Market Size of North America Pharmaceutical Warehousing Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 52.66 Billion |
Market Size (2029) | USD 67.73 Billion |
CAGR (2024 - 2029) | 5.16 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Pharmaceutical Warehousing Market Analysis
The North America Pharmaceutical Warehousing Market size is estimated at USD 52.66 billion in 2024, and is expected to reach USD 67.73 billion by 2029, growing at a CAGR of 5.16% during the forecast period (2024-2029).
The market is seeing the emergence of new technologies such as the Internet of Things (IoT), blockchain, and data analytics to improve visibility, traceability, and overall supply chain performance.
The bulk of the industry’s revenue comes from the warehousing of consumer goods. As a result, warehousing demand typically follows trends in pharmaceutical manufacturing production and consumer spending. Manufacturers that produce more goods to satisfy consumer demand need more pharmaceutical warehouse space.
Before the pandemic, lean pharmaceutical manufacturing was the go-to strategy for most manufacturers to keep working capital to a minimum. Getting products just in time for production kept inventory costs low and used facilities more efficiently. When the pandemic hit, this lean strategy caused many pharmaceutical manufacturers to experience inventory shortages and, in some cases, production to grind to a halt. To avoid inventory shortages in the future, manufacturers increased their on-hand inventory (known as buffer stock).
Outsourcing of logistics operations is on the rise for the past five years, and it’s likely to remain a trend for the foreseeable future. Bigger companies leased more warehouses and distribution facilities to store more inventory as a hedge against increasing supply chain expenses. They also opened more warehouses across multiple locations to reduce delivery times.
In cold chain pharmaceuticals, the use of telematics, remote monitoring, and other cutting-edge technologies is revolutionizing cargo warehousing and transportation with improved safety and connectivity. Pharmaceutical manufacturing companies across North America are expanding their production capacities and operations. As a result, there is an increase in the need for logistics among retailers and distributors for storing raw materials and finished goods.
In the United States, the SNS (Strategic National Stockpile) was originally developed by the federal government in response to chemical or biological threats. Since then, the SNS is instrumental in responding to pandemic-related events, including the Ebola virus outbreak and the monkeypox pandemic (now known as MPox). However, it was not until the pandemic caused a dramatic shortage of essential medical supplies that officials began to recognize its usefulness.
In March 2023, Pharmascience Inc. opened a new USD 4 million distribution center on Dorval’s 55th Avenue, surpassing the size of nine NHL rinks. The new center includes a total area of 156,000 sq ft. It meets or surpasses the Canadian and international standards for storing and handling medicinal products while increasing capacity compared to Pharmascience’s two other centers.
North America Pharmaceutical Warehousing Industry Segmentation
Pharmaceutical warehousing refers to the systematic storing of medicinal products and related items. Pharmaceutical warehousing is used in the pharmaceutical industry to store active ingredients and other volatile substances that need to be stored in a controlled environment to be safe and effective.
The report provides a comprehensive background analysis of the North America Pharmaceutical Warehousing Market, covering the current market trends, market dynamics, technological updates, and detailed information on various segments and the industry’s competitive landscape. Additionally, the COVID-19 impact is incorporated and considered during the study.
The North America pharmaceutical Warehousing Market is segmented by type (cold chain warehouses and non-cold chain warehouses), application (pharmaceutical factory, pharmacy, hospital, and others), and country (United States, Canada, Mexico, and the rest of North America). The report offers market size and forecasts for the North American pharmaceutical Warehousing Market in value (USD) for all the above segments.
By Type | |
Cold Chain Warehouses | |
Non-Cold Chain Warehouses |
By Application | |
Pharmaceutical Factory | |
Pharmacy | |
Hospital | |
Others |
By Country | |
United States | |
Canada | |
Mexico | |
Rest of North America |
North America Pharmaceutical Warehousing Market Size Summary
The North America Pharmaceutical Warehousing Market is poised for significant growth, driven by advancements in technology and increasing demand for pharmaceuticals. The integration of IoT, blockchain, and data analytics is enhancing supply chain visibility and efficiency, while the rise in cold chain logistics is improving the safety and connectivity of pharmaceutical transportation. The market's expansion is closely tied to the pharmaceutical manufacturing sector and consumer spending trends, with manufacturers increasing their warehouse space to accommodate higher production levels. The COVID-19 pandemic highlighted the need for more robust inventory strategies, leading to a shift from lean manufacturing to maintaining buffer stocks. This shift, along with the growing trend of outsourcing logistics operations, is expected to sustain the market's growth trajectory.
The market is characterized by a high degree of fragmentation, with numerous international and local logistics companies competing to offer secure and efficient supply chain solutions. Major players are actively pursuing strategic alliances, mergers, and acquisitions to enhance their market presence and technological capabilities. The increasing pharmaceutical trade, particularly between the United States and Mexico, further fuels the demand for warehousing solutions. Additionally, the rise of e-commerce and app-based pharmacies in North America is driving the need for well-positioned distribution centers to ensure quick and efficient product delivery. As the industry continues to evolve with new technologies and cost-effective manufacturing processes, the North American pharmaceutical warehousing market is expected to experience sustained growth.
North America Pharmaceutical Warehousing Market Size - Table of Contents
-
1. MARKET INSIGHTS AND DYNAMICS
-
1.1 Market Overview
-
1.2 Market Dynamics
-
1.2.1 Drivers
-
1.2.1.1 The Rise in Demand for Outsourcing Pharmaceutical Warehousing Services
-
1.2.1.2 Increasing Need for Pharmaceutical Products
-
-
1.2.2 Restraints
-
1.2.2.1 Lack of Efficient Logistics Support
-
1.2.2.2 Stringent Government Regulations
-
-
1.2.3 Oppurtunities
-
1.2.3.1 Increasing Pharmaceutical Product Innovation and Development
-
1.2.3.2 Development of Energy-efficient Warehouses
-
-
-
1.3 Insights into Technological Developments
-
1.4 Industry Policies and Regulations
-
1.5 Value Chain/Supply Chain Analysis
-
1.6 Industry Attractiveness- Porter's Five Forces Analysis
-
1.6.1 Bargaining Power of Suppliers
-
1.6.2 Bargaining Power of Consumers
-
1.6.3 Threat of New Entrants
-
1.6.4 Threat of Substitutes
-
1.6.5 Intensity of Competitive Rivalry
-
-
1.7 Impact of COVID-19 on the Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Type
-
2.1.1 Cold Chain Warehouses
-
2.1.2 Non-Cold Chain Warehouses
-
-
2.2 By Application
-
2.2.1 Pharmaceutical Factory
-
2.2.2 Pharmacy
-
2.2.3 Hospital
-
2.2.4 Others
-
-
2.3 By Country
-
2.3.1 United States
-
2.3.2 Canada
-
2.3.3 Mexico
-
2.3.4 Rest of North America
-
-
North America Pharmaceutical Warehousing Market Size FAQs
How big is the North America Pharmaceutical Warehousing Market?
The North America Pharmaceutical Warehousing Market size is expected to reach USD 52.66 billion in 2024 and grow at a CAGR of 5.16% to reach USD 67.73 billion by 2029.
What is the current North America Pharmaceutical Warehousing Market size?
In 2024, the North America Pharmaceutical Warehousing Market size is expected to reach USD 52.66 billion.