The scope of pharmaceutical logistics encompasses the activities of handling, transporting, and managing the supply chain for a wide variety of different products. The vast majority of these products have specific requirements that must be met for the logistics process to handle them properly. In the pharmaceutical industry, the term "logistics" refers to the processes and activities of "procurement," "warehousing," "inventory management," and "transportation" of products. Each of these processes and activities must be carried out while ensuring that the quality of medicines is maintained throughout "inventory management."
Compared to other types of logistics, it stands out as being particularly unique because it must cater to the requirements of hospitals, clinics, pharmacies, and other health centers that take into account storage conditions and maintain temperature and humidity levels. In other words, it must ensure that the conditions in which the goods are stored are kept at the appropriate levels. Participants in the pharmaceutical logistics value chain include suppliers of raw materials and packaging, providers of storage and logistics services (central warehouse, stockiest, semi-warehouse), hospitals and clinics, retailers and pharmacies, and end customers. Other participants in the chain include retailers and semi-warehouses. The contributions made by each of the stakeholders involved in the pharma logistics supply chain result in significant improvement in the quality of this service that is provided.
The term "over the counter" (OTC) refers to medicines available in stores and online without a prescription. When the directions on the packet label are followed precisely, these medications are not only practical but also risk-free. It is common to reach for over-the-counter (OTC) medications when treating symptoms like a fever, cough, sore throat, diarrhea, minor aches and pains, allergies, and other conditions; it is common to reach for over-the-counter (OTC) medications.
It is predicted that the demand for over-the-counter (OTC) medications will increase significantly, especially in developing countries such as China, India, Brazil, and South Africa, among others. This can be attributed to a combination of factors, including a rapidly expanding population, an increasing prevalence of diseases and infections, a greater tendency for self-medication among people, and the easy availability of over-the-counter drugs in pharmacies and retail stores.
In developed economies like the United States, over-the-counter medications occupy a central position in nearly every pharmacy, serving as the first-line treatment option for customers with minor health issues. According to a study conducted by the Consumer Healthcare Products Association (CHPA), annual spending by American consumers on over-the-counter products exceeds USD 40 billion. It is estimated that over-the-counter medications in the United States result in yearly savings of approximately USD 25 billion compared to prescription medications.
In 2018, large retailers such as Walmart partnered with Anthem, a health insurance provider, to assist enrolled individuals in maximizing their over-the-counter plan allowances when purchasing OTC items at Walmart.com and Walmart stores. It is anticipated that the adoption of such collaborative initiatives by crucial stakeholders will hasten the growth in demand for over-the-counter products and, as a result, the expansion of the overall market for logistics services during the period that is being taken into consideration.
By 2030, it is anticipated that Europe will grow at a CAGR of 9.2% and hold the largest share of USD 66,944 million. The significant rise in market share can be attributed to the significantly increased volume of pharmaceutical product trade that has taken place in key European countries such as Germany, the United Kingdom, France, and others. In addition, as production and demand for numerous categories of pharmaceutical products, such as over-the-counter medicines, continue to rise, it is anticipated that the need for pharma logistics will continue to be robust in the years to come. This is because pharma logistics are essential to the distribution of pharmaceutical products.
The North American region is anticipated to hold a share of USD 51,621 million at a CAGR of 7.7 % of the forecast period, placing it in second place behind Europe. The primary reason for the country's high market share is the substantial amount of pharmaceutical products bought and sold within the country. According to the study's findings, in 2020, sales of pharmaceuticals in the United States were expected to account for more than 40% of the global total.
With a CAGR of 9.7% during the forecast period, Asia-Pacific will be the region experiencing the most remarkable expansion rate. This will be the case due to the rapidly increasing population, expanding economies, and increased demand for over-the-counter medicines in developing nations like China, India, and countries in the ASEAN region. Developing nations include China, India, and countries in the ASEAN region.
A geographic shift is also caused by the movement of production and sales locations in the pharmaceutical industry, causing the industry to move around. It is anticipated that the market players' discovery of lucrative opportunities in the developing economies of Asia and South America will, in turn, boost the growth of the market in these regions. This growth will be driven by discovering lucrative opportunities in developing economies of Asia and South America.