May 21, 2024
Pharmaceutical Traceability Market

Pharmaceutical Traceability Market Primed for Growth Due to Blockchain Adoption

The pharmaceutical traceability market consists of solutions that enable unique identification, tracking and tracing of pharmaceutical drugs, their contents or packaging. Pharmaceutical traceability solutions help businesses comply with regulations, prevent counterfeiting and ensure drugs are stored and shipped under optimized conditions. They involve integrating serialization, authentication and tracking technologies to individualize packages and gather real-time data. The increased focus on supply chain visibility and drug safety standards have accelerated adoption of these systems globally.

The Global pharmaceutical traceability market is estimated to be valued at US$ 4.96 Bn in 2024 and is expected to exhibit a CAGR of 9.5% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the pharmaceutical traceability market include M&R Printing Equipment, MHM Siebdruckmaschinen GmbH, Lawson Screen & Digital Products, Sakurai USA, SPS TechnoScreen GmbH, ATMA Champ Ent. Corp., Systematic Automation, DECO TECHnology Group, TOSH (Italy), Thieme GmbH & Co. KG. The increased stringency of regulations around the world presents lucrative opportunities for players to expand their product portfolio. Emergence of blockchain as a trend in the industry enables transparency, increased visibility and enhanced security for supply chain operations. Adoption of tracking technologies such as 2D barcodes, RFID and sensors help achieve real-time traceability of products right from the production to the consumer.

Market drivers
Compliance needs: Pharmaceutical companies require traceability solutions to demonstrate regulatory adherence during audits reducing compliance risks.
Supply chain visibility: Traceability solutions help achieve end-to-end visibility of supply chain operations, enable real-time monitoring of product movements and environmental conditions.

Current challenges in Pharmaceutical Traceability Market
The Pharmaceutical Traceability Market Size is facing various challenges which include lack of interoperability among traceability systems and lack of technology adoption among small pharmaceutical players. Supply chain complexities also pose challenges as tracing drugs across multi-tiered global supply chains is difficult. Counterfeit drugs also threaten patient safety which is a major concern. Lack of common global traceability standards further add to the complexity. Data privacy and security related issues also need to be addressed to ensure patient confidentiality is maintained.

SWOT Analysis
Strength: Track and trace capabilities help ensure quality, safety and authenticity of drugs. Real-time traceability improves visibility across supply chains.
Weakness: High upfront costs of implementation and operation. Interoperability issues between diverse systems currently used.
Opportunity: Emerging markets expected to drive future growth. Blockchain offers promise to resolve interoperability challenges.
Threats: Limited budget and resources among small players hinders adoption. Stringent regulations pose compliance burden.

Geographical Regions
Europe accounted for the largest share in the pharmaceutical traceability market in terms of value in 2024. stringent regulations and focus on counterfeit drugs have boosted traceability adoption. North America is expected to exhibit strong growth during the forecast period supported by FDA mandates. Developing regions such as Asia Pacific and Latin America are projected to offer lucrative opportunities for players given the expansion of healthcare infrastructure and growing patient pool.

Fastest growing region
Asia Pacific region is poised to emerge as the fastest growing regional market for pharmaceutical traceability between 2024 and 2030. This can be attributed to rising healthcare expenditures, increasing income levels, growing patient awareness and government initiatives to curb drug counterfeiting in major countries such as India, China, Indonesia and others. Favorable regulations and stringent enforcement in these countries will further aid market growth.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it