Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTFatima GulzarMon, July 27, 2026 at 9:03 PM GMT+2 6 min readLogistics companies make money by moving packages. However, nowadays, more and more of those packages need to stay cold the entire way, and that's becoming a real business opportunity for United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX).Why This Is Happening NowThe reason is simple, and that is more people are taking medications that spoil if they get too warm. Ozempic, Wegovy, Mounjaro, and Zepbound, the popular GLP-1 weight-loss and diabetes drugs, all need refrigerated shipping. A Gallup poll from July found that 11% of Americans took a GLP-1 drug for weight loss in 2026, up from just 3% in 2024. A separate, broader estimate from KFF found that about one in eight adults had used a GLP-1 for any reason, including diabetes, as of late 2025. Either way, demand is climbing fast. The Food and Drug Administration has warned that these drugs lose their effectiveness if they arrive "warm or with insufficient refrigeration." The World Health Organization says temperature problems already cause half of all vaccine waste worldwide, costing $35 billion a year. Starting this month, Medicare is also making some GLP-1 prescriptions available for $50 a month under a new government program, which should push demand even higher.GLP-1 Drugs Need to Stay Cold: Is it Turning Into a Real Growth Story for United Parcel Service, Inc. (UPS) and FedEx Corporation (FDX) Copyright: kzenon / 123RF Stock PhotoUnited Parcel Service, Inc. (NYSE:UPS): A Fast-Growing Piece of a Bigger StrategyUnited Parcel Service, Inc. (NYSE:UPS) has been building this business for years. Healthcare revenue has gained market share every year since 2021, and the company posted its first-ever $3 billion healthcare revenue quarter earlier this year. In June, UPS announced a new $48 million investment in 27 temperature-controlled facilities aiming to capture more of a temperature-sensitive biologics market that research firm Growth Market Reports expects to grow to about $39.1 billion by 2033. UPS has also been buying its way into the space, acquiring European cold-chain firms Frigo-Trans and BPL in January, following its $1.6 billion purchase of Andlauer Healthcare Group late last year. Tomé told Reuters in April, "I would argue that healthcare is pretty recession-proof." That's the real appeal here. Package volumes can slow down when the economy weakens, but people don't stop needing their medications.UPS hasn't reported its next earnings yet, but Wall Street is already leaning positive. Bernstein and Citi both raised their price targets on UPS this month to $133 and $132, respectively, noting tighter shipping capacity and improving demand across the transport market.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info