Brazil E-commerce Logistics Market Research report, 2027

Brazil is attracting the attention of savvy businesses worldwide thanks to a large consumer market eager to purchase international goods and services and a young population that embraces foreign culture. E-commerce giants like Ali Express and Light in the Box are heavily investing in this sector since it is cheaper for Brazilian customers to buy from these international websites than from local stores, owing to the higher rates local stores must charge due to the hefty taxation costs they face. This increase in demand from the younger audience generates business for the e-commerce logistics market. But cyber security is still a worry, especially when it comes to online fraud. Because the majority of Brazilians do not have foreign credit cards, international transactions can be difficult for both locals and visitors. While it is relatively simple to use credit cards in hotels and tourist attractions, the same cannot be said for online purchases. Many Brazilian websites do not accept international credit cards, making it difficult for people to pay for services like food delivery or movie tickets online. About 80% of the purchases don’t come through, resulting in a loss for business and a decrease in demand for logistics. The COVID-19 outbreak is responsible for the massive increase in online shopping. Most Brazilians received pandemic relief via digital wallets, giving millions of them access to online businesses for the first time. Brazilian e-commerce sales are primarily concentrated among the younger population. The South and Southeast regions have the most significant sales concentrations, reflecting the country's high internet and resource penetration. The Southeast region of Brazil, which includes Sao Paulo and Rio de Janeiro, remains the most important sales region in the country. Last year, it contributed 51% to the growth of e-commerce, necessitating the need for warehouses in the region to store goods and facilitate faster delivery times. E-commerce in Brazil has been steadily increasing in recent years. The quantity of orders, which increased 15% in 2021 compared to 2020, has driven the growth in cross-border trade. Customers who shop on international websites are more likely to buy more. This year-on-year increase in business allows expansion of the logistics industry. Furthermore, in Brazil, mobile phone usage is increasing at an exponential rate. According to a study conducted by a Brazilian e-commerce news outlet, 41% of online stores are prepared to sell via e-commerce. Smartphone sales account for roughly 10% of total sales for 384 online retailers. According to the research report titled "Brazil E-commerce Logistics Market Research Report, 2027", published by Actual Market Research, the market in the country of Brazil is expected to grow with a CAGR of 11.13% in the future till 2027, which is a considerably good growth rate but still a significantly low CAGR when compared to the period of 2016 to 2021. The market is segmented according to the services provided in the sector, the operational area of the companies, and according to the mode of transportation used. The first segment is the service type segmentation, which includes warehousing, transportation, and other services. The transportation segment, which enables the movement of goods to complete the supply and distribution chain, is the most important. Secondly comes the segment of warehousing services, which had a market share of almost 16% in the year of 2021, which is an increase from previous years and also seems to increase in the future due to the fact that the market realised that it was more beneficial to the logistics operation if there was a decentralised warehousing system in place, which puts the goods already close to the customer, resulting in swifter delivery of the goods. According to the operational area segment, the market is divided into two categories: the international segment and the domestic segment. There is a huge disparity among the segments, with the domestic operations taking almost 90% of the total market share compared to that of international segments at 10% in the year of 2021, which is still an improvement from previous years. This is due to the fact that the young consumers of the country, who are heavily influenced by international culture, want products from different countries of their desire and they are procuring them by the means of international e-commerce logistics services. Lastly, the segmentation on the basis of the mode of transport used in the market, unlike global trends, the road segment in the country had a relatively lower market share of around 50%, with the airlines coming in second and the railways third with a market share of around 8%. The railway segment in the market is comparatively larger than trends often seen. This is due to the fact that this mode of transport consists of a highly dense network of tracks in the southeast region of Brazil, where the big cities are located. Not only this, but the railways connect these large cities with other small cities situated inland and in the north, giving them an easy way to conduct commerce between them. Considered in this report • Geography: Brazil • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Brazil E-Commerce Logistics market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By service type in the report: • Warehousing • Transportation • Other Service (Return, Inventory management) By operational area in the report: • International • Domestics By transportation mode in the report: • Road • Rail • Air • Sea The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing the government- generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have verified the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.