Pharmaceutical traceability refers to the ability to track the movement of medications and drugs throughout the supply chain, from the manufacturing line to the consumer. It enables business owners to verify and document the drugs’ history starting from its manufacturing to packaging, handling, distribution, till they are prescribed, and finally delivered to the patients. In November 2013, the U.S. Congress passed the Drug Supply Chain Security Act (DSCSA), ushering in a wave of changes for businesses all along the pharmaceutical supply chain.
Having a strong trace and track system throughout the supply chain can aid in combating the threat of drug counterfeiting. This process entails biopharmaceutical or pharmaceutical companies to implement global traceability standards at various product packaging levels. Serialization, track and trace, and verification are the three pillars of pharmaceutical traceability.
Global Pharmaceutical Traceability Market – Dynamics
Increase in drug theft, counterfeit, and other drug related crimes is expected to propel the global pharmaceutical traceability market over the forecast period. For instance, according to the United Nations Office of Drugs and Crime world drug report 2020, approximately 269 million people used drugs globally in 2018, which is 30% more than in 2009, meanwhile over 35 million people suffer from drug use disorder. The report also evaluates the effects of COVID-19 on the drug markets. While the full extent of the pandemic's effects are unknown, the border restrictions along with other restrictions linked to the pandemic have already resulted in drug shortages, leading to higher prices and lower purity.
Rising mergers, agreements, and acquisitions by market players are expected to propel the global pharmaceutical traceability market over the forecast period. For instance, on January 6, 2021, Bureau Veritas, a global leader in the provision of laboratory testing, inspection, and certification services, collaborated with Optel, a leading supplier of traceability systems based in Canada, to launch V-TRACE, a comprehensive and assured traceability solution for COVID-19 vaccines across the entire supply chain. These factors are expected to support global pharmaceutical traceability market growth over the forecast period.
Global Pharmaceutical Traceability Market – Regional Insights
North America is expected to witness significant growth in global pharmaceutical traceability market in the forecast period due to increasing funding for the deployment of pharmaceutical traceability solutions. For instance, on May 27, 2021, Optel, a leading provider of supply chain traceability systems headquartered in Canada, has received a funding commitment of several million dollars from Sustainable Development Technology Canada (SDTC) to expedite the deployment of two new traceability solutions. The funding commitment will enable Optel to deploy its CO2 traceability solution in Canada, which will aid in the reduction of greenhouse gas emissions from supply chains.
Moreover, rise in collaborations or partnerships within market players may help to drive the global pharmaceutical traceability growth in the Asia Pacific region over the forecast period. For instance, on September 10, 2020, Movilitas, a technology leader which delivers next generation solutions and offers consulting services for smart supply chain ecosystems, announced their partnership with Pharmalutions Pte Ltd., Singapore, a Track & Trace (T&T) expert with multi-regulatory experience for the Asia Pacific region. This partnership with Pharmalutions expands Movilitas’s access to compliance-ready solutions in the region. These factors are expected to support global pharmaceutical traceability market growth over the forecast period.
Global Pharmaceutical Traceability Market – Taxonomy
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Global Pharmaceutical Traceability Market – Competitive landscape
Key players involved in the global pharmaceutical traceability market include Optel Ltd., The Healthcare Distribution Alliance (HDA) Inc., Bureau Veritas, Adents, Logista Pharma, rfxcel Corporation, Movilitas Consulting AG, Trace Link Inc., Avery Dennison Corporation, Pharmalutions Pte Ltd., and Cognex Corporation.