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Philippines On-Demand Logistics Market Surges: $5.2 Billion Boom by 2026 Fueled by E-commerce & Smartphone Growth: Ken Research

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News provided by

Ken Research

15 Feb, 2024, 10:06 GMT

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GURUGRAM, India, Feb. 15, 2024 /PRNewswire/ -- Get ready, Philippines! The on-demand logistics market is experiencing an exciting surge, fueled by booming e-commerce, rising smartphone penetration, and a growing demand for convenience. Ken Research's "Philippines On-Demand Logistics Market Outlook to 2026" report predicts a phenomenal 14.8% CAGR, translating to a substantial $5.2 billion market size by 2026. This press release unlocks the key drivers, challenges, and promising prospects shaping this dynamic landscape. 

Market Overview: Delivering Convenience, Empowering Consumers 

Beyond simply moving goods quickly, the Philippines' on-demand logistics market plays a crucial role in supporting e-commerce growth, enhancing customer experience, and empowering Filipinos with convenient access to various products and services. In 2022, the market reached a size of $2.2 billion, and it's on track for remarkable expansion, driven by: 

  • E-commerce Boom: With increasing internet penetration and mobile adoption, online shopping is thriving, creating a surge in demand for efficient and speedy deliveries. 
  • Smartphone Growth: Widespread smartphone usage fuels accessibility and convenience, allowing consumers to easily order and track deliveries on-demand. 
  • Shifting Consumer Preferences: Filipinos are increasingly prioritizing convenience and faster delivery options, driving the demand for on-demand logistics services. 
  • Growing Urban Population: Urbanization trends necessitate innovative last-mile delivery solutions to cater to densely populated areas. 

Interested to Know More about this Report, Request a Free Sample Report

Market Segmentation: Diverse Needs, Specialized Solutions 

The report delves into the diverse segments of the Philippines' on-demand logistics market, offering a comprehensive view: 

  • Delivery Types: Food & grocery delivery leads the demand (50%), followed by e-commerce deliveries (30%) and express deliveries (20%). On-demand services for medicine, documents, and other verticals are emerging. 
  • Business Models: B2C deliveries hold the largest share (70%), followed by B2B deliveries (20%) and peer-to-peer (P2P) deliveries (10%). 
  • Logistics Partners: Third-party logistics (3PL) providers dominate (60%), followed by dedicated on-demand platforms (30%) and traditional courier companies (10%). 

Competitive Landscape: Local & Global Players Collaborate 

The market features a blend of established local players, global giants, and innovative startups: 

  • Local Leaders: Lalamove, Grab, and Angkas remain prominent players with extensive networks and strong brand recognition. 
  • Global Giants: DHL, FedEx, and DP World are making inroads with their global expertise and technological advancements. 
  • Emerging Challengers: Local startups like Entrego and Pickabar, focusing on niche segments like same-day grocery delivery and cold chain logistics, are disrupting the market. 

Visit this Link :- Request for custom report

Challenges: Navigating the Roadblocks to Growth 

Despite the promising outlook, some challenges need to be addressed: 

  • Infrastructure Gaps: Limited cold chain infrastructure, underdeveloped rural roads, and traffic congestion can hinder efficient and timely deliveries. 
  • Limited Skilled Workforce: Finding and retaining qualified personnel, particularly in areas like data analytics and delivery drivers, remains a challenge. 
  • Regulatory Hurdles: Complex regulations and licensing procedures can impede market growth and innovation. 
  • Profitability Concerns: Intense competition and price pressure can squeeze profit margins for smaller players. 

Future Outlook: A Brighter Horizon Fueled by Technology & Partnerships 

The Philippines' on-demand logistics market is poised for continued growth, driven by several exciting factors: 

  • Technological Advancements: Adoption of AI, route optimization tools, and data analytics will enhance efficiency, improve delivery speeds, and personalize customer experiences. 
  • Focus on Sustainability: Green logistics initiatives like electric vehicles and eco-friendly packaging will gain traction, attracting environmentally conscious consumers and investors. 
  • Strategic Partnerships: Collaborations between established players, startups, and government agencies will foster innovation and address infrastructure gaps. 
  • Investment in Rural Areas: Increased investments in rural infrastructure and last-mile delivery solutions will improve accessibility and connect communities. 

Key Takeaways for Stakeholders: 

This report offers valuable insights for various stakeholders in the Philippines' on-demand logistics market, including: 

  • Logistics Companies: Identifying high-growth segments, adopting innovative technologies, offering value-added services, and prioritizing sustainable practices. 
  • Investors: Understanding market trends, assessing investment opportunities in promising segments like grocery delivery and cold chain logistics. 
  • Policymakers: Formulating policies that address infrastructure gaps, promote skilled workforce development, and create a regulatory environment that fosters innovation and competition. 
  • Consumers & Businesses: Gaining insights into the diverse range of on-demand delivery options available 

Conclusion: Building a Resilient and Inclusive On-Demand Logistics Ecosystem 

The Philippines' on-demand logistics market stands poised for a remarkable journey, fueled by its vibrant e-commerce sector, rising smartphone penetration, and a growing consumer preference for convenience. By embracing technological advancements, fostering collaboration between established players and innovative startups, and addressing key challenges like infrastructure gaps and skilled workforce shortages, the sector can unlock its full potential. This will not only benefit businesses and investors but also empower Filipinos across the archipelago, ensuring equitable access to goods and services, regardless of location, through efficient and sustainable on-demand deliveries. Ultimately, navigating these opportunities and overcoming challenges will determine whether the Philippines' on-demand logistics market can truly revolutionize the delivery landscape and empower a more connected and prosperous nation.

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Taxonomy

Philippines On-Demand Logistics Market Segmentation

By B2C/B2B/C2C

B2B

B2C

C2C

By On Demand Segment

Food Delivery

Last Mile Logistics

Grocery

By Geography

Metro Manila

Visayas

Mindanao

North Luzan

Other Regions

Philippines On-Demand Food Delivery Market Segmentation

By Region

Greater Metro Manila

Visayas

Mindanao

North Luzon

Other Regions

By Average Delivery Period

Under 30 Minutes

30-45 Minutes

45-60 Minutes

By Gender

Male

Female

By Age Group

18-24

25-34

35-44

45 Above

By Cuisine Type

Fast Food

Filipino

Beverages

Chinese

Chicken

Others

By Frequency of Ordering

Everyday

2-3 Times a Week

Once a Week

Every 2 Weeks

Once a Month

Once Every 6 Months

Once a Year

Less than Once a Year

Philippines on-Demand Grocery Delivery Market Segmentations

By Regions

Greater Metro Manila

Visayas

Mindanao

North Luzon

Other Regions

By Average Delivery Time Taken

Under 30 Minutes

30 to 60 Minutes

1 Hr. to 2 Hrs.

More than 2 Hrs.

By Gender

Female

Male

By Age Group

18-24

25-34

35-44

45 Above

By Product Category

Grocery

Bakery, Snacks & Sweets

Home Essential, Gift & Pet

Health & Wellness

Other Items

By Frequency of Ordering

Everyday

2-3 Times a Week

Every 2 Weeks

Once a Week

Once a Month

Once Every 6 Months

Once a Year

Less than Once a Year

Philippines on-Demand Last Mile Logistics Market Segmentations

By Regions

Greater Metro Manila

Visayas

Mindanao

North Luzon

Other Regions

By Average Delivery Time Taken

Under 30 Minutes

30 to 60 minutes

1 Hr. to 3 Hrs.

Same Day

By B2B/B2C & C2C

B2B

B2C

C2C

By B2C End User

Food Delivery

Super Marts & Conveyance Stores

Furniture & Home Essential Stores

Medical Store Deliveries

Others

For More Insights On Market Intelligence, Refer To The Link Below: –

Philippines On Demand Logistics Market

Related Reports by Ken Research: –

MDO PET Films Market in UAE Outlook to 2027 Driven by increasing population, food and beverage demand and pharmaceutical consumption

Rise in cross-border shopping, with 58% of online purchases made from overseas vendors due to reliable shipping methods, and favorable pricing are the key drivers of e-commerce in the country. The growth of e-commerce in the UAE will boost the demand for packaging materials, especially tapes which are manufactured via MDO PET Films.

UAE Movers Market Outlook to 2028 Driven by Real Estate and Infrastructure Development and Growing Expatriate Population in the Country

Future market size for UAE Movers set for substantial growth from 2022 to 2028. Launch of over 10,000 new townhouses and villas in May 2022, with handover expected by 2025, indicating a surge in property developments and increased demand for moving services. Ongoing urban development projects, including new residential communities and commercial centers, anticipated to boost the demand for professional movers.

Australia Cold Chain Market Outlook to 2027 Driven by Rising Meat and Seafood Consumption Owing to Growing demand for Fresh Food

The Australia cold chain market is anticipated to grow with a CAGR of 10.3% due to the ever-growing demand Majority of the end users' segments are expected to register a robust CAGR in the Australia Cold Chain Market in the upcoming years Demand for perishable food products is expected to increase due to the rising disposable income and retail spending of the people in the country, which will necessitate the development of cold storage facilities and positively affect the market growth.

Vietnam Logistics Market Outlook to 2027 Driven by Infrastructural and Government Investments Coupled with the Growth of E-Commerce Sector in Vietnam

According to Ken Research estimates, the Market Size of Vietnam Logistics has shown increasing trend from 2017 to 2022. However, there was a decline after 2019 due to restrictions imposed during covid-19; however, the conditions have been better as the market recovers from Covid 19. Logistics sector in Vietnam is growing due to surge in e-commerce sector in response to Covid-19 and increase in the use of new technologies to meet customer demands. Vietnam's expanding economy, manufacturing has also added to the growth in the logistics sector.

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Contact Us:-
Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
Ankur@kenresearch.com
+91-9015378249

Logo: https://mma.prnewswire.com/media/1954972/Ken_Research_Logo.jpg 

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