Market Definition
The pharmaceutical industry utilizes logistics services for the overall administration of pharma products, viz., from where they are acquired, stored, & moved. It enables the constant supply of drugs, medicines, healthcare equipment & devices from manufacturers & distributors across different locations. Furthermore, pharmaceutical logistics differ from other logistics chains given the complexity, products, & costs involved.
With the mounting need for pharmaceutical products owing to growing cases of chronic diseases in gulf countries, many regional healthcare institutes have shown active interest in collaborating with pharma manufacturers to extend the drug delivery system across the region. In this regard, the need for a comprehensive & efficient supply chain network would become an opportunity for logistic firms and, in turn, would promote the expansion of the GCC pharmaceutical logistics industry in the coming years.
Market Insights
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.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 7% |
| Country Covered | The UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait, Rest of GCC |
| Key Companies Profiled | 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 |
| Unit Denominations | USD Million/Billion |
The GCC pharmaceutical sector is still in its early phases, with medication manufacturing in its infancy owing to numerous challenges, including the robust foothold of patent drug providers. Most medications used in the GCC region are of foreign origin, as 80% of the pharma products are imported from international companies.
Governments of GCC countries have been backing joint ventures & license agreements with international pharmaceutical enterprises to boost local medicine manufacturing. As a result, the need for pharma logistics has significantly increased across the gulf.
Nevertheless, the extensive local manufacturing by pharma companies like GlaxoSmithKline & Sanofi, a significantly rising demand for medication for chronic diseases, and the launch of logistics services for the pharma industry in the UAE & Saudi Arabia are other crucial aspects projected to drive the market through 2028.
Furthermore, the considerably growing medical tourism in the UAE & Saudi Arabia is another vital factor contributing significantly to the growing demand for pharma logistics in the GCC region. Due to this, the demand for pharmaceutical drugs & medicines is mounting rapidly to suffice the requirements of increasing tourist count.
Impact of the Covid-19 Pandemic on the GCC Pharmaceutical Logistics Market
The Covid-19 pandemic in 2020 pushed various pharmaceutical companies to invest massively in the development of effective vaccines & drugs, with rising expenditure on the logistic sector by pharmaceutical industries to ensure the safety of pharmaceutical products. Moreover, the demand for drugs has been rapidly growing in the current health situation to cure the coronavirus disease.
The surging demand for surgical goods & medical devices like PPE kits, oximeters, face shields, N95 & N99 masks, etc., across the GCC region, owing to their critical use for doctors, nurses, & people, has enabled countries like the UAE, Bahrain, & Saudi Arabia to produce these products locally and supply them both to neighboring countries & internationally. These aspects have fueled the GCC Pharmaceutical Logistics Market amidst the pandemic. For instance:
In 2020, Bahrain set up its first 750 square meter factory to produce 2 million high-standard medical-grade facemasks (N95, 3 million surgical PLY3) to combat coronavirus.
