The pharmaceutical industry is on the brink of a remarkable transformation over the next ten years. As the demand for temperature-sensitive products such as biologics, vaccines and advanced therapies continues to surge, the need for innovative cold chain management strategies is vital.
Key advancements in areas such as real-time tracking technologies and novel packaging solutions can both enhance the safety of pharmaceutical products during transport and storage while addressing concerns around cost saving, efficiency and sustainability.
Recent research commissioned by World Courier found many industry leaders anticipate significant growth in infectious disease manufacturing and research over the coming years. The findings, based on worldwide surveys with 200 key decisionmakers in transportation and storage across the pharmaceutical sector, indicate that 59% of respondents expect steady growth in the next one to two years, with this figure increasing to 70% over the next three to five years.
The outlook reflects the rising global emphasis on infectious disease management, driven by factors like biotechnology advancements and the increasing frequency of disease outbreaks. To support this growth, the industry will require robust, adaptable logistics solutions — especially as the transportation of temperature-sensitive vaccines and therapies becomes more complex in the face of climate-related disruptions. Industry adoption of these solutions will provoke significant changes in the pharmaceutical industry – but what are they, and how can business decision makers prepare?
Increased demand for cold chain
First, rising demand for cold chain solutions. There has been a marked increase in investment within the cold chain logistics sector over the past decade. According to the Biopharma Cold Chain Sourcebook, temperature-controlled logistics accounted for nearly 18% of biopharma logistics spending in 2020. This trend is expected to continue.
The pharmaceutical cold chain logistics sector is undergoing significant change driven by the rise in cell and gene therapies (CGTs), which often require ultra-cold storage conditions (below -80°C). Time and temperature sensitivity of these therapies necessitates robust cold chain logistics; they frequently have short half-lives, requiring a seamless supply chain. The projected growth of the CGT market is set to surpass $81 billion by 2029, as per GlobalData’s consensus sales and forecasts.
Recent Covid vaccines and the growth of the CGT sector have led to an increase in options for frozen (0-20°C), deep frozen (-20-80°C) and cryogenic (below -80°C) cold chains. And a surge in metabolic disorder medications, such as weight loss drugs, are increasing cold chain needs still further.
Demand for approved GLP-1 weight loss drugs has led to an increase in manufacture to alleviate shortages. These drugs must be kept within a defined temperature range, typically between 2°C to 8°C, to maintain their effectiveness. Additionally, there is a significant concern regarding counterfeit products, making stringent cold chain management even more critical to ensure consumers receive legitimate and safe medications.
Passive cooling solutions, such as dry ice, liquid nitrogen and reusable gel packs, are on the rise to meet cold chain demands. These methods provide reliable temperature control throughout transit, ensuring that shipments remain within required temperature ranges for extended durations. Designed with long qualification times, these agents allow products to arrive at their destination in peak condition. Furthermore, they can be replenished during transport if needed, mitigating the risk of deviations.
Infectious diseases
The effects of climate change on the infectious disease landscape have been profound. Rising temperatures are expanding the habitats of disease vectors such as mosquitoes and ticks, contributing to the spread of malaria, dengue fever, and Lyme disease. For example, in the highland areas of the Americas, there has been a 31.3% increase in malaria transmission months from 1951–1960 to 2012–2021. This trend, coupled with extreme weather events and disruptions to ecosystems, is increasing the risk of zoonotic diseases, waterborne illnesses and respiratory infections. It means the demand on pharmaceutical industry leaders to develop effective vaccines and treatments is greater than ever.
Growing demand for infectious disease diagnostics and treatments is driving the expansion of related markets. The global market for infectious disease diagnostics is projected to reach USD$31.5bn by 2028, growing at a compound annual growth rate (CAGR) of 8% from 2023. Yet regional disparities in investment and infrastructure remain. Europe, Latin America, and Africa are all expected to see significant increases in infectious disease research and manufacturing over the next few years, with growth rates of 23%, 22%, and 21%, respectively. This presents opportunities for specialised logistics providers to support the industry in hitherto underserved regions.
While cold chain has the potential to expand the availability of treatments across the world — stopping infectious diseases in their tracks — not all countries have the resources and infrastructure to support these systems. The World Health Organization (WHO) finds that, before the Covid pandemic, up to 50% of vaccines were wasted globally each year due to lack of temperature control and logistics — potentially wasting a billion vaccines. In 2021, during the pandemic but after most lockdown restrictions were rescinded, just 14% of planned Covid-19 vaccines were reaching poorer countries due to manufacturing and supply chain difficulties.
Logistics and supply chain challenges will be critical to the success of infectious disease management. World Courier’s research revealed that maintaining integrity of temperature-sensitive materials is a top priority for 44% of respondents when selecting logistics providers, along with security (38%) and reliability (27%). There is a clear need for continuous improvement in logistical processes, particularly in areas such as speed of service, flexibility, and supplier diversity. These improvements are essential as the industry steels itself against the threat of future pandemics and aims to strengthen vaccine delivery systems.
Supply chain visibility
With the rise of advanced technologies such as artificial intelligence (AI) and blockchain, enhanced supply chain visibility has become another vital trend in the pharma world. Tracking, monitoring and management of temperature-sensitive products is more data rich than ever before. Technologies promoting such visibility can reduce the risks of spoilage and ensure compliance with regulatory requirements.
World Courier was the first pharmaceutical logistics company to offer ‘smart’ packaging by default on all global multi-use packaging (MUP) shipments, enabling tracking and real-time monitoring. The system transmits data to teams across World Courier’s global network, enhancing the company’s ability to proactively monitor shipments, anticipate potential risks and intervene to ensure secure and timely distribution of products. Supplied with these insights, users can crack down on risk of lost or missing shipments. And customers gain access to a detailed view of their shipments, either directly through the customer portal or through customer service.
Utilising smart packaging and real-time monitoring to promote supply chain visibility has never been more important: geopolitical tensions, economic fluctuations and severe weather events are all having an impact on pharmaceutical supply chains. These uncertainties require companies to adapt their strategies to ensure resilience and continuity. The GlobalData Global Supply Chain Pressure Index (GSCPI) shows a timeline of recent pressures threatening global supply chains.
It is a tough time to be running a pharmaceutical logistics operation. More and more COOs are turning to the technologies supporting supply chain visibility, and the industry partners rolling them out, to help navigate choppy waters ahead.
Sustainability
There is also a growing emphasis on sustainable practices within the cold-chain sector. Pharmaceutical products that require temperature-controlled transportation and storage need power and carry a risk of refrigerants leaking into the atmosphere. Furthermore, single-use packaging is commonplace in the pharmaceutical world – and, particularly when tracking devices are attached, can be wasteful. Companies are exploring reusable and sustainable packaging solutions to minimise environmental impact while still maintaining the integrity of temperature-sensitive products.
In a recent GlobalData poll, 43% of respondents said that environmental issues were the most important ESG area that pharma needs to address. However, by combining new technologies with sustainable and green energy, significant savings can be made on energy use. In shipping, emissions can be reduced by investing in greener fuels and energy sources like hydrotreated vegetable oil, LPG, biomethane, and bio-LPG. Research shows gas-fuelled vehicles save over 1,400 tonnes of CO2 emissions.
Localised manufacturing and re-shoring can also make cost savings in terms of shipping and emissions, while active packaging systems can utilise battery-powered units that provide controlled environments for sensitive medicines. The use of reusable and recycled packaging is already becoming more acceptable, with CMOs adopting alternative packaging materials that consist of less single-use plastics and are paper- or starch-based instead. Although some issues with mechanical strength remain, development is continuing. A global network facilitates on-demand packaging being readily available because packaging from other shipments has been fully cleaned and sanitised, ready for reintegration into the system. This approach eliminates the need to send packaging back to its point of origin, ensuring cost-effectiveness even for long-distance shipments. Furthermore, many shippers now re-use equipment and technology that had previously been discarded after use. For example, World Courier re-uses cold chain transport data loggers to minimise its environmental impact.
Conclusion: the road ahead
Analysis of future trends highlights that the cold chain logistics sector is at a critical juncture, influenced by technological advancements, increased demand for specialised therapies, evolving logistical needs and a focus on sustainability.
However, the pharma industry will continue innovation around drug delivery methods. Development of new formulations that can withstand varying temperatures and alternative stabilisation techniques will all make cold chain systems fit for the future.
World Courier’s revolutionary logistics strategy centres on reducing risk, increasing supply chain visibility and improving operational excellence. For more information, fill in your details to download the asset on this page.
