North America Pharmaceutical Logistics Market Size (2019-2029)

Executive Summary

The North American pharmaceutical logistics market experienced substantial growth, with revenue increasing by USD 6.68 billion from 2019-2023. This growth is fuelled by robust economies, an aging and diverse population, and significant advancements in IoT, AI, blockchain, and automation technologies. Regulatory oversight from bodies like the FDA and Health Canada ensures safety and efficacy, while stable political environments and trade agreements facilitate market expansion. The high prevalence of chronic diseases, coupled with the rise of specialty drugs and personalized medicine, drives demand for advanced logistics solutions in North America Pharmaceutical cold chain logistics Market. The region benefits from a well-developed transport infrastructure that supports efficient logistics for temperature-sensitive drugs and vaccines, ensuring timely delivery to meet the diverse and complex pharmaceutical needs of the region.

In 2023, North America's GDP reached USD 30.11 trillion, with the U.S., Mexico, and Canada contributing significantly to global GDP. Despite IMF predictions of a slowdown, Q1 2024 saw a 1.6% real GDP increase and a 4.8% rise in current-dollar GDP to USD 28.28 trillion. The U.S. experienced 3.4% GDP growth in Q4 2023, while Canada showed modest economic growth early in 2024, representing 0.92% of the global economy.

The United States Warehouse Act (USWA) empowers the Secretary of Agriculture to license and inspect warehouses storing agricultural products, ensuring adherence to USDA standards for quality, safety, and proper handling, with operators paying user fees. Meanwhile, Canada's Food and Drugs Act regulates the safety and efficacy of food, drugs, cosmetics, and medical devices, overseeing their production, labeling, distribution, and marketing through inspections and compliance monitoring by Health Canada.

The North America pharmaceutical logistics and warehouse market is highly dynamic, with industry leaders implementing innovative strategies to meet rising demands for specialized handling and cost efficiency. The U.S., a dominant player, accounts for over one-third of global pharmaceutical market spending despite comprising only 4.23% of the global population. In 2021, U.S. per capita pharmaceutical spending exceeded USD 1,432, more than double the OECD average. The distribution landscape is influenced by mergers and acquisitions, with Canada and Mexico contributing less than 15% of the volume and expenditure. Notably, Kuehne + Nagel bolstered its regional capabilities in 2022 by acquiring Kane Logistics' pharmaceutical business.

In 2022, there was a notable increase in the sales of both patented and generic medicines compared to previous years in the North America pharmaceutical market. The sales of patented medicines saw a smaller percentage rise, while generic medicines experienced a significant increase. This growth marks a substantial improvement from the historically low or negative growth rates observed since 2010, largely attributed to provincial governments' implementation of price-setting policies. A five-year agreement starting in 2018 played a pivotal role in reducing prices for several generic medicines, effectively lowering expenditures to levels akin to those seen in 2010 despite the expanding market share of generics. As prices stabilized, the higher sales growth rate in 2022 suggests a continued uptick in the utilization of generics compared to the preceding year.

Future Outlook of North America Pharmaceutical Logistics Market

The North America pharmaceutical logistics market is poised for significant growth, driven by increasing demand for biologics and the approval of new drugs. This segment is expected to expand as biologics continue to be developed for both existing and rare diseases, thereby increasing the demand for healthcare logistics services. Advancements in healthcare technology and logistics infrastructure are enhancing the efficiency of supply chains, while the rising trend of personalized medicine and biopharmaceuticals is creating a need for specialized logistics services. Additionally, the U.S. government's efforts to improve supply chain resilience and reduce dependence on foreign countries, particularly China, are anticipated to further propel market growth in the North America pharmaceutical Supply chain Market.

Scope of the North America Pharmaceutical Logistics Market

The scope of the North America pharmaceutical logistics market is extensive, encompassing various aspects of the supply chain involved in the distribution of pharmaceutical products. This includes transportation, warehousing, inventory management, and other related services. The market serves pharmaceutical manufacturers, wholesalers, pharmacies, hospitals, and other healthcare facilities, ensuring the safe and timely delivery of pharmaceutical products to end users. With the increasing demand for biologics, personalized medicine, and advancements in healthcare technology, the scope of the pharmaceutical logistics market is expected to expand further, offering opportunities for growth and innovation in the industry.

Period of Study

 2019 - 2024: Past and Present Scenario

 2024 – 2029: Future Outlook

Countries Covered:

 USA

 Canada

Key Areas Covered

 Demand of Pharmaceutical Logistics by Countries

 Demand of Pharmaceutical Logistics by Temperature

 Demand of Pharmaceutical Logistics by Types of Drugs

 Demand of Pharmaceutical Logistics by Types of Services

 Demand of Pharmaceutical Logistics by Mode of Transport

 Demand of Pharmaceutical Logistics by Types of Aliments

Key Questions Answered

• What is the historical and current performance of the North American pharmaceutical logistics market?

• What is the legal and regulatory framework for pharmaceutical logistics in North America?

• What are the main logistical challenges in the US pharmaceuticals logistics market?

• What is the total revenue of the U.S. pharmaceutical logistics market?

• How has the Canadian pharmaceutical logistics market performed?

• What critical infrastructure and technological advancements influence this market?

• Which drugs and therapies are most commonly transported in North America?

• What factors affect the cost structure of pharmaceutical logistics in North America?

• What are the major cold storages available in the United States?

• What are the future growth prospects for North America logistics market? Show more