Healthcare Distribution Global Market Report 2024

Healthcare distribution involves the efficient and secure supply of medical supplies to healthcare facilities, ensuring timely and cost-effective delivery of medications to patients. The primary segments in the healthcare distribution market are pharmaceutical product distribution services, biopharmaceutical product distribution services, and medical device distribution services.

Pharmaceutical product distribution services encompass the delivery of active ingredients and products designed for disease treatment and public health protection. These pharmaceutical products, regulated by pharmaceutical legislation, are formulated for human use and come in controlled dosage forms. They play a crucial role in enhancing patient well-being. Key end-users in this sector include retail pharmacies, hospital pharmacies, and various other stakeholders.

The healthcare distribution market research report is one of a series of new reports that provides healthcare distribution market statistics, including healthcare distribution industry global market size, regional shares, competitors with a healthcare distribution market share, detailed healthcare distribution market segments, market trends and opportunities, and any further data you may need to thrive in the healthcare distribution industry. This healthcare distribution market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The healthcare distribution market size has grown strongly in recent years. It will grow from $1122.79 billion in 2023 to $1225.18 billion in 2024 at a compound annual growth rate (CAGR) of 9.1%. The growth observed in the historical period can be attributed to several factors, including the expansion of healthcare infrastructure, an aging population, adherence to regulatory standards, the globalization of the pharmaceutical industry, and the optimization of supply chain processes.

The healthcare distribution market size is expected to see strong growth in the next few years. It will grow to $1774.44 billion in 2028 at a compound annual growth rate (CAGR) of 9.7%. Anticipated growth in the forecast period is linked to key factors such as the adoption of telehealth and remote monitoring, advancements in personalized medicine, the shift towards value-based care, emphasis on supply chain resilience, and increased focus on sustainability and environmental impact. Major trends expected during this period encompass the expansion of cold chain logistics, the rise of e-commerce and direct-to-consumer (DTC) models, advancements in medical device tracking and traceability, the prevalence of data-driven decision-making, and the implementation of innovative inventory management solutions.

The anticipated growth of the healthcare distribution market is closely tied to the expanding medical device industry. This industry encompasses entities engaged in the development, manufacturing, and distribution of transformative health technologies, devices, diagnostic tests, and health information systems, fostering advancements in healthcare through early disease detection and less invasive procedures. The distribution of these critical medical devices to healthcare facilities is integral, substantiating the surge in the healthcare distribution market. A notable example is the Indian medical device market, projected to reach $50 billion by 2025, marking a 37% CAGR increase from $10.36 billion in 2020, as reported by the India Brand Equity Foundation (IBEF) in February 2022. This underscores how the burgeoning medical device industry contributes to propelling the healthcare distribution market.

The rising prevalence of diseases is poised to be a significant driver of growth in the healthcare distribution market. Diseases, characterized by specific symptoms and impacts, necessitate efficient and timely distribution of therapeutic resources, vaccinations, and healthcare services to manage outbreaks and mitigate their consequences. The evolving landscape of health threats demands adaptable, responsive, and well-coordinated healthcare distribution networks. A case in point is the global tuberculosis (TB) scenario, with an estimated 10.6 million individuals diagnosed in 2021, reflecting a 4.5% increase from the previous year, according to the World Health Organization's report in October 2022. This vividly illustrates how the increasing incidence of diseases fuels the healthcare distribution market.

Technological advancement emerges as a prevailing trend in the healthcare distribution market, with key industry players strategically focusing on technological innovations to fortify their market position and meet evolving consumer demands. A notable illustration is the initiative by Cardinal Health Inc., a prominent US-based healthcare services company. In November 2022, Cardinal Health unveiled Velocare, a cutting-edge supply chain network and last-mile delivery solution. Velocare is adept at swiftly providing patients with crucial supplies and services required for hospital-level treatment at home within one to two hours. This innovative solution, offered in partnership with Medically Home, exemplifies the transformative impact of technological advancements in enhancing the capabilities of healthcare distribution, especially in the context of high-acuity care delivered at home.

Major players in the healthcare distribution market are strategically focusing on collaborations to enhance their service offerings. An example is Evernorth Health Services, which entered into a partnership with CarepathRx Health System Solutions to better cater to the needs of their existing consumers. Through this strategic agreement, Evernorth aims to improve patient-specialized care, particularly for those with chronic and complex care requirements. The collaboration leverages Evernorth's extensive expertise in specialty and patient care with CHSS's significant capabilities in pharmacy and infusion management, digital solutions, and health system connections. This partnership, announced in June 2023, is designed to enhance, extend, and expedite the delivery of pharmacy care to patients with conditions such as rheumatoid arthritis, Crohn's disease, cancer, and more. Evernorth's objectives within this collaboration include providing additional site-of-care options for infusion services, evolving value-based site-of-care strategies, enhancing data exchange across medical centers for optimal treatment plans, and deepening engagement with physicians and patients. CarepathRx Health System Solutions, a comprehensive and end-to-end hospital pharmacy care delivery paradigm based in the United States, is a key collaborator in this initiative.

In April 2021, Switzerland-based transportation services company DiethelmKellerSiberHegner (DKSH) successfully acquired Bosung and MedWorkz for an undisclosed sum. This strategic acquisition was undertaken by DKSH with the objective of fostering market consolidation and strengthening its presence in the Asia-Pacific region. Bosung, based in South Korea, operates as a distributor in the life sciences sector, while MedWorkz, headquartered in Singapore, specializes in the distribution of medical products.

Major companies operating in the healthcare distribution market include Alliance Healthcare UK, AmerisourceBergen Corporation, Cardinal Health Inc., CuraScript SD, Dakota Drug Inc., FFF Enterprises Inc., Henry Schein Inc., KeySource Medical Inc., Medline Industries LP, Morris and Dickson Co. LLC, Mutual Drug Company, Owens & Minor Inc., Patterson Companies Inc., PHOENIX Group, Rochester Drug Cooperative Inc., Shanghai Pharmaceutical Group Co. Ltd., Smith Drug Company, Systems Private Limited, TTK Healthcare, Anda Inc., Associated Pharmacies Inc., Besse Medical, Curascript Specialty Distribution, Gulf South Medical Supply, H.D. Smith LLC, Harvard Drug Group LLC, Kinray Inc., MasterPharm SA, McKesson Corporation, Metro Medical Supply, MMS - A Medical Supply Company, Oncology Supply Inc., PSS World Medical Inc., Seneca Medical Inc., TheraCom LLC

North America was the largest region in the healthcare distribution market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the healthcare distribution market share report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the healthcare distribution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The healthcare distribution market includes revenues earned by entities by providing services such as product rotation, quality and recalls, data analytics, and pricing accuracy. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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