Market Trends of Mexico Last Mile Delivery Industry
Mexican online grocers are rapidly expanding their presence in other Latin American countries
Due to the pandemic panic, more consumers are turning to online sales channels to complete their purchases, including necessities for daily life. As a result, the e-commerce sector in Latin America is still growing. Despite the reopening of physical stores, consumers who experienced online shopping for the first time during the global pandemic are anticipated to keep up their online purchasing practices. More and more Mexican consumers are anticipated to shop online during the next three to four years. As a result, in the short to medium term, it is anticipated that e-commerce transactions as a percentage of overall retail sales would increase even more in the nation. Although the industry is anticipated to expand over the following three to four years, excessive inflation that hurts customers' demand will continue to be a problem for the sector in 2022. Additionally, the country's rising rate of online scams may have a detrimental effect on customer confidence in online purchases. To guarantee the e-commerce sector's ongoing expansion in Mexico, new tactics are required.
The online supermarket Justo, established in Mexico City, is quickly entering other Latin American nations. Last year, the company established operations in Brazil and Peru. The company launched the first physical store in Lima that offered a hybrid grocery model in addition to purchasing Freshmart, a domestic local online grocer, to enter the Peruvian market. The company plans to aggressively grow its operations in both Latin American markets in 2022. As a result, General Atlantic led its Series B round, which saw a sizeable investment of USD 152 million. Notably, the company will use the funds to increase its presence in Brazil and Peru, two countries where it has experienced rapid growth since its founding.
Growing cross-border trade relations with other countries on various industries
E-commerce in Mexico will be responsible for more than half of the increase in overall sales by the year 2025. The number of Internet users and online buyers in Mexico has already increased and is still growing. With almost two-thirds of Mexican online customers visiting international websites, cross-border e-commerce has also grown in popularity. Clothing was one of the most popular product categories, followed by electronics and cosmetics. In Mexico, B2C e-commerce sales are anticipated to continue growing during the following five years. By 2025, e-commerce in Mexico will account for more than half of the growth in total sales. In Mexico, there are already more Internet users and more people shopping online. Cross-border e-commerce has become more commonplace since nearly two-thirds of Mexican online users browse foreign websites. One of the most popular product categories was clothing, followed by cosmetics and gadgets. B2C e-commerce sales in Mexico are expected to increase during the next five years.
According to Statista, With 46% of people making these purchases as of January 2022, clothes and apparel was the most popular cross-border e-commerce category for Mexican online shoppers. In addition, consumer electronics accounted for 23% of respondents' online foreign purchases, closely followed by cosmetics at 22%.
Mexico is a significant player in global agricultural trade. Applying the WTO's definition of agricultural commerce to the Mexican Government's trade data, the country's agricultural exports reached a total of USD 46.6 billion in 2022. In all, Mexico imported USD 41.4 billion worth of agricultural goods in 2022. The United States is Mexico's biggest trading partner in the agricultural sector, purchasing around 80% of the country's exports and contributing to about 70% of its imports. In 2022, Mexico accounted for 14.5% of U.S. agricultural exports and 22.8% of U.S. agricultural imports
