Saudi Arabia Pharmaceutical Logistics Market Outlook to 2025
Rising Demand for Pharmaceutical Drugs and Government Support to Healthcare Will Drive Market Growth
October 2020
141
About the Report
About the Report
The report titled “Saudi Arabia Pharmaceutical Logistics Market Outlook to 2025: Rising Demand for Pharmaceutical Drugs and Government Support to Healthcare Will Drive Market Growth” provides a comprehensive analysis of pharma logistics market in Saudi Arabia. The report focuses on overall market size in terms of revenue generated by pharma logistics companies; Saudi Arabia pharma logistics market segmentation by service mix (freight forwarding, warehousing and value added services); pharma freight forwarding market segmentation by freight mode (road freight, air freight and sea freight); by type of transport (domestic freight and international freight); by 3PL Logistics and Integrated logistics; by type of delivery (normal delivery and express delivery); by flow corridors (Middle East, European Countries, Asian Countries and Others); pharma warehousing market segmentation by 3PL Logistics and Integrated logistics; by cities (Riyadh, Jeddah, Dammam and others) and by type of warehouses (Ambient and Cold Storage). The report also covers the trade scenario, trends and developments, issues and challenges, SWOT analysis, regulatory landscape, end user analysis, value chain analysis, COVID-19 impact on pharma transportation industry, decision making process, COVID-19 impact on pharma warehousing industry, technological advancements & innovations, comparative landscape including cross comparison of major players operating in KSA pharma logistics market and cross comparison of major players operating in KSA pharma market. The report concludes with future market projections on the basis of overall logistics and pharma logistics revenue, by service mix and analyst recommendations highlighting the major opportunities and cautions.
Saudi Arabia Pharma Logistics Market
Saudi Arabia Pharma logistics market showcased a volatile growth trajectory. Pharma logistics revenue stood at USD ~ Million in 2019 and further grew at a CAGR of ~% during 2014-2019. The market witnessed a downfall during 2016-2017 due to oil price shock further leading to an economic slowdown. The pharma industry in Saudi Arabia is majorly dependent on the imports from various countries. Saudi Arabia’s Vision 2030 and the NTP’s priorities for job creation and economic diversification provided a strong incentive for both the private and public sector to develop the life sciences industry in general, and pharmaceuticals. The Saudi Arabian Government’s attempts to reduce its dependence on oil and increase inward investment through its Vision 2030 economic policy has allowed 100% FDI in the pharma sector boosting the growth of the market. Development in infrastructure facilities coupled with government initiatives has collectively improved the capacity of the ports during 2016-2018. Large investments in road infrastructure under Saudi Vision 2030, a 680 Km Saudi-Oman highway and the UAE-Saudi Mafraq-Ghuwaifat International Highway underway. The government of Saudi Arabia is working on new multi-mode logistic stations and two new railway lines to link GCC countries in the east & Yanbu-Jeddah in the west.
Saudi Arabia Pharma Logistics Market Segmentation
By Service Mix (Freight Forwarding, Warehousing and Value Added Services): The logistics industry is fragmented with few players majorly focusing on the pharma end users. Large numbers of pharma companies are having their own warehouses and fleet for transportation and avoid outsourcing the logistics services. The warehousing segment of the pharma logistics market is the biggest contributor to growth in this sector and was observed to dominate with a market share of ~% in 2019. The market size for warehousing segment of pharma logistics market was recorded at USD ~ million in 2019. The cities of Jeddah and Riyadh have been the most populous cities in the kingdom.
Saudi Arabia Pharma Freight Forwarding Market:
The pharma industry is highly dependent on roads for pharmaceutical transport owing to the low barriers of entry in road freight. The Saudi government’s efforts to curb pharmaceuticals expenditures and promote local manufacturing have resulted in various companies to set up manufacturing units within the country. Road was observed as the most prominent freight mode in Saudi Arabia for Pharma logistics, followed by air and sea in the year 2019. The pharmaceuticals sector is characterized by a growing domestic manufacturing base, mainly for generic and Over the Counter (OTC) drugs, as well as licensing arrangements with branded research-based foreign innovative drug manufacturing firms. Reduced imports of pharmaceutical products into the country to support the government’s aim of propelling domestic pharmaceutical manufacturing
Saudi Arabia Pharma Warehousing Market:
KSA Warehousing industry ecosystem is dominated by domestic companies in terms of warehousing space, followed by international companies. Riyadh, Jeddah, and Dammam are key warehouse and logistics clusters in Saudi Arabia given their large population base, high spending power, and availability of multiple modes of transportation (rail, ship, and truck). The major Companies include Tranzone Logistics, Mosanada Logistics, LSC logistics, Hala Group, 3 Camels Logistics, Agility, Motion Supply Chain and others. Not many logistics companies in Saudi Arabia are SFDA Certified which holds them from providing warehousing services to the pharma clients.
Strong demand is anticipated for full-fledged integrated distribution centers that include new-generation logistics facilities (built-to-suit automation model) along with the emergence of 3PL companies that handle stock distribution for companies with large & sophisticated supply chains.
Comparative Landscape in Saudi Arabia Pharma Logistics Market:
Competition was observed to be highly fragmented in both freight forwarding and warehousing segment along with the presence of both international and domestic players. Nevertheless, the local / domestic players have a larger presence in the market and were observed to compete on the basis of key clientele, revenue matrix, logistics networking, average pricing, technological advancement and value added services.
Saudi Arabia Pharma Logistics Market Future Outlook and Projections:
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 the market growth. Pharma Sales is expected to grow at a single digit CAGR 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 the logistics services.
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 Companies
- Logistics Consultants
- Pharmaceutical Dealers and Distributors
- Government Associations
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
Products
Products
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 Companies
- Logistics Consultants
- Pharmaceutical Dealers and Distributors
- Government Associations
Time Period Captured in the Report:
- Historical Period: 2014-2019
- Forecast Period: 2019–2025
Companies
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)
Table of Contents
Table of Contents
1. Executive Summary(Current and Future Scenario of Pharmaceutical Logistics in Saudi Arabia)
2. Market Overview
2.1. Overview of Saudi Arabia Economy (Country Demographics, GDP, Major Industries, Geographical Location and Trade Scenario)
2.2. Healthcare Infrastructure (Saudi Arabia's Health and Social Affairs Budget and NTP Objectives)
2.3. Government Initiatives (NIDLP Program to Promote Logistics and Untapped Potential Areas)
2.4. Overview of KSA Healthcare Sector (Major Lifestyle Diseases, Hospitals and Bed Capacity by Sectors and Top Healthcare Stats)
2.5. Special Projects and Joint Ventures in the Healthcare Industry
2.6. Popular Economic Zones in Saudi Arabia
2.7. Major Logistics parks in Saudi Arabia King
3. End User Industry Demographics Analysis
3.1. Cross Comparison of Pharma Logistics Market with GCC Countries (Market Size, Top Therapy Areas, Major Companies, Retail vs. Institutional Split and Top Products)
3.2. Demand Ecosystem- Potential Customers for Pharmaceutical Logistics Company
3.3. Saudi Arabia Pharmaceutical Manufacturing Clusters (Jeddah, Riyadh and Dammam)
3.4. Value Chain Analysis – Saudi Arabia Pharmaceutical Market (Supply chain models and Margins)
3.5. Saudi Arabia Pharma Market Size, 2014-2019
3.6. By Major Products (Prescription Drugs and OTC Drugs), 2019
3.7. By Generic and Branded Drugs, 2019
3.8. By Major Regions (Jeddah, Riyadh and Dammam), 2019
3.9. Current Logistics and Warehousing Operations of Pharmaceuticals in Saudi Arabia
3.10. Demand Analysis of Pharma Companies (Market Orientation, Type of Storage Required, Facilities / Services Required , Preferred Location , Lock-in Period of the Contract, Average Renting Duration)
3.11. Major decision making factors considered by Pharma players before Outsourcing
3.12. Market Share of Major Pharmaceutical Companies in the KSA Market , 2019
3.13. Cross Comparison of Major Pharmaceutical Companies (Parameters considered are Year of establishment, Major Products, Distributors, Import and Local Share, Major Importing Countries, Import Volume, Manufacturing Plants, Logistics Partners, In house Fleet and Outsourced, Challenges faced and many more)
3.14. Emerging themes Impacting the KSA market
3.15. Saudi Arabia Pharma Market Future Outlook and Projections, 2019-2025F
4. Overview of Saudi Arabia Pharma Logistics Market
4.1. Overview and Genesis for Saudi Arabia Pharma Logistics Market (Business Cycle, Market Stage, Market Scenario, Market Drivers and Restraints)
4.2. Supply Side Ecosystem in the Industry (Number of Manufacturing Companies, Importers, Distributors and End Users)
4.3. Value Chain Analysis of Pharmaceutical Logistics Market (Supply chain models and Margins)
4.4. Issues and Challenges lying the Value Chain
4.5. Comparative Analysis in Logistics Sector for KSA with GCC Countries
4.6. Saudi Arabia Overall Logistics and Warehousing Market Size, 2014-2019
4.7. Overall Logistics Market Segmentation by Service Mix, 2014-2019
4.8. Saudi Arabia Pharmaceutical Logistics Market Size, 2014-2019
5. KSA Pharmaceutical Transportation Market
5.1. Executive Summary - How is the Pharmaceutical Transportation Industry Positioned?
5.2. Challenges in the KSA Pharmaceutical Logistics Market
5.3. Government Initiatives in the Pharmaceutical Transportation Market
5.4. Pharmaceutical Transportation Market Size, 2014-2019
5.5. By Mode of Transport (Land, Sea and Air), 2014-2019
5.6. By Mode of Freight (Domestic and International), 2014-2019
5.7. By Type of Delivery (Normal and Express Deliveries), 2014-2019
5.8. By 3PL and Integrated Logistics, 2014-2019
5.9. Pharmaceutical Freight Forwarding Flow Corridors, 2019
5.10. Technology-enabled Transformation Roadmap for Pharmaceutical Transportation
5.11. The COVID 19 Impact on the Pharmaceutical Transportation Industry
5.12. Future Outlook of Saudi Arabia Pharmaceutical Transportation Industry, 2019-2025F
6. KSA Pharmaceutical Warehousing Market
6.1. Executive Summary - How is the Pharmaceutical Warehousing Positioned?
6.2. KSA Pharmaceutical Warehousing Market Size, 2014-2019
6.3. By Ownership (Owned and 3PL Facilities), 2014-2019
6.4. By Cities (Jeddah, Riyadh, Dammam and Others), 2014-2019
6.5. By Ambient and Cold Storage, 2014-2019
6.6. Challenges in KSA Pharmaceutical Warehousing Market
6.7. Technological Advancements & Innovations Roadmap for Warehouses in KSA
6.8. Future Outlook of KSA Pharmaceutical Warehousing, 2019-2025F
6.9. COVID-19 Impact on Saudi Warehousing Market
7. Industry Scenario- Qualitative Factors
7.1. SWOT Analysis Saudi Arabia Pharma Logistics Market
7.2. Trade Scenario in the Pharmaceutical Industry (Imports and Exports of Pharmaceuticals in USD Million)
7.3. Import Scenario by Product
7.4. Export Scenario by Product
7.5. Regulations for Import and Export of Pharmaceuticals (Procedure for Import/Export and Clearance of Pharma Products)
8. Pricing Analysis
8.1. Major Cost Components of Transportation and Warehousing Model- Investment Model
9. Competitive Landscape of Major Pharmaceutical Logistics Companies in KSA
9.1. Cross Comparison (By Services Offered; Transportation, Warehousing and VAS)
9.2. Strength and Weakness of Major Players in the Industry
9.3. Cross Comparison between Major Pharmaceutical Logistics Companies (Year of establishment, Employee base, Number of Offices, Fleet Size, Type of Vehicle Fleet, Avg Volume per month (2019), Type of Warehouse, Avg Occupancy Rate, Warehousing Space, Avg Price for Transportation, Avg Warehousing Price, Average custom clearance price, Major Clientele, Services Offered, Industries catered, Technologies and Certifications)
10. Future Outlook
10.1. Future Market Size of Pharmaceutical Logistics Industry (by Total spending in the Future and Key Emerging Trends)
11. GTM Strategy for a New Entrant for Pharmaceutical Logistics Market
12. Appendix
Disclaimer
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