Philippines Logistics and Warehousing Market and Forecast (2018-2028) – Focus on Freight Forwarding, Warehousing, Cold Chain, Express Logistics and 3PL
Executive Summary
The logistics market in the Philippines is experiencing significant growth and presents numerous opportunities. With a population of over 100 million people, rapid urbanization, and a strategic location in Southeast Asia, the country is an attractive market for logistics services. The government has been investing in infrastructure projects to improve transportation networks, including roads, ports, and airports. These developments aim to enhance logistics efficiency and facilitate the movement of goods.
Road freight dominates the Philippines logistics market, while sea freight is gaining immense traction, with air freight contributing a minor share.
With the rise of online shopping and the need for efficient distribution networks, companies are investing in modern warehousing facilities to accommodate inventory storage, order fulfilment, and last-mile delivery. The demand for specialized warehouses, such as those catering to pharmaceuticals, food and beverages, and perishable goods, has also increased.
Increased domestic demand, international trade activities, and the quickly growing manufacturing sector of the Philippines has rose warehouse market revenue, registering a CAGR growth of 11% from 2018-22.
Increasing Demand for Road and Sea Transportation: The warehousing sector is expected to grow as a result of the growth of already existing technologies and technical equipment. As the nation's logistics industry transitions to digital growth, platooning and the deployment of electric vehicles are also assisting in reducing the cost of freight transportation and combating cargo theft. Over the next ten years, the need for logistics services will rise even more in the Philippines due to the country's expanding middle class, increased consumer expenditure, and young, tech-savvy population. Due to projects like the RESPOND and PCCP Project, employment opportunities will also increase in logistics in the years to come.
Increased Spending on Infrastructure to Propel the Logistics and Freight Forwarding Market: The Philippines has announced new projects in 2022 in the traditional sectors of transportation, energy, and water projects.
North Harbor's modernization and redevelopment have the potential to become an important catalyst in the country's domestic commerce.
Philippines Logistics and Warehousing Market By product segmentation
By Type of Warehouse: The warehouse market in Philippines by type consists of General purpose warehouse, cold storage, bonded warehouses and others. General purpose storage accounts for the major market share. The growing export-import trade, retail sector, and industrial production are boosting the demand for general warehouses.
By sector: The warehouse market in the Philippines by sector is divided into ecommerce, manufacturing, Industrial & Retail, Agriculture and others. As Filipino customers continue to swarm online marketplaces, e-commerce saw an unexpected rise. There is a growing demand for warehousing in the Philippines as more companies look for warehousing operations or services there. The manufacturing industry is expanding in the Philippines. The Philippines' expanding warehouse industry is primarily driven by increased domestic demand and global trade operations.
By Cities: There are 151 cold storage facilities accredited by the Department of Agriculture, with the majority located in Metro Manila (National Capital Region) (45), Central Luzon (30), and Calabaza (24). The remaining facilities are primarily located outside of Luzon in the Central Isaias (13) and Davao (18) areas
The logistics market in the Philippines holds tremendous potential, driven by factors such as infrastructure development, e-commerce growth, a rising middle class, and the expansion of the BPO industry. However, challenges related to infrastructure, congestion, and industry fragmentation need to be addressed for the market to reach its full potential.
Scope of the Study
The study conducted by Maker Research on the “Philippines Logistics and Warehousing Market and Forecast (2018-2028) – Focus on Freight Forwarding, Warehousing, Cold Chain, Express Logistics & 3PL " provides a comprehensive analysis of the market, encompassing a wide range of factors. The report takes into account both qualitative and quantitative factors, indicating a well-rounded approach to analysis. The inclusion of both qualitative and quantitative factors in the study ensures that readers gain a more complete understanding of the Philippines Logistics & Freight Forwarding Market. It goes beyond mere numbers and incorporates insights into consumer behavior, industry trends, and market dynamics. This holistic approach enhances the overall analysis and makes the study a valuable resource for individuals or organizations interested in exploring the logistics, warehousing, 3PL, cold chain, express logistics market in Philippines. Moreover, the report's focus on past and present performance, as well as potential growth opportunities in the future, enables readers to identify key areas of interest and investment.
Market Assessment: The report examines opportunity for the Philippines Logistics and Freight Forwarding market on various grounds including
- Logistics and Freight forwarding Market revenue and forecast
- 3PL Market revenue and forecast
- Warehousing Market revenue and forecast
- Cold Chain Market revenue and forecast
- Express Logistics Market revenue and forecast
- ecommerce logistics performance
Market Segmentation:
Market by Service Type
- Logistics
- Warehousing
- Value Added
Market Mode of Transportation
- Road Freight
- Sea Freight
- Air Freight
Market by Type of Warehouse
- General Purpose Warehouse
- Cold Storage
- Bonded Warehouse
- Others
Warehousing by Sectors
- E-commerce
- Manufacturing
- Industrial and Retail
- Agriculture
- Others
Cold Storage Demand by Cities
- Metro Manila
- Central Luzon
- Calabarzon & Others
Companies Covered:
- DHL Group
- FedEx Corporation
- United Parcel Services
- Yusen Logistics
- DB Schenker
- Nippon Express
- Kuehne+Nagel
- Agility Logistics
- CEVA Logistics
- Others (PHL Post, 2GO Logistics, Chelsea, Airspeed)
- Others (Airspeed, JRS Express, CJ Logistics)
Key Questions Addressed:
- How has the performance of the Philippine economy been in the past, and what is the expected growth outlook for the future?
- What has been the past performance of the logistics industry in the Philippines, and what is the current scenario?
- How has the warehousing industry responded to the challenges posed by COVID-19?
- What is the current growth rate of third-party logistics (3PL) in the Philippines, and what can be expected in the future?
- How is the demand shaping up for logistics service providers in the Philippines?
- What is the performance of the major sectors in the Philippines?
- Which mode of transportation dominates the logistics industry in the Philippines?
- Which sectors account for the major contribution to logistics demand in the country?
- Who are the key players in the market, and what is their current performance status?
- What are the key business highlights of these players?
- What is the present financial situation of the players, and what is their market share?
- How is the investment scenario in the Philippines?