The value of the biopharmaceutical logistics moved by air by the logistics companies that move drugs, vaccines, blood plasma products and so on around the world will be 6% lower in 2021 than they were in 2013, Biopharmaceutical Logistics Global Market Opportunities and Strategies To 2021, a new report from The Business Research Company shows.
Air transport revenues in this market are shrinking despite the overall market for outsourced biopharma logistics growing by 37% over those eight years. Earlier biopharmaceutical logistics companies made the most use of air transportation: in 2013, 84% of all outsourced biopharmaceutical products were moved by air. By 2017, that proportion had dropped to 71% and by 2021 will fall to only 58%.
The shift away from air transportation has been primarily in favor of ocean or sea-borne transport, which grew from under 5% of the whole in 2013 to a forecast 30% by 2021.
The reason for the shift from air to sea is mainly cost. Air freight rates have risen sharply. In addition to cost-saving, however, oceanic transport is also proving better than air transport at meeting the very stringent conditions required for biologics and other temperature-controlled drugs.
Unlike small-molecule drugs that are manufactured through organic or inorganic chemical synthesis, biologics are manufactured by living cells. They are very large complex molecules manufactured in living systems such as microorganisms, animal cells or plant cells. They are produced using recombinant DNA technology and are composed of sugars, proteins, nucleic acids or a combination of these substances. Biologics are more complex, fragile and difficult to manufacture than small molecule drugs. They are, however, the best hope for treatment of many conditions including some cancers, rare diseases, neurological disorders, autoimmune disorders, heart disease and stroke, diabetes, mental health disorders and Alzheimer's. The global market for biologics is growing at 9.6% year on year, an increase from its recent growth of 5.4%.
The biologics industry is highly regulated, and vaccines, blood plasma products and drugs using genomic data have very particular requirements for their environment during transportation and warehousing. The logistics system for these products must be a 'cold-chain' (refrigerated) system that can ensure a supply to their point of use in a timely and cost-effective fashion, and also ensure that the key criteria of temperature control, regulatory compliance, security, safety and chain of custody are satisfied. The temperatures at which temperature-sensitive drugs are kept must be monitored from the point of manufacturing to last-mile delivery. For example, the vaccine to protect against the Ebola virus requires storage at -80oc at all times until use.
One problem in this for air transport is that solar radiation spikes during air handling operations are a major cause of airfreight temperature variations, and thus pose a severe risk to biologics products.
The shift to sea transport is affecting not only the market within geographically large countries like the USA but also in much smaller geographies such as Italy, because a high proportion of the drugs in such markets are imported, in some cases from the USA.
The same applies in emerging economies such as China's, even though the vast majority of its huge population lives at a remote distance from the sea. Again, imports of branded drugs previously transported to the country by air are increasingly reaching it by sea, resulting in growth in sea-borne outsourced transport for the market growing at over 22% a year while carriage by air is actually shrinking.
This is one of a series of new industry reports from The Business Research Company that identify opportunities and explain strategies in over 300 markets, covering over 2400 market segments and 56 geographies. It provides a pharmaceutical industry overview, pharmaceutical industry analysis, past drug industry statistics and forecasts. Like the other reports in the series it also provides market growth rates, market trends, market drivers, market restraints, market revenues, market shares and company profiles of the leading competitors. These industry reports draw on 150,000 datasets. Extensive secondary research is augmented with exclusive insights and quotations from industry leaders obtained through interviews. Market analysis and forecasts are provided by a highly experienced and expert team of analysts and modelers.
Biopharmaceutical Logistics Global Market Opportunities and Strategies To 2021
is one of a series of new industry reports from The Business Research Company that identify opportunities and explain strategies in over 300 markets, covering over 2400 market segments and 56 geographies. It provides a biopharmaceutical logistics overview, biopharmaceutical logistics industry analysis, past biopharmaceutical logistics industry statistics and forecasts. Like the other reports in the series it also provides market growth rates, market trends, market drivers, market restraints, market revenues, market shares and company profiles of the leading competitors. These industry reports draw on 150,000 datasets. Extensive secondary research is augmented with exclusive insights and quotations from industry leaders obtained through interviews. Market analysis and forecasts are provided by a highly experienced and expert team of analysts and modelers. Actionable strategies are explained and key opportunities are identified.
Where To Learn More
Read the Global Pharmaceutical Drugs And Biologics Logistics Market Report 2018 from The Business Research Company for information on the following:
Markets Covered: Pharmaceutical Drugs Logistics Market, Biologics Logistics Market, Pharmaceutical Drugs And Biologics Logistics Air, Sea and Land Transport Markets, Pharmaceutical Drugs And Biologics Cold-Chain and Non-Cold-Chain Logistics Markets
Pharmaceutical Drugs And Biologics Logistics Companies Covered: Deutsche Post DHL, FedEx Corporation, Panalpina World Transport, UPS, Kuehne + Nagel and DB Schenker
Regions: North America, Asia Pacific, Western Europe, South America, Eastern Europe, Middle East, Africa.
Countries: USA, China, Japan, Germany, Brazil, France, Italy, UK, Australia, India, Spain, Russia.
Time Series: Five years historic (2013-17) and forecast (2017-21).
Related Reports: Biologics Global Market Report 2018
Pharmaceutical Drugs Global Market Report 2018 (https://www.thebusinessresearchcompany.com/report/pharmaceutical-drugs-global-market-report-2018