Philippines Logistics and Warehousing Market Outlook to 2029

The report titled “Philippines Logistics and Warehousing Market Outlook to 2029 – By Service Mix (Freight Forwarding, Warehousing, Courier Express & Parcel), By End User Industry (Manufacturing, Retail, FMCG, Automotive, E-commerce), By Domestic and International Logistics, and By Region” provides a comprehensive analysis of the logistics and warehousing industry in the Philippines. The report includes an overview and genesis of the sector, overall market size in terms of revenue, segmentation of services, trends and developments, regulatory landscape, key demand drivers, challenges, comparative landscape of leading players, and profiles of major logistics and warehousing companies. The report concludes with market projections until 2029 based on key parameters, highlighting opportunities, challenges, and case studies demonstrating successful logistics strategies in the Philippines.

Philippines Logistics and Warehousing Market Overview and Size

The logistics and warehousing market in the Philippines was valued at PHP 970 Billion in 2023, fueled by growing e-commerce penetration, infrastructure investments, and rising consumption in urban areas. The market features both global and local players such as LBC Express, 2GO Group, Ninja Van, DHL, FedEx, and JRS Express, which are recognized for their expansive network, integrated logistics solutions, and last-mile delivery capabilities.

Metro Manila, Cebu, and Davao are dominant logistics hubs, benefiting from their strategic geographical positioning and developed transportation ecosystems. In 2023, 2GO introduced an integrated multimodal logistics service tailored for retail and manufacturing sectors, indicating a market shift toward end-to-end logistics solutions.

Market Size for Philippines Logistics and Warehousing Industry on the Basis of Revenue in USD Billion, 2018-2024

What Factors are Leading to the Growth of Philippines Logistics and Warehousing Market:

• Booming E-commerce Sector: The Philippine e-commerce market grew over 20% YoY in 2023, significantly boosting demand for reliable logistics and warehousing services. E-commerce platforms such as Lazada, Shopee, and Zalora have increasingly partnered with third-party logistics (3PL) providers to manage inventory and delivery operations, especially in urban and suburban regions.

• Government Infrastructure Push: The “Build, Build, Build” program has contributed to major road and port upgrades, directly enhancing the logistical efficiency across Luzon, Visayas, and Mindanao. Projects like the North-South Commuter Railway and expansion of Clark International Airport have eased freight congestion and shortened delivery timelines.

• Rise of Cold Chain and Value-added Warehousing: Demand for cold chain logistics is growing due to rising consumption of frozen food, pharmaceuticals, and dairy products. In 2023, cold storage capacity expanded by 18%, and this trend is expected to continue due to increased food security awareness and vaccine distribution efforts.

Which Industry Challenges Have Impacted the Growth for Philippines Logistics and Warehousing Market

• Fragmented Infrastructure and Traffic Congestion: One of the most pressing challenges in the Philippines logistics market is the poor road infrastructure and chronic congestion, especially in Metro Manila. According to a 2023 logistics performance index report, average delivery times in urban centers are 30–40% higher than regional benchmarks. These inefficiencies result in delayed shipments, increased fuel costs, and reduced service quality for logistics providers.

• High Cost of Logistics: The Philippines ranks among the highest in ASEAN for logistics costs, amounting to around 27% of the cost of goods sold (COGS), compared to an average of 16% in neighboring countries. Contributing factors include port delays, fuel surcharges, and warehousing shortages. High logistics costs are particularly burdensome for small and medium enterprises (SMEs), limiting their ability to compete effectively.

• Limited Cold Chain Coverage: Although demand for cold storage has surged, especially for perishable foods and pharmaceuticals, the cold chain infrastructure remains underdeveloped in secondary and rural cities. In 2023, over 40% of cold chain-dependent shipments reportedly experienced temperature-related spoilage or delays, leading to significant inventory losses for retailers and distributors.

What are the Regulations and Initiatives which have Governed the Market:

• Ease of Doing Business Initiatives: The Philippine government has implemented various programs under the “TradeNet” platform to simplify import-export documentation and integrate agencies involved in trade processing. As of 2023, 78% of customs entries are now processed electronically, reducing manual paperwork and corruption risk.

• Build Better More Infrastructure Program: Under the current administration, the "Build Better More" campaign has succeeded the previous “Build, Build, Build” program, allocating over PHP 1.2 trillion in 2023 towards logistics-related infrastructure, including airports, expressways, and inter-island transport. These projects aim to reduce transit times and expand regional connectivity by 2026.

• Philippine Multimodal Transport and Logistics Roadmap: In partnership with the Department of Trade and Industry (DTI), a national roadmap was released in 2022 to improve freight logistics competitiveness by 2030. Key targets include reducing logistics costs to 20% of COGS and increasing the logistics sector’s contribution to GDP from 4.7% to 6.5%.

Philippines Logistics and Warehousing Market Segmentation

• By Market Structure: The unorganized segment, consisting of independent freight brokers, small courier companies, and local warehousing providers, currently dominates the logistics market in the Philippines. These players often cater to regional or industry-specific needs, providing cost-effective solutions for SMEs. Their agility and familiarity with local delivery challenges make them a preferred choice for last-mile and rural delivery services. The organized segment, including global 3PL providers and integrated logistics firms, is gaining ground, particularly among large-scale enterprises and e-commerce platforms seeking reliability, scale, and digital integration. These players offer multimodal transport, real-time tracking, and optimized supply chains, driving demand in urban and industrial corridors.

• By Service Mix: Freight Forwarding remains the largest segment, driven by increased trade volumes and industrial output. It includes both air and sea freight services used by exporters and manufacturers. Warehousing accounts for a growing share as more companies seek inventory optimization, just-in-time delivery, and cold chain support.
  Courier, Express & Parcel (CEP) services have expanded rapidly due to e-commerce, with demand for same-day and next-day deliveries.
  Value-Added Logistics Services, such as packaging, labeling, and reverse logistics, are gaining momentum among organized players.

• By End User Industry: The retail and e-commerce sectors are the largest contributors due to high volume and delivery frequency. Manufacturing also remains significant, especially in automotive, electronics, and garments.
  FMCG and Pharmaceuticals have driven the need for efficient cold chain logistics.
  The automotive and agriculture industries are also adopting warehousing and transport solutions for better distribution coverage.

Competitive Landscape in Philippines Logistics and Warehousing Market

The Philippines logistics and warehousing market is moderately fragmented, with a mix of long-established companies, rising digital-first players, and regional logistics startups. The presence of both domestic operators and international logistics giants has led to competitive service offerings, ranging from express delivery to full-stack supply chain management. Major players include LBC Express, 2GO Group, JRS Express, Ninja Van, DHL, FedEx, Entrego, and Transportify.

Some of the recent competitor trends and key information about major players include:

• LBC Express: As one of the oldest and most trusted logistics providers in the Philippines, LBC handled over 120 million shipments in 2023. The company continues to expand its warehousing network and recently introduced enhanced cash-on-delivery options tailored for SMEs and online sellers.

• 2GO Group: A major logistics and transport firm under SM Investments, 2GO launched a multimodal logistics initiative in 2023, integrating sea, air, and land transport. The company recorded over PHP 18 billion in logistics revenues and invested heavily in digitizing port and freight operations.

• JRS Express: Known for its wide reach and strong domestic courier services, JRS Express expanded its next-day delivery service to cover additional rural zones in 2023. It maintains over 450 branches nationwide and continues to be a key player for low-cost parcel delivery.

• Ninja Van: A prominent tech-enabled logistics firm, Ninja Van delivered over 100 million parcels in the Philippines in 2023, with a strong focus on e-commerce. Its investments in route optimization and last-mile automation have improved delivery efficiency by 20% YoY.

• DHL Express: Catering primarily to international shipments and B2B logistics, DHL launched its green logistics program in the Philippines in 2023, focusing on carbon-neutral warehousing and eco-packaging solutions. It remains a preferred partner for global trade and express international deliveries.

• FedEx Philippines: Expanded its regional gateway in 2023 by upgrading its Clark Hub, enabling faster outbound deliveries across Southeast Asia. It also introduced AI-driven customs clearance systems, improving international delivery accuracy and speed.

• Entrego: A logistics solutions provider backed by Ayala Corporation, Entrego offers fully digital warehousing, fulfillment, and last-mile delivery services. In 2023, it grew its client base among local e-commerce sellers by over 35%, focusing on same-day services.

• Transportify: Focused on on-demand, intracity freight services, Transportify expanded into Visayas and Mindanao in 2023. With its app-based model, it caters to businesses needing flexible, scalable logistics, especially in urban areas with heavy traffic bottlenecks.

What Lies Ahead for Philippines Logistics and Warehousing Market?

The Philippines logistics and warehousing market is projected to grow steadily through 2029, registering a healthy CAGR driven by infrastructure development, digital transformation, and increasing reliance on third-party logistics providers (3PLs). Expansion of trade, rising e-commerce penetration, and a shift toward integrated supply chain models will continue to shape the market’s trajectory.

• Rise of Smart Warehousing and Automation: The logistics industry is expected to witness an increasing adoption of warehouse automation technologies, including robotics, automated storage and retrieval systems (ASRS), and AI-driven inventory management. These advancements will help reduce manual errors, improve space utilization, and enhance overall operational efficiency, especially in Metro Manila and Cebu.

• Growth in Cold Chain and Pharma Logistics: As demand for fresh produce, frozen food, and pharmaceutical products increases, cold chain logistics will be a high-growth segment. New investments in temperature-controlled storage facilities and refrigerated transport are expected, particularly in Mindanao and Visayas, driven by food exports and healthcare supply chains.

• E-commerce as a Primary Growth Driver: With the Philippines' internet penetration exceeding 75% and the continued boom in online shopping, last-mile delivery and micro-fulfillment centers will become critical. Logistics providers will increasingly invest in hyperlocal warehousing, dark stores, and real-time delivery tracking to meet evolving consumer expectations.

• Sustainability and Green Logistics: Sustainability will become a key theme, with logistics firms adopting electric delivery vehicles, solar-powered warehouses, and eco-friendly packaging. Government and private sector collaboration is expected to promote cleaner logistics, aligning with national climate goals.

Future Outlook and Projections for Philippines Logistics and Warehousing Market on the Basis of Revenues in USD Billion, 2024-2029

Philippines Logistics and Warehousing Market Segmentation

• By Market Structure:
  o Organized Sector
  o Unorganized Sector
  o Integrated 3PL Service Providers
  o Freight Forwarders
  o Courier, Express & Parcel (CEP) Providers
  o Warehousing & Fulfillment Centers
  o Cold Chain Logistics Companies
• By Service Type:
  o Freight Forwarding (Air, Sea, Land)
  o Warehousing Services (Ambient, Cold Storage)
  o Courier, Express, and Parcel (CEP)
  o Value-Added Services (Packaging, Labeling, Reverse Logistics)
• By End User Industry:
  o Retail & E-commerce
  o Manufacturing
  o FMCG & Pharmaceuticals
  o Automotive
  o Agriculture & Food Processing
  o Electronics & Appliances
• By Type of Transport:
  o Road Freight
  o Rail Freight
  o Sea Freight
  o Air Freight
  o Intermodal/Multimodal
• By Temperature Control:
  o Cold Chain
  o Non-Cold Chain
• By Region:
  o Metro Manila (NCR)
  o CALABARZON
  o Central Luzon
  o Visayas
  o Mindanao

Players Mentioned in the Report:

Freight Forwarding Companies

• Vserve Ebusiness Solutions

• EX-WORKS Cargo Services Inc.

• Airspeed

• Yello X Supply Chain Solutions

• AAI Worldwide Logistics

• F2 Logistics

• K Line Logistics

• Deutsche Post DHL Group

• FedEx

• UPS

• Yusen Logistics

• Royal Cargo

• AAI Worldwide Logistics

• F2 Logistics

• CEVA Logistics

• Ernest Logistics Corporation

• K Line Logistics

• DB Schenker

• Kuehne + Nagel

• DHL Global Forwarding

• 2GO

• Air21

• Grab Express

• J&T Express

• JRS Express

• Lalamove

• LBC Express

• Ninja Van

• 2GO

• LBC Express

• JRS Express

• Grab Express

• Ninja Van

• DHL Express

• FedEx

• Aramex

• UPS

Warehousing Companies

E‑Commerce Logistics Companies

Express Logistics Companies

Key Target Audience:

• Logistics and Freight Companies
• E-commerce Companies
• Retail Chains and Distributors
• Cold Storage and Cold Chain Providers
• Government and Regulatory Authorities (e.g., Department of Trade and Industry, Department of Transportation)
• Investors and PE/VC Firms
• Infrastructure and Industrial Park Developers
• Warehousing Automation Companies

Time Period:

• Historical Period: 2018–2023
• Base Year: 2024
• Forecast Period: 2024–2029