Latin America Domestic CEP Market Size

Latin America Domestic Courier, Express, and Parcel Market Analysis

The Latin American Domestic Courier, Express, and Parcel (CEP) market is estimated to witness a CAGR of more than 5% during the forecast period (2022-2027).

In the wake of the COVID-19 pandemic, digitization began to play an increasingly important role in the region. Latin Americans are making unprecedented purchases through digital means. The current wave of increasing digitization is expected to continue. With the surge in e-commerce during the pandemic, demand has suffocated the supply chain, limiting retailers' capacity to fulfill orders and restock the inventory as quickly as customers need it. Logistics services have fresh potential to acquire consumers, the first ones in the post-COVID phase, with the reviving of international commerce.

Between January and May 2021, Mexico remained the United States' top commercial partner, with 14.7% involvement and the expectation of increased imports, exports, and, potentially, commercial services, with logistics being among the most desired. In April 2021, Mexico became the United States' first business partner in terms of goods exchanges only, without including services. Mexico accounted for 14.7% of total merchandise exports and imports in the fourth month of the year, ahead of Canada (14.2%) and China (13.3%).

The e-commerce market in Mexico is strong and growing stronger, with revenue estimated to reach USD 21 billion by the end of 2021 at an annual growth rate of 3.8% and projected market volume to reach USD 24 billion by 2024. With internet penetration currently at 74% and with more than 45% of the population aged between 25-54 years old, there is scope for even more growth. The most popular category for online shoppers in Mexico is currently Electronics and Media (USD 6.42 billion), then Fashion (USD 5.2 billion).