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Last Mile Distribution: State of the sector (SoS) report 2025 (full report)

Practical Action

The Global Distributors Collective (GDC) has released the third edition of our Last Mile Distribution: State of the sector (SoS) report, following reports in 2019 and 2022. The report is the GDC’s flagship, biennial report and the only comprehensive look at the last mile distribution (LMD) sector. It pulls together insights and data from more than 100 GDC members (last mile distributors – LMDs) in 45 countries and over 40 supplementary interviews with key actors working in the wider ecosystem – from funders and investors to technical assistance providers and product manufacturers. The report shows how LMDs globally continue to connect millions of low-income and remote households with beneficial products – and how they’re adapting in an increasingly complex business environment.

The ‘access gap’

Globally, billions of people still lack access to beneficial products such as solar lights and home systems (SHS), water filters, improved cookstoves, solar water pumps, and other health, nutrition and agricultural products. For many of the poorest and most remote households, the fastest and most effective way to bridge that gap is through last mile distributors (LMDs). This is because LMDs go where mainstream businesses don’t, opening new markets and creating trust with their customers.

Growth and grit in tough times

Between 2021 and 2023, LMDs faced inflation, currency depreciation, and political instability – yet 61 per cent of GDC members still increased their revenues. Larger LMDs with revenues above US $500k grew by 26 per cent, while smaller ones saw a modest decline, showing that scale helps businesses weather economic shocks.

Despite these headwinds, LMDs are leaning into digital tools, expanding product portfolios, prioritising women’s leadership and inclusion, creating new markets, showing resilience, and confronting funding challenges head on.

This report is aimed at all stakeholders that are interested in the last mile distribution sector and want to work more closely to support LMDs to improve their business’ performance and resilience, in order to reach even more underserved, low-income, rural customers around the world with beneficial products.

Full report    Executive Summary   Webinar recording