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Courier and Express Delivery - UK - May 2016

“The increasing popularity of online shopping in both the B2B and B2C sectors is driving demand for parcel operators. Competition is increasing parcel volumes at a faster rate than revenue, and courier and express service operators will need to raise capacity to service demand, and innovate to increase turnover from faster premium services.”

– Ambreen Ahmad, Research Analyst

This report answers the following key questions:

  • How can operators meet growing and polarising demand from the B2C sector?
  • How can operators encourage demand from the B2B sector?
  • What innovations will drive the industry moving forward?

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 50kg, including to both households and businesses, thereby excluding pallet and freight delivery.

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Table of contents

  1. Executive Summary

      • The market
        • B2C delivery volumes continue to provide engine for market growth
          • Figure 1: UK market for courier and express delivery services, 2011-15
          • Figure 2: Segmentation of the UK market for courier and express delivery services, by destination, 2011-15
        • Forecast volume and revenue growth
          • Figure 3: Forecast UK market for courier and express delivery services, 2016-20
        • Market factors
          • Operators battling to exploit market growth
            • Figure 4: Change in UK export volumes, 2014-15
          • Online retail sales continue to accelerate
            • Figure 5: Average weekly value for Internet retail sales 2015-2016
          • The consumer
            • Home delivery is still the preferred delivery choice
              • Figure 6: Delivery Location, March 2016
              • Figure 7: Preferred home delivery option, March 2016
            • Companies
              • What we think
              • Introduction

                • Definitions
                  • Methodology
                    • Abbreviations
                      • Market positioning
                        • The supplier
                          • The customer
                          • Key Insights

                              • How can operators meet growing and polarising demand from the B2C sector?
                                • How can operators encourage demand from the B2B sector?
                                  • What innovations will drive the industry moving forward?
                                  • UK Economy

                                    • Overview
                                      • Figure 8: UK GDP quarterly development, 2003-16
                                      • Figure 9: UK GDP in economic downturns and recoveries since 1979
                                    • Inflation
                                      • Interest rates
                                        • House prices
                                          • Figure 10: UK House price changes, 2004-2016
                                        • Consumer spending
                                          • Manufacturing
                                            • Figure 11: UK manufacturing, 2013-16
                                          • Business investment
                                            • Figure 12: UK GFCF 2003-15
                                          • Imports
                                            • Exports
                                            • Market Factors

                                              • Key points
                                                • Total e-commerce sales
                                                  • Figure 13: Growth in e-commerce sales 2008-2014
                                                  • Figure 14: E-commerce sales, by sector 2014
                                                • Challenging export demand
                                                  • Figure 15: Change in UK export volumes, 2014-15
                                                • Table highlights:
                                                  • Impact of Brexit
                                                    • The rise of online retail sales
                                                      • Figure 16: Average weekly value for Internet retail sales 2015-16
                                                    • Table highlights:
                                                      • Difficulty keeping pace with online demand
                                                        • Confidence among middle-to-high income households behind premium service demand
                                                          • Figure 17: Thinking about how you spend your money, which of the following have you done over the last three months? And which do you plan to do over the next three months? November, 2015
                                                        • Table highlights:
                                                          • Temporary easing of fuel costs provides light relief
                                                            • Figure 18: Typical retail cost of fuel and fuel duty level in the UK, 201115
                                                          • Table highlights:
                                                          • Market Size

                                                            • Key points
                                                              • B2C delivery volumes act as continued engine for growth
                                                                  • Figure 19: UK market for courier and express delivery services, 2011-15
                                                                • Table highlights:
                                                                • Market Segmentation

                                                                  • Key points
                                                                    • UK economic recovery boosts internal market
                                                                      • Figure 20: Segmentation of the UK market for courier and express delivery services, by destination, 201115
                                                                    • Table highlights:
                                                                      • Figure 21: Segmentation of the UK market for courier and express delivery services, by destination, 201115
                                                                    • Table highlights:
                                                                      • Figure 22: Segmentation of the internal courier and express delivery market, by time sensitivity, 2011-15
                                                                    • Table highlights:
                                                                      • Figure 23: Volume segmentation of the internal courier and express delivery market, by time sensitivity, 2011-15
                                                                    • Table highlights:
                                                                    • Market Trends

                                                                      • Key points
                                                                        • Prices rise in 2015
                                                                          • Figure 24: UK postal and courier services price index, 2013-15
                                                                        • Table highlights:
                                                                          • Technology developments forecast changing industry dynamics
                                                                            • Innovation Trends
                                                                              • Autonomous truck conveys
                                                                                • Driver-less inner-city delivery vans
                                                                                  • Delivery drones
                                                                                  • The Consumer

                                                                                    • Experience of using courier and express service delivery
                                                                                      • Over 85% of consumer have used courier and express service delivery
                                                                                          • Figure 25: Delivery Experience, March 2016, (% of Respondents)
                                                                                        • Table Highlights:
                                                                                          • Older consumers most likely to have received an order via courier and express delivery service
                                                                                            • Figure 26: Age of those utilising courier or express delivery, March 2016, (% of Respondents)
                                                                                          • Table Highlights:
                                                                                            • CED services used across the UK
                                                                                              • Figure 27: UK region of those consumers with any experience of using courier and express delivery, UK, March 2016
                                                                                            • Table highlights:
                                                                                              • Delivery Location
                                                                                                • Home delivery reigns supreme
                                                                                                    • Figure 28: Delivery Location, March 2016, (% of Respondents)
                                                                                                  • Table Highlights:
                                                                                                    • Arrival times
                                                                                                      • Most deliveries arrive next-day
                                                                                                        • Figure 29: Arrival time of delivery, March 2016, (% of Respondents)
                                                                                                      • Arrival times of deliveries by age
                                                                                                        • Figure 30: Arrival time by age 2016, (% of Respondents)
                                                                                                      • Table Highlights:
                                                                                                        • Purchase Retailer
                                                                                                          • Figure 31: Purchase location, March 2016, (% of Respondents)
                                                                                                        • Table Highlights:
                                                                                                          • Available delivery timings
                                                                                                            • Figure 32: Delivery timings, March 2016, (% of Respondents)
                                                                                                          • Table Highlights:
                                                                                                            • Delivery timings by income
                                                                                                              • Figure 33: Delivery time chosen by income 2016, (% of Respondents)
                                                                                                            • Table Highlights:
                                                                                                              • The Consumer - Purchase decisions
                                                                                                                • Figure 34: Impact of delivery options on purchase decisions, March 2016, (% of Respondents)
                                                                                                              • Table Highlights:
                                                                                                                  • Figure 35: Impact of delivery options on retailer choice, by age March 2016, (% of Respondents)
                                                                                                                • Table Highlights:
                                                                                                                  • The Consumer - Subscription member
                                                                                                                    • Figure 36: Subscription membership status, March 2016, (% of Respondents)
                                                                                                                    • Figure 37: Subscription membership status, by age, March 2016, (% of Respondents)
                                                                                                                  • Table Highlights:
                                                                                                                    • The Consumer - preferred delivery time slots
                                                                                                                      • Figure 38: Preferred home delivery option, March 2016, (% of Respondents)
                                                                                                                    • Table Highlights:
                                                                                                                    • Industry Structure

                                                                                                                      • Key points
                                                                                                                        • Industry development
                                                                                                                          • Figure 39: Corporate liquidations and insolvency procedures in postal and courier activities sector, 2011-15
                                                                                                                        • Table highlights:
                                                                                                                          • Greater capacity is increasing competition
                                                                                                                            • Figure 40: Analysis of the changes in the structure of the postal and courier activities sector, 2011-15
                                                                                                                          • Table highlights:
                                                                                                                            • Structure by turnover
                                                                                                                              • Figure 41: Analysis of the financial structure of the postal and courier activities industry, 2014 and 2015
                                                                                                                            • Table highlights:
                                                                                                                              • Structure by employment
                                                                                                                                • Figure 42: Analysis of the employment structure of the postal and courier activities industry, 2014 and 2015
                                                                                                                              • Table highlights:
                                                                                                                              • CitySprint

                                                                                                                                  • Recent company activity
                                                                                                                                      • Figure 43: Financial analysis of CitySprint, 2010-14
                                                                                                                                    • Company strategy
                                                                                                                                    • DHL Express (UK)

                                                                                                                                        • Recent company activity
                                                                                                                                          • Figure 44: Financial analysis of DHL Express (UK), 2010-14
                                                                                                                                        • Company strategy
                                                                                                                                        • DX Group

                                                                                                                                            • Recent company activity
                                                                                                                                              • Figure 45: Financial analysis of DX Group, 2011-15
                                                                                                                                              • Figure 46: Financial segment analysis of DX Group, 2010-15
                                                                                                                                            • Company strategy
                                                                                                                                            • FedEx UK

                                                                                                                                                • Recent company activity
                                                                                                                                                  • Figure 47: Financial analysis of FedEx UK 2011-15
                                                                                                                                                • Company strategy
                                                                                                                                                • DPD Group UK (formerly Geopost UK Ltd)

                                                                                                                                                    • Recent company activity
                                                                                                                                                      • Figure 48: Financial analysis of DPD Group UK 2010-15
                                                                                                                                                    • Company strategy
                                                                                                                                                    • Hermes Parcelnet

                                                                                                                                                        • Recent company activity
                                                                                                                                                          • Figure 49: Financial analysis of Hermes Parcelnet, 2011-15
                                                                                                                                                        • Company strategy
                                                                                                                                                        • TNT UK

                                                                                                                                                            • Recent company activity
                                                                                                                                                              • Figure 50: Financial analysis of TNT UK, 2010-14
                                                                                                                                                            • Strategy
                                                                                                                                                            • Tuffnells

                                                                                                                                                                • Recent company activity
                                                                                                                                                                  • Figure 51: Financial analysis of Tuffnells Parcels Express, 2011-15
                                                                                                                                                                • Company strategy
                                                                                                                                                                • UK Mail

                                                                                                                                                                    • Recent company activity
                                                                                                                                                                      • Figure 52: Financial analysis of UK Mail, 2011-15
                                                                                                                                                                      • Figure 53: Financial segment analysis of UK Mail, 2011-15
                                                                                                                                                                    • Company strategy
                                                                                                                                                                    • UPS

                                                                                                                                                                        • Recent company activity
                                                                                                                                                                          • Figure 54: Financial analysis of UPS, 2010-14
                                                                                                                                                                        • Company strategy
                                                                                                                                                                        • Yodel

                                                                                                                                                                            • Recent company activity
                                                                                                                                                                              • Figure 55: Financial analysis of Yodel, 2011-15
                                                                                                                                                                            • Company strategy
                                                                                                                                                                            • Forecast

                                                                                                                                                                              • Key points
                                                                                                                                                                                • Maturing e-commerce market will slow parcel growth rate
                                                                                                                                                                                  • Figure 56: Forecast UK market for courier and express delivery services, 2016-20
                                                                                                                                                                                • Table highlights:
                                                                                                                                                                                  • Internal market to outperform international to 2020
                                                                                                                                                                                    • Figure 57: Forecast segmentation of UK market for courier and express delivery services, 2016-20
                                                                                                                                                                                  • Table highlights:
                                                                                                                                                                                  • Further Sources & Contacts

                                                                                                                                                                                    • Trade associations
                                                                                                                                                                                      • Trade magazines
                                                                                                                                                                                        • Transport News

                                                                                                                                                                                        Companies Covered

                                                                                                                                                                                        To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                        Courier and Express Delivery - UK - May 2016

                                                                                                                                                                                        US $1,857.54 (Excl.Tax)