Philippines Logistics Market Report and Forecast 2024-2032

Philippines Logistics Market Outlook

The Philippines logistics market size reached USD 55.65 billion in 2023. The market is expected to grow at a CAGR of 6.3% between 2024 and 2032, reaching almost USD 96.80 billion by 2032.

Key Takeaways:

• As per industry reports, the online retail landscape in the Philippines has experienced exponential growth, as evidenced by the surge in online sellers from 1,700 in March 2020 to 93,318 in January 2021, according to the Department of Trade and Industry (DTI). This trend is expected to continue, with manufacturing, logistics, and e-commerce sectors poised for further expansion in 2022, according to Colliers Philippines.

• Colliers reports a decrease in the industrial vacancy rate in the Cavite-Laguna-Batangas (CALABA) corridor, attributing this to increased demand for warehouse and storage space from fast-moving consumer goods (FMCG) companies, driven by the country's expanding online retail market. The e-commerce sector is projected to contribute around PHP 1.2 trillion (USD 25 billion) by 2022, according to the DTI's e-commerce roadmap.

• In addition, cross-border e-commerce sales have seen substantial growth in 2022, with a USDA study revealing that over 70 million online users in the Philippines engaged in cross-border e-commerce (CBE), predominantly purchasing non-food items. This underscores the significant impact of e-commerce on the country's retail market.

The Philippines logistics market is rapidly advancing, driven by digitalization, economic growth, and strategic infrastructure initiatives. The World Bank's 2023 Logistics Performance Index positioned the Philippines 43rd among 19 economies, highlighting the impact of digitalisation on port efficiency. The flourishing freight and logistics market in the Philippines owes its success to expanding e-commerce, infrastructure development, rising consumer demand, and government efforts to enhance transportation and supply chain efficiency.

Despite the sector's growth, the Philippines faces logistical challenges due to its archipelagic geography, necessitating innovative solutions. Metro Manila, the primary logistics hub, experiences high demand amid traffic congestion and limited infrastructure, leading to significant delays at key transport nodes.

With rising fuel prices and transportation costs in 2024, logistics companies must strike a balance between cost-effectiveness and service quality to ensure business continuity amidst global supply chain disruptions. The industry also grapples with labour shortages, highlighting the need for investments in training and competitive compensation to attract and retain talent.

Furthermore, effective communication between logistics providers and B2B customers is critical to avoid delays and reputational damage. Comprehensive logistics insurance is essential for safeguarding operations, especially in an environment prone to unexpected events.

The Philippines logistics market outlook is evolving rapidly, driven by economic expansion, infrastructure investments, and the surge in e-commerce demand. Leveraging digitalization and prioritizing digital transformation will be pivotal in capturing new opportunities and fostering growth in the logistics sector.

Market Segmentation

Philippines Logistics Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Model Type

• 1 PL

• 2 PL

• 3 PL

• Others

Market Breakup by Transportation Mode

• Roadways

• Seaways

• Railways

• Airways

Market Breakup by End User

• Manufacturing

• Consumer Goods and Retail

• Food and Beverages

• IT Hardware and Telecom

• Healthcare

• Chemicals

• Construction

• Automotive

• Oil and Gas

• Others

Competitive Landscape

Key players in the logistics market in Philippines utilise technological advancements to offer services along with carrying out mergers and acquisitions to support the end users.

• FedEx Corporation 

• Airspeed International Corporation  

• Omni Logistics, LLC 

• United Parcel Service, Inc. 

• Schenker AG 

• C.H. Robinson Worldwide Inc. 

• Deutsche Post AG 

• DSV A/S 

• CMA CGM Group (CEVA Logistics SA) 

• Kuehne + Nagel International AG  

• Nippon Express Co., Ltd.  

• Expeditors International of Washington, Inc. 

• A.P. Møller – Mærsk A/S     

• Others

Key Highlights of the Report