Market Trends of US Pharmaceutical Warehousing Industry
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.
