3PL Market in Chile Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

3PL Market in Chile Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Chilean 3PL market is anticipated to register a CAGR of about 4.5% during the forecast period.

Chile is one of Latin America's most secure and open economies. Chile's logistics industry is still developing. However, recent years saw an increase in import and export activity. The country's ideal geographic location allows significant possibilities for connecting with other nations via air, sea, or land, including those in Europe, Asia, and South and Central America. Additionally, there is a surge in the export of fruits from Chile, such as red cherry, to other nations, such as China, which gives air cargo providers more opportunities to improve their services to meet customers' needs for perishable cargo.

The OECD claims that the positive global climate, in which Chile, the world's top copper producer, profited from rising commodity prices for a long time and low global interest rates. It played a crucial role in this triumphant performance. Chile's growth rate is higher than the OECD average. The World Bank classified Chile as having the finest logistics in Latin America and the Caribbean. It yet continues to be less competitive than other OECD nations.

In Chile, online grocery shopping is more popular, especially for home delivery. As a result, the market experienced a threefold increase in demand, particularly in restaurants, pharmacies, and supermarkets, with a 70% increase on average in the grocery category.

The Chilean port marine union emphasized during COVID-19 that the nation's supply system, imports, and exports all continued to run with no noticeable changes. However, many airlines with operations in Chile and around the globe stopped flying to the regions most impacted by COVID-19, reducing airborne foreign trade activity by 70%.

3PL in Chile Market Trends

The E-commerce Industry is Driving the Market

With services like e-commerce fulfillment and last-mile delivery, the thriving e-commerce sector significantly contributes to the 3PL sector.

Due to Chile's rapid and continuous technological infrastructure development, the 5G service arrival in December 2021, and eCommerce's popularity from the pandemic, it saw positive growth over the last ten years. B2C eCommerce sales increased by 23% from 2020 to USD 11.6 billion in 2021. They are expected to continue to grow at the same rate through 2022, reaching USD 14.3 billion. Pension fund withdrawals and government financial stimuli are further contributing reasons to the COVID-19 pandemic's impact on eCommerce expansion. By 2025, 13 million people are anticipated to utilize eCommerce, with an increase of 11%.

Because of the nation's rapid technological infrastructure development, e-commerce sales are rising. Businesses of all kinds are adopting E-commerce, and online sales are split relatively evenly among micro-sized enterprises (13%), small businesses (19%), medium-sized organizations (22%), and large businesses (22%). The remaining 24% of businesses still need to adopt the tools required for internet sales. Events like CyberDay help the region's e-commerce sector flourish, which in turn helps the 3PL sector.

FDI to drive the market of Third Party Logistics in Chile

Chile's economy, one of the most developed in Latin America, continued to expand steadily despite the drop in commodity prices, particularly copper, the nation's main export. Chile is one of Latin America's most promising investment locations due to its low corruption levels, high legal openness, and solid institutional frameworks that provide substantial financial and legal safeguards for private sector investments.

According to the Central Bank, the amount of foreign direct investment (FDI) received between January and September of 2022 totaled USD 17.1 billion, up 10% over the same time in 2021. Additionally, the sum is 12% greater than the total FDI received in the previous year, which came to USD 15.2 billion.

The flow for September 2022 was USD 1.9 billion, a significant increase above that for September 2021, a negative figure of USD 0.95 billion. As a point of comparison, the monthly average for the previous 12 months came to USD 1.39 billion. The reinvestment of earnings totaling USD 7.2 billion was the most significant element of the FDI flow, while capital participation hit a record high of USD 6 billion. Debt instruments came in third with USD 3.8 billion.

3PL in Chile Industry Overview

Numerous domestic and foreign businesses created Chile's competitive and fragmented 3PL market. Through technology-driven services and new businesses are growing in the Latin American region. Pricing is a significant concern in all facets of Chilean logistics and transportation. The industry's difficulty is noted as the need for more incredible professionalism and effective technologies.

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