Logistics giants are racing to keep up with healthcare boom as GLP-1s highlight need for cold storage

Logistics giants are racing to keep up with healthcare boom as GLP-1s highlight need for cold storage

UPS, FedEx and logistics giants are investing in the healthcare boom

Shipping and logistics companies are tapping into the growing healthcare market as cold chain and temperature-controlled facilities become more crucial.

Those companies are investing millions of dollars and strengthening dozens of facilities to meet the evolving needs of shipping pharmaceuticals.

The explosive growth of medications like GLP-1 weight loss drugs has positioned healthcare as one of the fastest-growing segments for logistics companies.

A FedEx worker walks past his truck in the North Beach neighborhood on June 23, 2026 in San Francisco, California.

As demand rises for specialized medications like GLP-1s, logistics companies including UPS and FedEx are adapting their strategies to be able to better ship and store those pharmaceuticals.

Most injectable GLP-1 medications, including Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Mounjaro and Zepbound, require refrigerated storage for shipment.

The Covid pandemic put healthcare logistics at center stage in 2020, as the shipping of temperature-controlled vaccines quickly became a crucial part of keeping the virus at bay.

And as more money has been poured into new pharmaceutical innovations, the transportation of those products have come under the spotlight.

Logistics companies are now investing millions of dollars and strengthening dozens of temperature-controlled facilities to tap into the market.

In June, UPS announced a new $48 million investment in temperature-controlled facilities as it sees a growing demand for critical treatments.

According to Growth Market Reports, the demand for temperature-sensitive biologics is projected to grow at an 8.3% compound annual growth rate through 2033 and reach a market value of roughly $39.1 billion.

Obesity and diabetes drugs, meanwhile, have been booming in popularity.

A July Gallup poll found that 11% of Americans take GLP-1 medications for weight loss purposes in 2026, up from just 3% in 2024.

But if they're not stored and shipped at the correct temperature, they risk losing their efficacy.

The Food and Drug Administration has warned that improper storage during shipping can affect the medicine's quality and recommends patients do not use GLP-1 drugs that arrive "warm or with insufficient refrigeration."

Other biologics, like some vaccines, insulin and antibiotics, also require specialized shipment to maintain efficacy.

For logistics companies, that means ensuring the proper storage and movement every step of the way.

Bulking up Healthcare logistics have proven to be one of UPS' biggest opportunities.

On an earnings call with analysts in April, CEO Carol Tomé said the company's global healthcare portfolio has gained market share every year since 2021, generating its first ever $3 billion healthcare revenue quarter in the first quarter of this year.

UPS President of Healthcare John Bolla told CNBC that the company is seeing more healthcare companies looking for partners to keep up with the volume.

"One of the biggest opportunities we see is supporting the shift toward more specialized therapies and more care delivered outside of traditional healthcare settings," Bolla said.

United Parcel Service trucks are parked at a UPS customer center in Los Angeles on April 1, 2024.

He said UPS is experiencing "rapid growth" in biologics, cell and gene therapies, though the biggest challenge is that the margin for error is small — even a brief stray from the correct temperature can ruin the medicines, Bolla said.

"But that's also what's creating such a significant opportunity in healthcare logistics," he said.

"As treatments become more specialized and supply chains become ...