Six key sectors to invest in Chile

According to the World Bank, Chile’s economy is stable and growing thanks to its solid macroeconomic policies and strong institutions. After the challenges brought by the pandemic, Chile has regained economic balance and, in recent years, has maintained an average annual growth of 2%. 

Chile is the fifth-largest economy in Latin America and has the highest per capita income in the region. It is also a key player in different industries. According to information from the Ministry of Foreign Affairs, the country is a leader in producing copper, lithium, and iodine. It exports agricultural products such as fresh grapes, blueberries, and cherries.

At Sherlock Communications, we work closely with companies in some of Chile’s most prosperous sectors. We know their current status and projections for 2025. The following read is the first publication in a series of insights we will share soon.

Micro mobility: faster, more sustainable, and popular transportation 

The outlook for micro-mobility in Chile in 2025 is recovery and expansion. Experts project a more significant number of private users and those who hire scooters and electric bicycle rental companies. These companies, which experienced a boom in bicycle use after the pandemic, saw their income drastically reduced this year due to the drop in demand.

Chile’s regulation of bicycles and electric scooters is favourable, and companies offering these rental services are establishing themselves as a sustainable transportation alternative. 

Many Chileans have adopted these means as a regular option for short trips. Interest in micro-mobility responds to the need for fast and less polluting urban transport, which has become a key sector for daily mobility in different cities.

Reports indicate that micro-mobility will become increasingly integrated into the urban transportation system by 2025, especially in cities like Santiago, where e-scooters and electric bicycles have established themselves as alternatives to avoid traffic congestion during rush hour and reduce the carbon footprint. According to El Mostrador, this option is especially attractive for students and workers looking for greater travel flexibility.

In 2023, e-scooters became the favourite urban transportation in Santiago, especially for last-mile journeys. One of the leading companies in the sector registered more than 300,000 trips in just a few months since the beginning of its operation.

This company is in six communes of the Metropolitan Region and exceeded one million trips in its first year of operation. In addition, it reached the impressive figure of more than three million kilometres travelled in its first twelve months. 

According to Movimentistas, Chile could experience a significant increase in infrastructure initiatives and public policies aimed at promoting micro-mobility, which will consolidate this option as an accessible and efficient means of transportation by 2025.

Logistics: integrated, technological, and sustainable

The logistics market in Latin America will grow significantly in the coming years. According to the Statista study “Value of the logistics market in Latin America between 2019 and 2027”, this market is expected to reach $784.6 billion by 2027, with a compound annual growth rate (CAGR) of 6.2% between 2020 and 2027. Improved infrastructure, government initiatives, increased international trade, and other regional socio-political factors will drive this boom.

Within this context, integrated logistics is experiencing accelerated growth and is positioning itself as a critical player in the future of supply chain management. Strategic Market Research expects the global integrated logistics market to reach $77.52 billion by 2030. This type of logistics integrates production, warehousing, transportation, and last-mile delivery, allowing companies to reduce costs, delivery times, and interruptions, improve customer satisfaction, and optimise the entire supply chain.

In Chile, the Government took an essential step in improving logistics infrastructure by officially launching the National Port Logistics Development Policy. This policy seeks to lay the foundations for long-term port planning, improve port logistics efficiency and its relationship with the social and environmental environment, and contribute to the country’s economic development.

According to the World Bank’s Logistics Performance Index, Chile ranks third in Latin America, only behind Brazil and Panama.  This tool measures the efficiency and effectiveness of the countries’ logistics systems. Using a scale of 1 to 5, evaluate six critical supply chain components.

In addition, 35.90% of logistics companies in the country seek to establish the quality of customer service as the main objective of their performance, according to the “State of Logistics 2024” (SOL24) study. 

Another of the sector’s strengths is the adequate transportation of perishable products, such as fruits and seafood. Refrigerated or reefer containers play a fundamental role in the food supply chain by maintaining a controlled temperature during transit. As a leading exporter of fruits and seafood, Chile extensively uses this technology to comply with phytosanitary protocols and guarantee optimal cold chain management. The products most benefiting from this technology include cherries, grapes, avocados, blueberries, and salmon.

Reefer technology has advanced significantly in the last two decades, incorporating innovations such as a controlled atmosphere. This method regulates factors such as oxygen, carbon dioxide, nitrogen, temperature, and humidity in warehouses. In addition, cold treatment is another specialised technique that helps prevent the spread of pests and diseases in fruits and vegetables, improving the quality and shelf life of exported products.

On the other hand, real-time visibility of logistics operations is increasingly within reach thanks to the combined use of technologies such as Big Data, the Internet of Things (IoT), and digital twins. These tools allow companies to collect and analyse large volumes of data, obtaining a detailed and accurate view of each link in the supply chain. 46.51% of local companies claim to be open to adopting these new technologies to seek opportunities for improvement.