The e-commerce market in Brazil is experiencing a boom, with sales projected to reach US$81.74 billion by the end of 2024, according to a recent study by Emarketer*.
This impressive figure places the country as the absolute leader in e-commerce in Latin America. In addition, Brazil also stands out for having the third fastest-growing digital economy in the world this year, behind only the Philippines and Malaysia, respectively.
One of the many important points the study highlights is the projected percentage change in retail e-commerce sales worldwide, by region, from 2022 to 2025. Latin America continues to be the fastest-growing market in the world, even if the pace of growth slows during the forecast period. On the other hand, Europe has the slowest predicted growth but is showing an important recovery. Although the pace of growth is slowing, Latin America remains the fastest-growing market in the world during the period 2022-2025.
When we compare Brazil with countries like Mexico, Argentina, Colombia, Chile and Peru, in terms of GDP, Brazil accounts for the largest share with 33.3%, followed by Mexico with 28.8% and Argentina with 8.6%. No surprises there.
However, in retail e-commerce sales, Brazil’s share is even higher, at 44.1%. This confirms that the country still has the most developed e-commerce market in the region.
Another important insight from Emarketer is the projected growth in e-commerce retail sales in Brazil from 2021 to 2027. It indicates that volumes will double during this period, making Brazil the world’s 8th largest market for e-commerce sales by 2027. In addition, the study compares the top 10 countries ranked by projected retail e-commerce sales by 2027: China has the highest projected sales, with US$ 3,970.83 billion, followed by the USA, with US$ 1,577.32 billion. Brazil ranks 8th on this list, with projected sales of US$ 111.48 billion in 2027, which represents an increase of almost 60% on the 2023 volume, overtaking Russia and Canada.
The study is very comprehensive and provides a wealth of data on Brazil’s participation in the local and global e-commerce scene. To conclude, I would like to draw your attention to one more piece of data that is equally important for Brazilian retailers.
If we separate the top 10 countries ranked by the growth of retail e-commerce sales in 2024, Brazil is third on the list, with growth of 17.2%, behind only the Philippines and Malaysia. And, on that note, some other important insights:
- Brazil’s projected growth rate of 17.2% is significantly higher than the world average of 8.8%, indicating strong momentum in the country’s e-commerce sector.
- This high growth rate suggests that Brazil is set to become an increasingly important player in the global e-commerce scene as its market continues to expand rapidly.
- The graph provides a useful benchmark for comparing Brazil’s e-commerce growth with other important markets such as Argentina (16.7%), Mexico (15.2%) and India (13.9%).
Understanding Brazil’s position about these peers can help companies and investors assess the country’s e-commerce potential and opportunities for expansion.
The study is rich in statistical details. Overall, the data highlights Brazil as a leading country on the global e-commerce scene, with its retail e-commerce market expected to be among the fastest growing in the world over the next few years. Several factors are driving this exponential growth and should continue to sustain it in the coming years, such as more favorable macroeconomic conditions and a trend towards migration to the online environment in practically all the main product categories, driven by the convenience and variety that e-commerce offers consumers.
It is worth noting that we are increasingly seeing the democratization of e-commerce among Brazilian consumers from all walks of life. Every day, more people are taking up online shopping, making the market even more dynamic and competitive.
This presents a great opportunity for brands and retailers who understand the nuances of Brazil’s diverse consumer base and see this as a unique opportunity to stand out from their competitive peers. By understanding the differences along socio-economic, generational and regional lines, these companies can customize their strategies to meet the specific needs of each consumer segment.
The e-commerce landscape in Brazil offers huge opportunities for companies that are willing to understand and adapt to the demands of a constantly evolving market. The future of retail is digital and companies that know how to take advantage of trends will be best placed to thrive in the coming years.
* Retail E-commerce and Digital Buyer Trends in 2024: Brazil (May 10, 2024)
*The opinions posted here reflect my personal opinion and not necessarily the opinion of Compass UOL.
