One of the country’s leading end-to-end logistics solutions providers, FAST Logistics Group, expects a bullish outlook for the Philippine logistics industry next year, particularly across the supply chain, citing strong domestic demand, business expansion, technology adoption, and sustainability as key growth drivers.

Despite disruptions in late 2025 caused by severe weather events and infrastructure constraints, Manuel Onrejas Jr., CEO of Logistics for FAST Logistics Group, said momentum in warehousing and transportation remains strong heading into the new year.

Onrejas attributed the growth outlook to sustained expansion among local enterprises and increased entry of international companies into the Philippine market.

The World Bank earlier said it expects the Philippine economy to grow by around 6 percent annually through 2026, placing it among Asia’s faster-growing economies.

Onrejas said these trends are expected to drive higher demand for end-to-end logistics services, faster replenishment cycles, and broader regional coverage beyond Metro Manila, particularly across the Visayas and Mindanao.

Citing industry projections, he said the Philippine logistics market value is expected to rise from $55.65 billion in 2024 to nearly $102.52 billion by 2034.

“2026 will be a year where agility and foresight separate market leaders from followers,” he said.

FAST also sees forward stocking and cargo consolidation emerging as key strategies for fast-moving consumer goods and other high-volume industries. By positioning inventory closer to demand centers and consolidating shipments across regions, companies are expected to improve service levels and reduce delivery lead times, especially during disruptions such as typhoons.

“Forward stocking is now a resilience strategy rather than a backup plan. 2026 will see increased investment in strategic regional distribution hubs, particularly for FMCG, pharmaceuticals, and home care,” Onrejas said.

“Strategic shipment consolidation is a powerful lever for both cost efficiency and sustainability, especially as an alternative to direct-to-store deliveries,” he added.

Technology, sustainability to play larger role

To keep pace with industry growth, FAST said the Philippine logistics sector is transitioning into a new era of AI-enabled logistics and digital innovation.

Philippine companies and logistics providers, including FAST, have integrated AI and digital systems into their operations, particularly for route optimization and truckload planning, making technology a key enabler of growth and operational efficiency.

FAST also said sustainability is expected to become a more critical business requirement rather than a secondary consideration in 2026.

The company anticipates an expansion in green logistics initiatives, including the adoption of electric vehicles, energy-efficient facilities, and process optimization. These efforts are expected to support both regulatory compliance and long-term cost efficiency as businesses scale operations in the coming year.