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The global healthcare distribution market size was USD 850.00 Billion in 2022 and is expected to register a revenue CAGR of 7.1% during the forecast period. Green and sustainable practices, cold chain logistics expansion, and e-commerce and direct-to-patient models are major factors driving the market revenue growth. In addition, telehealth integration and blockchain adoption are other major factors contributing to the market revenue growth. Blockchain enables in combating counterfeiting drug problem by enabling authentication and verification of pharmaceutical products at evert stage of distribution.
Patients, healthcare providers, and distributors can verify the authenticity of medications by scanning Quick Response (QR) codes or using other verification methods, reducing the risk of counterfeit drugs entering the supply chain. In addition, blockchain’s decentralized and tamper-resistant nature reduces the risk of errors, fraud, and data manipulation. Transactions are verified by multiple parties, making it difficult for malicious actors to compromise the integrity of supply chain.
Supply chain complexity, data security and privacy, and last-mile delivery challenges are major factors restraining the market revenue growth. The rise of e-commerce and direct-to-patient models has altered distribution channels and placed increased pressure on distributors to provide timely home delivery services. Pharmaceutical shortages and environmental concerns are other major factors restraining revenue growth of the market. For instance, the healthcare industry heavily relies on packaging to protect products and maintain integrity.
However, excessive packaging can contribute to environmental waste and as a result, distributors are under pressure to reduce packaging waste while ensuring product safety. Moreover, cold chain logistics, which are essential for many healthcare products, consume significant amounts of energy. Maintaining temperature-controlled environments during transportation and storage can be environmentally taxing, especially when using energy-intensive refrigeration systems.
On the basis of type, the global healthcare distribution market is segmented into biopharmaceutical product distribution services, pharmaceutical product distribution services, and others.
The biopharmaceutical product distribution services segment accounted for a significantly large market share in 2022. Rising complexity of biologics and significant investments in specialized packaging and handling are major factors driving revenue growth of this segment. In addition, disruptive innovations such as immunotherapies, antibody drug conjugates, and others significantly contribute to revenue growth of this segment in various regions. Biopharmaceuticals, including vaccines, monoclonal antibodies, and cell therapies, frequently require strict temperature control to maintain product stability and efficacy.
Investment in cold chain logistics is essential to ensure that these products are safely transported from manufacturing facilities to end users. The development and distribution of biosimilar drugs, which are highly similar to biologic drugs, require efficient distribution networks to deliver cost-effective alternatives to products. This is a major factor contributing to revenue growth of this segment. Overall, the growth of biopharmaceutical industry and increasing complexity of biotech products is creating a high demand for specialized and reliable biopharmaceutical product distribution services. Biotech companies rely on distribution partners to ensure that their innovative therapies reach patients safely, efficiently, and in compliance with regulations, thereby contributing to improved healthcare outcomes.
On the basis of end-use, the global healthcare distribution market is segmented into hospital pharmacies, retail pharmacies, and others.
The hospital pharmacies segment accounted for a significantly large market share in 2022. Rising pharmaceutical research and significant investments in telehealth and remote monitoring are major factors driving revenue growth of this segment. Telehealth platforms enable patients to receive medical consultations and prescriptions remotely. Hospital pharmacies play major role in ensuring that patients receive their prescribed medications promptly, accurately, and safely. They offer mail-order pharmacy services or facilitate medication pick-up options for telehealth patients.
In addition, hospital pharmacies assist in medication reconciliation during telehealth visits. They ensure that patients’ medication lists are accurate and up to date, reducing the risk of medication errors and adverse drug events. Telehealth services for mental health and behavioral health are growing. Hospital pharmacies can be involved in ensuring patients receive appropriate psychiatric medications and monitoring their progress. Telehealth and remote monitoring are changing the landscape of healthcare delivery, and hospital pharmacies are adapting to meet the medication needs of patients receiving care remotely. They play a crucial role in ensuring medical safety, adherence, and education, contributing to improved patient outcomes in the telehealth era.
North America accounted for largest market share in 2022. Significant investments in expansion and distribution of medical devices and rapid penetration of industry 4.0 are major factors driving the market revenue growth in this region. For instance, on 17 May 2023, Medinotec, a medical device company based in the United States that specializes in the manufacturing and development of innovative and ground-breaking technology, announced its expansion into the North American market by obtaining the U.S. Food and Drug Administration (FDA) approval for their unique non-occlusive device and listing on the OTCQC market.
Furthermore, the company intends to diversify its product line by heavily investing in Research and Development (R&D), acquisitions, and collaborations, among other things. Drug supply chain security, pharmaceutical serialization, and medical innovation are other key factors contributing to the market revenue growth in this region. The Drug Supply Chain Security Act (DSCSA) in the U.S. and similar regulations in other North American countries require enhanced traceability and security in pharmaceutical distribution, driving the adoption of advanced tracking and verification systems. The market in U.S. accounted for largest revenue share due to significant investments in healthcare infrastructure. Health spending in the U.S. increased by 2.7% in 2021 to USD 4.3 trillion or USD 12,914 per capita. This spending mainly incurs prescription drugs, home health care, hospital care, and other personal health care costs.
Europe accounted for second-largest market share in 2022. Rapid technological transformation in packaging solutions and mergers and acquisitions aimed at product expansion and supply chain transition are major factors driving the market revenue growth in this region. Advanced packaging technologies, such as tamper-evident seals, Radio-Frequency Identification (RFID) tags, and temperature sensors, enhance product safety and quality assurance. These innovations help healthcare distributors in Europe ensure that pharmaceuticals, biologics, and medical devices remain intact and unaltered during transit, reducing the risk of counterfeit products or product degradation.
The market in Germany accounted for largest revenue share due to specialized packaging and handling, growth of biopharmaceutical industry, rising complexity of biologics. Germany has a solid healthcare system, particularly in terms of infrastructure, hospital beds, and skilled personnel. One out of every six employments in Germany are related to the healthcare sector, which has an economic footprint of USD 798 billion, or nearly 12% of Germany's GDP.
Asia Pacific accounted for third-largest market share in 2022. Significant investments in enhancing pharma shipment capabilities is a major factor driving the market revenue growth in Asia Pacific. For instance, on 13 April 2023, GEODIS, which is a global logistics operator, announced the addition of the Centre of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification to its temperature-controlled air freight pharma exports capabilities in Asia Pacific and the Middle East.
This certification contributes to GEODIS' strategic goals of establishing pharma healthcare as a core organizational vertical and growing its global network by accrediting sites in several Asia Pacific countries. The market in China accounted for largest revenue share due to rising awareness regarding pet health care and seamless transition in the supply chain of animal care products. The growing interest in pet healthcare has prompted healthcare distributors in China to diversify their product offerings. Distributors are including veterinary pharmaceuticals, pet medications, supplements, and other pet healthcare items in their inventory.
The global healthcare distribution market is fairly fragmented, with many large and medium-sized players accounting for majority of market revenue. Major players are deploying various strategies, entering into mergers & acquisitions, strategic agreements & contracts, developing, testing, and introducing more effective healthcare distribution.
PARAMETERS | DETAILS |
The market size value in 2022 | USD 850.00 Billion |
CAGR (2023-2032) | 7.1% |
The Revenue forecast in 2032 | USD 1,697.19 Billion |
Base year for estimation | 2022 |
Historical data | 2019-2021 |
Forecast period | 2023-2032 |
Quantitative units | Revenue in USD Billion and CAGR in % from 2023 to 2032 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Type, end-use, Region |
Regional scope |
North America; Europe; Asia-Pacific; Latin America; Middle East & Africa |
Country scope |
U.S., Canada, Mexico, Germany, U.K., France, Spain, BENELUX, Rest of Europe, China, India, Japan, South Korea, Rest of APAC, Brazil, Rest of LATAM, Saudi Arabia, UAE, Israel, and Rest of MEA |
Key companies profiled | Cardinal Health, Owens & Minor, Morris & Dickson Co., LLC, CuraScript SD, McKesson Corporation, Henry Schein, Patterson Companies, Inc., Thermo Fisher Scientific Inc., ICU Medical, Medco Solutions Limited, Medline Industries, Inc., FFF Enterprises, Inc., AmerisourceBergen Corporation, Patterson Companies, Inc., Redington Limited |
Customization Scope |
10 hrs of free customization and expert consultation |
For the purpose of this report, Emergen Research has segmented the global healthcare distribution market on the basis of type, end-use, and region:
The global healthcare distribution market is expected to register a revenue Compound Annual Growth Rate (CAGR) of 7.1% during the forecast period.
The global healthcare distribution market size was USD 850.00 Billion in 2022.
Biotechnology advancements and rising healthcare expenditure are major factors driving revenue growth of the global healthcare distribution market.
Biopharmaceutical product distribution services segment was leading the healthcare distribution market in terms of type in 2022.
Supply chain complexity and pharmaceutical counterfeiting are some major restraints for revenue growth of the global healthcare distribution market.
Key Aspects Covered
Market Overview:
Market Dynamics:
Competitive Landscape:
Segmentation Analysis:
Market Size and Forecast:
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