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Asia Pacific Healthcare Cold Chain Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 150 Pages
  • April 2023
  • Region: Asia Pacific
  • Mordor Intelligence
  • ID: 5572910
UP TO OFF until Sep 30th 2023
During the time frame of the forecast, the Asia-Pacific healthcare cold chain logistics market is expected to grow at a CAGR of over 8%.

The COVID-19 pandemic has had a direct impact on healthcare cold chain logistics companies, which are involved in the storage, flow, and movement of goods.Because trade was limited during the COVID-19 pandemic, it had an effect on the supply chain of the healthcare cold chain industry. As a result, cold chain manufacturers focused on how they stored their products to make them last longer, which is likely to help the growth of the cold chain market.With more money in people's pockets and an aging population, healthcare spending in the region is growing quickly and will continue to be important to the growth of multinational pharmaceutical and biotechnology companies.

Several places in Asia and the Pacific, like India, China, Singapore, South Korea, etc., are also becoming popular places to outsource clinical trials, drug manufacturing, and pathology testing. Because of this, there is more demand for temperature-sensitive health products like vaccines, biopharmaceuticals, materials for clinical trials, etc. Because of these changes, there is more demand for cold storage facilities in the Asia-Pacific region, and more money is being spent on improving infrastructure. Some Asian governments are making changes to improve logistics services for the healthcare cold chain.

The growth of the healthcare cold chain logistics market is attributed to the increasing demand for biopharmaceuticals and vaccines that require cold chains and stricter government regulations for the efficient handling of temperature-sensitive pharmaceutical products. The flourishing pharmaceutical sector to serve the healthcare needs of the growing population is fueling the demand for healthcare cold chain logistics. Factors such as lack of standardization pertaining to operating procedures, security, temperature, pest control, and high operational costs restrain market growth.

Asia Pacific Healthcare Cold Chain Logistics Market Trends

Growth in the Pharmaceutical Sector Driving the Market

Pharmaceutical manufacturers in the Asia-Pacific region are increasingly focusing on product quality and sensitivity. Factors such as the development of complex biological-based medicines and the shipment of hormone treatments, vaccines, and complex proteins that require cold chain refinements result in the need for temperature-controlled transportation and warehousing. Long associated with the term "pharming," which refers to the rapid expansion of underdeveloped markets from modest starting points, are China, India, and other important Asian countries. But that's not the case now. Asia has had rapid expansion over the last ten years and is now the hub of the world's pharmaceutical business, driving advancement, growth, and future growth. China and Japan are currently the second- and third-largest pharmaceutical marketplaces in the world, respectively, in terms of market size and scope. Over the past ten years, China in particular has experienced robust and steady annual double-digit growth, supported by continued infrastructural development, rising healthcare investment and coverage, and a supportive regulatory framework. With their enormous populations and powerful drivers, India, Indonesia, Vietnam, and Thailand also exhibit great potential.

The temperature-controlled logistics of pharmaceuticals and medical devices is a part of the healthcare logistics industry that is growing very quickly.During the COVID-19 crisis, cold chain logistics is playing a vital role for the pharmaceutical sector, while increasing concern for health is expected to support the growth of the Asia-Pacific healthcare cold chain logistics market.

The Japanese pharmaceutical market is expanding to become the world's second-largest. Foreign direct investments (FDI) have steadily increased in the Japanese pharmaceutical sector over the years, assisting the country in establishing a global presence. Japan is home to four of the world's top 25 pharmaceutical companies.

An increase in the need for effective cold chain logistics services to maintain the quality of goods is fueling the growth of the market. In addition, the entire cold chain and logistics for the pharmaceutical industry are becoming more strategic and reliable. High-value pharmaceutical products are mostly shipped via cold chain solutions across the entire distribution network, thereby driving the growth of the market in Asia-Pacific. As Asia accounts for a larger and larger share of their global revenues and, more crucially, the majority of their growth, many multinational pharmaceutical firms are witnessing this personally. They normally receive 20% to 30% of their 2021 sales from Asia, with China accounting for almost half of that total.

Increase in Number of Refrigerated Warehouses

The COVID-19 pandemic has caused a big change in how the supply chain works. As a result, more high-end digital technologies are being used to improve operational efficiency and address health concerns.The changing logistics industry outlook, the requirement for substantial cost optimization, and optimum inventory management are anticipated to support the growth of the Asia-Pacific healthcare cold chain logistics market.

Japanese logistics companies are putting their years of experience to use in Southeast Asia by building modern warehouses with features like temperature controls to meet the changing needs of local consumers.As people's incomes rise in Asia, they expect their online shopping orders to arrive faster. This means that warehouses need to be handled automatically to save time and have strict temperature controls to keep goods fresh.

Thailand is the Asian country with the most advanced warehouses. Indonesia, with a population of over 270 million people, has enormous potential but has fallen behind in logistics development, owing in part to the transportation constraints posed by the country's numerous islands. However, demand from domestic market-focused enterprises is growing.

Businesses are investing millions of dollars in their cold chain operations to create effective, efficient, and reliable processes, as end-to-end cold chain security is the weak link in the system. Moreover, the number of refrigerated warehouses is increasing, owing to a surge in demand for food and pharmaceutical products in the Asia-Pacific region. Therefore, an increase in refrigerated warehouses is anticipated to boost the growth of the Asia-Pacific healthcare cold chain logistics market.

Asia Pacific Healthcare Cold Chain Logistics Industry Overview

The Asia-Pacific healthcare cold chain logistics market is fragmented because of growing competition, new product launches, collaborative partnerships, and other strategic decisions made to improve operational efficiency. Some of the major players include DHL, CEVA Logistics, FedEx Corporation, and Cardinal Health. The key players have adopted the strategy of signing contracts and agreements for expanded regional reach and optimized operational costs. The market is highly competitive, with players competing and partnering to gain a substantial market share.

Additional Benefits:

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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Industry Value Chain Analysis
4.4 Government Regulations and Initiatives
4.5 Spotlight on Ambient/Temperature-controlled Storage
4.6 Insights into Refrigerants and Packaging Materials Used in Refrigerated Warehouses
4.7 Impact of COVID-19 on the Market
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6.1 By Product
6.1.1 Biopharmaceuticals
6.1.2 Vaccines
6.1.3 Clinical Trial Materials
6.2 By Services
6.2.1 Transportation
6.2.2 Storage
6.2.3 Packaging
6.2.4 Labeling
6.3 By End User
6.3.1 Hospitals and Clinics and Pharmaceuticals
6.3.2 Biopharmaceutical
6.3.3 Biotechnology Companies
6.4 By Country
6.4.1 China
6.4.2 Japan
6.4.3 India
6.4.4 Rest of Asia-Pacific
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Cardinal Health
7.2.2 FedEx Corporation
7.2.3 DHL
7.2.4 CEVA Logistics
7.2.5 Agility
7.2.6 Kuehne + Nagel
7.2.7 DB Schenker
7.2.8 Marken Ltd.
7.2.9 Cavalier Logistics
7.2.10 Envirotainer*
9.1 GDP Distribution, by Activity - Key Countries
9.2 Insights into Capital Flows - Key Countries
9.3 Economic Statistics - Transport and Storage Sector and Contribution to Economy (Key Countries)
9.4 Freight Statistics (Mode, Product Category, etc.)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Cardinal Health
  • FedEx Corporation
  • DHL
  • CEVA Logistics
  • Agility
  • Kuehne + Nagel
  • DB Schenker
  • Marken Ltd.
  • Cavalier Logistics
  • Envirotainer*