GLP-1 cold storage demand pushes UPS, FedEx and DHL deeper into healthcare

GLP-1 cold storage has become a bigger business priority for UPS, FedEx, DHL and C.H. Robinson as demand grows for drugs that can lose effectiveness if they get too warm in transit. For everyday investors, the takeaway is straightforward: healthcare is becoming a larger growth lane for logistics companies that used to be judged mostly on packages, freight and holiday shipping volumes.

CNBC reported that shipping companies are investing millions of dollars and upgrading temperature-controlled facilities to serve pharmaceutical customers. The shift is being driven partly by GLP-1 medications, a class of drugs used for diabetes and weight loss, including Novo Nordisk’s Ozempic and Wegovy and Eli Lilly’s Mounjaro and Zepbound.

Most injectable GLP-1 drugs need refrigeration during shipment, according to CNBC. The Food and Drug Administration has warned that poor storage during shipping can hurt medicine quality and recommends that patients avoid GLP-1 drugs that arrive warm or without enough refrigeration.

Why do GLP-1 drugs need cold storage?

Cold storage, often called cold-chain logistics, means keeping a product within a required temperature range from warehouse to delivery. For temperature-sensitive medicines such as injectable GLP-1s, some vaccines, insulin and certain antibiotics, losing that control can reduce the drug’s effectiveness, according to the FDA and CNBC.

The market opportunity is getting larger. Growth Market Reports projects demand for temperature-sensitive biologics to grow at an 8.3% compound annual rate through 2033, reaching about $39.1 billion. A July Gallup poll found that 11% of Americans reported taking GLP-1 medications for weight loss in 2026, compared with 3% in 2024.

UPS announced in June that it would put $48 million into temperature-controlled facilities. On an April earnings call, CEO Carol Tomé said UPS’ global healthcare portfolio had gained market share every year since 2021 and produced its first $3 billion healthcare revenue quarter in the first quarter of this year.

John Bolla, UPS president of healthcare, told CNBC that more healthcare companies are looking for logistics partners as volumes rise. He said specialized therapies and care delivered outside traditional medical settings are creating demand for more controlled delivery networks. Bolla also said the challenge is precision, because even a short move outside the correct temperature range can ruin some medicines.

FedEx is also building around healthcare. The company launched a life sciences organization this month to support pharmaceutical and healthcare-product movement. On a June earnings call, Chief Customer Officer Brie Carere told analysts that FedEx healthcare transportation revenue reached nearly $10 billion in fiscal 2026.

Nick Gennari, FedEx’s president of healthcare, told CNBC that GLP-1 delivery is getting more complex as products range from injectables to oral pills and reach consumers through direct-to-consumer channels. He said FedEx uses specialized technology, including machine learning tools that help customers track product movement and identify healthcare shipments based on their specific handling needs.

C.H. Robinson told CNBC it generated more than $1 billion in healthcare logistics revenue over the past year, helped largely by GLP-1 growth. Ronnie Davis, the company’s vice president of North American surface transportation, said refrigerated supply resources are constrained as GLP-1s and other specialized medicines compete for capacity.

DHL is also spending heavily. The company announced last year that it plans to invest 2 billion euros, or $2.25 billion, in health logistics by 2030, with half assigned to the Americas. Hendrik Venter, CEO of DHL Supply Chain, told CNBC that DHL uses artificial intelligence to monitor life-science products, track temperatures and anticipate where problems may arise.

The broader theme is that drug innovation is changing the delivery business. As more medicines require exact temperatures, short delivery windows and better tracking, logistics companies are trying to make healthcare less of a side business and more of a core revenue engine.

This story draws on original reporting from CNBC.