Philippines Warehousing and Cold Chain Market Flourishes with Growing Demand and Government Initiatives

The Philippines logistics industry relies heavily on the warehouse market, which is a key sector within it. Due to its strategic position along the Pacific Ocean's coast, the Philippines serves as a highly favorable docking location for supply lines. This advantageous position facilitates efficient connections between numerous global export and import markets. The warehouse market experiences significant growth, primarily due to the industrial, retail, and e-commerce sectors.

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► Rise in Bonded Warehouses
Bonded warehouse demand is increasing as these are owned and managed by the government and private agencies. The management of goods that have been imported or will be exported from the nation is done at these storage facilities. This is an effective technique for the government to guarantee that private enterprises pay the right taxes on schedule. There is another option for a small business owner who wants their own warehouse but is constrained by money.

The Philippines cold chain market is also expanding as a result of rising domestic meat and seafood consumption, company expansion of current warehouses, and growing government efforts and investments in the nation. The Philippines cold chain industry market is being shaped by a growing middle class, a thriving e-commerce sector, and a tendency towards decentralization outside of Metro Manila. The demand for frozen, ready-to-cook meals has also grown in the Philippines as a result of the country's fast-paced lifestyle and rising per capita income.

► Increasing Government Initiatives
■ The Philippines' Department of Trade and Industry is planning to develop a transport and logistics economy that can compete on the global scale. In order to attract investments, they intend to work together with foreign logistics service providers. These investments will be used to develop a local logistics sector that is more competitive. The goal of all of these initiatives is to strengthen the national economy.

■ Government initiatives like the United States-funded Philippines Cold Chain Project (PCCP) are also assisting in the development of the Southeast Asian country's cold chain logistics system. The US Department of Agriculture (USDA) has provided funding for the PCCP over a four-year period. Through the provision of enhanced technologies, the expansion of cold chain-related markets, and the bolstering of intermediary organizations, it seeks to organize producer groups to boost agricultural production and adhere to global food safety standards.

► E-commerce and the Future of Warehousing
The process of buying something has become a lot simpler owing to e-commerce. Customers can purchase any item from an online store with a single click. As a result, commodities are spending more time in distribution lines and less time in storage facilities. The Philippines' warehouses must streamline their operations to give priority to three factors: Technology, Management, and Speed, in order to meet the rising demand.

The rising disposable income and retail spending of the population in the nation are predicted to raise the demand for perishable food goods, which will necessitate the construction of cold storage facilities and favourably impact market growth. With the aid of technological improvements, warehousing in the Philippines is entering a new era. With the aid of these modern systems, warehouse management may be done more quickly and effectively. The Philippines, which has seen a surge in commercial operations over the years, could immensely benefit from this for warehousing.

The demand for logistics services has grown in tandem with the rise in demand for the nation's goods, including those produced by the industrial sector.

► Key Findings
■ Increasing Competition: Warehouse companies are now fiercely competing with one another as a result of the dimensions and placement of their warehouses. The location is very important since it must be in a place that meets the needs of the client and keeps warehousing costs low. The Cold Chain Market is also characterized by severe competition, with Jentec Storage, Glacier Megafridge, Mets Logistics, Royal Cargo, and Big Blue Logistics leading the market for cold storage pallets. In addition to these businesses, there are several other significant competitors who compete for a greater portion of the market.

■ Lack of Pre-Cooling Facilities: Philippines lacks or has no pre-cooling facilities in and around farm and trading locations, which has greatly increased food losses and caused quality to deteriorate along the food cold chain.

■ Demand & Supply Gap: In order to control the rising costs of last-mile delivery services and the lengthening lead times for deliveries, 3PLs prefer to have warehouses close to their customers. There is a chance to turn existing facilities into vertical warehouses in order to close the supply-demand gap in the NCR.

■ Restraints: The transportation and logistics system in the Philippines faces challenges such as congested roads, inadequate distribution networks, and limited connectivity between different regions. These factors can result in delays, inefficiencies, and increased costs. Developing and improving transportation infrastructure, including roads, ports, and airports, can enhance the overall efficiency of the cold chain industry.

Makreo Research has published a study titled "Philippines Warehousing and Cold Chain Market Report: Size, Share, Growth, and Forecast (2018-2028)". This is a detailed evaluation of the warehousing market's performance in Philippines that discusses the past, present, and future outlook of the industry. In recent years, the industry has experienced many fluctuations due to the external environment thus, this study offers analysis of the industry during the pre-COVID-19 period and the post COVID-19 scenario. The report shed light on the demand-supply gap prevailing in the logistics industry of Philippines and also assessed the future outlook of the industry.

Period of Study:
2018-2022 : Past and Present Scenario
2023-2028 : Future Outlook of the industry

Market Assessment:
The report examines the Philippines Warehousing and Cold Chain Market Revenue and assesses the market's growth outlook.

Segments Covered Industry:
By Type of Warehouses-
General purpose warehouse
Cold storage
Bonded warehouses
Others

By Sectors-
E-Commerce
Manufacturing
Industrial & Retail
Agriculture
Others

For more information on the research report, refer to below link:
https://www.makreo.com/report/philippines-warehousing-cold-chain-market-report-size-share-growth-forecast-2018-2028

Similar Related Reports:-
Philippines Logistics and Freight Forwarding Industry Future Outlook to 2027-COVID-19 Impact Assessment
https://www.makreo.com/report/philippines-logistics-and-freight-forwarding-industry-future-outlook-to-2027-covid-19-impact-assessment

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This release was published on openPR.