Market Trends of Chile Third-party Logistics (3PL) Industry
The E-commerce Industry is Driving the Market
With services like e-commerce fulfillment and last-mile delivery, the thriving e-commerce sector significantly contributes to the 3PL sector.
Due to Chile's rapid and continuous technological infrastructure development, the 5G service arrival in December 2021, and eCommerce's popularity from the pandemic, it saw positive growth over the last ten years. B2C eCommerce sales increased by 23% from 2020 to USD 11.6 billion in 2021. They are expected to continue to grow at the same rate through 2022, reaching USD 14.3 billion. Pension fund withdrawals and government financial stimuli are further contributing reasons to the COVID-19 pandemic's impact on eCommerce expansion. By 2025, 13 million people are anticipated to utilize eCommerce, with an increase of 11%.
Because of the nation's rapid technological infrastructure development, e-commerce sales are rising. Businesses of all kinds are adopting E-commerce, and online sales are split relatively evenly among micro-sized enterprises (13%), small businesses (19%), medium-sized organizations (22%), and large businesses (22%). The remaining 24% of businesses still need to adopt the tools required for internet sales. Events like CyberDay help the region's e-commerce sector flourish, which in turn helps the 3PL sector.
FDI to drive the market of Third Party Logistics in Chile
Chile's economy, one of the most developed in Latin America, continued to expand steadily despite the drop in commodity prices, particularly copper, the nation's main export. Chile is one of Latin America's most promising investment locations due to its low corruption levels, high legal openness, and solid institutional frameworks that provide substantial financial and legal safeguards for private sector investments.
According to the Central Bank, the amount of foreign direct investment (FDI) received between January and September of 2022 totaled USD 17.1 billion, up 10% over the same time in 2021. Additionally, the sum is 12% greater than the total FDI received in the previous year, which came to USD 15.2 billion.
The flow for September 2022 was USD 1.9 billion, a significant increase above that for September 2021, a negative figure of USD 0.95 billion. As a point of comparison, the monthly average for the previous 12 months came to USD 1.39 billion. The reinvestment of earnings totaling USD 7.2 billion was the most significant element of the FDI flow, while capital participation hit a record high of USD 6 billion. Debt instruments came in third with USD 3.8 billion.
