Thursday, October 15, 2020

Growth in Pharmaceutical Demand to Support Logistics Market, Albeit High Compliance & Certification Requirement and Shortage of Warehousing Facilities: Ken Research

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“Surging chronic and lifestyle-related diseases in KSA and amplified imports of pharma products driving the growth of the pharma logistics market in Saudi Arabia.”

Rising Population to Lead to an Increased Demand for Pharma Products:  KSA has an estimated population of ~33 million in 2019, which is expected to double, reaching 77.2 million by 2050, growing at 2.65% per annum. This increase in population is expected to fuel the demand for healthcare services in the kingdom. Concurrently, the healthcare system needs to treat emerging Lifestyle Diseases and Illnesses associated with modern and urban lifestyle. Allocation of healthcare budget of ($40 million in 2019) reflects a strong indication of potential demand as well as the Government’s willingness to augment growth and improvement within the sector.


COVID-19 Impact on Pharma Logistics Market: Saudi Arabia witnessed a countrywide lockdown owing to the COVID-19 with all the industries observed a phased shutdown. The complete lockdown in the second quarter of 2020 left the cargo backlogged at KSA’s major container ports; travel restrictions led to a shortage of truck drivers to pick up containers and ocean carriers canceled sailings. Though the market was witnessing a complete shutdown, the country observed an increased demand and transportation of medicines, drugs, gloves, PPE kits, and others owing to the impact of COVID-19 pandemic. Saudi Arabia is majorly dependent on the other countries for their pharma supplies which lead to an increased demand for import pharma products from different countries during the pandemic. Restrictions on travel and trade lead to delayed deliveries impacting the pharma logistics market. The pharma logistics market is anticipated to get back to normal in the next 8-10 months.

Growth in Investments under the Logistics Sector: Saudi government to raise $36.5 bn by 2030 for transportation infrastructure projects. The King Fahd Causeway linking Saudi & Bahrain is also undergoing expansion to accommodate a waiting area of 400 trucks, further contributing to the growth of the logistics sector in Saudi Arabia. The logistics companies are investing in advanced technologies such as control towers to streamline supply chain complexity, on-board vehicle telematics, truck platooning to gain a competitive edge.

The report titled Saudi Arabia Pharmaceutical Logistics Market Outlook to 2025: Driven by rising demand for a variety of drugs as a result of increasing cases of chronic and lifestyle-related diseases by Ken Research suggested that the pharma logistics market is further expected to grow in the near future as pharma companies have started manufacturing or assembling the pharma products within the country. The rising demand for a variety of drugs as a result of increasing cases of chronic and lifestyle-related diseases is also a crucial factor that will drive market growth. Pharma Sales is expected to grow at a CAGR of ~% till 2025, signaling increasing pharmaceutical imports and production. The government is also diverting the funds towards creating a robust healthcare infrastructure by building new hospitals which would further lead to an increase in the demand for logistics services. The market is expected to register a positive CAGR of 10.2% in terms of revenue during the forecast period of 2019-2025F.

Key Segments Covered in KSA Pharma Logistics Market: -

By Service Mix

Freight Forwarding

Warehousing

Value Added Services

KSA Pharma Freight Forwarding Market

By Mode of Freight

Road Freight

Air Freight

Sea Freight

By Type of Transport

Domestic Freight

International Freight

By 3PL & Integrated Logistics

3PL Logistics

Integrated Logistics

By Type of Delivery

Normal Delivery

Express Delivery

By Flow Corridors

Middle East

European Countries

Asian Countries

Others (North America, South America & Africa Region)

KSA Pharma Warehousing Market

By 3PL & Integrated Logistics

3PL Logistics

Integrated Logistics

By Cities

Jeddah

Riyadh

Dammam

Others

By Type of Warehouse

Ambient

Cold Storage

Key Target Audience

International Domestic Freight Forwarders

Warehousing Companies

Logistics Consultants

Pharmaceutical Dealers and Distributors

Ministry of Health

Time Period Captured in the Report:

Historical Period: 2014-2019

Forecast Period: 2019–2025

Companies Covered:

Mosanada Logistics

Oriental Commercial & Shipping Co.

Hala Shipping Services

Gulf System

Abdui Global

Four Winds

KWE Transport

Arabian Transport Co.

SITCO Logistics

Takhzeen Logistics

Agility Logistics

BAFCO International

Wolf Transport

GAC Logistics

JAS Logistics

3 Camel Logistics

Motion Supply Chain

Uniworld Logistics

NTF Logistics

Kerry Logistics

Kamer Logistics

Tranzone Logistics

Starlinks

RIADCO Logistics

Pharma Companies Covered:

Pfizer

Jamjoom Pharma

GSK

Hikma Pharma

Saja Pharma (Tamer Group)

Key Topics Covered in the Report: -

Saudi Arabia Overview and Major Economic & Logistics Zones

Healthcare Infrastructure

Government Initiatives

Economic zones in Saudi Arabia

Logistics Parks in Saudi Arabia

Cross Comparison of Pharma Logistics Market with GCC Countries

Saudi Arabia Pharmaceutical Manufacturing Clusters

End-User Analysis (Pharma)

Saudi Arabia Pharma Logistics Market

Saudi Arabia Pharma Freight Forwarding Market

Saudi Arabia Pharma Warehousing Market

Industry Analysis (SWOT Analysis, Trade Scenario, Regulations for Import & Export)

Covid-19 Impact on the Pharma Logistics Market

Comparative Landscape – KSA Pharma Logistics Market

Comparative Landscape in Saudi Arabia Pharma Market

Recommendations / Success Factors

Research Methodology

Appendix

Related Reports by Ken Research: -

Saudi Arabia Dry Logistics and Warehousing Market Outlook to 2025 – Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenue)

Philippines Logistics Market Outlook to 2024 (Sixth Edition)– By Sea, Land, and Air Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Agriculture), By End Users; By Cold chain market (Cold transportation and Cold storages)

UAE Logistics and Warehousing Market Outlook to 2025 – By Road , Sea and Air Freight Forwarding; Domestic and International Freight, Major Flow Corridors, Integrated and Contract Freight Forwarding; By Warehousing (Industrial / Retail, CFS / Inland Container Depot & Cold Storage, Agriculture), End Users (Manufacturing, Retail, Food and Beverage, Automotive, Oil and Gas, Healthcare), Type of Warehouses; By Courier Express & Parcel Market , and, E-commerce Logistics

Contact Us: 
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

1 comment:

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