The Philippines logistics market is in its early growth stages of development, and growing year on year majorly due to growing demand for E-retailing coupled with an increase in the number of online orders. As per Ken research findings, the number of online orders grew at a CAGR of ~49% between 2019 and 2020.
1. Although the Philippines witnessed a 2.5% decline in GDP, the country registered growth in e-commerce due to high internet penetration.
Other Challenges in Philippines E-Commerce Logistics Market
Around 109 Mn people in the country accounted for a young, tech-savvy group of Millennial & Gen Z consumers spending an average of 10 hours and two minutes every day using the Internet, resulting in a higher number of orders in 2020 which accelerated the growth of the e-commerce logistics in the Philippines. The number of internet users in the country has increased from 47.4 million in 2015 to 73.0 million in 2020. Increasing usage of advanced mobile applications and banking solutions for customers has made it easier for them to shop online, which further intensified the e-commerce logistics market in the Philippines.
2. Number of online shoppers increased drastically to 46 Mn in 2020 which fueled the growth of the e-commerce logistics market in the Philippines.
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~63% of the total Internet Users in the Philippines are Online Shoppers. This is due to the Convenience & Huge Discounts offered by Leading Marketplace Platforms. Around 46% of people opt for digital shopping due to the availability and variety of products. This rise in online shoppers has augmented the growth of the e-commerce logistics market in the Philippines. Presently, the industry is growing at a double-digit growth rate and is poised to expand more in the future.
3. The country’s Department of Trade and Industry (DTI) developed the Philippines E-commerce Roadmap (2016-2020) to cushion the growth of the e-commerce logistics sector.
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The country’s Department of Trade and Industry (DTI) developed the Philippines eCommerce Roadmap (2016-2020) with a primary goal of getting online business activities to account for 25% of the country’s GDP by 2020, up from 10% in 2015. The main focus areas are Infrastructure, Investments, and Innovation are in the process of building clear rules and support systems for customers and other online merchants. The efforts on building smooth functioning of e-commerce platforms have and will accelerate the number of online shoppers in the country. This leads to higher consumption and expansion of the e-commerce logistics sector in the Philippines.
The Philippines E-commerce logistics industry has been growing over the years. The growth is attributed to the rising number of internet and smartphone users in the country which has accelerated the population of online shoppers in the country. Online shoppers have driven the e-commerce logistics industry in the Philippines. The number of people shopping online is anticipated to grow rapidly in the coming years as well which clearly indicates the high growth opportunity for the e-commerce logistic sector in the country.