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Here in Brazil we buy mostly digital as well. I can say that at least for me and my friends. Every single one of them buy digital only, and i'm the only one in my circle who still buys physical from time to time. Lately there have been some great sales, and the prices adjustment, based on how much has passed since the game's release, seems to be much faster. Now when it comes to physical, you either buy cheap second handed, or you pay overpriced new copies on the stores that rarely go down in price, and when it does, its about 2 years after the game's release.

So yeah, here in Brazil i can somewhat attest that Digital is probably more popular than Physical.