Future-proofing the pharma cold chain

The growing emphasis on a resilient supply chain in pharma and life sciences has brought the temperature-controlled supply chain, known as the cold chain, into the spotlight. The COVID-19 pandemic also highlighted the vital role of the cold chain in ensuring patient safety during vaccine distribution.

And, with India’s vaccine, biopharma, and clinical trials market projected to grow in double-digits, there will be an increasing demand for efficient cold chain facilities.

As per Research and Markets, Indian cold chain market size reached Rs 1,814.9 billion in 2022. The market is expected to reach Rs 3,798.7 billion by 2028, exhibiting a CAGR of 13.1 per cent during 2022-2028.

So, in this article, we delve into this dynamic market to explore the driving factors behind its exponential growth and the trends shaping the market landscape while evaluating the pain points that need to be addressed for sustained growth.

Let’s take a look at some of the factors that are driving growth in this segment:

Gaps in supply infrastructure: The healthcare sector’s escalating demand for dependable cold chain facilities to safeguard temperature-sensitive products such as vaccines, biopharmaceuticals, and clinical trial materials is fuelling the cold chain industry’s expansion.

And, as a report from Accenture titled, ‘The New Ice Age: Creating a flexible, intelligent pharma cold chain’ highlights the global scenario, “The total market value of pharma products is expected to be $1.7 trillion by 2024, with 30 per cent representing the cold chain portfolio. This means cold chain capabilities would need to grow in parallel with therapeutic innovations to satisfy patient demand.”

However, significant gaps exist in India’s pharma cold chain infrastructure, particularly in transportation, storage, and power supply. Inadequate road, rail and air networks, sub-optimal storage conditions, outdated technology etc. impede efficient logistics of pharma products. At the same time, the Indian cold chain market is also highly fragmented with over 3,500 companies. Organised players make up only 8 to 10 percent of the cold chain industry market.

Recognising the importance in tackling cold chain challenges, investments in cold chain infrastructure is likely to increase. Logistics companies are already expanding their capacity for temperature-controlled storage and transportation to meet the growing demand.

To cite a few examples:

• IndoSpace and Koolex have collaborated to design and set up three warehouses in proximity to Mumbai, Delhi and Bangalore. Each will have 36,000 pallet positions.

• FedEx has invested in healthcare supply chain and cold chain capabilities with over 90 cold chain facilities worldwide. They offer tailored solutions for transport of temperature-controlled healthcare shipments within India to over 6,000 postal codes

Packaging innovations: The transportation and storage of various temperature-sensitive pharmaceuticals, biologics, and clinical trial materials continue to require advanced packaging solutions. They play a vital role in ensuring the integrity and stability of temperature-sensitive pharma products throughout the cold chain. This has presented an ongoing market opportunity for packaging providers to develop and deliver cutting-edge packaging solutions that ensure product integrity, regulatory compliance, and patient safety.

Thus, packaging innovations ranging from ultra-cold shipping containers with advance