The report titled “Philippines Logistics Market Outlook to 2024 – By Sea, Land, and Air Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Agriculture), By End Users; By Cold chain market (Cold transportation and Cold storages)“ provides a comprehensive analysis on the status of the logistics sector in Philippines. The report covers various aspects including the current logistics scenario in Philippines, its components viz, freight transportation, warehousing, CEP, VAS, and cold chain industries, the issues and challenges, major growth drivers, investment in infrastructure, tech disruptions and innovations, and competition benchmarking. The report concludes with market projections for future of the industry including forecasted industry size by revenue.

Philippines Logistics Market Overview and Size

Philippines Logistics Market has witnessed an average CAGR during 2014-19 due to favorable laws from CTAP, continued investment on building bridges, road congestion in metropolitan cities, and development of ports both by the government and with Public Private Partnerships. The influx of foreign players in the market in recent years, increasing consolidation, and investing in innovative technologies has stimulated the growth in the market.

Philippines Logistics Market Segmentation

Freight Transportation

Philippines’s freight forwarding market forms the largest part of logistics sector. The sector is dominated by sea freight both in terms of revenue & Volume as it is an import dependent country dependent on countries such as China, the United States, Japan, and Taiwan. It is followed by Road which only is only responsible for domestic transportation within the country due to its Archipelago location and is suffering from various challenges such as bad infrastructure and congestion on road.

Warehousing

Philippines’s warehousing market has shown steady growth over the last few years with many real estate developers entering in logistics market through Mergers & Acquisitions. The developers to earn an adequate IRR is moving out of metro manila due to less growth in warehousing rent in comparison to Land prices. Industrial Warehouses forms the largest share of the warehousing space in the country, with Grade A warehouse becoming the new benchmark for quality. The warehouses are mostly filled with Food & Beverage giving highest amount of revenue.

Cold Chain

The cold chain market in Philippines has shown a very big hike in 2019 primarily due to the investments in the pallet positions by almost every company in Philippines. Cold storage contributes the larger share of revenues with more captive warehouses in the country. Also, the cold stores are dominated by freezer/ chiller convertible pallets in comparison to ambient ones. Major end users of cold chain services in the country include frozen foods, meat and seafood industries. Majority of the cold storages are found in NCR Manila.

Competitive Landscape of Major Players Operating in the Philippines Logistics Market

The transportation and warehousing markets in Philippines are extremely fragmented in nature. Companies are focusing on investing in warehousing and cold chain services. The trucking and warehousing market is dominated by local domestic players who has large number of fleets and warehousing space providing competitive prices. The cold chain players are not charging premium for the addition in technological facilities to have a sustain clients.  Online demanding warehousing platforms such as Stowga are disrupting the space. The major players in the Philippines logistics market include Royal cargo, 2GO logistics, Fast cargo logistics, LF logistics, Chelsea logistics, Jentec Cold storages, Glacier Megafridge, PRC Food Logistics and many more.

Philippines Logistics Market Future Outlook & Projections

The logistics market in Philippines will be impacted by Covid in the country and is expected to revive back in 2021 with faster growth rate. The logistic space will experience increase in government projects for road infrastructure, increasing industrial output, and booming of e-commerce. New real estate players are expected to move in logistics space with new mergers and acquisition between the players. The growing demand of perishable products such as meat and seafood industries & agricultural output will increase the amount of cold chain facilities in Philippines. The companies will shift focus from price wars to better quality of services with technical innovations disrupting the competition space.