What you need to know

COVID-19 will accelerate the growth of the courier and express delivery market. Online retailers have witnessed a sudden spike in demand as a result of social distancing measures and the closure of many physical stores. Courier services have benefitted from the dramatic increase in the volume of parcels that consumers have requested to be delivered to their homes.

The significant level of growth expected in 2020 is unlikely to be maintained in future years, as shopping in non-food stores becomes viable again and delivery of goods turns less essential. An expected recession will also impact demand for big ticket items, where delivery is often the default method of receiving these goods.

However as more consumers will now be familiar with, and will prefer to use online shopping and home delivery services, the value of the market will remain slightly above pre-COVID projections until at least 2024.

Key issues covered in this Report

  • The impact of COVID-19 on the courier and express delivery market.

  • How the market will fare as a result of the COVID-19 induced spike in demand within key supply channels, such as online retailing.

  • How intensified competition will continue to put pressure on parcel prices.

  • Consumers’ usage of courier and express delivery services and the role of delivery passes/subscriptions.

Covered in this Report

For the purposes of this Report, the terminology of courier and express delivery is defined as the delivery of documents and parcels up to a maximum of 30kg, including to both households and businesses, thereby excluding pallet and freight delivery.

  • Express delivery typically involves a specific time constraint, traditionally on a 24-hour, 48-hour, or 72-hour basis. However, with growing demand from online retailers, the target is increasingly based on a particular window of time chosen by the customer.

  • Courier delivery primarily involves same-day deliveries at very short notice over small distances, and is commonly undertaken through distribution on pedal bikes, motorbikes or small vans.

The term UK market is used to describe turnover derived from the UK, and the market is segmented within the report to internal (within the UK), and international (packages originating in the UK but destined for delivery internationally). The consignment has to originate in the UK for its distribution to be included in the UK market assessment.

Other forms of internal market segmentation undertaken in this report identify separate time-specific deliveries. The definitions of these types of services are as follows:

  • Same-day delivery represents a relatively small element of the total market. Most express delivery carriers operate a same-day service, but this is generally contracted out to couriers rather than undertaken by carrier fleets.

  • Next day is defined as a guaranteed delivery of a consignment within 24 hours. This is often conducted as an overnight service, and now frequently involves a further refinement attached, such as delivery within a specified time window.

  • Guaranteed time covers other time-specific guaranteed deliveries in excess of 24 hours. In the UK internal market, this typically comprises either a two-day or three-day delivery service, while the timescales can vary significantly internationally. For international deliveries, timescales are not only dependent on travel times and freight schedules, but also the infrastructure available in the country of destination.

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