NEW YORK, July 22, 2022 /PRNewswire/ — According to a recent report by Technavio, the third-party logistics (3PL) market in Brazil is expected to increase by USD 5.22 billion, growing at a CAGR of 5% from 2020 to 2025. The market also saw a year-over-year growth rate of 3.33% in 2021. The report provides an in-depth analysis of market drivers, opportunities, competitive strategies, trends, and investment opportunities.
Key Vendor Insights: Leading companies such as C.H. Robinson Worldwide Inc., CEVA Logistics AG, DHL International GmbH, DSV Panalpina AS, and Kuehne + Nagel International AG are highlighted in the report. The market is fragmented, with vendors employing strategic partnerships to stay competitive.
- C.H. Robinson Worldwide Inc.: In March 2020, the company acquired Prime Distribution Services for $225 million, enhancing its retail consolidation and warehousing services.
- CEVA Logistics AG: In February 2021, CEVA opened a new head office in Thailand to strengthen its global presence.
- DSV Panalpina AS: In December 2020, DSV announced the acquisition of Globeflight Worldwide Express, a courier company based in South Africa.
Market Segmentation and Growth Drivers: The 3PL market in Brazil is segmented by end-user (consumer goods, manufacturing, automotive, and others) and service (warehousing and distribution, transportation, and others). The consumer goods segment, including fast-moving consumer goods (FMCG) and retail goods like electronics, is projected to drive significant growth.
Key Growth Driver: Brazil’s Booming E-commerce Sector Brazil’s rapidly expanding e-commerce sector is a major driver for the 3PL market. E-commerce companies are increasingly relying on 3PL services to manage their supply chains efficiently and meet fluctuating consumer demand. In 2020, Brazil’s e-commerce sales reached nearly $20 billion, up by 56%. This surge in online shopping is expected to increase demand for 3PL services, particularly in long-distance transportation and last-mile delivery.
Market Challenge: Rise in Cargo Theft Cargo theft remains a major challenge in Brazil, particularly in road transport. This issue has led to increased insurance costs for both 3PL providers and their clients, affecting overall profitability. High costs related to securing merchandise and rising insurance premiums are making it difficult for companies to expand operations, which may limit 3PL market growth.
Customizable Market Insights For companies seeking detailed insights tailored to their specific needs, the report offers customization options, providing more in-depth data and analysis based on individual business requirements.
Similar reports include the 3PL Market in Germany, which is set to grow by USD 10.55 billion by 2026, driven by e-commerce expansion and the adoption of omnichannel retail, though high technology costs could pose challenges.