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

U.S. Pharmaceutical Logistics Market Size and Growth

The U.S. pharmaceutical logistics market size was exhibited at USD 26.55 billion in 2023 and is projected to hit around USD 58.39 billion by 2033, growing at a CAGR of 8.2% during the forecast period 2024 to 2033.

Key Takeaways:

• Based on type, the cold chain logistics segment is anticipated to witness the fastest CAGR over the forecast period.
• The non-cold chain segment held the largest revenue share of 65.8% in 2023.
• The storage segment dominated the market in 2023 with a revenue share of 60.18% in 2023.
• The monitoring components segment is anticipated to witness the fastest CAGR from 2024 to 2033.

Report Scope of U.S. Pharmaceutical Logistics Market

The demand for pharmaceutical logistics is growing in the U.S. due to the increasing sales of generic drugs, as well as reforms in the healthcare sector favoring generics. The growth of the market is also attributed to the increasing use of Over-the-counter (OTC) medicines such as vitamins, minerals, and supplements (VMS), gastrointestinal drugs, common cold and cough drugs, and dermatology products.

The growing importance of fast-track assistance in the healthcare industry is driving the market growth for pharmaceutical logistics. Moreover, distribution costs can be further decreased by creating a single source distribution channel, this factor is fueling the demand for pharmaceutical logistics. Numerous companies are entering into mergers and acquisitions to expand their geographical presence and proprietary knowledge. They are also focusing on reducing the overall packaging costs of their products. The biotechnology and pharmaceutical supply chains are particularly prone to the risks associated with product adulteration during transport as well as non-compliance with federal regulations, standards, and guidelines.

Heavy investments are being made in technologies such as telematics and remote monitoring to provide safety and convenience during transportation operations, which is, in turn, propelling the market growth. The market for pharmaceutical logistics in U.S. is significantly fragmented owing to the presence of a large number of regional and international companies. The industry is highly competitive, owing to the presence of many local and global companies.

Major companies are striving to offer cloud-based supply chain solutions and secured supply chain functions as it helps manufacturers in verifying the authenticity of the drugs. These solutions prevent the production of counterfeit drugs and medical devices. The increasing demand for sea and air freight pharmaceutical logistics is anticipated to propel industry growth over the forecast period. The transportation of pharma products by sea reduces the transportation cost by up to 80.0% and brings down the staffing requirements. In addition, it conserves the packaging and storage needs while reducing the carbon footprint of logistics operations. The increasing use of air freight logistics for long-distance distribution of valuable vaccines and medicines is expected to fuel the market growth further.

U.S. Pharmaceutical Logistics Market By Type Insights

Based on type, the cold chain logistics segment is anticipated to witness the fastest CAGR over the forecast period. The fastest growth rate is attributable to the rising demand for temperature-controlled products such as the distribution of vaccines that require accurate temperature-control logistics services to maintain the products’ efficacy. Furthermore, the stringent regulations for maintaining accurate temperature for temperature-sensitive drugs and pharmaceutical products are projected to boost the segment growth over the forecast period. The growing adoption of telematics in cold chain pharmaceutical logistics is aiding companies in improving the connectivity, safety, and efficiency of transport cargoes.

The non-cold chain segment held the largest revenue share of 65.8% in 2023 and is anticipated to continue its dominance in the coming years owing to the increasing demand for non-cold chain pharma medicines and other products.

U.S. Pharmaceutical Logistics Market By Component Insights

The storage segment dominated the market in 2023, with a revenue share of 60.18%. The rapidly rising demand for generic as well as branded pharma products has led to the growth of storage facilities to preserve and procure these products' efficacy after production and further distribution through multiple channels to distributors and retailers. This has also generated the demand for temperature-sensitive storage facilities to store temperature-sensitive drugs during logistics. This is further expected to bolster the segment growth over the coming years. Factors such as the changing lifestyles of consumers and the dietary pattern are driving the demand for temperature-sensitive protein and nutritional supplements, which is expected to boost the demand for the storage segment over the forecast period.

The monitoring components segment is anticipated to witness the fastest CAGR from 2024 to 2033. This fast growth rate is due to the increasing need to ensure the efficiency, integrity, and safety of cold chain products. The monitoring components segment is further segregated into hardware and software subsegments. The transportation segment is projected to reach a considerable momentum in growth over the forecast period. The transportation segment is further divided into sea freight logistics, air freight logistics, and overland logistics subsegments. The increasing adoption of sea-based pharmaceutical logistics is driving the pharmaceutical logistics market as the sea freight logistics services are capable of handling sensitive large molecule biologics as well as personalized medicines.

U.S. Pharmaceutical Logistics Market By Recent Developments

• In November 2023, Nippon Express Holdings and Cryoport entered into a global strategic partnership for Temperature-Controlled Supply Chain Services. This relationship brings together Nippon Express' industry-leading global logistics, with Cryoport Systems' fully integrated system, processes, and equipment including its shipping packages, data solutions, biostorage and bioservices, and the ability to provide complete cell and gene therapy support services from upstream biomaterial collection to final delivery for dosing.
• In January 2023, Nichirei Logistics announced that its subsidiary in the United Kingdom, Themotraffic UK Limited, has acquired the remaining 50% share of Kevin Hancock Limited. Kevin Hancock Limited has been a subsidiary of Nichirei Logistics since it first acquired a 50% holding in September 2020.

Some of the prominent players in the U.S. pharmaceutical logistics market include:

• 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.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. pharmaceutical logistics market

Type

• Cold Chain Logistics
• Non-Cold Chain Logistics

Component

• Storage

• • Warehouse
  • Refrigerated container

• Transportation

• • Sea freight Logistics
  • Airfreight Logistics
  • Overland Logistics

• Monitoring components

• • Hardware

• • • Sensors
    • RFID Devices
    • Telematics
    • Networking Devices

• • Software