Latin America: Leading Global eCommerce Growth
After a jumpstart from the COVID pandemic, the eCommerce industry in Latin America shows no sign of slowing down. Retail eCommerce jumped by 37% in 2020 alone and consumers are becoming more comfortable with online shopping (Oxford). As the world opened back up and trends stabilize, LATAM eCommerce is projected to grow by 19% from 2023-2028, still beating the international average of 14% (American Market Intelligence).
Established markets like the US and China are oversaturated, but eCommerce is an emerging market in Latin America with high investment potential and growing viability as a distribution channel. To better understand the industry, read our findings below and contact us at email@example.com to access our full library of reports.
Top 6 Countries for eCommerce in Latin America
Brazil leads with the largest and most developed eCommerce market, but Peru and Mexico are growing at nearly double the rate.
eCommerce Market Size (2022)
Brazil: E-commerce market worth US $216 billion
Mexico: E-commerce market worth US $56 billion
Colombia: E-commerce market worth US $33 billion
Chile: E-commerce market worth US $29 billion
Argentina: E-commerce market worth US $22 billion
Peru: E-commerce market worth US $19 billion
eCommerce Projected Growth (by 2026)
Peru: 35% growth in its e-commerce market
Mexico: 33% growth in its e-commerce market
Colombia: 27% growth in its e-commerce market
Argentina: 22% growth in its e-commerce market
Chile: 18% growth in its e-commerce market
Brazil: 17 % growth in its e-commerce market
Why eCommerce is growing in Latin America
Over 75% of the population in Latin America is under 50 years old. A young population primes the region for eCommerce growth because they are familiar with the internet and online shopping at a younger age. Older generations are also adopting online shopping habits post-COVID with 13 million people across Latin America making an online transaction for the first time in 2020 (Medium).
Growing adoption of smartphones presents a new frontier for reaching Latin American audiences, through social media, paid advertising and company websites. Like many global economies, Latin America is moving towards mobile-first consumption. For example in Mexico, the usage of smartphones to make online purchases was even higher than in the U.S. at 70% in 2020 (GSMA).
Growth in eCommerce is fueled by the expansion of broadband internet and mobile network accessibility. Brazil, Colombia, Argentina, Chile, Dominican Republic, Peru, Guatemala and Uruguay have established 5g networks at varying scales and the LATAM region is predicted to have over 50% 5g connection by 2030 (GSMA).
Key Players in the Latin America eCommerce industry
Mercado Libre is the leading ecommerce platform across Latin America, with a similar structure to Amazon. They have a diverse product offering supplied by both independent sellers and large companies. Mercado Libre’s strong logistics network allows them to offer delivery to a customer’s home within a few days.
Big names in LATAM retail have also adopted eCommerce platforms including Falabella, Cencosud, Grupo Exito and others. Customers can pick up items in store or opt for delivery.
A strong logistics industry is key for eCommerce growth. Top companies in the Latin American logistics market include DHL Express, FedEx Corporation, DB Schenker, Gefco Corporation, and Bollore Logistics.
Food delivery service is another component of eCommerce growth. Services like Rappi, Uber Eats, Didi and other local alternatives maintained popularity in Latin America after the pandemic.