The Philippines freight and Logistics Market is expected to reach over USD 20 Mn by 2027. Will Philippines continue this growth trajectory? Ken Research

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1. Increasing Startups in the Philippines

Philippines Warehouse IndustryTrends and Developments in Philippines logistics Market

  • Most of the startups are specialized in financial technology, healthcare, tourism, education, new technologies, real estate and others which have aided the online logistics industry.
  • Some of the popular startups launched in the Philippines include zennya, Sprout Solutions, Coins.ph, Kalibrr, mClinica, Ayannah, Squadzip, engageSPARK, Edukasyon.ph, Pushkart.ph. and several others.
  • The Philippines is a thriving market for investors, as the country’s economic situation is growing and the majority of the population are young workers and frequent internet users. The Philippines E-commerce industry is growing as more and more young entrepreneurs are launching their businesses in the country.
  • The Philippines have around 700 start-ups as of October 2021, an increase of 156 % from 273 start-ups in 2017. The number of start-ups in the country is expected to keep growing in succeeding years.

2. Increasing Trade Activities in Philippines

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The Philippine economy grew by 5.7 % in 2021, beating the government’s 5-5.5 % target range and rebounding from the 9.5 % pandemic-induced recession in 2020.  This strong economic performance, the second fastest in ASEAN, brought the Philippines closer to its pre-pandemic 6.6 % average gross domestic product (GDP) growth rate from 2012-2019.

The Philippines has been considered as one of the most strategic locations in the Indo-Pacific Ocean. The rapid evolution of its logistics industry has been credited to high trade traffic in both international and domestic market. The country has been considered as a trade hub due to the export of electronics, raw fibres and import of apparels and other products. The presence of such system of high volume exchange of goods has propelled the growth of the logistics industry in the Philippines.

3. Entry of Foreign Players are merging with domestic players to set an industry benchmark

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The rapid evolution of the logistics market in the Philippines has also resulted due to the advent of international players. Companies such as DHL, TNT and F6edEx have penetrated the local Filipino market through effective collaborations with domestic companies. These companies have been responsible for the establishment of industry benchmark for the use of technology in logistics sector. Apart from the major organizations, the logistics sector in the Philippines has been also comprised of a number of small scale service providers which operate on contractual basis. Many of these small scale organizations have focused their target areas to remote locations in the country which do not possess the presence of any major players.

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