Pharmaceuticals Wholesale and Distribution Market to grow by USD 896.5 Billion (2024-2028), driven by rising global pharmaceutical sales, Report on how AI is redefining market landscape - Technavio

NEW YORK, Jan. 29, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global pharmaceuticals wholesale and distribution market size is estimated to grow by USD 896.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  9.45%  during the forecast period. Growing global pharmaceutical sales is driving market growth, with a trend towards emergence of drones in pharmaceuticals wholesale and distribution. However, increased complexities due to time-bound deliveries and customization of supply chain  poses a challenge. Key market players include A.F. Hauser Pharmaceutical Inc., Alfresa Holdings Corp., AmerisourceBergen Corp., Attain Med Inc., Cardinal Health Inc., China Resources Pharmaceutical Group Ltd., Dakota Drug Inc., FFF Enterprises Inc., J M Smith Corp., McKesson Corp., MEDIPAL HOLDINGS CORP., Medline Industries LP, Morris and Dickson Co. LLC, Mutual Drug, Owens and Minor Inc., PHOENIX Pharmahandel GmbH and Co KG, Shanghai Fosun Pharmaceutical Group Co. Ltd., Sinopharm Group Co. Ltd., SUZUKEN CO. LTD., and The Cigna Group.

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Market Driver

The Pharmaceutical Wholesale Distribution market is a significant segment of the pharmaceutical landscape. Wholesalers play a crucial role in this industry, acting as intermediaries between producers and retailers. Two types of wholesalers exist: Producer Wholesalers, who purchase drugs directly from manufacturers, and Merchant Wholesalers, who buy from various sources and sell to retailers. Branded Drugs and Generic Drugs are the two primary product categories. Ethical Pharma Products and Over-the-counter (OTC) Supply are other essential areas. The pharmaceutical landscape continues to evolve, with a focus on drug evaluation, vaccines, medical devices, and addressing unmet medical needs. Generic drug promotion, health insurance schemes, and track-and-trace systems are current trends. The market includes various sectors like Valuation, Production of polymers, resins, specialty chemicals, and diversified materials. Glycidol, a surface active compound, is a key component in several industries, including cosmetic preparations, laundry detergents, and additives in plastics. The Global Glycidol Market is expected to grow significantly. Online and offline sales channels coexist, offering convenience and personalized services. 

Drones, unmanned aerial vehicles, are revolutionizing logistics, particularly in the delivery of essential pharmaceutical supplies. In areas with inadequate road or railway infrastructure, drones offer a solution. They can transport pharmaceutical drugs and medicines to remote destinations, expanding market opportunities for pharmaceutical wholesale and distribution companies. Real-time data from drones enables logistics firms to optimize their supply chain models effectively. This innovation in delivery methods is expected to significantly impact the pharmaceutical industry. 

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Market Challenges

• Pharmaceutical Wholesale Distribution faces unique challenges in supplying branded and generic drugs to various healthcare providers and retailers. Wholesalers, including Producer Wholesalers and Merchant Wholesalers, play a crucial role in this supply chain. Agents and Brokers help facilitate transactions. The pharmaceutical landscape includes ethical pharma products, OTC/Institutional Supply, vaccines, and medical devices. Unmet medical needs drive demand for new drugs and treatments. Generic drug promotion and health insurance schemes impact pricing and distribution. Track-and-trace systems ensure drug safety and compliance. Valuation of branded pharmaceuticals and generic pharmaceuticals differs significantly. The production of polymers, resins, specialty chemicals, and diversified materials like glycidol is essential for pharmaceutical manufacturing. Glycidol is used in Surface Active Compounds, Cosmetic Preparations, Laundry Detergents, Additives in plastics, Paints, Photographic Chemicals, and Biocides. The Global Glycidol Market continues to grow. Online and offline sales channels impact distribution strategies. Drug evaluation processes are critical for product approval and market entry.
• In the pharmaceuticals wholesale and distribution market, selecting an appropriate supply chain model is essential. Shorter lead times are preferred by customers, while logistics companies aim for low operational costs. Healthcare supplies necessitate special handling, specific packaging, and customized supply chains to maintain product integrity. Logistical complexities arise from geographical infrastructure, technological advancements, and country-specific regulations. The high importance of healthcare supplies demands a flexible and swift supply chain to minimize lead time. Effective supply chain models must address these challenges while ensuring compliance with industry regulations.

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Segment Overview 

This pharmaceuticals wholesale and distribution market report extensively covers market segmentation by  

• 1.1 Branded drugs
• 1.2 Generic drugs

• 2.1 Retail pharmacies
• 2.2 Hospital pharmacies
• 2.3 Others

• 3.1 North America
• 3.2 Asia
• 3.3 Europe
• 3.4 Rest of World (ROW)

1.1 Branded drugs-  Pharmaceutical companies invest heavily in research and development to discover and manufacture branded drugs. These drugs undergo rigorous testing and approval processes by the US Food and Drug Administration (FDA) based on their safety, efficacy, and labeling. Despite high prices due to initial research expenses, consumers prefer branded drugs due to concerns about counterfeits. In 2020, the FDA approved 53 new drugs, including Novartis AG's Kisqali and F. Hoffmann-La Roche Ltd.'s Ocrevus. This approval of innovative drugs is expected to drive growth in the global pharmaceuticals wholesale and distribution market.

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Research Analysis

Pharmaceutical Wholesale Distribution refers to the process of purchasing pharmaceutical products from manufacturers and distributing them to various healthcare providers, retailers, and institutions. Wholesalers play a crucial role in this supply chain, acting as intermediaries between producers and end-users. There are two main types of wholesalers: Producer Wholesalers, who buy directly from manufacturers, and Merchant Wholesalers, who buy from various sources and sell to retailers and institutions. Branded drugs and generic drugs are the two primary categories of pharmaceutical products in the market. Ethical pharma products are prescription-only medicines, while Over-the-Counter (OTC) and Institutional Supply cater to non-prescription drugs and institutional buyers, respectively. The pharmaceutical landscape is characterized by continuous drug evaluation, innovation, and the introduction of vaccines and medical devices to address unmet medical needs. Agents and brokers facilitate transactions between buyers and sellers, while health insurance schemes impact drug pricing and access. Track-and-trace systems ensure product authenticity and safety, while the global glycidol market is a significant component of the specialty chemicals industry, used in the production of polymers, resins, and other diversified materials. Glycidol is also used in cosmetic preparations, laundry detergents, additives in plastics, paints, and photographic chemicals.

Market Research Overview

The Pharmaceutical Wholesale Distribution market plays a crucial role in the healthcare industry by connecting producers and manufacturers with pharmacies, hospitals, and other healthcare providers. Wholesalers act as intermediaries, purchasing large quantities of branded and generic drugs from manufacturers and distributing them to various channels. This market includes producer wholesalers, merchant wholesalers, agents, and brokers. Branded drugs, ethical pharmaceuticals, and vaccines are a significant part of this landscape, while generic drugs cater to unmet medical needs and offer cost-effective alternatives. Drug evaluation and regulation are essential to ensure quality and safety. The pharmaceutical landscape is diverse, encompassing medical devices, OTC/institutional supply, and various sectors like valuation, production of polymers, resins, specialty chemicals, and diversified materials. Glycidol, a crucial component in various industries, is a significant market within this sector. Online and offline channels cater to the distribution of pharmaceuticals, with track-and-trace systems ensuring transparency and accountability. The market also includes over-the-counter (OTC) pharmaceuticals, biocides, cosmetic preparations, laundry detergents, additives in plastics, paints, and photographic chemicals.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Branded Drugs
• Generic Drugs
• End-user
• Retail Pharmacies
• Hospital Pharmacies
• Others
• Geography
• North America
• Asia
• Europe
• Rest Of World (ROW)

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio