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

The report covers Logistics Companies in the Philippines and the market is segmented by function (freight transport, freight forwarding, warehousing, 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).

Philippines Freight & Logistics Market Size

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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 Market Trends

Growth in e-Commerce to Drive the Logistics Market in Philippines

According to Lazada Group, the Philippine e-commerce market is expected to grow faster than its regional competitors. In the next five to ten years, Lazada expects e-commerce in the Philippines and the rest of Southeast Asia to grow "a lot higher" as these countries recover from the pandemic despite the global economic slowdown and rising prices.

Moreover, in 2022, cross-border e-commerce sales also witnessed a growth rate, and as per a United States Department of Agriculture (USDA) study, more than 70 million online users in the Philippines participated in cross-border e-commerce (CBE), mostly purchased non-food items accounting for the fourth largest contribution to the e-commerce sales market. The unprecedented growth in border e-commerce sales is majorly driven by Filipino consumers' shift towards acquiring a variety of imported goods directly.

In addition, the growing awareness among Filipino consumers regarding imported products and food and beverages further bolstered the CBE sales, from zero in 2019 to almost USD 1 million in purchases in 2022. Also, the developments in cross-border e-commerce sales further drive demand for freight forwarders, warehouses, other value-added services, etc. Meanwhile, in 2022, electronic goods witnessed significant sales from e-commerce platforms, and the sales amounted to more than USD 6 billion, followed by personal and household care, furniture, fashion, etc. Thus, the growing e-commerce sales create huge opportunities for logistics providers in the country.

Philippines Freight and Logistics Market - E-commerce Spending on Consumer Goods, Value in USD Billion, Philippines, 2022

Increased Spending on Infrastructure to Propel the Freight and Logistics Market in the Philippines

In the customary areas of transportation, energy, and WASH, the Philippines has announced new projects for 2022. (water projects). The local firms continue to hold the majority of the market share, but some collaborations with international players are being formed in new or emerging industries (such as a planned public-private partnership for a data center) when the local players lack the necessary technological expertise.

Government programs, such as the Philippines Cold Chain Project (PCCP), funded by the United States, are also helping to improve the Southeast nation's cold chain logistics infrastructure. The PCCP is a four-year project funded by the US Department of Agriculture (USDA). It is attempting to organize producer groups to increase agricultural productivity and meet international food safety standards by providing improved technologies, expanding cold chain-related markets, and strengthening intermediate organizations.

The Philippines' PHP 11 Bn (USD 214 Million) public-private partnership to rehabilitate Kennon Road has received expressions of interest from possible bidders, including China First Highway Engineering and JFE Engineering Corporation of Japan (PPP). Local building firms First Balfour and Riofil Corporation were among the others. The National Economic and Development Authority (NEDA) of the Philippines is where the DPWH will present the Kennon Road project for final approval. The 33km road has to be widened, 18 bridges need to be upgraded, and slope protection needs to be built.

The Philippines' railway network is undergoing a rebirth after decades of neglect and underspending that has left it in a decrepit state. Among the government's top priorities is the flagship North-South Commuter Railway in Manila, its largest-ever individual infrastructure investment. NSCR is envisaged as a 163 route-km suburban railway network connecting the regional growth centers of Clark and New Clark City in the north with central Manila and Calamba City in Laguna province to the south of the capital.

However, in January 2022, according to the Department of Public Works and Highways, 15 out of 119 flagship infrastructure projects of the Philippine government had been completed, which includes the improvement of remaining sections along the Pasig River. Meanwhile, 77 projects remain at the construction stage, while 27 are in the pipeline. Thus, the increasing logistics and infrastructure projects across the country are expected to fuel the freight and logistics operations.

Philippines Freight and Logistics Market - Infrastructure Projects of the Government, Value in Units, Philippines, March 2023

Philippines Freight & Logistics Industry Overview

The competition in the Philippines freight and logistics market is fragmented, with the presence of many local and international logistics service providers. Some of the existing major players in the market include FedEx, UPS, DHL, Kuehne + Nagel, PHL Post, Nippon Express, and 2GO Express.

The international players are making strategic investments to establish a regional logistics network, such as opening new distribution centers, smart warehouses, etc. The growth of e-commerce is an essential factor spurring the development of courier services. Increasing consumption and Internet penetration are boosting e-commerce activity in the Philippines.

Philippines Freight & Logistics Market Leaders

  1. DHL

  2. UPS

  3. FedEx

  4. PHL Post

  5. Nippon Yusen NYK (Yusen Logistics)

*Disclaimer: Major Players sorted in no particular order

Philippines Freight and Logistics Market Concentration
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Philippines Freight & Logistics Market News

Jul 2023: DB Schenker, a global logistics provider, and Volvo Cars entered a partnership for more sustainable ocean freight, shipping 12,000 standard containers (TEU) with automotive spare parts on vessels using biofuel that will reduce CO2 emissions by 84% per container. In total, over a year, this saves roughly 9,000 tons of CO2 compared to ocean freight vessels powered by fossil fuel.

Feb 2023: DHL Express, a global logistics company, upgraded its dedicated aircraft from A300 to A330-300 as part of the company's continued investment in its Philippine operations to serve the growing demand from consumers. The new upgrade, operated by Air Hong Kong, will provide a 31% increase in capacity from 42 tons to 55 tons with 12 weekly flights to serve the route of Hong Kong-Manila-Cebu-Manila-Hong Kong.

Philippines Freight & Logistics Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND MARKET DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Brief on Government Regulations and Initiatives

    3. 4.3 Market Dynamics

      1. 4.3.1 Drivers

        1. 4.3.1.1 Growing E-commerce Sales

      2. 4.3.2 Restraints

        1. 4.3.2.1 High Shipping Costs

      3. 4.3.3 Opportunities

        1. 4.3.3.1 Increasing Investments in Infrastructure Projects

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Industry Value Chain/Supply Chain Analysis

    6. 4.6 Insights into Technological Trends

    7. 4.7 Insights into the E-commerce Industry

    8. 4.8 Insights into Logistics Infrastructure Development in the Philippines

    9. 4.9 Brief on the Courier, Express, and Parcel (CEP) market in Philippines (Market Size and Forecast)

    10. 4.10 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Function

      1. 5.1.1 Freight Transport

        1. 5.1.1.1 Road

        2. 5.1.1.2 Sea and Inland Water

        3. 5.1.1.3 Air

        4. 5.1.1.4 Rail

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services and Others

    2. 5.2 By End User

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade

      6. 5.2.6 Healthcare and Pharmaceuticals

      7. 5.2.7 Other End Users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 Deutsche Post DHL Group

      2. 6.2.2 FedEx Corporation

      3. 6.2.3 United Parcel Service (UPS)

      4. 6.2.4 Nippon Yusen NYK (Yusen Logistics)

      5. 6.2.5 PHL Post

      6. 6.2.6 Nippon Express

      7. 6.2.7 LBC Express

      8. 6.2.8 2GO Express

      9. 6.2.9 JRS Express

      10. 6.2.10 DB Schenker

      11. 6.2.11 Kuehne + Nagel International AG

      12. 6.2.12 CJ Logistics*

    3. *List Not Exhaustive
    4. 6.3 Other Companies

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

    1. 8.1 Macroeconomic Indicators

    2. 8.2 Insights into Capital Flows

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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 & Logistics Market Research 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.

The report covers the Philippines Freight and Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Freight and Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Logistics in the Philippines Industry Report

Statistics for the 2024 Philippines Freight and Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Freight and Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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