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United Kingdom Courier, Express, and Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

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  • 280 Pages
  • February 2024
  • Region: United Kingdom
  • Mordor Intelligence
  • ID: 5459006
The United Kingdom Courier, Express, and Parcel Market size is estimated at USD 17.38 billion in 2024, and is expected to reach USD 25.46 billion by 2029, growing at a CAGR of 7.93% during the forecast period (2024-2029).

Even though the ongoing COVID-19 pandemic is benefiting online retail from the large-scale substitution of purchases from various physical stores, the weakening economy is likely to force people to reduce non-essential purchases. The recent lockdown relaxations have even further surged the CEP market in the United Kingdom.

The United Kingdom courier, express, and parcel (CEP) market is growing with the increasing number of same-day delivery transactions. The United Kingdom, along with Italy, has been the faster-growing market in the European region, owing to the powerful digital trends that are driving the market. The key market players are continuously reinventing the post and parcel industry with technology-driven innovations.

The growing internet penetration is shifting retail to the digital world. The post and parcel companies are focusing on strategies to re-engineer their core businesses to meet the new face of rapidly expanding B2C parcel delivery, especially same-day delivery. The same-day strategy led by Amazon changed the pace of the delivery market and is becoming more widely offered.

In the United Kingdom, 160 parcels were generated every second, or 14 million each day. Parcel volume grew by 33%, year-over-year, reaching 5 billion in 2020, up from 3.8 billion in 2019. Parcels generated per person rose to 74, an increase from 56 in 2019.

Technological innovations and the use of robotics for automated sorting in hubs and depots are helping the market to fulfill the promises in a faster manner. The Royal Mail PLC, which is one of the leading market players of the CEP market in the United Kingdom, has led the market with over 1.3 billion parcels and 13 billion letter deliveries.

UK Parcel Delivery Market Trends

The B2B Market Segment is Driving CEP Market

The United Kingdom is a B2B nation and has a huge influence on the global B2B market. According to research, nearly 40% of UK companies derive all/majority of their income from B2B activity, and a further 42% are blended businesses, with some of their income from B2B.

B2B focuses on four key sectors - business administration and support, information and communication technology, professional, scientific, and technical and construction. The production sector (which includes manufacturing) accounts for a relatively small number of B2B businesses, but the firms operating here tend to be extremely large and global outfits.

Industrial customers have been under strain in terms of operational efficiency, profitability, and performance. They expect faster time-to-market, lower defect rates, and customized products. Indeed, in some manufacturing industries, the pace of changing customer expectations has been even faster than that of private end-consumers.

B2B e-commerce is set to witness strong growth in the United Kingdom as businesses look to move investment online, away from stores and branches, as was the case earlier. Companies are focusing on the digitalization of their sales platforms to achieve greater customer penetration and long-term efficiencies. The UK B2B e-commerce market is estimated to grow from USD 249 billion in 2021 to USD 391 billion in 2025, registering a CAGR of 11.9%, with a cumulative value of just over USD 1.5 trillion over the period.

The growth in international trade is another factor driving the market, with a high percentage of businesses now trading internationally. The B2B segment after the COVID-19-related lockdown relaxation has surged, driving the CEP market in the United Kingdom.

Increasing E-commerce Penetration is Anticipated to Drive the Market

With a turnover of USD 105 billion in 2020, the United Kingdom is the third-largest e-commerce market, only after Japan and the United States. E-commerce is the most recent mainstream retail trend to hit the United Kingdom in the last decade. Despite the fact that e-commerce platforms have been around for a long time, they have only recently gained widespread notice. When compared to the rest of the world, the growth of online shopping in the United Kingdom has been astounding.

E-commerce revenue in the United Kingdom is expected to grow to USD 150 billion in 2022. Also, when it comes to the number of online retail users, according to industry sources, the number of e-commerce users in the United Kingdom is expected to grow to 58.4 million in 2025.

The United Kingdom is one of the early adopters of internet commerce (e-commerce) in the world, with a high penetration rate, and by 2025, the penetration rate is expected to reach 84.2%. With substantial internet shopping in recent years, many new companies have entered the market.

The United Kingdom occupies a one-third share of the European e-commerce market and the highest share of online retailing in the world. The country's B2C e-commerce turnover has been increasing more rapidly than that of its European rivals, Germany and France. The United Kingdom is also one of the global leaders in terms of consumer spending on the internet, and consumers spend more than USD 2730 per head online every year.

UK Parcel Delivery Industry Overview

The United Kingdom courier, express, and parcel (CEP) market is relatively consolidated, with the top four companies occupying a major share of the market. With the growing demand for CEP services in the country, companies are becoming more competitive to capture the huge opportunity by investing in new technologies like Blockchain, WMS, and drones. The international players are making strategic investments to establish a regional logistics network, such as opening of new distribution centers, smart warehouses, etc. The local companies face high competition with multinational companies that have a comparatively well-developed infrastructure. There have been mergers and acquisitions taking place; for instance, in 2021, DPD UK acquired the same-day delivery specialist CitySprint. The acquisition will help DPD to enhance its same-day delivery operation. In 2021, Culina Group announced an agreement to take over GreenWhiteStar Acquisitions. GreenWhiteStar Acquisitions comprises Eddie Stobart, Eddie Stobart Europe, iForce, The Pallet Network, and The Logistics People. The acquisition will significantly help Culina Group to expand its market operations.

Additional Benefits:

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

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Current Market Scenario
4.2 Government Regulations and Initiatives
4.3 Technological Trends and Automation in the CEP Industry
4.4 Insights into the E-commerce Industry (Domestic and Cross-border E-commerce)
4.5 Insights into Startups and Venture Capital Funding in the CEP Industry
4.6 Brief on Courier Rates
4.7 Elaboration on Storage Functions and Value-added Services in the CEP Business
4.8 Insights into Reverse Logistics and Same-day Delivery Market
4.9 Insights into Deliveries during Festive Season (Christmas, Singles' day, Black Friday, etc.)
4.10 Impact of COVID-19 on the CEP Market
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.5 Value Chain/Supply Chain Analysis
6.1 Business
6.1.1 B2B (Business-to-Business)
6.1.2 B2C (Business-to-Consumer)
6.2 Destination
6.2.1 Domestic
6.2.2 International
6.3 End User
6.3.1 Services (BFSI (Banking, Financial Services and Insurance))
6.3.2 Wholesale and Retail Trade (E-commerce)
6.3.3 Manufacturing, Construction, and Utilities
6.3.4 Primary Industries (Agriculture and Other Natural Resources)
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Royal Mail PLC
7.2.2 DPDgroup
7.2.3 Hermes Parcelnet Ltd
7.2.4 DHL
7.2.5 UPS
7.2.6 FedEx
7.2.7 Yodel
7.2.8 Amazon Logistics
7.2.9 DX Group
7.2.10 Parcelforce*

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Royal Mail PLC
  • DPDgroup
  • Hermes Parcelnet Ltd
  • DHL
  • UPS
  • FedEx
  • Yodel
  • Amazon Logistics
  • DX Group
  • Parcelforce*