US Pharmaceutical Warehousing Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 45.96 Billion |
| Market Size (2029) | USD 58.51 Billion |
| CAGR (2024 - 2029) | 4.95 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Pharmaceutical Warehousing Market Analysis
The US Pharmaceutical Warehousing Market size is estimated at USD 45.96 billion in 2024, and is expected to reach USD 58.51 billion by 2029, growing at a CAGR of greater than 4.95% during the forecast period (2024-2029).
The primary parameter causing a surge in the performance of the market is the growth of the pharmaceutical industry. Furthermore, the escalating demand for efficient and secure storage of medicines and other healthcare products is another crucial parameter enhancing the performance of the market.
The US accounts for about 45% of the global pharmaceutical market and 22% of global production. US pharmaceutical output and sales remained robust in 2022, driven by the ongoing global vaccination rollout and pent-up demand for essential and non-essential medical treatments.
While vaccinations will mainly drive sector growth in 2022 and 2023, the aging population will spur drug demand in the mid and long term.
The increasing prevalence of diseases in the United States, aging populations, and increasing healthcare expenditure are some of the major factors driving the growth of the pharmaceutical market in the country.
A large number of population preders doorstep delivery of medical products due to unavailability of products in local retail drug stores.
In addition, the increasing penetration and literacy regarding internet usage are anticipated to boost the overall market in the region.
US Pharmaceutical Warehousing Market Trends
Increase in need of pharmaceutical products
The pharmaceutical industry, experiencing rapid growth and stringent regulations, played a pivotal role in fostering the advancement of innovative and high-performance packaging solutions. The maintenance of precise temperatures during transportation and storage is of utmost importance to ensure the effectiveness and safety of medications, vaccines, and various other pharmaceutical products.
The use of medicines in the US, based on defined daily doses, grew 9.6% over the last five years to nearly 194 billion days of therapy in both retail and non-retail settings in 2021.
Retail drugs currently represent 86% of medicine use in the US, with only 14% of use in non-retail settings, which is declining since 2017. The use of drugs dispensed from retail pharmacies continued to grow on average 2.3% annually, reaching 166.5 billion days of therapy in 2021.
US pharmaceutical output and sales remained robust in 2022, driven by the ongoing global vaccination rollout and pent-up demand for essential and nonessential medical treatments. Several pharmaceutical producers and distributors took advantage of historically low lending rates in order to pursue debt-financed acquisitions.
The rising demand for outsourcing pharmaceutical warehouse service
Pharmaceutical manufacturing companies across the world are expanding their production capacities and operations. The increase in the supply chain management complexity for pharmaceutical companies resulted in manufacturers outsourcing part of their SCM functions to warehouse and storage service providers. One of the services in demand is high-pressure processing post-packaging and non-thermal pasteurization methods for killing micro-organisms. This process enables companies to transport pharma products safely.
In North Carolina, Alcami opened a CGMP Bio Preservation Laboratory in 2022. Cambrex bought the Irish storage firm Q1 Scientific in June 2022. In February 2022, Charles River Laboratories International, Inc. stated that Alderley Park at Bruntwood SciTech would become available for production.
US Pharmaceutical Warehousing Industry Overview
The United States Pharmaceutical Warehousing Market is a highly competitive market with the presence of several large players as well as small and medium-sized companies. Some of the key players are focusing on expanding their geographic presence, enhancing their service offerings, and investing in new technologies and automation to remain in the market.
Some of the major players are Alloga, BioPharma Logisics, Rhenus SE and Co. KG, ADAllen Pharma, WH BOWKER LTD, Pulleyn Transport Ltd, TIBA, Schenker AG, CEVA Logistics and DACHSER Group SE and Co. KG.
US Pharmaceutical Warehousing Market Leaders
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Alloga
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Bio Pharma Logistics
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Rhenus SE and Co. KG
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FedEx Corp.
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KRC Logistics
*Disclaimer: Major Players sorted in no particular order
US Pharmaceutical Warehousing Market News
- April 2023: MD Logistics LLC, a group company of NIPPON EXPRESS HOLDINGS, INC., opened the Garner 2000 Pharmaceutical Logistics Center, a dedicated pharmaceutical warehouse in Garner, North Carolina (US). North Carolina is a key hub for the pharmaceutical industry in the United States (US), with numerous major pharmaceutical manufacturers and life science companies expanding into the state. It is also home to many research institutes and universities with amassed significant medical knowledge and technologies. MD includes four warehouses in Indiana and one in Nevada. It located its sixth US warehouse in North Carolina, where pharmaceutical logistics needs are high and expected to grow further.
- February 2023: Langham Logistics, one of the leading third-party logistics and freight management companies, opened its third warehouse in Whiteland, Indiana. This latest warehouse boasts 500,000 sq ft of dedicated space. It is designed to maintain storage environments by temperature zone: controlled room temperature (20-25 degrees Celsius), refrigerated (2-8 degrees Celsius), frozen (-20 degrees Celsius), and an ultra-low temperature freezer farm. The new facility will provide access to the ocean, air, freight, truckload, expedited, less than truckload, intermodal, and cGDP transport capabilities. It features an environmentally friendly design, including solar energy capture, HVLS fans, LED lights with motion detection, and battery-operated fork trucks.
US Pharmaceutical WarehousingMarket Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increased focus on quality and product sensitivity in the pharma industry
- 4.2.2 Automation at warehouses to increase efficiency and accuracy
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4.3 Market Restraints
- 4.3.1 Stringent FDA rules & regulations towards Pharmaceutical Warehousing
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4.4 Market Oppurtunites
- 4.4.1 Rise in government initiatives to enhance Pharmaceutical Warehousing
- 4.5 Value Chain / Supply Chain Analysis
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4.6 Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of Covid-19 on the market
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Cold Chain Warehouse
- 5.1.2 Non-Cold Chain Warehouse
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5.2 By Application
- 5.2.1 Pharmaceutical Factory
- 5.2.2 Pharmacy
- 5.2.3 Hospital
- 5.2.4 Others
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Alloga
- 6.2.2 Bio Pharma Logistics
- 6.2.3 Rhenus SE and Co. KG
- 6.2.4 ADAllen Pharma
- 6.2.5 DB Schenker
- 6.2.6 FedEx Corp.
- 6.2.7 GEODIS SA
- 6.2.8 CEVA Logistics
- 6.2.9 Hellmann Worldwide Logistics SE and Co KG
- 6.2.10 KRC Logistics
- 6.2.11 Kuehne Nagel Management AG
- 6.2.12 United Parcel Service Inc.
- 6.2.13 XPO Logistics Inc.*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
US Pharmaceutical Warehousing Industry Segmentation
Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. Pharmaceutical Warehousing, therefore, is much more than the simple storage of products. It is an operation that preserves the integrity of drugs that affect health and well-being. Stored goods can include any pharmaceutical drugs raw materials, packing materials, and finished goods associated pharmaceutical sector.
The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the United States Pharmaceutical Warehousing Market is depicted through the profiles of active key players. The report also covers the impact of COVID–19 on the market and future projections.
The United States Pharmaceutical Warehousing Market is segmented by type (cold chain warehouse and non-cold chain warehouse) and application (pharmaceutical factory, pharmacy, hospital, and others). The report offers market size and forecasts for the United States Pharmaceutical Warehousing Market in value (USD) for all the above segments.
| By Type | Cold Chain Warehouse |
| Non-Cold Chain Warehouse | |
| By Application | Pharmaceutical Factory |
| Pharmacy | |
| Hospital | |
| Others |
US Pharmaceutical WarehousingMarket Research FAQs
How big is the US Pharmaceutical Warehousing Market?
The US Pharmaceutical Warehousing Market size is expected to reach USD 45.96 billion in 2024 and grow at a CAGR of greater than 4.95% to reach USD 58.51 billion by 2029.
What is the current US Pharmaceutical Warehousing Market size?
In 2024, the US Pharmaceutical Warehousing Market size is expected to reach USD 45.96 billion.
Who are the key players in US Pharmaceutical Warehousing Market?
Alloga, Bio Pharma Logistics, Rhenus SE and Co. KG, FedEx Corp. and KRC Logistics are the major companies operating in the US Pharmaceutical Warehousing Market.
What years does this US Pharmaceutical Warehousing Market cover, and what was the market size in 2023?
In 2023, the US Pharmaceutical Warehousing Market size was estimated at USD 43.79 billion. The report covers the US Pharmaceutical Warehousing Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the US Pharmaceutical Warehousing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Pharmaceutical WarehousingIndustry Report
Statistics for the 2024 US Pharmaceutical Warehousing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Pharmaceutical Warehousing analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
