# U.S. Pharmaceutical Cold Storage Warehousing Market

> U.S. pharmaceutical cold storage warehousing market: USD 2.93 billion in 2025, rising 8.13% a year to USD 6.40 billion by 2035 on biologics, GLP-1s and onshoring.

Publisher: Douglas Insights  
Author: Douglas Insights Research Desk  
Report code: DI-HC-10943  
Published: 2026-11-15  
Last updated: 2026-11-15  
Next review: May 2027  
Page: https://www.douglasinsights.com/u-s-pharmaceutical-cold-storage-warehousing-market/

## Key figures

| Measure | Value | How it is built |
| --- | --- | --- |
| Market size · 2025 | $2.93 Bn | 1.18 million occupied pallet-position equivalents x USD 2,480 = USD 2.93 billion. |
| Forecast · 2035 | $6.40 Bn | Base case: 5.60% positions and 2.40% revenue per position a year. |
| Revenue CAGR · 2026–2035 | 8.13% | (1.0560 x 1.0240) minus 1. |
| Positions · 2035 | About 2.03 million pallet positions | Biologic and incretin volume, outsourcing, onshoring and cell therapy, net of oral pills, direct shipping and flat vaccines. |
| Leading band | Refrigerated 2-8°C, 65.0% | USD 1.90 billion in 2025. |
| Fastest band | Cryogenic, 12.80% | USD 190.2 million to USD 634.4 million on cell therapies. |
| Largest region | South, 36.0% | USD 1.05 billion in 2025, also fastest at 8.60%. |
| Market leader | Cencora, about 10.5% | Douglas Insights estimate; with McKesson and Cardinal Health the top three hold 27.0%. |
| Event | Langham opens 46,000-position 2-8°C cooler in Plainfield, Indiana, 27 April 2026 | https://www.elangham.com/langham-logistics-opens-largest-pharmaceutical-cooler-in-the-us-in-plainfield-indiana/ |

## Key takeaways

- U.S. pharmaceutical cold storage warehousing is worth USD 2.93 billion in 2025 and USD 6.40 billion in 2035, an 8.13% revenue CAGR.
- Occupied pallet positions add 5.60% a year and revenue per position 2.40%; biologic and incretin volume supplies 2.40 points of the position leg.
- Refrigerated 2-8°C storage leads with 65.0%; cryogenic storage grows fastest at 12.8% a year.
- The South holds 36.0% of 2025 value and grows fastest at 8.60%; South and Midwest supply about 65.1% of additions to 2035.
- Cencora, McKesson and Cardinal Health hold about 27.0%; the U.S. needs about 855,000 more positions by 2035, roughly 19 Langham-size coolers.

Eli Lilly's U.S. sales of Mounjaro reached USD 5.0 billion in the third quarter of 2026, up 41%, and of Zepbound USD 5.3 billion, up 48%, while its worldwide volume rose 53% even as realised prices fell 15%, its [results of 29 October 2026](https://www.sec.gov/Archives/edgar/data/0000059478/000005947826000104/q326lillysalesandearningsp.htm) show; almost every one of those injectable pens spends part of its life in a 2-8°C warehouse. Six months earlier, on 27 April 2026, Langham Logistics opened a 320,000 square foot building in Plainfield, Indiana, with more than 46,000 refrigerated pallet positions held at 2-8°C, which it calls the largest pharmaceutical cooler in the country, its [announcement](https://www.elangham.com/langham-logistics-opens-largest-pharmaceutical-cooler-in-the-us-in-plainfield-indiana/) states. The U.S. pharmaceutical cold storage warehousing market covers the revenue earned for storing and handling temperature-controlled medicines in GMP-compliant warehouses in the 50 states: refrigerated (2-8°C), frozen (-25°C to -15°C), ultra-cold (-80°C to -60°C) and cryogenic (below -150°C) space run by specialty third-party logistics (3PL) providers, couriers and wholesale distributors. Douglas Insights sizes it at USD 2.93 billion in 2025, from about 1.18 million occupied pallet-position equivalents earning USD 2,480 a year each, and at USD 6.40 billion in 2035, a compound annual growth rate (CAGR) of 8.13%. It is the U.S. cold-chain slice of the North America row in our global [Pharmaceutical Cold Storage Warehousing Market](https://www.douglasinsights.com/pharmaceutical-cold-storage-warehousing-market/) report, and sits beside our [U.S. Pharmaceutical Drug Market](https://www.douglasinsights.com/u-s-pharmaceutical-drug-market/) report, our [U.S. IoT in Warehouse Management Market](https://www.douglasinsights.com/u-s-iot-in-warehouse-management-market/) study and our [Freeze Drying Equipment Market](https://www.douglasinsights.com/freeze-drying-equipment-market/) report inside our [healthcare and life sciences coverage](https://www.douglasinsights.com/industry/healthcare/), and every figure follows the Douglas Insights [research methodology](https://www.douglasinsights.com/research-methodology/).

## Which temperature band earns most in U.S. pharmaceutical cold storage: 2-8°C, frozen, ultra-cold or cryogenic?

Refrigerated 2-8°C storage earns most, USD 1.90 billion or 65.0% of 2025 value, a Douglas Insights estimate. Cryogenic storage below -150°C grows fastest, 12.8% a year, from USD 190 million to USD 634 million by 2035.

| Temperature band | Share 2025 | Value 2025 | CAGR 2026-2035 | Value 2035 |
| --- | --- | --- | --- | --- |
| Refrigerated, 2-8°C | 65.0% | USD 1.90 billion | 7.40% | USD 3.88 billion |
| Frozen, -25°C to -15°C | 17.0% | USD 497.5 million | 7.20% | USD 997.1 million |
| Ultra-cold, -80°C to -60°C | 11.5% | USD 336.5 million | 10.40% | USD 905.2 million |
| Cryogenic, below -150°C | 6.5% | USD 190.2 million | 12.80% | USD 634.4 million |

The 2-8°C band, USD 1.90 billion from about 900,000 occupied pallet positions, leads because insulin, most monoclonal antibodies, the incretin pens for diabetes and obesity, and nearly all routine vaccines are labelled for refrigeration. It grows 7.40% a year to USD 3.88 billion, a little below the market, because each new cooler is cheap to build relative to ultra-cold space and competition keeps rates in check. The frozen band, USD 497.5 million on about 180,000 positions, holds plasma, some vaccines, active ingredients and frozen bulk drug substance shipped between plants; it grows 7.20% to USD 997.1 million as new U.S. ingredient plants come on line.

Ultra-cold storage at -80°C to -60°C, USD 336.5 million, grows 10.4% a year because messenger RNA products, viral vectors and many clinical biologics need it, and each position earns about USD 4,800 a year, nearly 2.3 times a cooler slot. Cryogenic storage in liquid nitrogen freezers and dewars, USD 190.2 million, grows fastest at 12.8% on autologous and allogeneic cell therapies: the US Food and Drug Administration (FDA) lists 55 approved cellular and gene therapy products, its [product list current as of 30 October 2026](https://www.fda.gov/vaccines-blood-biologics/cellular-gene-therapy-products/approved-cellular-and-gene-therapy-products) shows. Band values sum to USD 6.42 billion in 2035, 0.37% above the headline and inside our 2.5% tolerance.

### Products: biologics and incretins lead, cell and gene therapies grow fastest

By product, Douglas Insights estimates that biologics including GLP-1 incretin pens take 38.0% of 2025 value, about USD 1.11 billion, growing 8.60% a year; vaccines 17.0%, growing 5.20%; insulin 13.0%, growing 4.60%; clinical trial materials 12.0%, growing 9.00%; cell and gene therapies 8.0%, growing 14.5%; and other temperature-sensitive medicines 12.0%, growing 6.40%. Product values sum to USD 6.35 billion in 2035, 0.72% below the headline.

## Why is U.S. pharmaceutical cold storage revenue growing 8.13% a year?

Occupied pallet positions drive most of it: they rise 5.60% a year, from 1.18 million in 2025 to about 2.03 million in 2035, while revenue per position adds 2.40%. Four drivers add 6.50 volume points before 0.90 points of restraints.

The four volume drivers, all Douglas Insights estimates unless a source is linked, are biologic and incretin volume, 2.40 points; outsourcing and compliance-driven consolidation into GMP 3PLs, 1.80 points; onshoring of drug manufacturing, 1.30 points; and cell, gene and clinical cold chains, 1.00 point. They sum to 6.50 points; restraints remove 0.90, leaving 5.60%. Revenue per position adds 2.40% as mix shifts to colder bands and power and rent costs pass through. In the model, (1.0560 x 1.0240) minus 1 gives the 8.13% revenue rate.

### Biologic and incretin volume: 2.40 points

Injectable volume adds the largest share, 2.40 points. Lilly's third-quarter 2026 revenue rose 39% to USD 24.40 billion on a 53% volume increase, and it raised its 2026 revenue guidance to USD 91 billion to USD 92 billion from USD 85 billion to USD 87 billion, its [29 October 2026 release](https://www.sec.gov/Archives/edgar/data/0000059478/000005947826000104/q326lillysalesandearningsp.htm) shows. Storage is paid by the pallet, not by the price of the drug, so a 15% fall in realised prices does not cut warehouse revenue while a 53% rise in packs fills coolers. Distributors see the same flow: Cencora's U.S. Healthcare Solutions revenue rose 5.4% to USD 78.3 billion in its fiscal fourth quarter, helped by "increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class", its [results of 4 November 2026](https://www.sec.gov/Archives/edgar/data/0001140859/000114085926000038/exhibit991-q42026.htm) state, and its fiscal 2026 revenue reached USD 337.4 billion, up 5.0%.

### Outsourcing and compliance consolidation: 1.80 points

Outsourcing adds 1.80 points as manufacturers move cold inventory out of plant warehouses into specialist GMP buildings with validated mapping, alarms and serialised tracking. DHL Supply Chain announced a 1,000,000 square foot life sciences and healthcare Center of Excellence in Annville, Pennsylvania, with temperature-controlled environments for biologics and specialty drugs, opening in 2026, its [release of 7 January 2026](https://www.dhl.com/us-en/home/press/press-archive/2026/dhl-supply-chain-expands-life-sciences-and-healthcare-capabilities-with-new-center-of-excellence.html) states. UPS completed its USD 1.6 billion, about CAD 2.2 billion, purchase of Canada's Andlauer Healthcare Group in early November 2025, adding to 17 million square feet of cGMP and GDP-compliant healthcare distribution space worldwide, [Air Cargo News reported on 4 November 2025](https://www.aircargonews.net/ups-completes-andlauer-healthcare-group-acquisition/1080857.article). Each such move shifts pallets from captive space we do not count into paid space we do.

### Onshoring of drug manufacturing: 1.30 points

New U.S. plants add 1.30 points. Proclamation 11020, signed on 2 April 2026, sets a 100% tariff on patented pharmaceuticals and their ingredients, cut to 20% for companies with approved U.S. manufacturing plans, effective 31 July 2026 for the largest listed firms and 29 September 2026 for the rest, the [Federal Register notice of 9 April 2026](https://www.federalregister.gov/documents/2026/04/09/2026-06956/adjusting-imports-of-pharmaceuticals-and-pharmaceutical-ingredients-into-the-united-states) and a [Covington analysis](https://www.cov.com/news-and-insights/insights/2026/04/trump-administration-announces-section-232-tariffs-on-patented-pharmaceuticals-and-ingredients) show. Lilly plans a facility of more than USD 6 billion for active ingredients in Huntsville, Alabama, its [release of 9 December 2025](https://investor.lilly.com/news-releases/news-release-details/lilly-build-6-billion-facility-manufacture-active-pharmaceutical) states, and Johnson & Johnson committed more than USD 55 billion of U.S. investment over four years, including a 500,000 square foot biologics plant in Wilson, North Carolina, its [release of 21 March 2025](https://www.jnj.com/media-center/press-releases/johnson-johnson-increases-u-s-investment-to-more-than-55-billion-over-the-next-four-years) states. Domestic fill-finish means bulk drug substance, finished packs and safety stock all sit in U.S. cold space instead of overseas.

### Cell, gene and clinical cold chains: 1.00 point

Advanced therapies add 1.00 point, mostly in ultra-cold and cryogenic bands. Cryoport supported a record 788 clinical trials, 99 of them in Phase 3, and 23 commercial therapies in the third quarter of 2026, while its BioStorage and BioServices revenue rose 25% to USD 6.04 million, its [results of 5 November 2026](https://www.sec.gov/Archives/edgar/data/0001124524/000110465926123381/tm2629096d1_ex99-1.htm) show; the company also started services at a new Global Supply Chain Center in Santa Ana, California. Each Phase 3 trial needs retained samples, comparator drug and patient kits held at validated temperatures for years.

## What slows U.S. pharma cold storage demand: oral GLP-1 pills, direct-to-patient shipping or vaccines?

Three restraints take 0.90 points off volume growth: oral incretin pills remove 0.40 points, direct-to-patient and plant-to-pharmacy shipping that skips warehouses 0.30 points, and flat vaccine volumes 0.20 points, Douglas Insights estimates.

Oral incretins are the largest drag because tablets ship at room temperature. The FDA approved Novo Nordisk's Wegovy pill on 22 December 2025 as the first oral GLP-1 for weight management, the company's [announcement](https://placera.se/pressmeddelanden/novo-nordisk-b-novo-nordisk-a-s-wegovy-pill-approved-in-the-us-as-first-oral-glp-1-for-weight-management-20251222) states, and Lilly's oral Foundayo (orforglipron) booked USD 184 million in the third quarter of 2026, its [29 October 2026 release](https://www.sec.gov/Archives/edgar/data/0000059478/000005947826000104/q326lillysalesandearningsp.htm) shows. We assume oral forms take about one-quarter of new U.S. incretin patients by 2030, which removes 0.40 points from cooler demand.

Direct shipping is the second drag. Manufacturers' own pharmacy and patient programmes send pens straight from a plant or a single national hub to homes in insulated parcels, so fewer packs pass through regional distributor coolers; we take 0.30 points off. Vaccines are the third: the Centers for Disease Control and Prevention (CDC) counted about 135.6 million influenza doses distributed for the 2025-26 season as of 7 March 2026, its [vaccination dashboard](https://www.cdc.gov/flu/fluvaxview/dashboard/vaccination-dashboard.html) shows, and we expect U.S. vaccine pallet demand to stay roughly flat, taking 0.20 points off. These restraints are already netted into the 8.13% base case.

## Which U.S. region stores the most refrigerated medicines: South, Midwest, Northeast or West?

The South stores the most, USD 1.05 billion or 36.0% of 2025 value, and grows fastest at 8.60% a year to USD 2.40 billion by 2035, Douglas Insights estimates, on express hubs and new plants.

| Census region | Value 2025 | Share 2025 | Value 2026 | CAGR 2026-2035 | Value 2035 |
| --- | --- | --- | --- | --- | --- |
| United States | USD 2.93 billion | 100% | USD 3.16 billion | 8.13% | USD 6.40 billion |
| South | USD 1.05 billion | 36.0% | USD 1.14 billion | 8.60% | USD 2.40 billion |
| Midwest | USD 731.6 million | 25.0% | USD 793.1 million | 8.40% | USD 1.64 billion |
| Northeast | USD 614.5 million | 21.0% | USD 657.6 million | 7.00% | USD 1.21 billion |
| West | USD 526.8 million | 18.0% | USD 568.9 million | 8.00% | USD 1.14 billion |

The South leads because the two largest express air hubs for healthcare parcels sit in Louisville, Kentucky, and Memphis, Tennessee, and because new plants cluster there: Lilly's Houston and Huntsville ingredient sites and Johnson & Johnson's Wilson, North Carolina, biologics plant. The Midwest, USD 731.6 million, grows 8.40% on Indiana, home of Lilly's headquarters and Langham's Plainfield cooler with more than 46,000 positions, and on Chicago's air cargo market, where GEODIS opened a 78,000 square foot healthcare cross-dock near O'Hare with 600 square feet held at 2-8°C, its [release of 22 April 2026](https://www.prnewswire.com/news-releases/geodis-unveils-first-cold-chain-cross-dock-facility-in-the-americas-302749256.html) states.

The Northeast, USD 614.5 million, covers the New Jersey and Pennsylvania pharmaceutical corridor and grows slowest at 7.00% because it starts with the densest legacy capacity, though DHL's Annville hub adds space. The West, USD 526.8 million, grows 8.00% on California's biotech clusters and cell therapy makers; California already holds the most refrigerated warehouse space of any state, 399.7 million gross cubic feet, the U.S. Department of Agriculture (USDA) [Capacity of Refrigerated Warehouses 2025 summary](https://esmis.nal.usda.gov/sites/default/release-files/795764/rfwh0126.txt) shows. Region values sum to USD 3.16 billion in 2026, 0.03% below the headline, and USD 6.39 billion in 2035, 0.12% below it.

## Who leads U.S. pharmaceutical cold storage: Cencora, McKesson, Cardinal Health or UPS Healthcare?

Cencora leads U.S. pharmaceutical cold storage with about 10.5% of 2025 value, USD 307 million, a Douglas Insights estimate. With McKesson and Cardinal Health, the top three hold about 27.0%, so specialists and regional 3PLs keep most of the market.

| Company | What the position rests on | Estimated share 2025 | Estimated value 2025 |
| --- | --- | --- | --- |
| Cencora | Distribution centres, third-party logistics for manufacturers, World Courier | 10.5% | USD 307 million |
| McKesson | National pharmaceutical distribution network and specialty distribution | 9.0% | USD 263 million |
| Cardinal Health | Pharmaceutical and specialty distribution, 3PL services for manufacturers | 7.5% | USD 219 million |
| UPS Healthcare | GMP warehouses, Marken clinical logistics, Andlauer since November 2025 | 7.0% | USD 205 million |
| DHL Supply Chain | Life sciences warehouses, Annville hub, CRYOPDP since June 2025 | 5.5% | USD 161 million |
| FedEx | Healthcare cold chain centres at its Memphis hub and network | 3.5% | USD 102 million |
| Kuehne+Nagel | GDP-certified pharma warehousing in key U.S. gateways | 2.0% | USD 59 million |
| Cryoport | Cryogenic BioStorage and BioServices for cell and gene therapies | 0.8% | USD 23 million |
| Other operators | Langham Logistics, GEODIS, Lineage, Americold, regional GMP 3PLs and courier depots | 54.2% | USD 1.59 billion |

All shares are Douglas Insights estimates, valuing distributors' own cold space at third-party service rates, because no company reports U.S. pharmaceutical cold storage revenue separately. The three distributors move most branded volume: Cardinal Health's Pharmaceutical and Specialty Solutions revenue rose 6% to USD 62.6 billion in its fiscal first quarter of 2027, "driven by brand and specialty pharmaceutical sales growth", its [results filed on 5 November 2026](https://last10k.com/sec-filings/cah/0000721371-26-000042.htm) show, and McKesson's revenue rose 8% to USD 110.96 billion in its fiscal second quarter on prescription volumes and specialty products, its [10-Q of 4 November 2026](https://last10k.com/sec-filings/mck/0000927653-26-000281.htm) shows.

The logistics groups are buying their way in. Cryoport sold its CRYOPDP specialty courier business to DHL Group on 11 June 2025 and now partners with it, its [5 November 2026 release](https://www.sec.gov/Archives/edgar/data/0001124524/000110465926123381/tm2629096d1_ex99-1.htm) notes, while Cryoport raised its 2026 revenue guidance to USD 197 million to USD 199 million. Competition turns on validated capacity near express hubs, on ultra-cold and cryogenic know-how, and on whether manufacturers keep using distributors' coolers or contract dedicated 3PL space. Our [Temperature Sensor Market](https://www.douglasinsights.com/temperature-sensor-market/) report covers the monitoring hardware every validated room depends on.

## What does a pallet of refrigerated medicine cost to store in the United States?

A U.S. pharmaceutical cold storage pallet position earned USD 2,480 on average in 2025, Douglas Insights estimates, from about USD 2,110 a year for a 2-8°C slot to about USD 6,340 for a cryogenic position equivalent, including handling and monitoring.

| Temperature band | Occupied positions 2025 | Revenue per position a year, 2025 | What the fee covers |
| --- | --- | --- | --- |
| Refrigerated, 2-8°C | About 900,000 | About USD 2,110 | Storage, receiving, pick and pack, alarmed mapping |
| Frozen, -25°C to -15°C | About 180,000 | About USD 2,760 | Freezer storage, blast-freeze handling |
| Ultra-cold, -80°C to -60°C | About 70,000 | About USD 4,810 | Mechanical freezer space, back-up power, dry ice handling |
| Cryogenic, below -150°C | About 30,000 | About USD 6,340 | Liquid nitrogen freezers, chain-of-identity records |
| All bands | About 1.18 million | USD 2,480 | Douglas Insights estimate |

Revenue per position rises from USD 2,480 in 2025 to about USD 2,540 in 2026 and USD 3,140 in 2035 in our base case, 2.40% a year. Three things set the price. Mix adds about 1.30 points a year as ultra-cold and cryogenic bands take share. Cost pass-through adds about 1.40 points, because GMP cold rooms carry 24-hour power, redundant compressors, continuous monitoring and validation that ordinary food freezers do not. New capacity takes back about 0.30 points: buildings such as Langham's Plainfield cooler and DHL's Annville hub add thousands of slots at once, and landlords discount to fill them.

A 2-8°C pharmaceutical slot costs roughly 2.5 to 3.5 times a food cooler slot, a Douglas Insights estimate, because of qualification, quality staff and DSCSA serial-number handling, and because occupancy is kept lower to leave room for surge stock and recalls.

## Which rules shape U.S. pharmaceutical cold storage: DSCSA, FDA GMP or Section 232 tariffs?

Three rule sets shape U.S. pharmaceutical cold storage: the Drug Supply Chain Security Act (DSCSA) tracing rules, FDA current good manufacturing practice for warehousing, and the Section 232 tariff on patented imports that pulls production onshore.

The DSCSA requires interoperable, package-level electronic tracing; the FDA has given small dispensers, pharmacies whose owner has 25 or fewer licensed pharmacists and technicians, an exemption until 27 November 2027, its [exemptions page, current as of 26 August 2026](https://www.fda.gov/drugs/drug-supply-chain-security-act-dscsa/exemptions-under-drug-supply-chain-security-act), shows. Warehouses that scan and verify serial numbers on every inbound and outbound case add labour and software cost, which favours large 3PLs. FDA's GMP rule at [21 CFR 211.142](https://www.ecfr.gov/current/title-21/chapter-I/subchapter-C/part-211/subpart-H/section-211.142) requires written warehousing procedures that store drug products under appropriate conditions of temperature, humidity and light, which is why every cold room must be mapped and alarmed.

Trade policy is the newest rule. The 100% Section 232 tariff on patented pharmaceuticals, cut to 20% for firms with approved U.S. manufacturing plans, took effect for the largest firms on 31 July 2026, per the [Federal Register notice](https://www.federalregister.gov/documents/2026/04/09/2026-06956/adjusting-imports-of-pharmaceuticals-and-pharmaceutical-ingredients-into-the-united-states). Refrigerant rules also matter: the HFC phase-down steers new warehouse refrigeration toward low global-warming systems, as our [Green Refrigerant Market](https://www.douglasinsights.com/green-refrigerant-market/) report explains, which lifts the cost of new cold rooms.

## What if oral pills win or onshoring accelerates: where does U.S. pharma cold storage land in 2035?

The U.S. pharmaceutical cold storage warehousing market ends 2035 between USD 4.84 billion and USD 8.11 billion across our three cases, around a USD 6.40 billion base. Pallet-position growth sets most of the spread.

| Case | Position leg | Revenue per position leg | Revenue rate | 2035 value |
| --- | --- | --- | --- | --- |
| Slower | 3.60% | 1.50% | 5.15% | USD 4.84 billion |
| Base case | 5.60% | 2.40% | 8.13% | USD 6.40 billion |
| Faster | 7.30% | 3.20% | 10.73% | USD 8.11 billion |

In the slower case oral incretins take half of new patients, plant-to-patient shipping spreads and new 3PL buildings outrun demand, taking 2.00 points off position growth and 0.90 points off price. In the faster case Section 232 pulls more fill-finish onshore, more cell therapies win approval and manufacturers outsource most cold inventory, adding 1.70 points of positions. One extra point of yearly revenue growth adds about USD 617 million to 2035 value; one point less removes about USD 568 million.

Company signals sit close to the base case: Cencora guides to 3% to 5% revenue growth for fiscal 2027, its [4 November 2026 outlook](https://www.sec.gov/Archives/edgar/data/0001140859/000114085926000038/exhibit991-q42026.htm) shows, while Cryoport's 2026 revenue guidance implies double-digit growth at the cryogenic end. Our 8.13% sits between those because pallets grow faster than distributor revenue but slower than cell therapy logistics.

## Douglas Exclusive: the U.S. Pharma Cold Pallet Ledger

The U.S. Pharma Cold Pallet Ledger is a Douglas Insights model built from 12 inputs in 12 government and company documents dated March 2025 to November 2026. It converts revenue into pallet positions and shows where new capacity must go.

| Date | Input | What it moves |
| --- | --- | --- |
| 21 March 2025 | Johnson & Johnson pledges more than USD 55 billion in U.S. investment | Onshore biologics |
| 11 June 2025 | Cryoport sells CRYOPDP to DHL Group | Cryogenic competition |
| 4 November 2025 | UPS completion of USD 1.6 billion Andlauer purchase reported | 3PL consolidation |
| 9 December 2025 | Lilly plans USD 6 billion-plus Huntsville plant | Southern capacity |
| 22 December 2025 | FDA approves Wegovy pill | Oral substitution |
| 7 January 2026 | DHL announces 1,000,000 sq ft Annville hub | Northeast supply |
| February 2026 | USDA: 3.99 billion cu ft refrigerated capacity, 904 million cooler | National cube |
| 9 April 2026 | Section 232 pharmaceutical tariff published | Onshoring |
| 27 April 2026 | Langham opens 46,000-position 2-8°C cooler | Midwest supply |
| 29 October 2026 | Lilly volume up 53%, Mounjaro and Zepbound U.S. USD 10.3 billion | Incretin volume |
| 4 November 2026 | Cencora fiscal 2026 revenue USD 337.4 billion | Distributor flow |
| 5 November 2026 | Cryoport supports 788 trials and 23 therapies | Cell therapy demand |

The first finding, a Douglas Insights estimate: occupied pharmaceutical cold positions rise from 1.18 million in 2025 to about 2.03 million in 2035, an addition of about 855,000 positions, equal to roughly 19 buildings the size of Langham's Plainfield cooler, or almost two a year. The 900,000 occupied 2-8°C positions fill about 72 million gross cubic feet at 80 cubic feet each, about 8.0% of the 904.4 million cubic feet of cooler space the [USDA counted on 1 October 2025](https://esmis.nal.usda.gov/sites/default/release-files/795764/rfwh0126.txt); national refrigerated capacity grew about 7.9% in two years, but almost all of it is food space without GMP validation.

The second finding is that the coldest bands punch above their weight. Ultra-cold and cryogenic storage hold 18.0% of 2025 value but supply about 29.2% of the USD 3.47 billion added by 2035, USD 1.01 billion, while 2-8°C space holds 65.0% of value but supplies 57.1%. The South and Midwest together supply about 65.1% of additions. Operators that build ultra-cold and liquid nitrogen rooms near Louisville, Memphis and Indianapolis should win the decade; those that only add standard coolers will compete on price against new capacity.

## How does the methodology turn 1.18 million pallet positions into USD 2.93 billion?

Our methodology multiplies about 1.18 million occupied pharmaceutical cold pallet-position equivalents in 2025 by USD 2,480 of average annual revenue per position to reach USD 2.93 billion, built across four temperature bands, six product groups and four regions.

The model uses 96 data points, 24 sourced and 72 modelled. Arithmetic: 1,180,000 x USD 2,480 = USD 2,926.4 million; positions rise 5.60% a year to about 1.25 million in 2026 and 2.03 million in 2035, and revenue per position rises 2.40% a year to about USD 2,540 in 2026 and USD 3,140 in 2035. The 2026 value is USD 3.16 billion and the 2035 value USD 6.40 billion, an 8.13% CAGR. Cryogenic and ultra-cold positions are counted as pallet equivalents from freezer and dewar capacity.

The study reconciles with our global [Pharmaceutical Cold Storage Warehousing Market](https://www.douglasinsights.com/pharmaceutical-cold-storage-warehousing-market/) model, whose North America row is USD 5.84 billion in 2025, USD 6.21 billion in 2026 and USD 10.87 billion in 2035 at 6.41% a year. That row includes 15-25°C controlled room temperature space, about 41.9% of value worldwide; removing it leaves about USD 3.39 billion of cold bands, of which our USD 2.93 billion United States figure is 86.3%, with Canada and Mexico the rest. Room temperature space grows 4.13% a year in the global model, so the North America cold bands alone imply about 7.8% a year; our 8.13% sits 0.3 points higher because incretin volume and Section 232 onshoring land mainly in the United States.

Three further cross-checks agree. First, 2-8°C positions use about 8.0% of the USDA's national cooler cube, consistent with pharmaceuticals being a small, high-value tenant in refrigerated space. Second, Cryoport's USD 24 million annual BioStorage and BioServices run rate sits inside our USD 190 million cryogenic band at a plausible share. Third, Lilly's 53% volume growth and Cencora's 5.4% U.S. revenue growth bracket our 5.60% position leg once oral pills and direct shipping are netted out. AI tools help draft the text and automated checks test the arithmetic and links; the Douglas Insights research desk chooses the sources, builds the model and approves publication, as our [editorial standards](https://www.douglasinsights.com/editorial-standards/) explain.

## What counts in the U.S. pharmaceutical cold storage warehousing market?

The market counts revenue for storing and handling temperature-controlled medicines in GMP-compliant U.S. warehouses at 2-8°C, frozen, ultra-cold and cryogenic temperatures. Transport, packaging, controlled room temperature storage and manufacturers' own plant warehouses are excluded.

The by-band split covers refrigerated, frozen, ultra-cold and cryogenic storage; the by-product split covers biologics including incretins, vaccines, insulin, clinical trial materials, cell and gene therapies and other temperature-sensitive medicines; the by-region split covers the South, Midwest, Northeast and West Census regions. Wholesale distributors' cold rooms are valued at third-party service rates so that captive and outsourced space are compared on the same basis. Refrigerated trucks, air freight, insulated shippers and data loggers sit in adjacent studies, and food cold storage is excluded.

## Market by segment

| Segment | Share | Value |
| --- | --- | --- |
| Refrigerated 2-8°C | 65% | $1.90 Bn |
| Frozen -25°C to -15°C | 17% | $497.5 Mn |
| Ultra-cold -80°C to -60°C | 11.5% | $336.5 Mn |
| Cryogenic below -150°C | 6.5% | $190.2 Mn |

## Market by region (USD million)

| Region | 2025 | 2026 | 2035 | CAGR 2026-2035 |
| --- | --- | --- | --- | --- |
| United States | 2,926.4 | 3,164.4 | 6,396.9 | 8.13% |
| South | 1,053.5 | 1,144.1 | 2,404 | 8.6% |
| Midwest | 731.6 | 793.1 | 1,639 | 8.4% |
| Northeast | 614.5 | 657.6 | 1,208.9 | 7% |
| West | 526.8 | 568.9 | 1,137.2 | 8% |

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 2,926.4 | USD million |
| Market size 2035 | 6,396.9 | USD million |
| Revenue CAGR 2026-2035 | 8.13 | percent |
| Occupied pallet position CAGR 2026-2035 | 5.6 | percent |
| Revenue per position CAGR 2026-2035 | 2.4 | percent |

## Frequently asked questions

### What is the U.S. pharmaceutical cold storage warehousing market worth in 2025 and 2035?

USD 2.93 billion in 2025, from about 1.18 million occupied pallet positions at USD 2,480 each, rising to USD 6.40 billion by 2035 at an 8.13% CAGR.

### Which temperature band earns the most?

Refrigerated 2-8°C storage, with 65.0% of 2025 value or USD 1.90 billion, because insulin, antibodies, incretin pens and vaccines are labelled for refrigeration.

### Which band grows fastest?

Cryogenic storage below -150°C, 12.8% a year from USD 190.2 million to USD 634.4 million, driven by cell and gene therapies.

### Which U.S. region stores the most refrigerated medicines?

The South, USD 1.05 billion or 36.0% of 2025 value, on the Louisville and Memphis express hubs and new plants; it also grows fastest at 8.60%.

### Who leads U.S. pharmaceutical cold storage?

Cencora with about 10.5% of 2025 value, Douglas Insights estimates; with McKesson and Cardinal Health the top three hold about 27.0%.

### Do oral GLP-1 pills reduce cold storage demand?

Yes. The Wegovy pill, approved on 22 December 2025, and Lilly's Foundayo ship at room temperature; Douglas Insights takes 0.40 points a year off position growth for oral substitution.

### How far apart are the slower and faster 2035 cases?

USD 4.84 billion in the slower case and USD 8.11 billion in the faster case, against a USD 6.40 billion base, set mainly by pallet-position growth.

## Sources

- [Eli Lilly (SEC filing), Lilly reports third-quarter 2026 financial results](https://www.sec.gov/Archives/edgar/data/0000059478/000005947826000104/q326lillysalesandearningsp.htm)
- [Langham Logistics, Langham Logistics opens largest pharmaceutical cooler in the US](https://www.elangham.com/langham-logistics-opens-largest-pharmaceutical-cooler-in-the-us-in-plainfield-indiana/)
- [USDA NASS, Capacity of Refrigerated Warehouses 2025 Summary](https://esmis.nal.usda.gov/sites/default/release-files/795764/rfwh0126.txt)
- [US Food and Drug Administration, Approved cellular and gene therapy products](https://www.fda.gov/vaccines-blood-biologics/cellular-gene-therapy-products/approved-cellular-and-gene-therapy-products)
- [Cencora (SEC filing), Cencora fiscal 2026 fourth quarter results](https://www.sec.gov/Archives/edgar/data/0001140859/000114085926000038/exhibit991-q42026.htm)
- [DHL, DHL Supply Chain life sciences Center of Excellence, Annville](https://www.dhl.com/us-en/home/press/press-archive/2026/dhl-supply-chain-expands-life-sciences-and-healthcare-capabilities-with-new-center-of-excellence.html)
- [Air Cargo News, UPS completes Andlauer Healthcare Group acquisition](https://www.aircargonews.net/ups-completes-andlauer-healthcare-group-acquisition/1080857.article)
- [Federal Register, Adjusting imports of pharmaceuticals and pharmaceutical ingredients](https://www.federalregister.gov/documents/2026/04/09/2026-06956/adjusting-imports-of-pharmaceuticals-and-pharmaceutical-ingredients-into-the-united-states)
- [Covington & Burling, Section 232 tariffs on patented pharmaceuticals](https://www.cov.com/news-and-insights/insights/2026/04/trump-administration-announces-section-232-tariffs-on-patented-pharmaceuticals-and-ingredients)
- [Eli Lilly, Lilly to build USD 6 billion API facility](https://investor.lilly.com/news-releases/news-release-details/lilly-build-6-billion-facility-manufacture-active-pharmaceutical)
- [Johnson & Johnson, Johnson & Johnson increases U.S. investment to more than USD 55 billion](https://www.jnj.com/media-center/press-releases/johnson-johnson-increases-u-s-investment-to-more-than-55-billion-over-the-next-four-years)
- [Cryoport (SEC filing), Cryoport third quarter 2026 results](https://www.sec.gov/Archives/edgar/data/0001124524/000110465926123381/tm2629096d1_ex99-1.htm)
- [Novo Nordisk, Wegovy pill approved in the US as first oral GLP-1 for weight management](https://placera.se/pressmeddelanden/novo-nordisk-b-novo-nordisk-a-s-wegovy-pill-approved-in-the-us-as-first-oral-glp-1-for-weight-management-20251222)
- [CDC, Weekly flu vaccination dashboard](https://www.cdc.gov/flu/fluvaxview/dashboard/vaccination-dashboard.html)
- [GEODIS, GEODIS unveils first cold chain cross-dock facility in the Americas](https://www.prnewswire.com/news-releases/geodis-unveils-first-cold-chain-cross-dock-facility-in-the-americas-302749256.html)
- [Cardinal Health (SEC filing), Cardinal Health Q1 fiscal 2027 results](https://last10k.com/sec-filings/cah/0000721371-26-000042.htm)
- [McKesson (SEC filing), McKesson Q2 fiscal 2027 Form 10-Q](https://last10k.com/sec-filings/mck/0000927653-26-000281.htm)
- [US Food and Drug Administration, Exemptions under the Drug Supply Chain Security Act](https://www.fda.gov/drugs/drug-supply-chain-security-act-dscsa/exemptions-under-drug-supply-chain-security-act)
- [eCFR, 21 CFR 211.142 Warehousing procedures](https://www.ecfr.gov/current/title-21/chapter-I/subchapter-C/part-211/subpart-H/section-211.142)

## How to cite

Douglas Insights, "U.S. Pharmaceutical Cold Storage Warehousing Market", DI-HC-10943, updated 2026-11-15, https://www.douglasinsights.com/u-s-pharmaceutical-cold-storage-warehousing-market/