Philippines E-Commerce Logistics space on the fast track for growth

Philippines E-Commerce Logistics space on the fast track for growth

Due to lockdowns and other restrictions brought on by the COVID-19 outbreak, e-commerce activity has significantly increased in the Philippines. The country’s freight and logistics sector is anticipated to be severely impacted by this increase in e-commerce because there is a growing need for dependable and efficient delivery services as more and more people buy online. Presently, the e-commerce logistics sector is growing at a CAGR of 40% between 2019 and 2020.

The market is highly poised to grow with a double-digit growth rate in the coming years. Read more to find out the growth enablers of the e-commerce logistics industry in the Philippines.

1. Philippines, 109.5 Mn populated country witnessed 2.5% decline in GDP…

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Source: 1. Philippine Statistical Authority 2. World Bank Data 3: Department of Trade and Industry 4. Business Mirror Philippines 5: Statista

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1.2…however displaying the Growth in E-Commerce due to increasing Internet Penetration

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Source: 1. Proprietary Database 2. Digital Philippines Report 3. Newspaper Articles

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2. Philippines witnessed a large increase in Online Shoppers with 46Mn in 2020...

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Source: 1) Hootsuite and We Are Social (2019) 2) DTI 3) Business World Interviews with E-Commerce Industry Experts, Ken Research Analysis

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2.1...owing to Convenience & Huge Discounts offered by Leading Marketplace Platforms

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Source: 1) The Ultimate Ecommerce Guide To Shipping To Philippines 2020 By Janio, Online Survey conducted by Ken Research

3. The e-commerce logistics industry is Currently Positioned In the Growth Stage due to the Increasing Penetration of the E-Commerce Market in Philippines

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Source: Industry Articles, Company Websites, Interviews with E-Commerce Logistics Industry Experts and Ken Research Analysis

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4. Growing Government Support along with Digital Penetration among Filipinos has complemented the growth in Philippines E-Commerce Logistics

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1. World Bank Data 2. Digital Philippines Report 3. DTI Philippines Source: Industry Articles, Company Websites, Ken Research Analysis

5. Several Technological Disruptions in E-commerce Logistics Industry...

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Source: Industry Articles, Interviews conducted with Industry Experts in Philippines E-Commerce Logistics Market and Ken Research Analysis

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5.1 …leading to huge impact on delivery of E-Commerce Shipments and driving the growth of the market in the future

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Source: Interviews conducted with major players in Philippines E-Commerce Market, Industry Articles, Newsletters, Ken Research Analysis

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