Peru Freight And Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.16 Billion |
| Market Size (2029) | USD 19.85 Billion |
| CAGR (2024 - 2029) | 4.42 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Peru Freight And Logistics Market Analysis
The Peru Freight And Logistics Market size is estimated at USD 16.16 billion in 2024, and is expected to reach USD 19.85 billion by 2029, growing at a CAGR of 4.42% during the forecast period (2024-2029).
- Peruvian logistics is pulled back by logistical cost overruns, increasing final prices, and a loss of competitiveness. It is necessary to implement regulations to reduce the logistic cost overruns that exporters and importers pay. The COVID-19 pandemic had an impact on numerous businesses. In most industrial units worldwide, it caused the closure or suspension of their manufacturing activities. The COVID-19 pandemic greatly impacted the manufacturing, food and beverages, aviation, automotive, and other industries, influencing the logistics industry.
- The high agricultural exports and the government's plans to increase the exports further are major drivers for the growth of the logistics industry. Peru's volume growth across all freight transport sub-sectors was anticipated to slow down in 2023 due to the conflict between Russia and Ukraine and the consequences of a worldwide economic slowdown. In the near term, air freight will increase at the fastest rate. However, all four categories are anticipated to show indications of recovery in 2024 before stabilizing at expansion levels, sustainable in the longer run.
- Real trade growth will fluctuate over the medium term before some contractions are seen after the forecast period. Activity over the medium term will be influenced by economic recovery in the market's major trading partners, such as Mainland China.
- However, the likelihood of fewer business-friendly regulations could impact future growth. In the meantime, Peru is dedicated to expanding its transportation infrastructure to keep its position as a significant regional commerce hub and guarantee that supply chains consist of various freight options. Most freight will continue to be transported by road, albeit if ambitious initiatives are successful, the rail sub-sector may play a larger role.
- Peru's Ministry of Transport and Communications (MTC) effectively managed its allotted budget, reiterating its commitment to closing gaps in its road, airport, port, rail, and telecommunications infrastructure. The ministry spent SOL 1.841 billion (USD 48.36 million) in December, around 5% more than it did during the same period in 2020.
- The amount invested in the transportation and communications industry in December 2021 was SOL 1.094 billion (USD 28.75 million). It resulted in a cumulative annual total of SOL 8.277 billion (USD 217.5 million), around 69% more than the record-breaking amount invested in 2020. The national and regional road network's maintenance activities for concession and non-concession roads and other current expenditure-related items came to SOL 748 million (USD 19.66 million).
Peru Freight And Logistics Market Trends
Agricultural Exports are Driving the Growth of Logistics
- Peruvian agricultural exports worldwide grew remarkably in the last few decades, from USD 645 million in 2000 to USD 10.5 billion in 2023. This exceptional achievement is attributable to favorable weather in the coastal region of Peru, investments in cutting-edge technology, and wise policies, such as the Special Labor Regime for Agriculture Legislation.
- Peru increased its production land used for high-value exports by a factor of four to approximately 200,000 hectares. The industry generates about four direct jobs in the field and one in the processing facilities per hectare. So Peru generated at least one million formal jobs. Additionally, the act opened up job prospects for women, who make up roughly 25% of the workforce.
- Agro exports are Peru's second currency generator. Since 2000, its export figures have experienced an exponential increase. Peru's wheat production was estimated at 200,000 metric tons in 2023, mainly soft wheat consumed directly in soups and purees. Wheat processed into flour for bread and pasta is imported (duty-free but with an 18% value-added tax).
- Cotton production in Peru reached 16,000 metric tons in 2023, marking an 8% increase from 2022. Cotton imports into Peru are projected to reach 68,000 metric tons in 2023, reflecting a 13% increase from 2022. The value of cotton exports reached USD 1.5 billion in 2022. The US-Peru Trade Promotion Agreement (PTPA) grants duty-free access to Peruvian textiles. In 2023, avocado production surpassed one million metric tons, representing an increase of almost 24% compared to the previous year.
The Pharmaceutical and Healthcare Industry is Growing in the Country
- The Peruvian pharmaceutical industry is highly competitive, and digital transformation positively impacts the industry. In Peru, the pharmaceutical industry is driven by increased consumer purchasing power, improved access to healthcare, and government initiatives to stock up on generic medicines.
- Composed of only a few companies, the market is mainly dominated by Inkafarma, Química Suiza, and Boticas Arcángel. The local players have grown rapidly within this market. The country has over 200 national and transnational laboratories. In addition to laboratories, other important players in the industry include pharmaceutical distributors and pharmacy chains.
- The pharmaceutical industry in Peru ranks seventh in South America, following Mexico, Brazil, Argentina, Venezuela, Colombia, and Chile. According to an industry association, the Peruvian market is unstructured, with an OTC market share of 15%, while the prescription-based market share is 85%.
- Peru has been a traditional net importer of pharmaceutical products, with the largest suppliers being the United States, Germany, and China, which account for about 44.7% of its domestic demand for imported drugs. Over the past few decades, Peru's self-medication and pharmaceutical industries have experienced rapid expansion.
- According to an industry association, the market is expected to grow by 8.1% every year to reach a value of USD 4.1 billion by 2030. The regulatory arm of the government concerned with OTC and pharmaceutical products and distribution is known as DIGEMID (Dirección General de Medicamentos, Insumos y Drogas). It often works with the National Pharmaceutical Laboratories Association of Peru (ALAFARPE in Spanish).
Peru Freight And Logistics Industry Overview
The Peruvian freight and logistics market includes more than 800 players and is fragmented. International players come with a strong presence in the country's logistics market. Technology integration is slowly but steadily increasing, and the players invested in the technology are expected to gain a competitive edge in the market. Some of the international players present in the market are DHL, DB Schenker, Agility, and UPS, to name a few.
Peru Freight And Logistics Market Leaders
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CEVA Logistics
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DHL
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DB Schenker
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Perurail SA
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Avianca Cargo
*Disclaimer: Major Players sorted in no particular order
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Peru Freight And Logistics Market News
- July 2024: IDB Invest, in collaboration with CIFI Latam and CIFI Fund, extended a USD 53 million loan to Almacenes del Norte. The aim is to bolster logistics services in Lima, Peru, by developing ADN Parque Logístico Callao. This industrial park is slated for construction in the Ventanilla district in the Constitutional Province of Callao. Notably, USD 20 million is sourced from CIFI Latam and CIFI Fund, entities known for focusing on sustainable investments. This venture marks a significant milestone as it's poised to be Peru's inaugural sustainable logistics park, introducing pioneering and adaptable solutions that resonate with prevailing global trends. The park's standout feature is an eight-meter high, premium class A warehouse, pivotal in addressing the city's logistics infrastructure needs.
- June 2024: DP World, a global ports operator, wrapped up a USD 400 million expansion initiative at Peru's Port of Callao, aligning with its broader strategy to bolster capacity in Latin America. This endeavor has significantly enhanced the south terminal's container handling capability by 80%, cementing Callao's stature as the premier trade hub on South America's western seaboard. After the project, the port can now handle up to 2.7 million twenty-foot equivalent units (TEUs), with the container yard area growing to encompass 40 hectares.
Peru Freight & Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Growing Cold Chain Logistics in the Country
4.2.1.2 Increase in Infrastructure Spending to Support the Growth Rate in the Logistics
4.2.2 Restraints
4.2.2.1 Insufficient Supply of Modern Wastewater Treatment Plants
4.2.2.2 Challenges From Solid Waste Management
4.2.3 Opportunities
4.2.3.1 Digitization in Logistics Sector
4.2.3.2 Growth in Warehouse
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Technology Innovation and its Impact
4.5 Impact of Ecommerce Growth on the Market
4.6 Impact of Regulations on Logistics Industry
4.7 Impact of COVID-19 on the market
5. MARKET SEGMENTATION
5.1 By Function
5.1.1 Freight Transport
5.1.1.1 Road
5.1.1.2 Rail
5.1.1.3 Sea and Inland
5.1.1.4 Air
5.1.2 Freight Forwarding
5.1.3 Warehousing
5.1.4 Value-added Services
5.2 By End User
5.2.1 Construction
5.2.2 Oil and Gas and Quarrying
5.2.3 Agriculture, Fishing, and Forestry
5.2.4 Manufacturing and Automotive
5.2.5 Distributive Trade
5.2.6 Other End Users (Pharmaceutical and Healthcare)
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 CEVA Logistics
6.2.2 DHL
6.2.3 DB Schenker
6.2.4 Perurail SA
6.2.5 Avianca Cargo
6.2.6 Agility Logistics
6.2.7 JAS Worldwide
6.2.8 United Parcel Service Inc.
6.2.9 Transaltisa SA
6.2.10 Servosa Gas SAC
6.2.11 Transportes Rodrigo Carranza SAC
6.2.12 Impala Terminals*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 GDP Distribution, by Activity
8.2 Insights on Capital Flows in the Market
8.3 Economic Statistics - Transport and Storage Sector Contribution to Economy
8.4 External Trade Statistics - Export and Import, by Product
Peru Freight And Logistics Industry Segmentation
The Peruvian freight and logistics market report provides insights on the drivers, restraints, opportunities, technology innovation and its impact, the impact of e-commerce growth on the market, regulations and investments in the logistics industry, and industry attractiveness - Porter's five forces analysis. It will also give insights into the growth of intermodal logistics in the region and insights into the courier, express, and parcel segments.
The Peruvian freight and logistics market is segmented by function (freight transport (road, rail, sea, and inland and air), freight forwarding, warehousing, courier, express, and parcel, value-added services (cold chain logistics, last mile logistics, return logistics, and other emerging areas)) and end-user (construction, oil and gas, and quarrying, agriculture, fishing, and forestry, manufacturing and automotive, distributive trade, and other end users (pharmaceutical and healthcare)). The report offers market sizes and forecasts in value (USD) for all the above segments.
| By Function | ||||||
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| Freight Forwarding | ||||||
| Warehousing | ||||||
| Value-added Services |
| By End User | |
| Construction | |
| Oil and Gas and Quarrying | |
| Agriculture, Fishing, and Forestry | |
| Manufacturing and Automotive | |
| Distributive Trade | |
| Other End Users (Pharmaceutical and Healthcare) |
Peru Freight & Logistics Market Research FAQs
How big is the Peru Freight And Logistics Market?
The Peru Freight And Logistics Market size is expected to reach USD 16.16 billion in 2024 and grow at a CAGR of 4.42% to reach USD 19.85 billion by 2029.
What is the current Peru Freight And Logistics Market size?
In 2024, the Peru Freight And Logistics Market size is expected to reach USD 16.16 billion.
Who are the key players in Peru Freight And Logistics Market?
CEVA Logistics, DHL, DB Schenker, Perurail SA and Avianca Cargo are the major companies operating in the Peru Freight And Logistics Market.
What years does this Peru Freight And Logistics Market cover, and what was the market size in 2023?
In 2023, the Peru Freight And Logistics Market size was estimated at USD 15.45 billion. The report covers the Peru Freight And Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Peru Freight And Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Peru Freight & Logistics Industry Report
Statistics for the 2024 Peru Freight & Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Peru Freight & Logistics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
