Global Pharmaceutical Traceability Market Is Estimated To Witness High Growth Owing To Increasing Demand For Product Safety and Counterfeit Drugs Control
The global Pharmaceutical Traceability Market is estimated to be valued at US$ 12.21 Bn in 2022 and is expected to exhibit a CAGR of 12.47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Pharmaceutical traceability refers to the ability to track and trace the movement of pharmaceutical products throughout the supply chain. It involves capturing and recording information about each unit of a drug product, from its manufacturing to its distribution, in order to ensure product safety and combat the issue of counterfeit drugs. The need for pharmaceutical traceability arises due to the increasing incidence of counterfeit drugs and drug recalls. The traceability systems include various technologies such as barcodes, RFID tags, serialization, and aggregation, which improve supply chain visibility and enhance patient safety.
Market key trends:
One key trend driving the growth of the pharmaceutical traceability market is the increasing demand for product safety and control of counterfeit drugs. Counterfeit drugs pose a significant threat to public health as they may contain incorrect ingredients, wrong dosage, or no active ingredient at all. According to the World Health Organization (WHO), approximately 10% of the global pharmaceutical market comprises counterfeit drugs. To combat this issue, pharmaceutical companies are implementing traceability systems to authenticate their products and verify their legitimacy. For instance, in 2019, the Drug Regulatory Authority of Pakistan (DRAP) introduced a pharmaceutical track and trace system in collaboration with various stakeholders to ensure drug safety and prevent the entry of counterfeit drugs into the market.
PEST Analysis:
1. Political: Governments around the world are implementing stringent regulations and directives to ensure pharmaceutical product safety and prevent the circulation of counterfeit drugs. For example, in the U.S., the Drug Supply Chain Security Act (DSCSrequires pharmaceutical manufacturers, wholesale distributors, and dispensers to enhance product tracing and verification.
2. Economic: The pharmaceutical traceability market is driven by the economic cost associated with counterfeit drugs, including the loss of revenue for legitimate pharmaceutical companies and increased healthcare expenses due to adverse health effects caused by counterfeit drugs.
3. Social: Increasing awareness among consumers about the risks associated with counterfeit drugs and the importance of product safety has driven the demand for pharmaceutical traceability systems.
4. Technological: Advancements in serialization and track and trace technologies, such as barcodes and RFID tags, have facilitated the implementation of pharmaceutical traceability systems, enabling real-time visibility and authentication throughout the supply chain.
Key Takeaways:
- The global pharmaceutical traceability market is expected to witness high growth, exhibiting a CAGR of 12.47% over the forecast period. This growth can be attributed to increasing demand for product safety and control of counterfeit drugs.
- In terms of regional analysis, North America is expected to dominate the pharmaceutical traceability market due to strict regulations and the presence of key market players in the region. However, Asia Pacific is anticipated to grow at the fastest rate during the forecast period, driven by rising awareness about counterfeit drugs and increasing government initiatives to ensure drug safety.
- Key players operating in the global pharmaceutical traceability market include Optel Ltd., The Healthcare Distribution Alliance (HDInc., Bureau Veritas, Adents, Logista Pharma, rfxcel Corporation, Movilitas Consulting AG, Trace Link Inc., Avery Dennison Corporation, Pharmalutions Pte Ltd., and Cognex Corporation. These players are focusing on strategic collaborations, product launches, and technological advancements to gain a competitive edge in the market.
In conclusion, the global pharmaceutical traceability market is poised for significant growth due to the increasing need for product safety and control of counterfeit drugs. Governments, regulatory bodies, and pharmaceutical companies are implementing traceability systems to enhance supply chain visibility and ensure patient safety. The market is expected to witness the highest growth in the Asia Pacific region, driven by increasing awareness and government initiatives. Key players in the market are actively involved in strategic initiatives to strengthen their market position.
