Market Trends of philippines courier, express, and parcel (cep) Industry
The Philippine GDP rise 7.6% annual growth in 2022, driven by rise in trade warehouse and industrial growth
- In the fourth quarter of 2022, the Philippine GDP increased by 7.2%, leading to a 7.6% annual growth. Wholesale and retail trade, auto and motorcycle repair (8.7%), financial and insurance activities (9.8%), and manufacturing (4.2%) were the main drivers of the growth in the fourth quarter of 2022. The industries that made the most significant contributions to the annual growth for 2022 were manufacturing (5.0%), construction (12.7%), wholesale and retail trade (8.7%), and auto and motorcycle repair.
- The Philippine logistics industry has the potential to reach between PHP 970 billion (USD 0.77 billion) and PHP 1 trillion (USD 0.017 trillion) by 2023. It is one of the most suitable docking locations for supply routes as it connects numerous export and import markets of various countries worldwide. The country's transportation, storage, and establishments industry, which currently makes up 21.1% of all businesses, will dominate the logistics market.
- Warehousing is the second most significant component of the Philippine logistics market. The most important market contributors are industrial and retail warehousing and e-commerce firms. Manufacturing activities are increasing in the Philippines market. Rising domestic consumption and international trade activities are the primary drivers of warehousing growth in the Philippines. Warehousing in the Philippines has seen an increase in trade flow in recent years, which has boosted demand for transportation and storage facilities. A yearly increase in cumulative cargo throughout the country has also positively impacted the Philippine warehousing industry.
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Despite the decline in the Philippine energy sector by 4.8% in 2022, it is poised to grow by 5.5% in 2023
- The Philippine government allocated PHP 2.5 billion (USD 49 million) in fuel subsidies for public transportation drivers in 2022 despite rising oil prices as a result of Russia's attack on Ukraine. The funds would be used for the Department of Transportation's fuel subsidy program, providing vouchers to 377,000 drivers. In 2022, the average retail price of one-liter gas in the Philippines was around 1.55 USD, reflecting a significant increase from the previous year's retail price of 1.04 USD.
- In 2021, the price of natural gas increased by 77.55% due to the increasing demand for air conditioning in homes and buildings and natural gas in the power sector. Oil firms raised the prices of petroleum products for the sixth week in a row in August 2023 by PHP 2.50 (USD 0.04) per liter. Saudi Arabia continued its production cuts amid rising demand. The price of gasoline increased by PHP 1.90 (USD 0.03) per liter and diesel by PHP 1.50 (USD 0.02) per liter. According to the Department of Energy's (DOE) Oil Industry Management Bureau, prices will likely increase over the next two months as global supply continues to decline despite high demand.
- During 2022-2031, the demand for oil in the Philippines is expected to increase by 3.4%, and net imports are estimated to increase by around 3.5%. The energy sector in the Philippines declined by 4.8% in 2022, but it is expected to grow by 5.5% in 2023. However, there are supply limitations, and the sector needs to shift toward green energy. As the population grows and the domestic gas supply decreases, the country is expected to rely heavily on imported fuel, leading to a power shortage from 2024 to 2025.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The presence of more than one million e-commerce businesses in the Philippines is boosting the economy
- The highest inflation increase since 2008 occurred in 2022 owing to an increase in prices of food and non-alcoholic beverages
- The manufacturing sector's contribution to GDP grew by 10.92% YoY in 2022, led by the food and beverages sub-segment
- Biofuel is expected to be among the top import commodities in the Philippines by 2026
- The e-commerce sector is leading market growth in the Philippines, with a rising number of businesses entering online retailing
- The e-commerce industry experienced a growth of 4% YoY in 2022, led by the electronics sub-segment
- Electronic commodities valued at USD 3.17 billion in the Philippines boosted exports in 2022
- The Philippines rank 43rd in the Logistic performance Index due to improving in clearance processes
