Biopharmaceutical Third-party Logistics Market – Global Industry Size, Share, Trends, Opportunity, & Forecast Segmented By Supply Chain (Cold Chain, Non-cold Chain), By Service Type (Transportation, Warehousing & Storage, Other), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 136.36 Billion
CAGR (2026-2031)	6.89%
Fastest Growing Segment	Cold Chain
Largest Market	North America
Market Size (2031)	USD 203.38 Billion

Market Overview

The Global Biopharmaceutical Third-party Logistics Market will grow from USD 136.36 Billion in 2025 to USD 203.38 Billion by 2031 at a 6.89% CAGR. The Global Biopharmaceutical Third-party Logistics Market is defined as the specialized outsourcing of supply chain management functions, including warehousing, inventory control, and temperature-regulated transportation, specifically for biologic medicines derived from living organisms. The market’s expansion is supported by distinct drivers, primarily the intensifying necessity for precise cold-chain handling to preserve the efficacy of sensitive high-value biologics and the strategic imperative for manufacturers to reduce capital expenditures on non-core logistical assets. Additionally, the increasing globalization of the pharmaceutical trade requires robust distribution networks capable of navigating complex, cross-border transit routes efficiently.

According to the Healthcare Distribution Alliance, in 2025, pharmaceutical distributors in the United States generated $862 billion in sales during 2024, representing a 10.4 percent increase over the prior year. This substantial growth underscores the escalating reliance on intermediary logistics providers within the healthcare ecosystem. However, despite this upward trajectory, the market faces a significant challenge regarding infrastructure disparities in emerging regions, where inconsistent cold-chain capabilities can compromise product integrity and impede seamless market expansion.

Key Market Drivers

The Proliferation of Biologics and Biosimilars serves as a primary catalyst for the market, necessitating high-precision supply chain solutions that traditional logistics networks cannot support. As pharmaceutical developers shift their focus from chemically synthesized small molecules to large-molecule therapies, the sheer volume of temperature-sensitive products requiring strict chain-of-custody protocols has surged. This operational shift forces manufacturers to outsource to third-party logistics (3PL) providers who possess the scalable infrastructure and regulatory certifications required to manage substantial increases in biologic throughput without compromising quality. The scale of this product influx is evident in the performance of major biologic manufacturers. According to Novo Nordisk, February 2025, in the 'Annual Report 2024', sales within the company’s Diabetes and Obesity care segments—portfolios heavily reliant on temperature-controlled biologic distribution—increased by 26% to DKK 271.8 billion. This massive volume growth underscores the necessity for specialized external partners capable of handling complex inventory at scale.

Simultaneously, the Escalating Demand for Cold Chain Logistics compels the industry to adopt specialized third-party services to mitigate the risks associated with global temperature-controlled transport. The complexity of maintaining specific temperature bands, such as 2°C to 8°C or deep-frozen cryogenic ranges, during cross-border transit drives manufacturers to partner with logistics integrators capable of ensuring end-to-end product integrity. According to the International Air Transport Association (IATA), January 2025, in the 'Air Cargo Market Analysis', global air cargo demand, a critical vector for time-sensitive pharmaceutical distribution, increased by 11.3% in 2024, exceeding previous record volumes. This reliance on specialized intermediaries is further reflected in the financial performance of major logistics players serving the healthcare sector. According to DHL Group, in 2025, the company's Life Sciences & Healthcare business unit generated approximately €5 billion in revenue during the 2024 fiscal year, highlighting the critical role of outsourced logistics in maintaining the global biopharmaceutical supply chain.

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Key Market Challenges

The primary impediment to the growth of the Global Biopharmaceutical Third-party Logistics Market is the significant lack of robust infrastructure in emerging regions. Biologics require strict temperature adherence; however, many developing markets suffer from inconsistent electricity, inadequate specialized warehousing, and fragmented last-mile delivery networks. This infrastructure gap directly hampers market expansion because even minor temperature excursions during transit can render high-value biologic shipments ineffective or unsafe. Consequently, logistics providers face heightened liability risks and operational inefficiencies when attempting to service these territories, often forcing manufacturers to limit their distribution footprint to regions with established capabilities.

This logistical strain is exacerbated by the surging volume of goods requiring air transit, which is a primary mode for moving sensitive pharmaceuticals. According to the International Air Transport Association, in 2025, global air cargo demand increased by 11.3 percent throughout 2024 compared to the previous year. This rapid escalation in cargo volume places immense pressure on already fragile supply chains in emerging markets. When inconsistent local infrastructure cannot accommodate this increased throughput under strict cold-chain conditions, the industry encounters severe bottlenecks that restrict revenue potential and delay the delivery of critical therapies.

Key Market Trends

The Expansion of Direct-to-Patient (DTP) Clinical Trial Distribution is reshaping the logistics landscape by decentralizing supply chains to deliver investigational medicinal products directly to participants' homes. This shift moves away from traditional site-centric models, requiring logistics providers to implement high-touch, last-mile solutions that ensure strict chain-of-custody and temperature control for individual patient deliveries. The demand for these specialized services is driving significant revenue growth for major integrators investing in healthcare-dedicated networks. According to Transport Topics, January 2025, in the 'Health Care Business Becomes $20 Billion Lifeline for UPS' article, FedEx Corp. secured healthcare contracts generating more than $500 million in revenue during the 2024 fiscal year, reflecting the surging commercial value of these complex medical logistics operations.

Simultaneously, the Implementation of Sustainable Green Logistics and Packaging is becoming a critical operational requirement as pharmaceutical companies strive to reduce their Scope 3 emissions. Logistics providers are increasingly adopting Sustainable Aviation Fuel (SAF) and reusable thermal packaging systems to minimize the carbon footprint associated with energy-intensive cold chain transportation. These collaborative decarbonization efforts are yielding measurable environmental benefits for the industry. According to Boehringer Ingelheim, April 2025, in the 'Boehringer Ingelheim Invests in Sustainable Aviation Fuels' article, the company's partnership with Kuehne+Nagel to utilize SAF for pharmaceutical air freight resulted in a reduction of approximately 8,000 tons of CO2 emissions within a single year, demonstrating the tangible impact of green initiatives on the global supply chain.

Segmental Insights

The cold chain segment is currently positioned as the fastest-growing category within the global biopharmaceutical third-party logistics market, driven primarily by the increasing prominence of temperature-sensitive biologics. As pharmaceutical development shifts toward large-molecule therapies, including vaccines and cell treatments, the requirement for consistent thermal control throughout the supply chain becomes essential to preserve product efficacy. Furthermore, regulatory bodies such as the Food and Drug Administration enforce stringent distribution standards that mandate continuous temperature monitoring to ensure patient safety. This heightened regulatory scrutiny and the delicate nature of modern medical inventory necessitate reliable temperature-controlled transport, fueling the segment's rapid expansion.

Regional Insights

North America leads the Global Biopharmaceutical Third-party Logistics Market due to the high concentration of major pharmaceutical manufacturers and extensive clinical trial activities in the region. The United States drives this sector through significant investment in healthcare research and biopharmaceutical development. Furthermore, stringent guidelines enforced by the US Food and Drug Administration regarding cold chain integrity and supply chain security compel companies to utilize professional third-party logistics services. This reliance on specialized external providers ensures compliance with safety standards during transport, thereby consolidating North America’s dominance in the global market.

Recent Developments

• In April 2025, DHL Group announced a massive investment of €2 billion to significantly expand its global logistics capabilities for the life sciences and healthcare sectors. This five-year strategic plan allocated funds to upgrade infrastructure and technology across the Americas, Asia Pacific, and Europe, aiming to meet the rising demand for biopharmaceutical logistics. The initiative included the construction of new pharmaceutical hubs, the expansion of cold chain storage in existing facilities, and the deployment of temperature-controlled vehicles. Additionally, the company revealed an agreement to acquire a specialty courier to bolster its support for clinical trials and cell and gene therapies.
• In February 2025, Marken rebranded to become a fully integrated division within UPS Healthcare, uniting its operations with other specialized logistics units under a single global identity. This transformation was executed to streamline services for the pharmaceutical and life sciences industries, specifically focusing on precision logistics for clinical trials and cell and gene therapies. The integration aimed to leverage combined expertise to improve patient access to advanced medical treatments. The President of the newly aligned division stated that the rebranding would enable the company to deliver more seamless, end-to-end supply chain solutions for complex and time-critical healthcare shipments worldwide.
• In December 2024, Kuehne+Nagel opened a new Good Distribution Practice-compliant cross-dock facility in Budapest, Hungary, to enhance its healthcare logistics network across Europe. This strategic expansion established a new hub for less-than-truckload services, complementing the company's existing operations in Luxembourg and optimizing distribution routes. The 2,000-square-meter facility was designed to provide highly secured, temperature-controlled environments suitable for sensitive pharmaceutical products. The Global Head of Healthcare Road Logistics noted that the investment would reduce lead times and offer cost-efficient, rigorous quality standards for customers requiring reliable transport of regulated healthcare goods throughout the region.
• In June 2024, UPS Healthcare expanded its European hub in Roermond, the Netherlands, adding 21,860 square meters of space to strengthen supply chain capabilities for complex biopharmaceutical products. The upgraded facility featured a new freezer farm with over 200 ultra-low temperature freezers and thousands of pallet positions for cold storage. This initiative aligned with the company's sustainability goals, incorporating a large solar panel installation to power the site. The Operations Director emphasized that the expansion would extend cold chain capabilities to support the rapidly innovating market for biologic treatments and ensure precise, end-to-end logistics from labs to patients.

Key Market Players

• DHL International GmbH.
• SF Express Co.
• United Parcel Service of America, Inc.
• AmerisourceBergen Corporation
• DB Schenker
• Kuehne and Nagel AG
• Kerry Logistics Network Ltd.
• Agility Co

By Supply Chain	By Service Type	By Region
Cold Chain Non-cold Chain	Transportation Warehousing & Storage Other	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Biopharmaceutical Third-party Logistics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Biopharmaceutical Third-party Logistics Market, By Supply Chain:

• Cold Chain
• Non-cold Chain

• Biopharmaceutical Third-party Logistics Market, By Service Type:

• Transportation
• Warehousing & Storage
• Other

• Biopharmaceutical Third-party Logistics Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE