Market Trends of North America Insulated Shipping Containers Industry
The Life Sciences and Pharmaceutical Segment Holds a Significant Market Share
- In the United States, many temperature-sensitive medications are produced and shipped, including expensive and highly specialized cancer therapies and vaccines against infectious diseases. Insulated shipping containers, therefore, prove crucial in preventing the loss of expensive drugs due to temperature variations.
- Rising demand for handling temperature-sensitive pharmaceuticals is fueling a sales increase for insulated shipping containers. A growing regulatory emphasis on compliance with storage temperature standards will promote demand in medicine and medical applications.
- Due mostly to its investments in biomedical research, the United States has emerged as a global leader in drug discovery and development, with a sizable number of manufacturers. The demand for these containers is considerable and is expected to continue to rise with the increase of production in the United States and Canada, which have notable life sciences and pharmaceutical industries.
- In February 2024, DHL Supply Chain, a contract logistics company, unveiled plans for a USD 200 million investment, specifically earmarked for bolstering its life sciences and healthcare capabilities. This strategic initiative encompasses the development of warehouse facilities, poised to expand the company's operational space to a staggering 13 million sq. ft. Moreover, DHL plans to channel funds into advanced technologies aimed at streamlining operations and fortifying the resilience of its healthcare and life sciences supply chains. This substantial investment underscores DHL's unwavering dedication to furnishing the industry with dependable, efficient, and temperature-controlled logistics solutions.
- The growth in this industry is primarily fueled by the pharmaceutical segment’s rise, marked by a consistent influx of innovative treatments, notably those targeting weight management and diabetes. This trend, alongside the resurgence of local drug manufacturing, has catalyzed a surge in demand for expanded capacity. With more brands pivoting toward domestic production, the necessity for streamlined inbound logistics to support these manufacturing lines has become paramount.
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The United States is Expected to Register the Highest Growth Rate
- North America is considered one of the important markets worldwide for insulated shipping containers, with the United States making up a sizeable portion of that market. The substantial presence of numerous vendors, exports, and imports can be linked to the nation's high demand. The use of insulated shipping will see substantial prospects as a result of this expansion in export trade.
- Additionally, there are several laws pertaining to the industry in the nation. For instance, the Food and Drug Administration in the United States heavily regulates the industry of food-contact packaging. The rules are anticipated to encourage the use of insulated shipping containers nationwide because food is one of the most delicate things to move and store.
- The market is expanding, as was witnessed by the announcement of a new USD 355 million bacon manufacturing facility made by Tyson Foods, Kentucky Governor Andy Beshear, and Bowling Green city leaders. The 450 workers at the 400,000 sq. ft plant, scheduled to debut in 2023, aimed to help meet growing demand for the company's Jimmy Dean and Wright brands. These developments increase the demand for insulated shipping containers for moving food.
- According to the US Department of Commerce's Census.gov website, e-commerce sales in the United States have shown a consistent upward trend for over a decade, with particularly notable increases in the last two years. Data from the US Census Bureau Trade Data reveals that in 2023, the country’s fresh fruit and vegetable exports were valued at USD 7.0 billion, marking a 2% rise over the previous year. This surge in demand for fresh produce exports is expected to be a key driver of market growth in North America.
- Recent events underscore the critical need for agile and resilient supply chains in the life sciences and healthcare industries, both in the United States and worldwide. Consequently, market vendors are ramping up investments in technology and strategic locations. This move aims to equip their customers with tools to proactively tackle disruptions, thereby safeguarding the seamless flow of essential supplies.
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