Why Pharma Companies are Pushing up Demand for Cold Storages

Why Pharma Companies are Pushing up Demand for Cold Storages

July 2, 2021 Gubba Group

India is also known as the ‘pharmacy of the world’ and accounts for more than one-tenth of the generics supplied all over the globe. The pharmaceutical market in India observed explosive growth with the COVID-19 pandemic providing a boost followed by the government’s Make in India initiative. The pharmaceutical logistics industry is vast and complex, with most of the cargo being Life-saving!! 

What’s Behind the High Demand?

Market growth is currently driven by the increased demand for PPE and medicines due to the CORONA crisis. But considering the pandemic as the only factor that is causing the market growth would not be correct.

With the lifestyle changes came many lifestyle-related and chronic diseases. In addition, there is a surge in over-the-counter medicines demand such as multivitamins, minerals, fever, and cold medication. We can’t miss the continuous demand for dermatology products as well. The list of health problems in today’s world keeps on rising, and the pharma industry is dealing with the challenge by providing a wide array of medicines. 

Several medicines require temperature-controlled storage and transportation for proper preservation. There is a shift in the consumption patterns, one of the crucial reasons behind the surge in demand for cold storage spaces. 

A Growing Space

The pharmaceutical industry in India is growing exponentially, and the demand for cold storage is bound to increase manifolds with the newer innovations that require precise temperatures during storage and distribution to uphold their efficacy. 

The demand for cold chain storage is expected to grow leaps and bounds with the Covid-19 vaccines requirement stored and transported in temperature-controlled storage. Indian Government and cold chain operators are pitching for the bulk of vaccines. The drive for mass immunization in India against Covid-19 requires huge facilities of cold storage chains in the country. With India’s vast population, it will take around 2-3 years to complete the vaccine process. Companies are setting up infrastructure at a fast pace to tap this expected rush in demand for cold-chain storage and transportation facilities.

Key Challenges

  • High Energy Consumption Cost:  Operating costs for the cold storage industry in India are excruciating. Electricity expenses alone account for about 25-30% of the total costs for the cold storage industry in India. The electricity expense factor and high land rentals create a barrier in setting up cold storage.
  • Rising Real Estate Costs: A fully integrated cold storage with 5,000 pallets approximately requires about an acre of the area to build. It could cost a considerable chunk of money.
  • Lack of Logistical Support: Indian Cold chain industry is fragmented. Heavy investment is required to cover the entire value chain. The importance of cold chain logistics to the pharmaceutical industry 

Looking to the near future

The pharmaceutical cold chain industry in India is of global importance as India delivers millions of medicines worldwide. The industry has become more critical and came into the spotlight with COVID-19 vaccines, which need storage and transportation at specific temperatures.

There is enormous progress in temperature sensors, telematics, and cloud computing solutions that enable tracing and tracking real-time temperatures- crucial aspects to the pharma cold chain management industry. 

With the change in customer behavior and technology present, it is safe to assume that there is a massive scope in cold chain storage for the pharmaceutical industry in India and globally.

Gubba A1 at Annaram is undoubtedly one of India’s finest and Telangana’s biggest unveiling world class vaccine complaint cold storage facility with a capacity of 6,500 pallets and serves in 3 different temperature zones. To know more, contact us. 

About the author

Gubba Group:


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