Delivering the goods: Rising online expenditure supports growing demand for courier services

The Postal and Courier Activities industry collects, sorts, transports and delivers letters, parcels and other items. The delivery of parcels and other specialist courier services accounts for the majority of industry revenue. Traditional postal delivery, which consists of personal, business, transactional and marketing post, constitutes a relatively small part of the industry, and this segment has declined over the past five years. Industry revenue is expected to increase over the five years through 2018-19, rising at a compound annual rate of 1.7%. Over the current year, revenue is expected to increase by 1.5% to reach £21.5 billion.Increased internet usage has brought about a marked decrease in the volume of letters posted, restricting revenue more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • The rise of internet shopping has supported revenue growth over the past five years
  • Many courier companies have struggled to cope with rapid growth in demand while still maintaining high-quality services
  • Employment rights for lifestyle couriers are likely to improve over the period
  • Industry Report - Industry Investment Chapter

    IBISWorld expects the labour-to-capital ratio in the industry to be approximately 1:7.66 in 2018-19, meaning that for every £1.00 spent on depreciable assets, an estimated £7.66 is spent on labour. This indicates a moderate level of capital intensity. Labour is required to collect and deliver mail, and for administrative, executive, marketing and sales purposes, in addition to customer service roles. Machinery and equipment used in the industry include post-sorting machines and delivery vehicles.Capital intensity has increased over the past five years. There was a flood of investment at the start of the period as courier companies moved into the postal sector. However, the move proved unprofitable and many have abandoned the segment. Ove...purchase to read more.

    Additional Insights for the Postal & Courier Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Postal & Courier Activities Industry are

  • Ability to quickly adopt new technology
  • Development of new products
  • Accessibility to consumers/users
  • IBISWorld analysts also discuss how external factors such as Total online expenditure and IT and telecommunications adoption in the Postal & Courier Activities industry impact industry performance..

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    What's in this report

    What is the Postal & Courier Activities Industry?

    Licensed and non-licensed postal operators and courier companies in this industry pick up, sort, transport and deliver letters and parcels but also bulk materials, documents and medical supplies. Operators distribute advertising material, newspapers and periodicals. Postal activities under the Universal Service Obligation are included.

    Industry Products
  • Other courier services
  • Letter delivery
  • Marketing mail delivery
  • Business-to-business parcel delivery
  • Business-to-consumer parcel delivery
  • Consumer-to-consumer parcel delivery
  • Consumer-to-business parcel delivery
  • Industry Activities
  • Collecting letters and parcels from public letter boxes
  • Collecting letters and parcels from post offices
  • Sorting letters and parcels
  • Transporting letters and parcels
  • Delivering letters and parcels
  • Courier services
  • Home delivery services
  • Distributing advertising material, newspapers and periodicals
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total online expenditure
  • IT and telecommunications adoption
  • Business confidence index
  • Real household disposable income

  • Current Performance
  • Packaged performance
  • Switched on
  • Going mobile
  • Chart: Revenue Growth

  • Industry Outlook
  • Alternative delivery
  • Lifestyle couriers
  • In-house delivery
  • Battle for

    market share

  • Table: Postal & Courier Activities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Postal & Courier Activities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity, Gas, Steam and Air Conditioning Supply
  • E-Commerce & Online Auctions
  • Consumers

  • Key Selling Industries
  • Information and Communication
  • Other Motor Vehicle Sales

  • Products & Services
  • Business-to-consumer parcel delivery
  • Business-to-business parcel delivery
  • Letter delivery
  • Consumer-to-business parcel delivery
  • Marketing mail delivery
  • Other courier services
  • Consumer-to-consumer parcel delivery
  • Chart: Postal & Courier Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail sector
  • Other businesses and government organisations
  • Households
  • Chart: Major Market Segmentation for the Postal & Courier Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesSubcontractingDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Postal & Courier Activities

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Postal & Courier Activities Industry

  • Industry Globalization
    Royal Mail Group Limited,
  • Table: Royal Mail Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Postal & Courier Activities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Postal & Courier Activities Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Downstream Access
  • When postal companies collect and sort post and then send it in bulk to Royal Mail for the final delivery stage.
  • E2e Delivery
  • A term used to describe the entire delivery process, from collection and sorting to the final delivery stage.
  • Express Delivery
  • An accelerated delivery service for which the customer pays a surcharge and receives a quicker service.
  • Lifestyle Courier
  • Non-professional couriers that use their own non-branded cars in their own spare time to deliver parcels.
  • Universal Service Obligation
  • This insures that post is collected and delivered six days a week and can be sent anywhere in the United Kingdom for a uniform price.
  • What Our Customers Say

    Why buy this report?

    The Postal & Courier Activities market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Postal & Courier Activities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Postal & Courier Activities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Postal & Courier Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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