Retail Delivery - Brazil

Brazil

Highlights

The Reail Delivery market in Brazil is projected to reach a revenue of BRL US$8.69bn in 2024.
This is expected to show an annual growth rate (CAGR 2024-2029) of 11.65%, resulting in a projected market volume of BRL US$15.07bn by 2029.
The number of users in the Reail Delivery market is expected to amount to 41.5m users by 2029.
The user penetration is projected to be 14.6% in 2024 and is expected to increase to 18.6% by 2029.
The average revenue per user (ARPU) is estimated to be BRL US$272.70.
In global comparison, United States is expected to generate the highest revenue in the Reail Delivery market, reaching BRL US$195.40bn in 2024.
The United States, with a projected user penetration rate of 30.4%, has the highest user penetration in the Reail Delivery market.
Brazil's retail delivery market is witnessing a surge in demand due to the growing e-commerce sector and the increasing adoption of online shopping by consumers.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Retail Delivery market in Brazil has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Brazilian consumers are increasingly turning to online shopping, with e-commerce sales growing at a double-digit rate each year. This shift in consumer behavior has led to a surge in demand for convenient and fast delivery options. Customers expect their purchases to be delivered quickly and efficiently, with many opting for same-day or next-day delivery. In addition, consumers are also placing a high value on sustainable and eco-friendly delivery options.

Trends in the market: To meet the growing demand for fast and convenient delivery, retailers in Brazil are turning to innovative solutions such as drone and autonomous vehicle delivery. These technologies not only offer faster delivery times but also reduce delivery costs, making it more affordable for retailers to offer free or low-cost delivery to customers. Additionally, retailers are also investing in last-mile delivery solutions such as micro-fulfillment centers and locker pickup options to improve delivery speed and convenience.

Local special circumstances: Brazil's vast size and diverse geography pose unique challenges for delivery companies. The country's extensive road network is often poorly maintained, making it difficult to deliver goods quickly and efficiently. In addition, Brazil's high crime rates have led to security concerns, with delivery companies having to implement additional security measures to protect their drivers and packages.

Underlying macroeconomic factors: Brazil's economy has been slowly recovering from the recession of 2015-2016, with consumer spending increasing in recent years. This has led to a rise in disposable income, which has in turn fueled the growth of e-commerce and the demand for convenient delivery options. However, Brazil's economic recovery has been uneven, with income inequality remaining a significant issue. As a result, delivery companies are also targeting lower-income customers with affordable delivery options to tap into this growing market segment.In conclusion, the Retail Delivery market in Brazil is rapidly evolving to meet changing consumer preferences and overcome unique local challenges. With the continued growth of e-commerce and rising demand for fast and convenient delivery options, retailers are investing in innovative solutions to stay ahead of the competition. However, challenges such as poor infrastructure and high crime rates continue to pose obstacles to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.