Philippines Freight and Logistics Market Size (2024 - 2029)

The logistics industry in the Philippines is experiencing significant growth, driven by the expansion of e-commerce and the increasing demand for warehouse and storage solutions. The market size is expected to expand as more consumers turn to online shopping, prompting a rise in online retailers and the need for logistics services. This growth is further supported by the demand for cold storage facilities and tech-driven logistics solutions, which enhance order transparency and efficiency. The digital transformation in the logistics sector is poised to continue, contributing to the overall increase in market size.

Market Size of Philippines Freight and Logistics Industry

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Philippines Freight and Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.08 %
Market Concentration Low

Major Players

Philippines Freight & Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Philippines Freight & Logistics Market Analysis

The Philippines Freight and Logistics Market size is estimated at USD 18.03 billion in 2023, and it is expected to reach USD 25.38 billion by 2028, witnessing a CAGR of 7.08% during the forecast period.

  • The pandemic increased e-commerce in the nation as cautious consumers stayed home to avoid coming into contact with disease vectors. As more people purchase online and there are more online retailers in the country, this tendency will likely continue. According to the Philippines' Department of Trade and Industry (DTI), there were 1,700 online sellers in March 2020 and 93,318 in January 2021.
  • The warehouse industry was still in high demand, driven by the thriving e-commerce business, and this bode well for the industrial and logistics real estate sector's growth in 2022. According to a survey by Colliers Philippines, manufacturing, logistics, and e-commerce will continue to grow in 2022. According to Colliers, the industrial vacancy rate in the Cavite-Laguna-Batangas (CALABA) corridor decreased to 5.6% in the first half of 2021 from 5.7% in 2020.
  • Colliers attributed the reduction to the increase in the demand for warehouse and storage space from fast-moving consumer goods (FMCG) companies as the country's online retail market continues to expand. The e-commerce sector is anticipated to contribute around PHP 1.2 trillion (USD 25 billion) by 2022, according to the DTI's e-commerce roadmap. According to Colliers Philippines, the increased need for cold storage facilities is anticipated to support demand for industrial assets over the next 12 to 36 months. By 2023, the Board of Investments (BOI) expects the country's cold chain sector to generate PHP 20 billion (USD 417 million) in income.
  • The digital shift has been led by e-commerce firms like Lazada, Zalora, and Shopee, who work with tech-driven logistics firms like Ninja Van and Lalamove to transport items so that customers can track their orders in real-time. Switching to digital will increase order status transparency, reduce lead times, and speed up customs clearance processes by up to 80%, taking only 3-5 business days.

Philippines Freight & Logistics Industry Segmentation

Freight refers to any type of goods, items, or commodities that are transported in bulk via air transport, surface transport, or sea/ocean transport. Logistics refers to managing how resources are acquired, stored, and transported to their final destination. A complete background analysis of the Philippines freight and logistics market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

The Philippines freight and logistics market is segmented by function (freight transport, freight forwarding, warehousing, and value-added services and other services) and end user (manufacturing and automotive, oil and gas, mining, and quarrying, agriculture, fishing, and forestry, construction, distributive trade, healthcare and pharmaceutical, and other end users). The report offers the market size in value terms in USD for all the abovementioned segments.

By Function
Freight Transport
Road
Sea and Inland Water
Air
Rail
Freight Forwarding
Warehousing
Value-added Services and Others
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade
Healthcare and Pharmaceuticals
Other End Users
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Philippines Freight and Logistics Market Size Summary

The logistics industry in the Philippines is experiencing significant growth, driven by the surge in e-commerce and digital transformation. The pandemic has accelerated the shift towards online shopping, with a substantial increase in the number of online retailers and consumers purchasing goods online. This trend has bolstered the demand for logistics and warehousing solutions, particularly in the fast-moving consumer goods sector. The industrial and logistics real estate sector has benefited from this growth, with a notable decrease in industrial vacancy rates in key regions. The rise of e-commerce has also led to increased demand for cold storage facilities, supporting the expansion of industrial assets. Companies like Lazada, Zalora, and Shopee are at the forefront of this digital shift, collaborating with tech-driven logistics firms to enhance order tracking and streamline logistics processes.

The Philippines' logistics market is characterized by a fragmented competitive landscape, with numerous local and international players such as FedEx, UPS, DHL, and 2GO Express. These companies are making strategic investments to strengthen their regional logistics networks, including the establishment of new distribution centers and smart warehouses. The growth of e-commerce, coupled with rising consumption and internet penetration, is a key driver of courier service development. Additionally, infrastructure projects, such as the rehabilitation of Kennon Road and the North-South Commuter Railway, are expected to further fuel logistics operations. Government initiatives, like the Philippines Cold Chain Project, are also enhancing the country's logistics infrastructure. The increasing demand for freight forwarding, warehousing, and value-added services, particularly in cross-border e-commerce, presents significant opportunities for logistics providers in the Philippines.

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Philippines Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND MARKET DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Brief on Government Regulations and Initiatives

    3. 1.3 Market Dynamics

      1. 1.3.1 Drivers

        1. 1.3.1.1 Growing E-commerce Sales

      2. 1.3.2 Restraints

        1. 1.3.2.1 High Shipping Costs

      3. 1.3.3 Opportunities

        1. 1.3.3.1 Increasing Investments in Infrastructure Projects

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Industry Value Chain/Supply Chain Analysis

    6. 1.6 Insights into Technological Trends

    7. 1.7 Insights into the E-commerce Industry

    8. 1.8 Insights into Logistics Infrastructure Development in the Philippines

    9. 1.9 Brief on the Courier, Express, and Parcel (CEP) market in Philippines (Market Size and Forecast)

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Function

      1. 2.1.1 Freight Transport

        1. 2.1.1.1 Road

        2. 2.1.1.2 Sea and Inland Water

        3. 2.1.1.3 Air

        4. 2.1.1.4 Rail

      2. 2.1.2 Freight Forwarding

      3. 2.1.3 Warehousing

      4. 2.1.4 Value-added Services and Others

    2. 2.2 By End User

      1. 2.2.1 Manufacturing and Automotive

      2. 2.2.2 Oil and Gas, Mining, and Quarrying

      3. 2.2.3 Agriculture, Fishing, and Forestry

      4. 2.2.4 Construction

      5. 2.2.5 Distributive Trade

      6. 2.2.6 Healthcare and Pharmaceuticals

      7. 2.2.7 Other End Users

Philippines Freight and Logistics Market Size FAQs

The Philippines Freight and Logistics Market is projected to register a CAGR of 7.08% during the forecast period (2024-2029)

DHL, UPS, FedEx, PHL Post and Nippon Yusen NYK (Yusen Logistics) are the major companies operating in the Philippines Freight and Logistics Market.

Logistics Industry in the Philippines Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)