Metropolitan Manila Area, Philippines Jul 30, 2023 (Issuewire.com) - In 2022, the logistics and warehousing market in the Philippines witnessed remarkable year-on-year growth of approximately 14%, solidifying its position as a strategic logistics hub connecting Southeast Asia. This expansion was primarily fueled by the country's advantageous geographic location and the thriving fast-moving consumer goods (FMCG), retail, food, and eCommerce industries. As a result, the goods forwarding sector experienced significant growth, contributing to the overall boost of the Philippine logistics market. Moreover, the proactive role of the Philippine government in investing and upgrading transportation infrastructure has supported the country's vision of becoming a leading manufacturing hub in the Asia Pacific region, further driving the growth of the logistics industry.
Infrastructure Collaborations and Upgrades: During this period, the Philippines unveiled various projects in traditional transportation, energy, and water sectors, with a focus on collaboration with foreign companies in developing industries. The government has shown interest in public-private partnerships to improve infrastructure, such as the renovation of Kennon Road, attracting potential bidders from China and Japan. These efforts reflect the government's commitment to enhancing the nation's infrastructure and fostering the growth of the logistics and freight forwarding sector.
International Logistics Opportunities: Despite significant growth, the Philippines ranks 13th in the global logistics opportunities index, trailing behind other ASEAN-5 members like Vietnam, Thailand, Indonesia, and Malaysia. The index evaluates a country's capacity to support international logistics operations and its domestic and worldwide demand for trade-intensive logistics services. While the Philippines has made progress, there is still potential for further improvement in this aspect.
E-Commerce Boom Driving Logistics Industry: The surge in online shopping has led to a substantial increase in demand for efficient delivery services, driving the expansion of last-mile logistics providers in the Philippines. Additionally, the integration of advanced technologies for tracking and delivery management has become a priority for meeting customer expectations. The adoption of digital or e-payment transactions has also risen, indicating a shift towards a more technologically-driven logistics ecosystem.
Rise of Sea Freight and Warehouse Investment: Road freight remains a dominant force in the Philippine logistics market, but there is a noticeable increase in the importance of sea freight, playing a vital role in connecting the country's islands. Moreover, air freight retains a minor share but shows signs of growth in domestic cargo traffic, reflecting the potential for expansion.
Investments in warehouses and distribution centers are predicted to be the upcoming major real estate investment in the Philippines. With businesses transitioning to online platforms, there is a rising need for storage facilities to accommodate product inventory. The cold chain market has also experienced significant growth due to increasing domestic consumption of meat and seafood, along with government efforts and investments. The sector is poised to surpass the USD 350 million mark in 2023.
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
Competition Assessment
The report examines competition on various grounds including player’s performance, market positioning and recent developments
- Competitive Landscape
- Mergers/Acquisition/Investment
- Company Profiles
Players Discussed
DHL Group, FedEx Corporation, United Parcel Services, Yusen Logistics Co. Ltd., DB Schenker, Nippon Express, Kuehne+ Nagel AG, Agility Logistics, CEVA Logistics, PHL Post, 2GO Logistics Inc, Chelsea Logistics, LBC Express Holdings, Inc, Airspeed, JRS Express, CJ Logistics
Conclusion: The Philippines logistics and warehousing market have witnessed impressive growth, driven by its strategic location, booming eCommerce industry, and government infrastructure investments. While there are opportunities for further improvement in international logistics, the country's rising prominence in the region and evolving landscape present ample prospects for businesses and investors interested in exploring this dynamic market.
To Know More:- Philippines Logistics and Warehousing Market and Forecast (2018-2028) – Focus on Freight Forwarding, Warehousing, Cold Chain, Express Logistics and 3PL
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Philippines Warehousing and Cold Chain Market Report: Size, Share, Growth, and Forecast (2018-2028)
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