Russia Courier, Express, and Parcel (CEP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Russia Courier, Express, and Parcel markets are estimated to grow at a CAGR of more than 7% during the forecast period.

Key Highlights

• The growth in the e-commerce segment, higher internet penetration into the masses, and the latest technological innovations in the sector have been the driving force for the market. The COVID-19 pandemic impacted economic growth and industrial activities. However, the pandemic accelerated online purchasing, positively impacting the CEP industry's growth and increasing its market share.
• Russia has been one of the world’s faster-growing courier, express, and parcel(CEP) markets during the study period and is anticipated to continue the same during the forecast period. The strong gross domestic product (GDP) growth trends fuelled by increasing foreign investments in the CEP market and increasing e-commerce and internet-based business have helped the region to grow its market share.
• The Russian CEP market is relatively consolidated and left limited scope for new and small players to enter. The majority of international e-retailers are focusing on expanding their businesses in the region through delivery partnerships. The strategic positioning of the country has been helping Russia to develop strong cross-border delivery with both European and Asian countries. The cross border deliveries are also shaping the international segment of the CEP market in Russia.
• Growing e-commerce business continues to drive the market growth and its associated one-day and same-day deliveries have helped a few key players to register double-digit growth within the country. The market is largely dominated by the domestic company Russian Post which occupies more than 15% of both the international and domestic markets. The domestic deliveries segment is largely dominated by domestic brands and the international deliveries market by leading global players.

Russia Courier, Express, and Parcel (CEP) Market Trends

Domestic Deliveries Have Occupied A Major Share of the Market during the Study Period

The domestic deliveries segment of Russia's CEP market has been growing and the international standard and express deliveries are forecasted to grow along with the domestic deliveries during the forecast period.

Standard delivery used to occupy a major share during the initial years of the study period whereas express shipping started to occupy penetrating at a higher speed since 2017. The strongly growing B2C segment of the market is also boosting express shipments to fulfill the faster delivery promises of the retailers. The growing e-commerce business at the country level and the international level is also helping the market to grow in a rapid manner.

Russian Post had a nearly 65 percent market share in 2021 for the courier, express, and parcel services, which covered both inbound and outgoing shipments as well as local shipments. Russian Post offered a broad geography of service in comparison to other suppliers, and its delivery costs were reasonable.

The Growing e-commerce Business in Russia is Driving the Market

The eCommerce market has developed over the past ten years from a straightforward brick-and-mortar retail model to a shopping ecosystem that includes a variety of devices and store designs.

Numerous retailers, both online and offline, are embracing multi-channel strategies and are constantly reimagining how we purchase online. Customers are discovering more convenience on all levels, whether it is product personalization, mobile-optimized search, speedy checkout procedures, or hassle-free shipping, and expectations are rising quickly as a result.

The internet penetration rate is higher in Russia and the country has been registering a growing number of transactions e-commerce transactions over the past five years. This growth trend helped the market to record a high number of both standard and express deliveries during the study period.

The B2C segment constituted the major share of the e-commerce sales growth number from 2017. Increasing disposal income levels have helped customers to spend more and the one-day deliveries and same-day deliveries offered by the retailers have increased customer confidence to order perishable goods via online channels thus driving the market.

Furthermore, Russian e-commerce giants are expanding thier business to other geographies to increase thier customer base. For instance, in December 2022 Russian eCommerce platform Ozon is expanding to India after opening its offices in Turkey and China. The demand for international products by Russian locals has provided the opportunity for local players to expand internationally.

Russia Courier, Express, and Parcel (CEP) Industry Overview

Russia Courier, Express, and Parcel (CEP) market is relatively consolidated with the top 3 companies occupying a major share of the market. With the growing demand for CEP services in the country, the companies are becoming more competitive to capture the huge opportunity. The international players are making strategic investments to establish a regional logistics network, such as the opening of new distribution centers, smart warehouses, etc. The local companies are facing high competition with multinational companies that have a comparatively well-developed infrastructure.

Additional Benefits:

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

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