Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Courier market maintains double-figure growth across value and volume in 2018
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- Figure 1: UK courier and express delivery market, £ billion and billion packages, 2014-2023
- Companies and brands
- Ongoing extensive investment
- The consumer
- Express delivery rates continue to grow
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- Figure 2: Delivery of most recent parcel, February 2019
- The increasing pressure of returns
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- Figure 3: Most important considerations behind choice of delivery option, February 2019
- Consumers remain cool on future advancements in access control
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- Figure 4: Attitudes towards future enhancements, February 2019
- What we think
Issues and Insights
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- Increasing strain of returns
- The facts
- The implications
- The growth of delivery subscriptions as a sustained source of demand
- The facts
- The implications
The Market – What You Need to Know
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- The market maintains double-figure growth across value and volume in 2018
- Total growth remains underpinned by the domestic market
- Market forecast to maintain momentum but price competition narrows margins
Market Size
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- Double-figure value and volume growth continues into 2018
- B2C delivery retains the lion share, but C2C demand continues to grow
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- Figure 5: UK courier and express delivery market value, £ billion, 2014-2018
- Volume growth surpasses value, highlighting mounting price competition
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- Figure 6: UK courier and express delivery market volume, billion packages, 2014-2018
Market Segmentation
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- The internal market consolidates further in 2018
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- Figure 7: Courier and express delivery market value segmentation, internal and international, £ billion, 2014-2018
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- Figure 8: Courier and express delivery market volume segmentation, internal and international, million packages, 2014-2018
- Potential challenges from Brexit
Market Forecast
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- Market forecast to maintain momentum but price competition narrows margins
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- Figure 9: Courier and express delivery market forecast, value and volume, 2019-2023
- Continued growth in ecommerce
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- Figure 10: Forecast online retail sales, £ billion, 2019-2023
The Impact of the Economy
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- Disposable income levels grow again in 2018
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- Figure 11: Gross disposable income per head, current price £, Q1 2014-Q4 2018
Market Trends
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- Online retail growth shows no signs of abating
- Online bolsters its share of total retail
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- Figure 12: All online retail sales and online sales as a % of all retail sales, 2012-2018
- Online-only retail stores consolidate, spearheaded by Amazon
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- Figure 13: Online-only and store based retailers, share of all online sales, January 2008-December 2018
- Price growth recovers momentum in 2018, but margins remain pressured
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- Figure 14: Price index in the courier services sector, 2012-2018
Market Drivers
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- The boom of delivery subscription schemes
- Amazon Prime: the trailblazer
- Online retailers adopt this model
- The rise of subscription boxes
- Subscription services to be extended to on-demand commerce
- Internet access near-universal, alongside smartphone ownership growth
- Collaboration with the smart home market to enhance convenience
Companies and Brands – What You Need to Know
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- Infrastructure growth slowed in 2018
- Significance of SMEs
- Investment remains focused in boosting capacity and driving convenience
Industry Structure
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- Changes in the structure of the industry
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- Figure 15: Analysis of the changes in courier activities, by number of businesses and outlets, % change, 2014-2018
- Structure by employment
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- Figure 16: Analysis of the employment structure of courier activities, number of outlets and employees, 2017 & 2018
- Structure by turnover
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- Figure 17: Analysis of the financial structure of courier activities, £'000 and number of companies, 2017 & 2018
Competitive Strategies
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- Drive to boost convenience
- Ongoing investment and expansion of facilities
Company Profiles
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- DPD Group UK
- Recent company activity
- Financial information
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- Figure 18: Financial analysis of DPD Group UK, £ million, 2013, 2015-2017
- Hermes Parcelnet
- Recent company activity
- Financial information
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- Figure 19: Financial analysis of Hermes Parcelnet, £ million, 2014-2018
- Parcelforce Worldwide
- Recent company activity
- Financial information
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- Figure 20: Financial analysis of Parcelforce Worldwide, value and volume, 2016 and 2017
- TNT UK
- Recent company activity
- Financial information
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- Figure 21: Financial analysis of TNT UK, £ million, 2013-2015 and 2017-2018
- UPS UK
- Recent company activity
- Financial information
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- Figure 22: Financial analysis of UPS UK, £ million, 2013-2017
- Yodel
- Recent company activity
- Financial information
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- Figure 23: Financial analysis of Yodel, £ million, 2013-2017
The Consumer — What You Need To Know
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- Express delivery rates continue to grow
- The need for speed is spearheaded by Millennials
- Premium delivery services consolidate again
- Returns on the rise
- Consumers remain cool on future advancements in access control
Experience of Courier and Express Delivery
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- Vast majority of the consumer base has experience with the industry
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- Figure 24: Experience of the courier and express delivery industry, February 2019
- Use of couriers is rising
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- Figure 25: Frequency of courier services compared to a year ago, February 2019
Delivery Timings
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- Only a minority of consumers have used same-day delivery
- Enhanced convenience spearheaded by younger, urban consumers
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- Figure 26: Delivery of most recent parcel, February 2019
Reasons for Delivery
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- Cost and convenience drive online purchases
- The growing role of unlimited delivery subscriptions
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- Figure 27: Reasons for having product delivered rather than shopping in-store, February 2019
Influencing Choice of Delivery Method
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- Cost and convenience are the key factors
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- Figure 28: Most important considerations behind choice of delivery option, February 2019
Usage of Returns
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- Returns start to pressure margins
- The growth of returns
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- Figure 29: Use of return services in the last six months, February 2019
- Half of returners used a courier/postal service
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- Figure 30: Method of return, February 2019
Attitudes towards Future Enhancements
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- New innovations aim to increase efficiency
- Consumers remain reluctant in allowing couriers access to private property
- The potential for couriers and newer smart home technologies
- Stronger demand for delivery outside of the home and work
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- Figure 31: Attitudes towards future enhancements, February 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
- Consumer research methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade events
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