Mexico Last Mile Delivery Market Size
| Study Period | 2024 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 13.98 Billion |
| Market Size (2029) | USD 24.43 Billion |
| CAGR (2024 - 2029) | > 11.81 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mexico Last Mile Delivery Market Analysis
The Mexico Last Mile Delivery Market size is estimated at USD 13.98 billion in 2024, and is expected to reach USD 24.43 billion by 2029, at a CAGR of greater than 11.81% during the forecast period (2024-2029).
- The Mexico last-mile delivery market is driven by a surge in demand for e-commerce and an increasing demand for same-day delivery.
- In 2024, Mexico's e-commerce market boasted roughly 74 million users and raked in about USD 38 billion. Projections indicate these numbers could nearly double in the next five years. Holding a market share of over 26 percent, Mexico stands as the second-largest player in Latin America's online retail revenues, closely trailing Brazil for the lead.
- Amazon and Mercado Libre, both hailing from foreign shores, dominate the online retail landscape in Mexico. These two giants have recently ramped up their activities in the North American nation. In 2024, Mercado Libre made headlines with a significant investment of USD 2.45 billion, aimed at bolstering its logistics. Meanwhile, Jeff Bezos' Amazon has been steadily expanding its operations throughout the country. Since its 2015 entry into the Mexican market, Amazon has broadened its delivery services to cover all 32 states, proudly offering next-day delivery in 80 cities.
- Yet, the competitive landscape has shifted with the rise of two Chinese players, Temu and SHEIN. In 2023, these fast-fashion titans emerged as the top downloaded shopping apps in Mexico, collectively racking up over 37 million and 27 million downloads on the App Store and Google Play Store
- Today, e-commerce spans a multitude of product categories. However, consumers predominantly channel their online spending towards personal and household items. Regarding payment preferences, approximately one-third of Mexicans lean towards credit cards, while just over 25% favor e-wallets.
- Mexico's e-commerce sector is experiencing remarkable growth, underscoring its regional significance with a vast user base and impressive revenue figures. Industry titans such as Amazon and Mercado Libre, along with rising Chinese players, intensify the competition, fueling innovation and drawing substantial investments. As Mexican consumers increasingly embrace the convenience of online shopping, the market is poised for further evolution and expansion, solidifying its status as one of Latin America's most dynamic e-commerce arenas.
Mexico Last Mile Delivery Market Trends
B2B segment experiencing substantial growth
In Mexico's B2C e-commerce landscape, shifting consumer behaviors are prominently steering the course, with a marked tilt towards mobile commerce. A striking 79% of online transactions are projected to be conducted on mobile devices, emphasizing the critical need for mobile-optimized platforms and services.
Furthermore, there's a discernible shift towards digital payment methods, especially digital wallets, which are set to capture a significant portion of online transactions as payment options broaden. This evolution is largely fueled by a tech-savvy populace increasingly leaning on technology for a more convenient shopping experience.
While the consumer electronics segment dominates the B2C e-commerce arena, claiming a substantial revenue share, the beauty and personal care segment is emerging as one of the fastest-growing sectors, underscoring the ever-evolving interests of online shoppers.
Key market players, spanning global behemoths like Amazon to homegrown platforms such as Mercado Libre, are solidifying their footholds by refining user experiences and broadening their product ranges. These marketplaces are also embracing innovations, rolling out personalized marketing strategies and loyalty programs, to both entice new customers and retain existing ones.
As of August 2024, MercadoLibre stood as a leading e-commerce provider in Latin America. Alongside US-based Amazon, they command an impressive 85% share of Mexico's e-commerce sales, as reported by Mexico's Federal Economic Competition Commission (COFECE).
Growing cross-border trade relations with other countries on various industries
Mexican consumers are increasingly turning to international shopping, driving demand. In 2024, around 82.3% of Mexico's online shoppers made purchases from global retailers, with nearly half of these transactions coming from U.S. websites. This trend underscores a rising appetite for international products, bolstering cross-border sales.
Key to this growth are the expanding internet access and the surging popularity of online marketplaces. Currently, cross-border transactions make up about 24% of Mexico's e-commerce landscape, signaling a dynamic market ready for heightened engagement from consumers eyeing international products.
Research shows that 8 out of 10 Mexican consumers participated in cross-border shopping, with a strong preference for U.S. brands, driven by their availability and perceived quality. As Mexican consumers increasingly seek products not easily found domestically, this trend is set to amplify, further fueling the demand for cross-border e-commerce.
Mexico Last Mile Delivery Industry Overview
Mexico's last-mile delivery market is fragmented in nature. The market is characterized by a mix of established logistics companies, emerging startups, and evolving consumer expectations. Major companies in the market include DHL Group, United Parcel Services (UPS), FedEx Corp, Amazon Inc and Buho Logistics
The companies are leveraging their extensive logistics networks and technological capabilities to enhance service offerings and improve operational efficiency.
Mexico Last Mile Delivery Market Leaders
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DHL Group
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United Parcel Services (UPS)
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FedEx Corp
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Buho Logistics
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APL Logistics
*Disclaimer: Major Players sorted in no particular order
Mexico Last Mile Delivery Market News
- August 2024: DHL has invested USD 120 million to bolster Queretaro's logistics capabilities, further cementing Mexico's status as a key logistics hub in LATAM. The company's domestic air operations center in Queretaro, now 80% complete, is set to boost DHL's logistics network in Mexico. This expansion will not only ramp up operational capacity but also incorporate advanced, sustainable technologies and generate 200 new jobs.
- July 2024: UPS has finalized an agreement to purchase Estafeta, a leading express delivery company based in Mexico. This strategic acquisition is in line with UPS's 'Better and Bolder' initiative, highlighting its goal to dominate the global arena in international small package delivery and logistics. With the merger, customers will benefit from UPS's cohesive offerings, seamlessly integrating small package delivery, healthcare logistics, and comprehensive supply chain solutions, thereby establishing a unique 'One UPS' edge.
Mexico Last Mile Delivery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
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 and Automation in Last Mile Delivery
4.3 Insights into E-commerce industry in Mexico
4.4 Government Regulations and Initiatives
4.5 Insights on Warehousing and Distribution Centers
4.6 Value Chain / Supply Chain Analysis
4.7 Insights on Refrigerated Last Mile Delivery
4.8 Insights on Return Logistics
4.9 Insights into Cross-Border Trade of Mexico with Other Countries
4.10 Impact of Geopolitics and Pandemics on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.1.1 Surge in e-commerce activities driving the market
5.1.2 Surge in demand for same - day delivery
5.2 Restraints
5.2.1 Surge in operational costs affecting the market
5.2.2 Infrastructure limitations affecting the market
5.3 Opportunities
5.3.1 High internet penetration driving the market
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitutes
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Service
6.1.1 Same-Day Delivery
6.1.2 Regular Delivery
6.1.3 Other Express Delivery
6.2 By Business
6.2.1 B2B (Business-to-Business)
6.2.2 B2C (Business-to-Consumer)
6.2.3 C2C (Customer-to-Customer)
6.3 By End User
6.3.1 Consumer & Retail
6.3.2 Food & Beverages
6.3.3 Pharmaceuticals & Healthcare
6.3.4 Others
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 DHL Group
7.2.2 United Parcel Services (UPS)
7.2.3 FedEx Corp
7.2.4 Amazon Inc
7.2.5 Buho Logistics
7.2.6 CH Robinson
7.2.7 APL Logistics
7.2.8 DSV
7.2.9 Alertica
7.2.10 Gomsa
7.2.11 Grupo Padilla*
- *List Not Exhaustive
7.3 Other Companies
8. FUTURE OF THE MARKET
9. APPENDIX
9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Last Mile Delivery Market Sector to economy)
9.2 Insights on Capital Flows (investments in Last Mile Delivery Market Sector)
9.3 External Trade Statistics - Export and Import, by Product and by Country
Mexico Last Mile Delivery Industry Segmentation
Last-mile delivery refers to the final step of the logistics process, wherein a parcel is transported from a distribution hub to its ultimate destination.
Mexico last mile delivery market is segmented by service(same-day delivery, regular delivery, other express delivery), by business (B2B (business-to-business), B2C (business-to-consumer), C2C (customer-to-customer)), and by end-user (consumer & retail, food & beverages, pharmaceuticals & healthcare, and others). The report offers market size and forecasts in values (USD) for all the above segments.
| By Service | |
| Same-Day Delivery | |
| Regular Delivery | |
| Other Express Delivery |
| By Business | |
| B2B (Business-to-Business) | |
| B2C (Business-to-Consumer) | |
| C2C (Customer-to-Customer) |
| By End User | |
| Consumer & Retail | |
| Food & Beverages | |
| Pharmaceuticals & Healthcare | |
| Others |
Mexico Last Mile Delivery Market Research FAQs
How big is the Mexico Last Mile Delivery Market?
The Mexico Last Mile Delivery Market size is expected to reach USD 13.98 billion in 2024 and grow at a CAGR of greater than 11.81% to reach USD 24.43 billion by 2029.
What is the current Mexico Last Mile Delivery Market size?
In 2024, the Mexico Last Mile Delivery Market size is expected to reach USD 13.98 billion.
Who are the key players in Mexico Last Mile Delivery Market?
DHL Group, United Parcel Services (UPS), FedEx Corp, Buho Logistics and APL Logistics are the major companies operating in the Mexico Last Mile Delivery Market.
What years does this Mexico Last Mile Delivery Market cover, and what was the market size in 2023?
In 2023, the Mexico Last Mile Delivery Market size was estimated at USD 12.33 billion. The report covers the Mexico Last Mile Delivery Market historical market size for years: . The report also forecasts the Mexico Last Mile Delivery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico Last Mile Delivery Industry Report
Statistics for the 2024 Mexico Last Mile Delivery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico Last Mile Delivery analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Mexico Last Mile Delivery Market Report Snapshots
