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Australia Courier, Express, and Parcel (CEP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 150 Pages
  • August 2022
  • Region: Australia
  • Mordor Intelligence
  • ID: 4769752
UP TO OFF until Sep 30th 2022
The Australian CEP market is expected to register a CAGR of 5.46% over the forecast period, 2022 - 2027. Australia’s parcel market grew to more than 1 billion parcels a year in 2021. The parcel delivery market is seeing exponential growth backed by the ease of shipping, delivery, and tracking parcels domestically and internationally. Australians receive an average of 40 parcels each year, driven by fast growth in e-commerce sales in 2020-21.

COVID-19 has impacted all the sectors in Australia, but it drove the CEP market in the e-commerce sector. As the lockdown was relaxed in 2021, the CEP market surged in all sectors. Australia generated the third-highest revenue per parcel after France and the US in 2020.

The e-commerce revolution in Australia has contributed significantly to the strength of the parcel shipping market. The seamless experience provided by many online marketplaces has driven consumers’ expectations for convenience, price, and availability of products from around the world, made possible through global e-commerce.

The Australian market is gearing for exponential growth, as more e-commerce companies are looking to the shipping industry with a value proposition. As the competition heats up, simplified and reliable service, accelerated delivery times, and transparent and accurate tracking will be the key to success.

The courier pick-up and delivery services market in Australia is efficient and very well developed. Major players include Toll, FedEx, Star Track Express (owned by Australia Post), TNT Express, DHL, and UPS.

Key Market Trends

Growth of E-commerce Driving the CEP Business

E-commerce is flourishing across the world, and Australia is no exception. With a population of 25 million, Australia is one of the top e-commerce markets. Australia was ranked the 11th largest E-Commerce market in the world and had the world in 2020, and it experienced strong growth over the past period. The COVID-19 pandemic will further drive e-commerce sales at a compound annual growth rate of 13.76% between 2022 and 2025.

As social distancing, border closures, and lockdowns became commonplace, Australians turned online for the things they needed. The convenience brought by e-commerce through home deliveries and PUDO networks is expected to gain popularity, reach wider audiences, and increase sales for retailers in the years to come.

The growth in e-commerce deliveries paved the way for the same-day delivery, i.e., express delivery, and this enhanced the CEP Market in Australia. Due to this, Australia Post saw an increase in parcel revenue share from 36% to 39% and a parcel volume share increase from 37% to 40% in 2020.

Revival of the Manufacturing Sector Driving the CEP Market

The Australian CEP market bears a huge potential. It serves several businesses that operate extensively. Few such industries include electronic appliances, life sciences, food and beverage, and others (such as automotive, mining, etc.).

The Australian manufacturing sector surged when compared to 2020. While the easing of COVID-19 disruptions continued to support manufacturing sector expansion, both new orders and output growth surged from recent peaks in November 2021. According to industry sources, supply constraints were reported to have hampered production. Foreign demand expanded at a faster rate, aided by the easing of COVID-19 restrictions abroad.

Each of the six manufacturing sectors reported positive trends in their trading conditions. The machinery and equipment sector and the textiles, clothing, footwear, paper, and printing products sector were most buoyant. The machinery and equipment sector benefited from higher demand from across the industrial, mining, and agricultural sectors, while the metal products and building equipment sectors supplied healthy levels of residential construction and infrastructure activity.

The food and beverages (tobacco) sector produced USD 27.4 billion in real value-added output in 2021 (25% of manufacturing real value-added output). New orders, inventory levels, employment, and deliveries were all strong as export demand rose.

Due to manufacturing activities, there is a need for far faster delivery of products, and hence, this is driving CEP market in Australia.

Competitive Landscape

Australia’s courier, express, and parcel (CEP) market is highly competitive, with the presence of major international players, like FedEx, DHL, and UPS, and regional players, like Courier Please and Australian postal Corporation. The Australian CEP market presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, Australia’s CEP market has an observable level of consolidation. Most of the players are developing a competitive edge through the infusion of technology in their systems, like the use of drones and WMS systems.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Industry Attractiveness Porter's Five Forces Analysis
4.4 Value Chain/Supply Chain Analysis
4.5 Government Regulations and Initiatives
4.6 Technological Trends and Automation in the Australian CEP Industry
4.7 Insights into the E-commerce Industry (Domestic and Cross-border E-commerce)
4.8 Overview of the Logistics Market in Australia
4.9 Brief on Courier Rates
4.10 Elaboration on Warehousing Market of Australia
4.11 Insights into the Reverse Logistics and Same-day Delivery Market
4.12 Impact of COVID-19 on the Market
5.1 Domestic
5.2 International
6.1 By Channel of Distribution
6.1.1 B2B (Business-to-Business)
6.1.2 B2C (Business-to-Consumer)
6.2 By End User Industries
6.2.1 Industrial Manufacturing
6.2.2 Wholesale and Retail Trade
6.2.3 Life Sciences/Healthcare
6.2.4 BFSI Banking and Financial Services
6.2.5 PST Professional, Scientific, and Technical Services
6.2.6 Other End Use Industries
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles (Including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)
7.2.1 Deutsche Post DHL Group
7.2.2 United Parcel Service Inc.
7.2.3 FedEx Corporation
7.2.4 Australian Postal Corporation
7.2.5 Couriers Please
7.2.6 Toll Group
7.2.7 Direct Couriers Pty Ltd
7.2.8 Allied Express
7.2.9 Kings Transport
7.2.10 Fastway Couriers*
7.3 Other Companies (Key Information/Overview)
7.3.1 Qantas, MRL Global, BHF Couriers, Sendle, Zoom2u Pty Ltd, FRF Couriers, Mail Plus Pty Ltd, Deliveroo, Delta Transport Services Pty Ltd, Australasian Mail Services Pty Ltd, and Jet Couriers Pty Ltd*
9.1 GDP Distribution, by Activity and Region
9.2 Insights into Capital Flows
9.3 Key Data Related to E-commerce and Cross-border E-commerce in Australia
9.4 E-commerce Sales in Australia by Product Category
9.5 External Trade Statistics Export and Import, by Product
9.6 Other Statistics Related to the Transport Sector
9.7 Regional Level Activity Insights for Postal Courier Pick-up and Delivery Services

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Deutsche Post DHL Group
  • United Parcel Service Inc.
  • FedEx Corporation
  • Australian Postal Corporation
  • Couriers Please
  • Toll Group
  • Direct Couriers Pty Ltd
  • Allied Express
  • Kings Transport
  • Fastway Couriers*