistics agreements, etc. For instance:

  • In April 2020, Bahrain health centers launched chronic disease medicine home delivery to ensure the health, safety, & comfort of patients.
  • In September 2019, Emirates, Pfizer, and the UAE Ministry of Health & Prevention announced the launch of a prevention campaign for chronic diseases to increase health literacy & public awareness for the global health threat of non-communicable diseases.

GCC Pharmaceutical Logistics Market Competitive Snapshot from 2023-2028

The report highlights established and emerging players in the global GCC Pharmaceutical Logistics Market, evaluating their strengths, challenges, and potential for innovation.

Key Competitors Include:

  • Kuehne+Nagel Middle East
  • Aramex
  • Agility
  • Emirates SkyCargo
  • Qafila
  • RHS Logistics
  • Nawara Transportation & Freight Co.
  • Kerry Logistics Middle East L.L.C.
  • Yusen Logistics (Middle East) L.L.C.
  • Mosanada Logistics Services
  • Oriental Commercial and Shipping Co. Ltd.
  • Others.

Their activities include partnerships, product launches, and geographic expansions.

GCC Pharmaceutical Logistics Industry Prime Challenge

Container Shortage and Reverse Logistics - With this shortage of containers, exporters witnessed a notable surge of nearly 50-60% in freight charges & container rent, which severely impacted business activities across the region. Hence, the shortage of containers & the issue of reverse logistics owing to the unprecedented return of containers has hindered the growth of the GCC Pharmaceutical Logistics Market.

India is one of the major exporters of pharma products like generic drugs, chemicals, petroleum products, etc., to the UAE. Hence, the shortage in container demand across India also disrupted the imports of the UAE's pharma products, which posed a challenge for logistic companies across the GCC. Even in 2021, this problem continued among various logistic players in the region.

Frequently Asked Questions (FAQs):

  • What industries are most impacted by this market?
  • How is technology reshaping operations and offerings?
  • Which competitors dominate the landscape?
  • What risks could disrupt market expansion?
  • How should businesses respond to demand fluctuations?

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