Healthcare Distribution Market - Global Market Share, Trends, Analysis and Forecast, 2023-2032
The global healthcare distribution market was estimated to be US$ 949 Million in 2022 and is expected grow at a CAGR of 6.8% between 2023 to 2032.
Healthcare distribution refers to the process of getting medical products and equipment from manufacturers to healthcare providers and patients. This involves a network of intermediaries, including wholesalers, distributors, and retailers, who are responsible for storing, transporting, and distributing medical products and equipment to healthcare providers and patients.
Healthcare distribution is an essential component of the healthcare industry as it helps to ensure that medical products and equipment are readily available to those who need them. The healthcare distribution market encompasses a wide range of products, including pharmaceuticals, medical devices, and other healthcare products that are essential for the treatment and management of various medical conditions.
Market Drivers
Growing prevalence of chronic diseases is thriving the market growth
The global healthcare distribution market is being driven by several key factors, including rising demand for medical products and equipment, expansion of the healthcare industry, emergence of new markets and increased healthcare access, and growing e-commerce and online distribution channels.
The growing prevalence of chronic diseases and the aging population have resulted in an increased demand for medical products and equipment, which has driven growth in the healthcare distribution market. The expansion of the healthcare industry has also created new opportunities for healthcare distribution companies to expand their reach and grow their market share.
Emergence of new markets and increased healthcare access, particularly in developing countries, has also driven growth in the healthcare distribution market. The rise of e-commerce and online distribution channels has made it easier for healthcare distribution companies to reach a wider customer base and streamline their supply chain processes.
Online distribution channels have also made it easier for patients to access medical products and equipment, which has increased the demand for these products and created new opportunities for healthcare distribution companies.
Overall, these factors are driving growth in the global healthcare distribution market by increasing demand for medical products and equipment, expanding the healthcare industry, and providing new distribution channels for healthcare products and equipment.
Type segmentation of Global Healthcare Distribution Market
Pharmaceutical product distribution services segment is the largest of the market
Based on the type, the market is segmented into Pharmaceutical Product Distribution Services, Biopharmaceutical Product Distribution Services, and Medical Devices Distribution Services.
Among these segments, the pharmaceutical product distribution services segment is the largest owing to the increasing demand for prescription drugs and over-the-counter (OTC) medications, driven by factors such as the growing prevalence of chronic diseases, the aging population, and increasing access to healthcare.
The pharmaceutical product distribution services segment also benefits from the high profitability of the pharmaceutical industry and the growing demand for innovative and specialty drugs.
While, the biopharmaceutical product distribution services segment is expected to be the fastest growing segment in the healthcare distribution market. This is due to the growing demand for biopharmaceutical products, such as vaccines, biologic drugs, and biosimilars.
The increasing investment in research and development for biopharmaceutical products and the growing focus on the development of new treatments for a range of diseases are expected to drive growth in this segment. Additionally, the increasing demand for personalized medicine and the growing use of biopharmaceuticals in developing countries are expected to contribute to the growth of this segment.
End-user segmentation of Global Healthcare Distribution Market
Hospital pharmacies segment is the increasing demand for inpatient and outpatient services
On the basis of end-users, the market is segmented into Retail Pharmacies, Hospital Pharmacies, and Other End-users.
Among these, the hospital pharmacies segment is the largest. Hospitals are major consumers of medical products and equipment, including pharmaceuticals, biopharmaceuticals, and medical devices.
Hospitals require a continuous and reliable supply of these products to ensure they have the necessary resources to treat patients. As a result, they typically have a strong relationship with healthcare distribution companies to ensure they have a consistent and reliable supply of medical products and equipment.
Another factor contributing to the growth of the hospital pharmacies segment is the increasing demand for inpatient and outpatient services. The growing prevalence of chronic diseases and the aging population have resulted in an increased demand for medical services, which has driven growth in the hospital pharmacies segment.
Additionally, the increasing adoption of advanced medical technologies, such as precision medicine, has also driven growth in the hospital pharmacies segment.
Regional trends of the Global Healthcare Distribution Market
Increasing adoption of e-commerce in the Asia-Pacific region
Geographically, the global healthcare distribution market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America.
Among these, North America is the largest segment owing to the presence of a large and developed healthcare industry in the region, which includes a high number of hospitals, clinics, and retail pharmacies.
The high demand for medical products and equipment, coupled with the presence of a large and sophisticated healthcare infrastructure, has driven growth in the North American healthcare distribution market.
While, the Asia-Pacific region is the fastest-growing segment in the global healthcare distribution market. This is due to several factors, including the increasing demand for medical products and equipment, the growing middle-class population, and the increasing government spending on healthcare in the region.
The growing economies in the Asia-Pacific region have also created new opportunities for healthcare distribution companies to expand their reach and grow their market share.
Additionally, the increasing adoption of e-commerce and online distribution channels in the Asia-Pacific region has made it easier for healthcare distribution companies to reach a wider customer base and streamline their supply chain processes.
The rise of e-commerce and online distribution channels has also made it easier for patients to access medical products and equipment, which has increased the demand for these products and created new opportunities for healthcare distribution companies.
Key players and market strategies:
Companies operating in the global healthcare distribution market have adopted a number of growth strategies to increase their market share and improve their competitiveness.
One of the key strategies is expanding their product portfolio by adding new products and services. Companies are also looking to increase their market share by entering new geographic markets, either through organic growth or by acquiring local companies.
Another growth strategy that companies are adopting is investing in technology and automation. Companies are investing in technology and automation to improve efficiency, reduce costs, and streamline their supply chain processes. This includes the use of electronic data interchange (EDI), electronic ordering systems, and automated warehouses, which have improved the speed and accuracy of the distribution process.
By investing in technology and automation, companies are able to improve their competitiveness and meet the growing demand for medical products and equipment.
Additionally, companies are also looking to form strategic partnerships and collaborations with other companies in the healthcare industry. These partnerships and collaborations can help companies access new markets, expand their product portfolios, and share the costs and risks associated with product development and commercialization.
Overall, these growth strategies have helped companies increase their market share and improve their competitiveness in the global healthcare distribution market.
Some of the biggest companies operating in the global healthcare distribution market are AmerisourceBergen Corporation, Cardinal Health, Inc., Henry Schein Inc., McKesson Corporation, Medline Industries, Medline Industries, Owens & Minor, Inc., PHOENIX Group, Rochester Drug Cooperative, Inc., Shanghai Pharmaceutical Group Co., Ltd., and many more.
Global Healthcare Distribution Market Segmentation:
By Type
- Pharmaceutical Product Distribution Services
- OTC Drugs/ Vitamins
- Generic Drugs
- Branded/Innovator Drugs
- Biopharmaceutical Product Distribution Services
- Monoclonal Antibodies
- Vaccines
- Recombinant Proteins
- Blood and Blood Products
- Other Products
- Medical Devices Distribution Services
By End-User
- Retail Pharmacies
- Hospital Pharmacies
- Other End-users
By Region
- North America
- United States
- Canada
- Rest of North America
- Europe
- Germany
- United Kingdom
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific
- Japan
- India
- China
- Australia
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- South America
- Brazil
- Rest of South America
- Introduction
- Research Objectives
- Report Assumptions
- Research Methodology
- Abbreviations
- Preface
- Market Definition
- Report Scope and Market Segmentation
- Research Highlights
- Market Synopsis: Global Healthcare Distribution Market
- Global Healthcare Distribution Market Qualitative Analysis
- Trends
- Market trends
- Technology Trends
- PESTLE Analysis (For 3 prominent countries)
- Market Influencers
- Driving Forces
- Hindering Forces
- Opportunities
- COVID-19 impact
- Porter’s Five Forces Analysis
- Value Chain Analysis
- Trends
- Global Healthcare Distribution Market Analysis and Forecast, by Type
- Overview and definitions
- Key segment analysis
- Global Healthcare Distribution Market Estimates (US$ Mn), Type, 2019 – 2032
- Pharmaceutical Product Distribution Services
- OTC Drugs/ Vitamins
- Generic Drugs
- Branded/Innovator Drugs
- Biopharmaceutical Product Distribution Services
- Monoclonal Antibodies
- Vaccines
- Recombinant Proteins
- Blood and Blood Products
- Other Products
- Medical Devices Distribution Services
- Pharmaceutical Product Distribution Services
- Global Healthcare Distribution Market Analysis and Forecast, by End User
- Overview and definitions
- Key segment analysis
- Global Healthcare Distribution Market Estimates (US$ Mn), by End User, 2019 – 2032
- Retail Pharmacies
- Hospital Pharmacies
- Other End-users
- Global Healthcare Distribution Market Analysis and Forecast, by Region
- Overview and definitions
- Key segment analysis
- Global Healthcare Distribution Market Estimates (US$ Mn), by Region, 2019 – 2032
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
- North America Healthcare Distribution Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- North America Healthcare Distribution Market Estimates (US$ Mn), Type, 2019 – 2032
- Pharmaceutical Product Distribution Services
- OTC Drugs/ Vitamins
- Generic Drugs
- Branded/Innovator Drugs
- Biopharmaceutical Product Distribution Services
- Monoclonal Antibodies
- Vaccines
- Recombinant Proteins
- Blood and Blood Products
- Other Products
- Medical Devices Distribution Services
- Pharmaceutical Product Distribution Services
- North America Healthcare Distribution Market Estimates (US$ Mn), by End User, 2019 – 2032
- Retail Pharmacies
- Hospital Pharmacies
- Other End-users
- North America Healthcare Distribution Market Estimates (US$ Mn), by Country, 2019 – 2032
- United States
- Canada
- Rest of North America
- Europe Healthcare Distribution Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Europe Healthcare Distribution Market Estimates (US$ Mn), Type, 2019 – 2032
- Pharmaceutical Product Distribution Services
- OTC Drugs/ Vitamins
- Generic Drugs
- Branded/Innovator Drugs
- Biopharmaceutical Product Distribution Services
- Monoclonal Antibodies
- Vaccines
- Recombinant Proteins
- Blood and Blood Products
- Other Products
- Medical Devices Distribution Services
- Pharmaceutical Product Distribution Services
- Europe Healthcare Distribution Market Estimates (US$ Mn), by End User, 2019 – 2032
- Retail Pharmacies
- Hospital Pharmacies
- Other End-users
- Europe Healthcare Distribution Market Estimates (US$ Mn), by Country, 2019 – 2032
- Germany
- United Kingdom
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific Healthcare Distribution Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Asia Pacific Healthcare Distribution Market Estimates (US$ Mn), Type, 2019 – 2032
- Pharmaceutical Product Distribution Services
- OTC Drugs/ Vitamins
- Generic Drugs
- Branded/Innovator Drugs
- Biopharmaceutical Product Distribution Services
- Monoclonal Antibodies
- Vaccines
- Recombinant Proteins
- Blood and Blood Products
- Other Products
- Medical Devices Distribution Services
- Pharmaceutical Product Distribution Services
- Asia Pacific Healthcare Distribution Market Estimates (US$ Mn), by End User, 2019 – 2032
- Retail Pharmacies
- Hospital Pharmacies
- Other End-users
- Asia Pacific Healthcare Distribution Market Estimates (US$ Mn), by Country, 2019 – 2032
- China
- Japan
- South Korea
- India
- Australia
- Rest of Asia Pacific
- Middle East & Africa Healthcare Distribution Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Middle East & Africa Healthcare Distribution Market Estimates (US$ Mn), Type, 2019 – 2032
- Pharmaceutical Product Distribution Services
- OTC Drugs/ Vitamins
- Generic Drugs
- Branded/Innovator Drugs
- Biopharmaceutical Product Distribution Services
- Monoclonal Antibodies
- Vaccines
- Recombinant Proteins
- Blood and Blood Products
- Other Products
- Medical Devices Distribution Services
- Pharmaceutical Product Distribution Services
- Middle East & Africa Healthcare Distribution Market Estimates (US$ Mn), by End User, 2019 – 2032
- Retail Pharmacies
- Hospital Pharmacies
- Other End-users
- Middle East & Africa Healthcare Distribution Market Estimates (US$ Mn), by Country, 2019 – 2032
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA
- South America Healthcare Distribution Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- South America Healthcare Distribution Market Estimates (US$ Mn), Type, 2019 – 2032
- Pharmaceutical Product Distribution Services
- OTC Drugs/ Vitamins
- Generic Drugs
- Branded/Innovator Drugs
- Biopharmaceutical Product Distribution Services
- Monoclonal Antibodies
- Vaccines
- Recombinant Proteins
- Blood and Blood Products
- Other Products
- Medical Devices Distribution Services
- Pharmaceutical Product Distribution Services
- South America Healthcare Distribution Market Estimates (US$ Mn), by End User, 2019 – 2032
- Retail Pharmacies
- Hospital Pharmacies
- Other End-users
- South America Healthcare Distribution Market Estimates (US$ Mn), by Country, 2019 – 2032
- Brazil
- Argentina
- Rest of South America
- Competition Analysis – Global Healthcare Distribution Market
- Market Composition
- Market Share Analysis (%), by Supplier (2022)
- Company Profiles
- AmerisourceBergen Corporation
- Business overview
- Geographic presence
- Product portfolio
- Financial facts
- Relevant news and strategic view
- Cardinal Health, Inc.
- Henry Schein Inc.
- McKesson Corporation
- Medline Industries
- Owens & Minor, Inc.
- PHOENIX Group
- Rochester Drug Cooperative, Inc.
- Shanghai Pharmaceutical Group Co., Ltd.
- AmerisourceBergen Corporation
- Conclusion & Recommendations
Frequently asked questions about this report
What is the current CAGR of the global healthcare distribution market?
The healthcare distribution market is anticipated to expand at a CAGR of 6.8% from 2023 to 2032.
How big is the healthcare distribution market?
The healthcare distribution market was estimated to be US$ 949 Million in 2022.
What are the factors driving the healthcare distribution market?
The global healthcare distribution market is being driven by several key factors, including rising demand for medical products and equipment, emergence of new markets and increased healthcare access, and growing e-commerce and online distribution channels.
Which type is the fastest-growing in the healthcare distribution market?
The biopharmaceutical product distribution services segment is expected to be the fastest growing segment in the healthcare distribution market. This is due to the growing demand for biopharmaceutical products, such as vaccines, biologic drugs, and biosimilars.
What are the growth driving factor of the North America healthcare distribution market?
The high demand for medical products and equipment, coupled with the presence of a large and sophisticated healthcare infrastructure, has driven growth in the North American healthcare distribution market.
What are the prominent healthcare distribution market players?
Major players operating in the global healthcare distribution market AmerisourceBergen Corporation, Cardinal Health, Inc., Henry Schein Inc., McKesson Corporation, Medline Industries, Medline Industries, Owens & Minor, Inc., PHOENIX Group, Rochester Drug Cooperative, Inc., Shanghai Pharmaceutical Group Co., Ltd., and many more.
Which end-users is the largest in the healthcare distribution market?
The hospital pharmacies segment is the largest in the healthcare distribution market. The increasing adoption of advanced medical technologies, such as precision medicine, has also driven growth in the hospital pharmacies segment.