Market Trends of Brazil 3PL Industry
Increasing Freight Trucking is Driving Market Growth
In 2023, Brazil had more than 4.2 million truck drivers and nearly 2 million kilometers of roads. In addition, the country had one of the world’s largest road logistics networks, and the flow of trucks witnessed significant growth. According to the Brazilian Association of Highway Concessionaires (ABCR), in the past two decades, truck traffic in the country has increased by more than 60%, and most of the goods in the country are traded via highways.
Brazil has a network of more than 1.7 million km of federal roads, the fourth-largest system in the world after the United States, China, and India, and it relies on its highways and backroads for the transportation of 90% of its ton-mile cargo nationally, using rail for less than a tenth. Hence, trucking haulage plays a vital role in the growth of the 3PL market in the country.
Brazil’s trucking sector is moving toward energy efficiency to reduce carbon emissions and improve air quality by taking initiatives such as replacing older trucks, improving fuel economy, and investing in rail and roads. In 2022, heavy trucks accounted for more than half of all new trucks registered in Brazil, with more than 65 thousand units, followed by semi-light trucks and medium trucks. Thus, the increasing freight trucking is driving the third-party logistics market in the country.
Growth in E-commerce is Fueling the Growth of the Logistics Sector
Brazil is the most populated country in Latin America, continuously experiencing rapid growth in e-commerce expansion. The Brazilian e-commerce market is expected to grow by more than 90% by 2025. In addition, Brazilians embrace special promotions and offers provided by e-commerce platforms, thus creating new opportunities for online stores to explore new initiatives to attract customers' attention. According to industry experts, it comprises around 37 million unique online shoppers per quarter, which amounted to about 369 million orders in 2023.
The pandemic boosted the growth in online purchases. The Brazilian government issued pandemic relief via digital wallets, further increasing e-commerce sales in the country. In addition, despite the functioning of brick-and-mortar stores after the pandemic, Brazil’s population preferred online retail channels. In 2022, online shoppers reached nearly 108 million, up by more than 24%. Brazil's e-commerce penetration was 54.75% in 2023, and it is expected to be 57.12% in 2024.
