Biopharmaceutical Third-Party Logistics Market Report 2025

The biopharmaceutical third-party logistics market size has grown strongly in recent years. It will grow from $141.59 billion in 2024 to $150.94 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to globalization of pharma supply chains, stringent regulatory requirements, rise in biopharmaceuticals, focus on cold chain logistics.

The biopharmaceutical third-party logistics market size is expected to see strong growth in the next few years. It will grow to $203.7 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to personalized medicine growth, biologics and biosimilars expansion, supply chain digitalization, regulatory compliance complexity, COVID-19 impact. Major trends in the forecast period include on-demand logistics solutions, sustainability in logistics, last-mile delivery solutions, pharma serialization and traceability, autonomous logistics.

The growing trend of outsourcing logistics is projected to drive the growth of the biopharmaceutical third-party logistics market. Outsourcing logistics entails engaging a third party to manage all or part of a company's logistical activities. In the biopharmaceutical sector, this practice is utilized for outsourcing cryogenic supply chain management to logistics partners. For instance, in February 2024, the Bureau of Transportation Statistics, a U.S. agency under the Department of Transportation (DOT), reported a 1.8% increase in for-hire freight shipments in December 2023 compared to December 2022, while the Freight Transportation Services Index rose from 136.6 in December 2022 to 139.1 in December 2023. Thus, the increasing trend of outsourcing logistics is expected to propel the growth of the biopharmaceutical third-party logistics market.

The introduction of innovative biopharmaceutical products is anticipated to drive the growth of the biopharmaceutical third-party logistics market. Innovative biopharmaceutical products are advanced and novel therapeutic substances derived from biological sources, such as monoclonal antibodies or gene therapies. The biopharmaceutical third-party logistics market plays a vital role in the efficient launch of these products by providing streamlined supply chain solutions, ensuring timely and secure distribution, and supporting the complex logistics involved in bringing these innovative therapies to market. For instance, in January 2024, the New Drug Therapy Approvals 2023 report published by the Center for Drug Evaluation and Research (CDER), a U.S. branch of the Food and Drug Administration (FDA), indicated that the CDER approved 55 novel drugs in 2023, with 20 (36%) identified as first-in-class, compared to 37 novel drug approvals in 2022. Therefore, the launch of innovative biopharmaceutical products is expected to propel the growth of the biopharmaceutical third-party logistics market.

Technological advancements stand out as a prominent trend gaining momentum in the biopharmaceutical third-party logistics market. Major companies within this market are strategically launching innovative products to fortify their market position and gain a competitive edge. For example, in November 2022, Celcius Logistics Solutions Pvt Ltd., an India-based logistics services provider, introduced Hyper-Local temperature-controlled delivery services designed for food and pharmaceutical orders. The company's last-mile solution, catering to smaller quantities, is available in nine cities across the country. The hyperlocal approach ensures optimal material quality during transportation by continuously monitoring temperatures in real-time at each stage of the delivery process.

Major companies in the biopharmaceutical third-party logistics market are concentrating on innovative solutions, such as expanding their operations in life sciences and healthcare logistics, to enhance their logistics capabilities for pharmaceutical and healthcare products, ensuring efficient storage and distribution. Business expansion in life sciences and healthcare logistics refers to the strategic growth of logistics companies to improve their capabilities in transporting and managing medical products, which is essential for ensuring timely delivery and maintaining the integrity of temperature-sensitive items crucial for patient care. For example, in August 2022, DHL Supply Chain, a Germany-based contract logistics specialist of Deutsche Post DHL Group, announced the expansion of its Life Sciences and Healthcare Campus in Florstadt, Germany. This expansion includes the construction of a new logistics center that will add 32,000 square meters of space dedicated to the storage and distribution of pharmaceutical and medical products. The facility will feature various temperature-controlled zones and have the capacity for 10,000 pallet locations, enabling it to handle a wide range of pharmaceutical products. This initiative aims to enhance DHL's capabilities in pharmaceutical logistics and support the increasing demands of the healthcare sector, ensuring efficient and compliant handling of sensitive medical supplies.

In March 2022, STG Logistics Inc., a US-based provider of optimized logistics and transportation services, successfully acquired the intermodal division of XPO Logistics Inc. for $710 million. This strategic move enhances STG Logistics' position in the containerized logistics industry, paving the way for further achievements. XPO Logistics Inc. is a US-based provider of asset-based less-than-truckload (LTL) freight transportation and third-party logistics, including biopharma logistics.

Major companies operating in the biopharmaceutical third-party logistics market include McKesson Corporation, AmerisourceBergen Corporation, United Parcel Service of America Inc., FedEx Corporation, DHL International GmbH, Kuehne + Nagel International AG, SF Express Co Ltd., DB Schenker, CH Robinson Worldwide Inc., Nippon Express Group, Expeditors International of Washington Inc., Sinotrans Limited, XPO Logistics Inc., Kerry Logistics Network Limited, Bollore Logistics, Catalent Inc., Almac Group, VersaCold Logistics Services, Cryoport Inc., Agility Logistics Corp, Fisher Clinical Services, CEVA Logistics Inc., LifeScience Logistics, Cold Chain Technologies LLC, Langham Logistics, Airpharm Logistics, Express Courier International, Bio Pharma Logistics, PCI Pharma Services.

North America was the largest region in the biopharmaceutical third party logistics market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biopharmaceutical third-party logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biopharmaceutical third-party logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Biopharmaceutical third-party logistics involves external partners or services that facilitate the provision of logistics services to pharmaceutical companies. These companies outsource their transportation needs to third-party providers as a cost-saving measure, and the lack of in-house capabilities significantly contributes to the growing trend of transportation outsourcing.

The primary categories of supply chains in biopharmaceutical third-party logistics are cold chain and non-cold chain. The cold chain specifically pertains to a supply chain that ensures temperature control throughout the transportation of products sensitive to temperature variations. Various services, including transportation, warehousing and storage, among others, are utilized by pharmaceutical and biopharmaceutical companies, medical device companies, hospitals and clinics, and other relevant entities.

The biopharmaceutical third-party logistics market research report is one of a series of new reports that provides biopharmaceutical third-party logistics market statistics, including biopharmaceutical third-party logistics industry global market size, regional shares, competitors with a biopharmaceutical third-party logistics market share, detailed biopharmaceutical third-party logistics market segments, market trends and opportunities, and any further data you may need to thrive in the biopharmaceutical third-party logistics industry. This biopharmaceutical third-party logistics 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 biopharmaceutical third-party logistics market consists of revenues earned by entities by providing biopharmaceutical third-party logistics such as domestic transportation management, international transportation management, and value-added warehousing and distribution. The market value includes the value of related goods sold by the service provider or included within the service offering. The market value includes the value of related goods sold by the service provider or included within the service offering. 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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