Market Definition
Pharmaceutical logistics are comprised of processes & activities of procurement, warehousing, inventory management, and transportation of the pharma goods while maintaining the quality of medicines during inventory management & delivery. It entails specific medical equipment, storage facilities, coherent handling procedures, and strong-mutual aid between the cold chain partners. With the growth in demand for temperature-controlled drugs & vaccines in the region, the need for sophisticated pharmaceutical logistics solutions is soaring in the region.
Market Insights
The Africa Pharmaceutical Logistics Market is projected to grow at a CAGR of around 5.13% during the forecast period, 2022-27. The major factor contributing to the growth has been the growing pharmaceutical manufacturing in the region due to rising investments by global pharmaceutical & biopharmaceutical companies. Moreover, the local manufacturing of pharma products leads to an increased demand for logistics services in countries such as South Africa, Nigeria, and Algeria, among others.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 5.13% |
| Countries Covered | South Africa, Egypt, Nigeria, Algeria, Morocco, Rest of Africa |
| Key Companies Profiled | UbiPharm, Swift Logistics, Imperial Logistics, DSV, DHL South Africa, Kuehne+Nagel, JAS South Africa, Alloga, Bollore Logistics, DB Schenker, Others (Noatum Logistics, Rhenus Logistics, etc.) |
| Unit Denominations | USD Million/Billion |
However, in line with the World Bank’s Logistics Performance Index (LPI), in 2018, Sub-Saharan Africa achieved a score of 2.45 on a scale of 1-5, with the highest being 5. Hence, this implies a grave need for better infrastructure & enhanced Logistics services across the countries for all the sectors, especially healthcare, in the coming years. The African continent, as a whole, has been incapable of catering to its pharmaceutical demand from its domestic production. Moreover, some countries have been developing their capabilities lately and are gradually moving towards exporting their pharmaceutical products, while others have to import to satisfy their domestic demand.
Further, the region has some trade agreements with Europe & North America to boost its imports & exports activities, which have also affected the pharmaceutical industry & the pharmaceutical logistics market of Africa. According to UNIDO (United Nations Industrial Development Organization), the COVID-19 pandemic drew attention to vulnerable parts of the region, owing to their insufficient pharmaceutical manufacturing. The region imports about 94% of its pharmaceutical needs from around the globe. Further, China & India have been the major exporters of pharmaceutical products to the region.
