Brazil - Express Delivery Market by Service Type and Customer Type - Forecast and Analysis 2023-2027

Brazil Express Delivery Market Forecast 2023-2027

The Brazil express delivery market size is forecast to increase by USD 1.64 billion at a CAGR of 4.61% between 2022 and 2027. The market is witnessing significant growth driven by multiple factors. The e-commerce sector, fueled by increasing internet penetration, has created a good demand for efficient delivery services. Adoption of new technologies, including automation and tracking systems, enhances the speed and reliability of express delivery. Moreover, Free Trade Agreements (FTAs) play a pivotal role in fostering market expansion by facilitating smoother cross-border trade operations, further propelling the growth trajectory of the market.

What will be the size of the Brazil  Express Delivery Market During the Forecast Period?

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The market is experiencing notable growth driven by various factors. With the increasing demand for goods and products across the e-commerce and retail sector, the need for efficient postal management and delivery services has surged. Factors such as internet penetration rate and cross-border transactions further contribute to the expansion of this market. As distances become less of a barrier in the digital age, this sector plays a crucial role in facilitating swift and reliable shipping services to meet the evolving needs of consumers and businesses alike in Brazil.

Market Dynamics and Customer Landscape

The market is witnessing remarkable growth, driven by rising demand from retail customers and businesses alike. With increasing internet and smartphone penetration rates, cross-border e-commerce transactions are thriving, necessitating efficient parcel delivery services. Smart technology and sensors are revolutionizing logistics 4.0, enabling faster and more reliable last-mile deliveries. Businesses are leveraging segmentation strategies to cater to diverse consumer needs, offering value-added services for both B2B and B2C segments. This dynamic landscape emphasizes affordability and higher-quality products, particularly in sectors like healthcare essentials. With enhanced delivery vehicles and international trade development, This sector promises unparalleled convenience and efficiency. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving the market growth is the growth of the e-commerce market. There is a significant shift towards online shopping by customers which fuelling the e-commerce market across the globe. Some of the main advantages of the e-commerce platform include ease of buying, easy access to alternatives, and home delivery services, which make the lives of customers easy and convenient.

Moreover, there is significant growth in the market. Besides the quality of the products offered by the e-commerce platforms, there is an increasing demand for improved delivery services among customers which has led to the service providers adopting new methods to enhance resource planning and last-mile delivery operations. Hence, such factors are positively impacting the market. therefore, it is expected to drive the market growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the consolidation within the market. There is an increasing participation in M&A by several market players in the market to increase their foothold and expand their service portfolio. Some of the key advantages of M&A include achieving economies of scale in various business processes, establishing a global presence by acquiring smaller firms from various regions and helping companies open new growth opportunities.

For example, Deutsche Post DHL Group acquired UK Mail, one of the largest mail and parcel service providers in the UK in order to strengthen its European cross-border parcel network. Additionally, it has enabled the Group to successfully implement its expertise in e-commerce and parcel delivery services in the UK mail customer base and logistics network. Hence, such M&A are expected to positively impact the market which in turn will drive the market growth during the forecast period.

Major Market Challenge

Stringent government regulations on imports in Brazil are one of the key challenges hindering the market growth. Some of the prominent vendors operating in Brazil, including UPS and FedEx, are headquartered in the US. There is an increasing preference by Brazilian consumers to buy online from foreign sellers due to high import duties. In addition, there is a significant ICMS charge imposed by the government on the movement of goods and services on online imports, which is 18%, to ensure equal treatment of both national and global products.

Moreover, the airline industry plays a major role in the market as it offers faster delivery services than other modes of transportation. However, there is a restriction imposed by the Brazilian government on foreign investments such that a maximum of a maximum of 20% in domestic airline companies. Hence, such factors are negatively impacting the market which in turn is expected to hinder the market growth during the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Aramex International LLC: The company offers express delivery services such as priority express, export express, domestic express and import express.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Braspress Transportes Urgentes Ltda.
• Correios
• Courier Brasil Express
• Deutsche Post AG
• DPD Deutschland GmbH
• Eurosender Sarl
• Excess Baggage Airports Ltd.
• FedEx Corp.
• Jamef
• Nippon Express Holdings Inc.
• Nippon Yusen Kabushiki Kaisha
• Parcel ABC Ltd.
• Pronto Express Distribution Inc.
• Purolator Inc.
• SF Express Co. Ltd.
• Shipping Brazil
• United Parcel Service Inc.
• United States Postal Service
• ZIM Integrated Shipping Services Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

This market report extensively covers market segmentation by service type (time-definite and same-day), and customer type (B2B and B2C). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. In the service type segment of the market, a range of offerings cater to diverse needs. With a focus on efficiency and convenience, services encompass the swift delivery of goods and products, particularly for retail customers. Leveraging smart technology and sensors, providers optimize postal management, ensuring timely and secure deliveries across varying distances. The expansion of e-commerce and retail sectors, coupled with high internet and smartphone penetration rates, drives demand for express delivery services. Providers facilitate cross-border transactions, supporting international trade development by offering affordable and reliable shipping solutions. Moreover, they prioritize last-mile deliveries, ensuring the prompt arrival of essential items, including healthcare essentials. To enhance customer experience, value-added services such as real-time tracking and flexible delivery options are offered. Delivery vehicles equipped with smart technology enable efficient routing and management, ensuring higher quality products reach customers promptly, thus meeting the evolving demands of the market.

By Service Type

The time-definite segment is estimated to witness significant expansion during the forecast period.  One of the main factors that is significantly fuelling the expansion of this segment is the growing demand for on-demand delivery.  Time-definite delivery service can be referred to as delivery service with a stipulated time, place, and day. In this service, the shipping of the parcel is time-sensitive or time-critical. The shipping of the parcel is time-sensitive or time-critical in this service.

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The time-definite segment was the largest segment and was valued at USD 4.65 billion in 2017. Some of the global prominent market players that offer varied time-definite delivery services in Latin America include  DHL Group and FedEx. For example, FedEx offers FedEx International Priority service around the world, with delivery within 1-3 business days and package weight up to 150 lbs. Additionally, there is an increasing implementation of innovative options such as click-and-collect parcel lockers to ensure time-definite delivery service which creates a win-win for both the market players and the customers. Therefore such services are positively impacting the growth of this segment. The increasing preference by consumers is that these market players deliver parcels faster at relatively low logistics costs. Hence, such factors are expected to fuel the growth of this segment which, in turn, will drive the market growth during the forecast period.

Market Analyst Overview

The market is thriving, catering to the growing demand for goods and products among retail customers and businesses alike. With vast distances to cover, smart technology and sensors play a crucial role in optimizing postal management and ensuring efficient last-mile deliveries. The booming E-commerce & retail sector, coupled with increasing internet penetration rate and smartphone penetration rates, drives Cross-border e-commerce transactions and international trade development. Affordability and the availability of higher quality products further fuel the market's growth. Express delivery services not only facilitate the timely transportation of goods but also prioritize the delivery of healthcare essentials. Value-added services enhance customer satisfaction, making delivery vehicles indispensable in meeting the diverse needs of consumers and businesses in Brazil.

The market operates at a rapid pace, catering to both domestic and international locations with a focus on cross border transactions. With the proliferation of international websites, B2C deliveries have become commonplace, necessitating the rapid delivery of goods, including non-palletized parcels. However, operative costs remain a challenge, compounded by the lack of infrastructure in certain areas. Nevertheless, ongoing technological development continues to optimize transportation activities, both domestically and internationally, across road and air traffic. This is particularly crucial for the timely delivery of essential items such as hospital supplies, vaccinations, gloves, and sanitizers. Air, water, and land transportation play integral roles in minimizing shipping costs while ensuring the efficient delivery of a wide range of items, including personal and business goods, letters, documents, merchandise, and consumer goods. Effective labeling, payment collection, and streamlined processes for return and exchange are essential in meeting the diverse needs of the e-commerce industry in Brazil.

Segment Overview

This market research and growth report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

•  Service Type Outlook 
  • Time-definite
  • Same-day
• Customer Type Outlook 
  • B2B
  • B2C

Market Scope
Report Coverage	Details
Page number	130
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.61%
Market growth 2023-2027	USD 1.63 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.24
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Aramex International LLC, Braspress Transportes Urgentes Ltda., Correios, Courier Brasil Express, Deutsche Post AG, DPD Deutschland GmbH, Eurosender Sarl, Excess Baggage Airports Ltd., FedEx Corp., Jamef, Nippon Express Holdings Inc., Nippon Yusen Kabushiki Kaisha, Parcel ABC Ltd., Pronto Express Distribution Inc., Purolator Inc., SF Express Co. Ltd., Shipping Brazil, United Parcel Service Inc., United States Postal Service, and ZIM Integrated Shipping Services Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across Brazil
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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