Japan Pharmaceutical 3PL Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

 The Japan Pharmaceutical Third-Party Logistics (3PL) Market is currently estimated at USD 63 billion in 2023, anticipated to reach USD 88.20 billion by 2028, marking a Compound Annual Growth Rate (CAGR) of 7% during the forecast period from 2023 to 2028.

The expansion of online delivery services has triggered a surge in demand for third-party logistics solutions within the pharmaceutical industry, leading to substantial growth in Japan. The government's proactive incentives have further solidified Japan's position as a key player in the pharmaceutical 3PL market. Collaborative efforts involving the Japanese Pharmaceutical and Medical Devices Agency, the Ministry of Health, Labour, and Welfare, along with drug companies, have established platforms for online information exchange and patient consultation services.

Driving this market expansion is the increased need for temperature-controlled logistics services, particularly for shipping biologics across borders, as well as the widened distribution networks of biopharmaceutical companies, aimed at boosting sales. The use of automated storage and retrieval systems has notably increased in emerging nations, aiding in minimizing supply disruptions and prioritizing critical treatments, especially during the COVID-19 pandemic.

For instance, Nippon Express has obtained WHO Standard GDP Certification for their East Japan Pharmaceutical Center in Kuki, Saitama Prefecture, emphasizing storage and transit capabilities in two temperature zones to meet stringent logistics demands. This certification ensures compliance with World Health Organization standards for storing and transporting medications in room temperature (15-25°C) and cold storage (2-8°C) zones.


**Market Trends in Japan Pharmaceutical 3PL:**

Japan's generic drug market is experiencing rapid growth, witnessing a surge in the number of drug companies in recent years. The country's generics segment is among the fastest-growing within the pharmaceutical industry, driven by an aging population and increased life expectancy, prompting existing suppliers to seek novel solutions. Japan, known for technological prowess and robust market competition, boasts one of the highest healthcare expenditures per capita globally.

Unlike the US and EU, generic medicine penetration historically remained lower in Japan. However, policy changes in the early 2000s led to a rapid increase in the adoption of generic drugs. Responding to an aging populace and escalating costs of branded medications, the government enacted legislation aimed at reducing medical expenses and channeling funds from branded drugs to innovative products. Although the government aimed for an 80% generic medicine penetration by September 2020, only around 2% of that objective was achieved. As of September 2021, generics accounted for roughly 79% of Japan's prescription medicine market.

Generics provided an attractive market for those seeking affordable alternatives to brand-name drugs. Pharmaceutical companies focused on creating generic versions resembling expensive brands in taste, appearance, scent, and texture. These imitation versions adopted names resembling popular drugs from major manufacturers, making it challenging for customers to discern between generics and their branded counterparts.


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