Latin America International Courier, Express and Parcel (CEP) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Latin America International Courier, Express and Parcel (CEP) Market Analysis
The Latin American International CEP Market is estimated to witness a CAGR of more than 5.5% during the forecast period (2022-2027).
With the surge in e-commerce during the epidemic, demand has suffocated the supply chain, limiting retailers' capacity to fulfill orders and restock the inventory as quickly as customers need it. Logistics services have fresh potential to acquire consumers, the first ones in the post-COVID phase, with the revival of international commerce. Between January and May 2021, Mexico remained the United States' top commercial partner, with 14.7% involvement and the expectation of increased imports, exports, and, potentially, commercial services, with logistics being among the most desired. In April 2021, Mexico became the United States' first business partner in terms of goods exchanges only, without including services. Mexico accounted for 14.7% of total merchandise exports and imports in the fourth month of the year, ahead of Canada (14.2%) and China (13.3%).
Moreover, logistics has been key at this time and is one of the industries that is projected with great prospects for the future, precisely because there is a trend that came strongly and now exploded. Electronic commerce is one of the trends in digital transformation that is widely cited because it responds to new consumer needs and is impacting the entire logistics distribution chain.
Latin America International Courier, Express and Parcel (CEP) Market Trends
This section covers the major market trends shaping the Latin America International CEP Market according to our research experts:
Cross Border E-Commerce Driving the CEP Market
COVID-19 reduced the cross-border percentage of e-commerce spending in 2020, but it is expected to fully recover by 2023. Brazil is Latin America's first and largest country and continues to be the regional powerhouse, accounting for 50% of total e-commerce spending in 2021. The cross-border market in Brazil decreased by 11% in 2020 because of COVID-19 restrictions.
Moreover, with attractive bi-lingual websites and strong connections with logistics businesses in Chile, e-commerce is seen as a vital instrument for local exporters to penetrate worldwide markets. Local shoppers prefer Alibaba for foreign online shopping because of the lower pricing, yet delivery times may be lengthy, and the goods may not be as expected. Amazon is a great alternative for local customers because it now sells products made by Chilean enterprises. However, certain brands do not ship abroad. Local shoppers, on the other hand, are eager to take advantage of foreign internet purchases to get a greater range of products and pricing.
Cross-border mobile commerce expanded twice as quickly as traditional e-commerce in Mexico after the rapid spread of e-commerce in Mexico. 2020 proved not just the country's e-commerce and m-commerce growth potential but also enterprises' capacity to shift and adapt to digital channels to stay ahead in the face of a challenging economic future. In 2021, Mexico was leading the cross-border e-commerce sector with more than USD 9.6 Billion in revenue, followed by Argentina and Brazil.
Increasing Parcel Volumes to Provide Opportunities in the Market
Brazil produced 39 packets every second, or 3.4 million each day. Parcel volume increased by 46% Y-o-Y, hitting 1.2 billion in 2020, up from 0.85 billion in 2019. The number of parcels generated per person increased to 6 in 2020, up from 4 in 2019. Brazil is one of Latin America's fastest-growing e-commerce markets. Brazil saw its more established carrier Brazil Post lose both parcel volume and revenue market share to competitors.
The top six carriers in Brazil account for 71% of the country's parcel shipments by volume. Correos de Chile's parcel revenue climbed by 25% in 2020, thanks to a doubling of parcel volumes. The company saw a 240% increase in e-retailer clients using its services in 2020, indicating that e-commerce demand was the main driver of growth. Volumes of parcels and express delivery surged by 71%.
However, due to a surge in e-commerce operations in Colombia, the freight and courier sector rose by 39%. Deprisa, a Colombian express delivery company, stated that it transported more than nine million parcels in 2020, representing a 6% rise, primarily due to a 25% increase in the fourth quarter operating in accordance with the volume of electronic commerce sales.
The increase in parcel volumes is driven by strong e-commerce penetration in Latin America. In 2021, Brazil contributed the highest revenue in the region in terms of e-commerce sales, which was around USD 41 Billion, followed by Mexico and Argentina with USD 40 Billion and USD 9.4 billion, respectively.
Latin America International Courier, Express and Parcel (CEP) Industry Overview
The Latin American International CEP Market is fragmented in nature with a mix of global and local players, making the sector highly competitive. Some of the strong players in the country include DHL Express, FedEx Corporation, Gefco Logistics, UPS, and DB Schenker. Many organizations began investing in extending their logistics operations in order to take advantage of the prospect of rapid expansion in the CEP. Companies like DHL have been expanding across the region and investing in new technologies to improve the efficiency of their supply chains.
Latin America International Courier, Express and Parcel (CEP) Market Leaders
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GEFCO
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United Parcel Service of America, Inc.
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DB Schenker
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DHL
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FedEx
*Disclaimer: Major Players sorted in no particular order
Latin America International Courier, Express and Parcel (CEP) Market News
August 2021: Aries Worldwide Logistics (a global logistics provider) announced that it is expanding its cross-border operations with Mexico. The announcement of Aries' new Laredo, TX facilities, where it will establish major trade lanes between the United States and Mexico, is a key component of this expansion.
July 2021: DHL Express (the world's leading express service provider) announced that it will invest more than USD 360 million by 2022 in new and expanded facilities in key growth markets throughout the Americas. The company intends to invest millions in measures to strengthen its Americas air network, such as the introduction of new and direct flight routes.
Latin America International Courier, Express and Parcel (CEP) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Government Regulations
4.4 Overview of the Logistics and Warehousing Market in Latin America
4.5 Brief on Freight Forwarding Market In Latin America
4.6 Industry Supply/Value Chain Analysis
4.7 Spotlight on the E-commerce Sector in Latin America
4.8 Impact of COVID-19 on the CEP Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Business
6.1.1 Business-to-Business (B2B)
6.1.2 Business-to-Customer (B2C)
6.1.3 Customer-to-Customer (C2C)
6.2 By Type
6.2.1 Ecommerce
6.2.2 Non-E-commerce
6.3 By End User
6.3.1 Services
6.3.2 Wholesale and Retail Trade
6.3.3 Healthcare
6.3.4 Industrial Manufacturing
6.3.5 Other End Users
6.4 By Country
6.4.1 Brazil
6.4.2 Mexico
6.4.3 Columbia
6.4.4 Argentina
6.4.5 Rest of Latin America
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 GEFCO
7.2.2 United Parcel Service of America Inc.
7.2.3 DB Schenker
7.2.4 DHL
7.2.5 FedEx
7.2.6 KERRY LOGISTICS NETWORK LIMITED
7.2.7 Brazil Post
7.2.8 SkyPostal Inc.
7.2.9 C.H. Robinson Worldwide Inc.
7.2.10 CEVA Logistics
7.2.11 Kuehne+Nagel
7.2.12 Nippon Express Co. Ltd
7.2.13 SF International
7.2.14 Loggi*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
Latin America International Courier, Express and Parcel (CEP) Industry Segmentation
CEP (courier, express, and parcel) refers to a set of services that entails the delivery of various commodities and products across many places via land, air, or water. Express deliveries, in contrast to courier and parcel services, are frequently time-bound, with various high-value consignments arriving in a few days or at a pre-arranged date and time. The report offers a comprehensive background analysis of the Latin American International CEP Market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.
The Latin American International Courier, Express, and Parcel (CEP) Market is segmented by Business Model (Business-to-Business (B2B), Business-to-Customer (B2C), and Customer-to-Customer (C2C)), Type (Ecommerce, Non-e-commerce), End User (Services, Wholesale and Retail Trade, Healthcare, Industrial Manufacturing, and Other End Users), and Country (Brazil, Mexico, Columbia, Argentina, and Rest of Latin America). The report offers market size and forecasts for the Latin American International Courier, Express, and Parcel (CEP) Market in value (USD Billion) for all the above segments.
| By Business | |
| Business-to-Business (B2B) | |
| Business-to-Customer (B2C) | |
| Customer-to-Customer (C2C) |
| By Type | |
| Ecommerce | |
| Non-E-commerce |
| By End User | |
| Services | |
| Wholesale and Retail Trade | |
| Healthcare | |
| Industrial Manufacturing | |
| Other End Users |
| By Country | |
| Brazil | |
| Mexico | |
| Columbia | |
| Argentina | |
| Rest of Latin America |
Latin America International Courier, Express and Parcel (CEP) Market Research FAQs
What is the current Latin America International CEP Market size?
The Latin America International CEP Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Latin America International CEP Market?
GEFCO, United Parcel Service of America, Inc., DB Schenker, DHL and FedEx are the major companies operating in the Latin America International CEP Market.
What years does this Latin America International CEP Market cover?
The report covers the Latin America International CEP Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Latin America International CEP Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America International CEP Industry Report
Statistics for the 2024 Latin America International CEP market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America International CEP analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
