Latin America is emerging as e-commerce's next growth engine, combining a vast 662 million population with accelerating digital transformation and rising consumer wealth. Here in this report, we are examining how the region’s expanding internet penetration—now exceeding 84%—and youthful working-age majority are fuelling rapid online adoption. E-commerce sales are projected to grow at a 9.4% CAGR through 2029, yet online retail still counts for just 12–15% of total spending, underscoring vast untapped potential. As digital payments diversify and cross-border trade strengthens, Latin America is poised to evolve from an emerging digital frontier into one of the world’s most dynamic, high-opportunity commerce markets.
Key Insights
Latin America, with its large population base and rapidly accelerating digital transformation, is emerging as a high-potential ‘blue-ocean’ market in the global e-commerce field. In contrast to the Southeast Asian market where the competition has intensified, Latin America presents unique development advantages and strong growth potential. The region has around 662 million people, creating a vast consumer market. More notably, its per capita GDP has surpassed USD 10,000, far higher than that of most Southeast Asian countries.
Internet penetration rate in Latin America has reached 84.6%, paving the way for the growth of the digital economy. The region currently has around 290 million e-commerce users, indicating significant room for growth in e-commerce penetration rate across the total population, demonstrating great potential for converting internet users into e-commerce consumers.
Among the major economies in Latin America, Brazil ranks first by its population of 212 million. The combined population of Brazil, Mexico, Argentina, and Chile has reached 408 million, accounting for approximately 60% of Latin America’s total. These four countries constitute the core market with the highest population concentration in this region and are the primary targets for cross-border e-commerce merchants. Among them, Brazil, as the largest economy and e-commerce market in the region, ranks first in both the number of internet users and e-commerce sales.
These four major economies in Latin America demonstrate high Internet usage, with internet penetration rates in Brazil, Mexico, Argentina and Chile having all reached over 85%, with Chile’s figure as high as 94.45%. This indicates that these key markets have established relatively well-developed digital infrastructure. Together, they comprise a vast digital market of more than 360 million Internet users, offering substantial growth potential and opportunities for the e-commerce sector.
From the perspective of economic strength, Brazil, as the largest economy in Latin America, recorded a GDP of USD 2.17 trillion in 2024. Although Argentina and Chile have smaller total GDPs, their per capita figures are higher. Chile, in particular, has the highest per capita GDP in Latin America. According to Credit Suisse’s 2019 Global Wealth Report, Chile’s per capita wealth is more than five times that of Argentina and more than double that of Brazil, making it the wealthiest country in Latin America.
In terms of the accessibility of financial services, these four Latin American countries show differentiated trends. Among them, Brazil is the most mature market. Its debit card holder rate (47%) is basically on par with its credit card penetration rate (46%), and this is attributed to the huge success of instant payment systems such as Pix. Brazil’s credit card penetration rate is the highest among the major economies in Latin America. In contrast, the penetration rate of financial services in Mexico is relatively low, with a significant gap in access to financial services between urban and rural areas. Additionally, strict credit approval processes have also limited the scope of credit card issuance.
In Latin America, the working-age population (15–64) represents the majority of the population and serves as the core driver of the consumer market. In Brazil, Mexico, Argentina and Chile, this group accounts for 60% to 70% of the total population, reflecting a youthful demographic structure. In terms of industrial structure, the service sector accounts for a significant share across Latin American countries, consistently exceeding 50%, making it the backbone of their economies. In the labour market, Mexico’s unemployment rate in 2025 has remained relatively low, whereas the unemployment rates in other countries continue to experience higher levels compared to major global economies.
In 2024, Mexico led all Latin American countries in goods imports, with a total value of USD 644 billion. This is primarily due to its geographic proximity to the United States and the signing of the North American Free Trade Agreement (NAFTA). Mexico imports large volumes of mechanical and electrical products and automotive parts. Additionally, textiles, furniture, toys, and sporting goods have also gained a strong presence in the Mexican market.
According to Statista, between 2025 and 2029, the e-commerce market in Latin America is expected to experience significant growth, with market size increasing from USD 168.4 billion to USD 241.5 billion, and its Compound Annual Growth Rate (CAGR) reaching 9.43%. This ranks second in terms of growth rate among major global economies, surpassing the Southeast Asian market, which has a comparable level of economic development, highlighting the region’s huge potential for development.
More importantly, e-commerce sales in Latin America currently account for only 12-15% of total retail sales in the region, slightly higher than Southeast Asia’s 10-13%, but far lower than mature markets such as China (around 45%) and North America and Europe (around 25-30%). This indicates that the online consumer market in this region is far from saturated and has vast untapped potential. It offers an excellent window of opportunity for new entrants and is known as the "last blue ocean" of cross-border e-commerce.
In 2024, Brazil and Mexico accounted for the largest share of the e-commerce market in Latin America, reflecting a significant market concentration. Although the e-commerce markets in Argentina and Chile are relatively smaller in scale, they have experienced rapid growth. According to a report by Insider Intelligence, the growth rate of Argentina’s e-commerce market in 2023 was as high as 29.9%, ranking first in the world in terms of growth rate, far exceeding the global average of 8.9%, and leaving other emerging markets such as those in the Philippines, Malaysia, India, and Mexico far behind.