Philippines Courier, Express, and Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The Philippines Courier, Express, and Parcel (CEP) Market size is estimated at 1.24 billion USD in 2024, and is expected to reach 1.85 billion USD by 2030, growing at a CAGR of 6.92% during the forecast period (2024-2030).
Demand in the domestic and international CEP markets is increasing owing to industry advancements and increasing e-commerce
In an attempt to speed up mail and parcel deliveries domestically and internationally in the country, the Philippine Postal Corporation (Philpott) eliminated notification cards in 2021. It was a 75-year-old practice causing significant delays in deliveries. Earlier, the mail or parcel recipient had to receive a notification card before a parcel could be picked up at the post office, which would usually take about two to three months in order to be received. This caused delays and thus made door-to-door deliveries inconvenient. Post this, the CEP market's value increased by 6.26% YoY in 2022, and it is further expected to register a CAGR of 6.31% during 2023-2029.
As of January 2020, before the pandemic started, 39% of the Philippine cross-border e-commerce was with China, followed by the United States with 23% and South Korea with 7%. As the economy re-opened post-pandemic, the Philippines had an average rate of 58 cross-border online purchases per person per year as of 2021. The country also accounted for 15% of the total online shopping market in Southeast Asia.
In 2019, PHLPost was the leading courier service with the highest number of outlets or branches in the Philippines, approximately 1,400. The other major domestic courier services were LBC and 2GO Express, with over 1,000 branches each. The United States was the biggest market for apparel exports for Philippines in 2022. Overall, exports of articles of apparel and clothing accessories amounted to USD 789 million in 2022. Owing to increasing demand post-pandemic, CEP value in the country is projected to grow at 6.26% YoY in 2023.
Philippines Courier, Express, and Parcel (CEP) Market Trends
The Philippine GDP rise 7.6% annual growth in 2022, driven by rise in trade warehouse and industrial growth
In the fourth quarter of 2022, the Philippine GDP increased by 7.2%, leading to a 7.6% annual growth. Wholesale and retail trade, auto and motorcycle repair (8.7%), financial and insurance activities (9.8%), and manufacturing (4.2%) were the main drivers of the growth in the fourth quarter of 2022. The industries that made the most significant contributions to the annual growth for 2022 were manufacturing (5.0%), construction (12.7%), wholesale and retail trade (8.7%), and auto and motorcycle repair.
The Philippine logistics industry has the potential to reach between PHP 970 billion (USD 0.77 billion) and PHP 1 trillion (USD 0.017 trillion) by 2023. It is one of the most suitable docking locations for supply routes as it connects numerous export and import markets of various countries worldwide. The country's transportation, storage, and establishments industry, which currently makes up 21.1% of all businesses, will dominate the logistics market.
Warehousing is the second most significant component of the Philippine logistics market. The most important market contributors are industrial and retail warehousing and e-commerce firms. Manufacturing activities are increasing in the Philippines market. Rising domestic consumption and international trade activities are the primary drivers of warehousing growth in the Philippines. Warehousing in the Philippines has seen an increase in trade flow in recent years, which has boosted demand for transportation and storage facilities. A yearly increase in cumulative cargo throughout the country has also positively impacted the Philippine warehousing industry.
Despite the decline in the Philippine energy sector by 4.8% in 2022, it is poised to grow by 5.5% in 2023
The Philippine government allocated PHP 2.5 billion (USD 49 million) in fuel subsidies for public transportation drivers in 2022 despite rising oil prices as a result of Russia's attack on Ukraine. The funds would be used for the Department of Transportation's fuel subsidy program, providing vouchers to 377,000 drivers. In 2022, the average retail price of one-liter gas in the Philippines was around 1.55 USD, reflecting a significant increase from the previous year's retail price of 1.04 USD.
In 2021, the price of natural gas increased by 77.55% due to the increasing demand for air conditioning in homes and buildings and natural gas in the power sector. Oil firms raised the prices of petroleum products for the sixth week in a row in August 2023 by PHP 2.50 (USD 0.04) per liter. Saudi Arabia continued its production cuts amid rising demand. The price of gasoline increased by PHP 1.90 (USD 0.03) per liter and diesel by PHP 1.50 (USD 0.02) per liter. According to the Department of Energy's (DOE) Oil Industry Management Bureau, prices will likely increase over the next two months as global supply continues to decline despite high demand.
During 2022-2031, the demand for oil in the Philippines is expected to increase by 3.4%, and net imports are estimated to increase by around 3.5%. The energy sector in the Philippines declined by 4.8% in 2022, but it is expected to grow by 5.5% in 2023. However, there are supply limitations, and the sector needs to shift toward green energy. As the population grows and the domestic gas supply decreases, the country is expected to rely heavily on imported fuel, leading to a power shortage from 2024 to 2025.
Philippines Courier, Express, and Parcel (CEP) Industry Overview
The Philippines Courier, Express, and Parcel (CEP) Market is fragmented, with the top five companies occupying 36.76%. The major players in this market are DHL Group, Lalamove, LBC Express Holdings, Inc., Ninja Logistics and SM Investments Corporation (including 2GO) (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Demand in the domestic and international CEP markets is increasing owing to industry advancements and increasing e-commerce
In an attempt to speed up mail and parcel deliveries domestically and internationally in the country, the Philippine Postal Corporation (Philpott) eliminated notification cards in 2021. It was a 75-year-old practice causing significant delays in deliveries. Earlier, the mail or parcel recipient had to receive a notification card before a parcel could be picked up at the post office, which would usually take about two to three months in order to be received. This caused delays and thus made door-to-door deliveries inconvenient. Post this, the CEP market's value increased by 6.26% YoY in 2022, and it is further expected to register a CAGR of 6.31% during 2023-2029.
As of January 2020, before the pandemic started, 39% of the Philippine cross-border e-commerce was with China, followed by the United States with 23% and South Korea with 7%. As the economy re-opened post-pandemic, the Philippines had an average rate of 58 cross-border online purchases per person per year as of 2021. The country also accounted for 15% of the total online shopping market in Southeast Asia.
In 2019, PHLPost was the leading courier service with the highest number of outlets or branches in the Philippines, approximately 1,400. The other major domestic courier services were LBC and 2GO Express, with over 1,000 branches each. The United States was the biggest market for apparel exports for Philippines in 2022. Overall, exports of articles of apparel and clothing accessories amounted to USD 789 million in 2022. Owing to increasing demand post-pandemic, CEP value in the country is projected to grow at 6.26% YoY in 2023.
Philippines Courier, Express, and Parcel (CEP) Market Trends
The Philippine GDP rise 7.6% annual growth in 2022, driven by rise in trade warehouse and industrial growth
In the fourth quarter of 2022, the Philippine GDP increased by 7.2%, leading to a 7.6% annual growth. Wholesale and retail trade, auto and motorcycle repair (8.7%), financial and insurance activities (9.8%), and manufacturing (4.2%) were the main drivers of the growth in the fourth quarter of 2022. The industries that made the most significant contributions to the annual growth for 2022 were manufacturing (5.0%), construction (12.7%), wholesale and retail trade (8.7%), and auto and motorcycle repair.
The Philippine logistics industry has the potential to reach between PHP 970 billion (USD 0.77 billion) and PHP 1 trillion (USD 0.017 trillion) by 2023. It is one of the most suitable docking locations for supply routes as it connects numerous export and import markets of various countries worldwide. The country's transportation, storage, and establishments industry, which currently makes up 21.1% of all businesses, will dominate the logistics market.
Warehousing is the second most significant component of the Philippine logistics market. The most important market contributors are industrial and retail warehousing and e-commerce firms. Manufacturing activities are increasing in the Philippines market. Rising domestic consumption and international trade activities are the primary drivers of warehousing growth in the Philippines. Warehousing in the Philippines has seen an increase in trade flow in recent years, which has boosted demand for transportation and storage facilities. A yearly increase in cumulative cargo throughout the country has also positively impacted the Philippine warehousing industry.
Despite the decline in the Philippine energy sector by 4.8% in 2022, it is poised to grow by 5.5% in 2023
The Philippine government allocated PHP 2.5 billion (USD 49 million) in fuel subsidies for public transportation drivers in 2022 despite rising oil prices as a result of Russia's attack on Ukraine. The funds would be used for the Department of Transportation's fuel subsidy program, providing vouchers to 377,000 drivers. In 2022, the average retail price of one-liter gas in the Philippines was around 1.55 USD, reflecting a significant increase from the previous year's retail price of 1.04 USD.
In 2021, the price of natural gas increased by 77.55% due to the increasing demand for air conditioning in homes and buildings and natural gas in the power sector. Oil firms raised the prices of petroleum products for the sixth week in a row in August 2023 by PHP 2.50 (USD 0.04) per liter. Saudi Arabia continued its production cuts amid rising demand. The price of gasoline increased by PHP 1.90 (USD 0.03) per liter and diesel by PHP 1.50 (USD 0.02) per liter. According to the Department of Energy's (DOE) Oil Industry Management Bureau, prices will likely increase over the next two months as global supply continues to decline despite high demand.
During 2022-2031, the demand for oil in the Philippines is expected to increase by 3.4%, and net imports are estimated to increase by around 3.5%. The energy sector in the Philippines declined by 4.8% in 2022, but it is expected to grow by 5.5% in 2023. However, there are supply limitations, and the sector needs to shift toward green energy. As the population grows and the domestic gas supply decreases, the country is expected to rely heavily on imported fuel, leading to a power shortage from 2024 to 2025.
Philippines Courier, Express, and Parcel (CEP) Industry Overview
The Philippines Courier, Express, and Parcel (CEP) Market is fragmented, with the top five companies occupying 36.76%. The major players in this market are DHL Group, Lalamove, LBC Express Holdings, Inc., Ninja Logistics and SM Investments Corporation (including 2GO) (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Demographics
4.2 GDP Distribution By Economic Activity
4.3 GDP Growth By Economic Activity
4.4 Inflation
4.5 Economic Performance And Profile
4.5.1 Trends in E-Commerce Industry
4.5.2 Trends in Manufacturing Industry
4.6 Transport And Storage Sector GDP
4.7 Export Trends
4.8 Import Trends
4.9 Fuel Price
4.10 Logistics Performance
4.11 Infrastructure
4.12 Regulatory Framework
4.12.1 Philippines
4.13 Value Chain & Distribution Channel Analysis
5 MARKET SEGMENTATION (INCLUDES MARKET VALUE IN USD, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Destination
5.1.1 Domestic
5.1.2 International
5.2 Speed Of Delivery
5.2.1 Express
5.2.2 Non-Express
5.3 Model
5.3.1 Business-to-Business (B2B)
5.3.2 Business-to-Consumer (B2C)
5.3.3 Consumer-to-Consumer (C2C)
5.4 Shipment Weight
5.4.1 Heavy Weight Shipments
5.4.2 Light Weight Shipments
5.4.3 Medium Weight Shipments
5.5 Mode Of Transport
5.5.1 Air
5.5.2 Road
5.5.3 Others
5.6 End User Industry
5.6.1 E-Commerce
5.6.2 Financial Services (BFSI)
5.6.3 Healthcare
5.6.4 Manufacturing
5.6.5 Primary Industry
5.6.6 Wholesale and Retail Trade (Offline)
5.6.7 Others
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Ayala Corporation
6.4.2 DHL Group
6.4.3 Entrego
6.4.4 FedEx
6.4.5 J&T Express
6.4.6 Lalamove
6.4.7 LBC Express Holdings, Inc.
6.4.8 Ninja Logistics
6.4.9 Philippine Postal Corporation (PHLPost)
6.4.10 SM Investments Corporation (including 2GO)
6.4.11 United Parcel Service of America, Inc. (UPS)
6.4.12 Ximex Delivery Express Logistics Inc. (XDE)
7 KEY STRATEGIC QUESTIONS FOR CEP CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Global Value Chain Analysis
8.1.4 Market Dynamics (DROs)
8.1.5 Technological Advancements
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Demographics
4.2 GDP Distribution By Economic Activity
4.3 GDP Growth By Economic Activity
4.4 Inflation
4.5 Economic Performance And Profile
4.5.1 Trends in E-Commerce Industry
4.5.2 Trends in Manufacturing Industry
4.6 Transport And Storage Sector GDP
4.7 Export Trends
4.8 Import Trends
4.9 Fuel Price
4.10 Logistics Performance
4.11 Infrastructure
4.12 Regulatory Framework
4.12.1 Philippines
4.13 Value Chain & Distribution Channel Analysis
5 MARKET SEGMENTATION (INCLUDES MARKET VALUE IN USD, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Destination
5.1.1 Domestic
5.1.2 International
5.2 Speed Of Delivery
5.2.1 Express
5.2.2 Non-Express
5.3 Model
5.3.1 Business-to-Business (B2B)
5.3.2 Business-to-Consumer (B2C)
5.3.3 Consumer-to-Consumer (C2C)
5.4 Shipment Weight
5.4.1 Heavy Weight Shipments
5.4.2 Light Weight Shipments
5.4.3 Medium Weight Shipments
5.5 Mode Of Transport
5.5.1 Air
5.5.2 Road
5.5.3 Others
5.6 End User Industry
5.6.1 E-Commerce
5.6.2 Financial Services (BFSI)
5.6.3 Healthcare
5.6.4 Manufacturing
5.6.5 Primary Industry
5.6.6 Wholesale and Retail Trade (Offline)
5.6.7 Others
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Ayala Corporation
6.4.2 DHL Group
6.4.3 Entrego
6.4.4 FedEx
6.4.5 J&T Express
6.4.6 Lalamove
6.4.7 LBC Express Holdings, Inc.
6.4.8 Ninja Logistics
6.4.9 Philippine Postal Corporation (PHLPost)
6.4.10 SM Investments Corporation (including 2GO)
6.4.11 United Parcel Service of America, Inc. (UPS)
6.4.12 Ximex Delivery Express Logistics Inc. (XDE)
7 KEY STRATEGIC QUESTIONS FOR CEP CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Global Value Chain Analysis
8.1.4 Market Dynamics (DROs)
8.1.5 Technological Advancements
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
