U.S. Pharmaceutical Logistics Market (By Type: Cold Chain Logistics, Non-cold Chain Logistics; By Component: Storage, Transportation) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

U.S. Pharmaceutical Logistics Market Size and Growth

The U.S. pharmaceutical logistics market size was estimated at USD 26.54 billion in 2023 and it is expected to surpass around USD 58.1 billion by 2033, poised to grow at a CAGR of 8.15% from 2024 to 2033.

Key Pointers

• By Type, the non-cold chain segment held the largest revenue share of 66% in 2023.
• By Type, the cold chain logistics segment anticipated to grow at the noteworthy CAGR from 2024 to 2033.
• By Component, the storage segment generated the maximum market share of 61% in 2023.
• By Component, the monitoring components segment is estimated to expand the fastest CAGR from 2024 to 2033.

U.S. Pharmaceutical Logistics Market Overview

In the pharmaceutical logistics, the United States stands as a crucial hub, navigating the intricate pathways of supply chains to ensure the seamless distribution of essential medications and healthcare products. The landscape of pharmaceutical logistics in the U.S. is dynamic, shaped by technological advancements, regulatory frameworks, and evolving consumer demands.

U.S. Pharmaceutical Logistics Market Growth Factors

The growth trajectory of the U.S. pharmaceutical logistics market is propelled by an advancements in technology, including the integration of IoT sensors, blockchain, and data analytics, enhance efficiency, visibility, and transparency across the supply chain, driving productivity and minimizing risks. Secondly, the increasing demand for pharmaceutical products, fueled by demographic trends such as aging populations and rising chronic diseases, amplifies the need for robust logistics infrastructure to ensure timely and reliable delivery. Furthermore, stringent regulatory requirements imposed by agencies like the FDA and DEA necessitate compliance-driven practices, driving investments in quality assurance, security, and adherence to safety standards. Additionally, the emergence of new healthcare delivery models, such as telemedicine and direct-to-patient services, reshapes distribution channels, prompting adaptations in logistics strategies to accommodate evolving consumer preferences.

U.S. Pharmaceutical Logistics Market Trends:

• Demand for Cold Chain Logistics: Growing demand for temperature-sensitive pharmaceuticals necessitates investments in cold chain logistics infrastructure to maintain product integrity and efficacy.
• Supply Chain Resilience: Heightened focus on supply chain resilience and risk management strategies following disruptions caused by events like the COVID-19 pandemic, leading to investments in contingency planning and diversification of sourcing.
• Last-Mile Delivery Innovations: Innovations in last-mile delivery solutions, including drones, autonomous vehicles, and smart lockers, to address challenges associated with urban congestion and delivery speed.
• Data-driven Decision Making: Utilization of big data analytics and predictive modeling to optimize inventory management, demand forecasting, and route optimization, improving overall logistics efficiency and cost-effectiveness.
• Globalization and Trade: Increasing globalization of pharmaceutical markets and international trade agreements drive the need for cross-border logistics solutions, emphasizing compliance with customs regulations and trade agreements.

U.S. Pharmaceutical Logistics Market Restraints:

• Security Risks: The high value and vulnerability of pharmaceutical products make them targets for theft, counterfeiting, and diversion, necessitating stringent security measures throughout the supply chain to mitigate risks and ensure product integrity.
• Supply Chain Disruptions: Disruptions caused by natural disasters, pandemics, geopolitical tensions, and transportation disruptions can significantly impact pharmaceutical logistics operations, leading to delays, shortages, and increased costs.
• Fragmented Healthcare System: The fragmented nature of the U.S. healthcare system, characterized by diverse regulatory requirements, reimbursement models, and distribution channels, complicates logistics operations and coordination among stakeholders.
• Infrastructure Limitations: Inadequate transportation infrastructure, including road networks, ports, and airports, in certain regions may hinder the efficient flow of pharmaceutical products, particularly in rural and underserved areas.
• Limited Access to Specialized Expertise: The complex nature of pharmaceutical logistics necessitates specialized expertise in areas such as cold chain management, regulatory compliance, and quality assurance, which may be limited or costly to access for smaller logistics providers.

Type Insights

The non-cold chain segment dominated the revenue share, accounting for 66% in 2023. This segment is expected to maintain its dominance in the forthcoming years, primarily driven by the growing demand for non-cold chain pharmaceutical medicines and other related products

The cold chain logistics segment is expected to experience the most rapid compound annual growth rate (CAGR) throughout the forecast period, driven by heightened demand for temperature-controlled products such as vaccines. These products necessitate precise temperature-controlled logistics services to uphold their effectiveness, thus fueling the segment's rapid expansion. Additionally, stringent regulations mandating accurate temperature maintenance for temperature-sensitive drugs and pharmaceutical products are poised to further bolster growth within this segment. The increasing adoption of telematics within cold chain pharmaceutical logistics is facilitating companies in enhancing connectivity, safety, and efficiency in transporting cargoes.

Component Insights

In 2023, the storage segment emerged as the dominant force in the market, commanding a notable revenue share of 61%. The surge in demand for both generic and branded pharmaceutical products has spurred the expansion of storage facilities. These facilities play a pivotal role in preserving the efficacy of products post-production and facilitating their distribution through various channels to distributors and retailers. Furthermore, the increasing need for temperature-sensitive storage facilities to house such drugs during logistics operations is propelling the growth of this segment. This trend is expected to continue driving segmental growth in the forthcoming years. Additionally, shifting consumer lifestyles and dietary patterns are contributing to the rising demand for temperature-sensitive protein and nutritional supplements, further fueling the demand for storage facilities throughout the forecast period.

Meanwhile, the monitoring components segment is poised to witness the fastest Compound Annual Growth Rate (CAGR) from 2024 to 2033. This accelerated growth is attributed to the growing necessity to ensure the efficiency, integrity, and safety of cold chain products. Within the monitoring components segment, there are two subsegments: hardware and software. The transportation segment is forecasted to experience significant momentum in growth during the forecast period. This segment encompasses three subsegments: sea freight logistics, air freight logistics, and overland logistics. The increasing adoption of sea-based pharmaceutical logistics is a key driver of market growth, as sea freight logistics services are adept at handling sensitive large molecule biologics and personalized medicines.

U.S. Pharmaceutical Logistics Market Key Companies

• FedEx Corp.
• Americold Logistics
• Lineage Logistics
• United States Cold Storage (USCS)
• CTW Logistics
• United Parcel Service Inc.
• C H Robinson Worldwide Inc.
• SEKO Logistics
• Owens and Minor Inc.
• Nichirei Logistics Group, Inc.

Recent Developments

• In November 2023, Nippon Express Holdings and Cryoport entered into a global strategic partnership to offer Temperature-Controlled Supply Chain Services. This collaboration combines Nippon Express' renowned global logistics expertise with Cryoport Systems' fully integrated system, encompassing processes and equipment such as shipping packages, data solutions, biostorage, bioservices, and comprehensive support services for cell and gene therapy. From upstream biomaterial collection to final delivery for dosing, the partnership aims to provide seamless solutions for temperature-sensitive products.
• In January 2023, Nichirei Logistics announced that its United Kingdom subsidiary, Themotraffic UK Limited, completed the acquisition of the remaining 50% share of Kevin Hancock Limited. Kevin Hancock Limited has been a subsidiary of Nichirei Logistics since September 2020, when Nichirei Logistics initially acquired a 50% stake in the company.

U.S. Pharmaceutical Logistics Market Segmentation:

By Type

• Cold Chain Logistics
• Non-Cold Chain Logistics

By Component

• Storage
  • Warehouse
  • Refrigerated container
• Transportation
  • Sea freight Logistics
  • Airfreight Logistics
  • Overland Logistics
• Monitoring components
  • Hardware
    • Sensors
    • RFID Devices
    • Telematics
    • Networking Devices
  • Software