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Mexico Last Mile Delivery Market Size (2024 - 2029)

The Mexican Last Mile Delivery Market is experiencing significant transformation, driven by changes in consumer behavior due to the COVID-19 pandemic and the increasing importance of e-commerce in grocery retail. This shift has led to heightened competition among grocery stores to enhance their e-commerce capabilities, as customer expectations for delivery timelines evolve. The market landscape is further complicated by the emergence of digital-native retail players and the blurring lines between traditional and online retail. Despite challenges such as high transportation and fuel costs, which impact the overall supply chain expenses, the market is poised for growth as logistics companies and startups innovate to meet these demands.

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Market Size of Mexico Last Mile Delivery Industry

Mexico Last Mile Delivery Market Summary
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

Mexico Last Mile Delivery Market 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 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
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Mexico Last Mile Delivery Market Size Summary

The Mexican last mile delivery market is experiencing significant transformation, driven by the shift in consumer behavior due to the COVID-19 pandemic. As consumers increasingly turned to digital channels for their shopping needs, the importance of efficient last mile delivery solutions became paramount. This shift has prompted traditional grocery retailers to enhance their e-commerce capabilities, while new digital-native players have entered the market, further intensifying competition. The market is characterized by a blend of established companies and emerging startups, all vying to meet the evolving expectations of consumers who demand faster and more reliable delivery services. Despite challenges such as high transportation costs and fuel prices, the market is poised for growth as more consumers in Mexico embrace online shopping, a trend that is expected to continue in the coming years.

The expansion of e-commerce in Mexico is a key driver of growth in the last mile delivery sector. As online shopping becomes more prevalent, the demand for efficient delivery solutions is increasing, with e-commerce transactions expected to account for a larger share of retail sales. The market is also witnessing the rise of cross-border e-commerce, with Mexican consumers increasingly purchasing from international websites. This growth is supported by the presence of both international and national logistics players, as well as new startups that are innovating to bridge the gap between e-commerce brands and consumers. The market's fragmentation presents opportunities for companies to differentiate themselves through specialized services, such as those offered by DHL and C. H. Robinson. As the market continues to evolve, the focus on reverse logistics and the integration of technology in delivery processes are expected to drive further growth and efficiency.

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Mexico Last Mile Delivery Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Technological Trends and Automation in Last Mile Delivery

    3. 1.3 Insights into E-commerce industry in Mexico

    4. 1.4 Government Regulations and Initiatives

    5. 1.5 Insights on Warehousing and Distribution Centers

    6. 1.6 Value Chain / Supply Chain Analysis

    7. 1.7 Insights on Refrigerated Last Mile Delivery

    8. 1.8 Insights on Return Logistics

    9. 1.9 Insights into Cross-Border Trade of Mexico with Other Countries

    10. 1.10 Impact of Geopolitics and Pandemics on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Same-Day Delivery

      2. 2.1.2 Regular Delivery

      3. 2.1.3 Other Express Delivery

    2. 2.2 By Business

      1. 2.2.1 B2B (Business-to-Business)

      2. 2.2.2 B2C (Business-to-Consumer)

      3. 2.2.3 C2C (Customer-to-Customer)

    3. 2.3 By End User

      1. 2.3.1 Consumer & Retail

      2. 2.3.2 Food & Beverages

      3. 2.3.3 Pharmaceuticals & Healthcare

      4. 2.3.4 Others

Mexico Last Mile Delivery Market Size FAQs

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.

In 2024, the Mexico Last Mile Delivery Market size is expected to reach USD 13.98 billion.

Mexico Last Mile Delivery Market Report Snapshots

Mexico Last Mile Delivery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)