The value of the country’s logistics market is projected to grow to a P970 billion to P1 trillion market by 2023 as use of electronic commerce (e-commerce) continue to surge.
Research and analysis made by consultancy firm Lobien Realty Group (LRG) in late April showed logistics growth is growing at 8.2 to 8.8 percent between 2018 and 2024.
LRG said through and beyond the new coronavirus disease 2019 (COVID-19), it remains optimistic of growth in the Philippines’ logistics and warehousing market.
The consultancy group’s study said the growing popularity of e-commerce market presents opportunity for the entire logistics chain including warehousing.
LRG noted a rise in sales of food and beverage, clothing apparel, and electronics via e-commerce, which is fueling the demand for warehouses and storage facilities expansion.
Another opportunity for the logistic and warehousing Industry is the expansion of both local and international manufacturing companies in Metro Manila’s outskirts like Cavite, Laguna, Batangas, Bulacan and Pampanga where vast sizes of land are still available and offered at reasonable prices.
“While the pandemic has altered short term growth forecasts for the Philippines’ economy and industries, LRG assumes that mid-term forecasts will remain unchanged once the COVID-19 pandemic is contained.
Filipinos have embraced e-commerce as it allows for geographical ease; eliminates travel time and cost, is available 24/7 and allows for feedback from customers.
Freight forwarding accounts for 21.1 percent of transporting service while warehouse accounts for the second biggest chunk.
But express delivery is seen growing at faster rate of 9 percent CAGR from 2018 to 2023 ending the period with a value of P68.2 billion.