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Courier and Express Delivery - UK - April 2019

Market segmentation

  • Internal
  • International

Company profiles

  • DPD Group UK
  • Hermes Parcelnet
  • Parcelforce Worldwide
  • TNT UK
  • UPS UK
  • Yodel

“The courier and express delivery market is booming, much of which is underpinned by surging online retail sales. However, the marketplace remains hugely competitive, marked by slim margins and a growing expectation to provide more for less. For those still in the market, the future looks bright given continued value and volume growth; both of which show little sign of abating as online retail appears far from reaching its ceiling.”
– Marco Amasanti, B2B Analyst

This report looks at the following areas:

  • Increasing strain of returns
  • The growth of delivery subscriptions as a sustained source of demand

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What's included

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Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Courier market maintains double-figure growth across value and volume in 2018
              • 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
                    • Figure 2: Delivery of most recent parcel, February 2019
                  • The increasing pressure of returns
                    • Figure 3: Most important considerations behind choice of delivery option, February 2019
                  • Consumers remain cool on future advancements in access control
                    • Figure 4: Attitudes towards future enhancements, February 2019
                  • What we think
                  • Issues and Insights

                    • 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

                                • 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

                                      • Double-figure value and volume growth continues into 2018
                                        • B2C delivery retains the lion share, but C2C demand continues to grow
                                            • Figure 5: UK courier and express delivery market value, £ billion, 2014-2018
                                          • Volume growth surpasses value, highlighting mounting price competition
                                            • Figure 6: UK courier and express delivery market volume, billion packages, 2014-2018
                                        • Market Segmentation

                                          • The internal market consolidates further in 2018
                                              • Figure 7: Courier and express delivery market value segmentation, internal and international, £ billion, 2014-2018
                                              • Figure 8: Courier and express delivery market volume segmentation, internal and international, million packages, 2014-2018
                                            • Potential challenges from Brexit
                                            • Market Forecast

                                              • Market forecast to maintain momentum but price competition narrows margins
                                                  • Figure 9: Courier and express delivery market forecast, value and volume, 2019-2023
                                                • Continued growth in ecommerce
                                                  • Figure 10: Forecast online retail sales, £ billion, 2019-2023
                                              • The Impact of the Economy

                                                • Disposable income levels grow again in 2018
                                                  • Figure 11: Gross disposable income per head, current price £, Q1 2014-Q4 2018
                                              • Market Trends

                                                • Online retail growth shows no signs of abating
                                                  • Online bolsters its share of total retail
                                                      • 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
                                                        • 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
                                                        • Figure 14: Price index in the courier services sector, 2012-2018
                                                    • Market Drivers

                                                      • 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

                                                                    • Infrastructure growth slowed in 2018
                                                                      • Significance of SMEs
                                                                        • Investment remains focused in boosting capacity and driving convenience
                                                                        • Industry Structure

                                                                            • Changes in the structure of the industry
                                                                              • Figure 15: Analysis of the changes in courier activities, by number of businesses and outlets, % change, 2014-2018
                                                                            • Structure by employment
                                                                              • Figure 16: Analysis of the employment structure of courier activities, number of outlets and employees, 2017 & 2018
                                                                            • Structure by turnover
                                                                              • Figure 17: Analysis of the financial structure of courier activities, £'000 and number of companies, 2017 & 2018
                                                                          • Competitive Strategies

                                                                            • Drive to boost convenience
                                                                              • Ongoing investment and expansion of facilities
                                                                              • Company Profiles

                                                                                • DPD Group UK
                                                                                  • Recent company activity
                                                                                    • Financial information
                                                                                      • Figure 18: Financial analysis of DPD Group UK, £ million, 2013, 2015-2017
                                                                                    • Hermes Parcelnet
                                                                                      • Recent company activity
                                                                                        • Financial information
                                                                                          • Figure 19: Financial analysis of Hermes Parcelnet, £ million, 2014-2018
                                                                                        • Parcelforce Worldwide
                                                                                          • Recent company activity
                                                                                            • Financial information
                                                                                              • Figure 20: Financial analysis of Parcelforce Worldwide, value and volume, 2016 and 2017
                                                                                            • TNT UK
                                                                                              • Recent company activity
                                                                                                • Financial information
                                                                                                  • Figure 21: Financial analysis of TNT UK, £ million, 2013-2015 and 2017-2018
                                                                                                • UPS UK
                                                                                                  • Recent company activity
                                                                                                    • Financial information
                                                                                                      • Figure 22: Financial analysis of UPS UK, £ million, 2013-2017
                                                                                                    • Yodel
                                                                                                      • Recent company activity
                                                                                                        • Financial information
                                                                                                          • Figure 23: Financial analysis of Yodel, £ million, 2013-2017
                                                                                                      • The Consumer — What You Need To Know

                                                                                                        • 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

                                                                                                                  • Vast majority of the consumer base has experience with the industry
                                                                                                                      • Figure 24: Experience of the courier and express delivery industry, February 2019
                                                                                                                    • Use of couriers is rising
                                                                                                                      • Figure 25: Frequency of courier services compared to a year ago, February 2019
                                                                                                                  • Delivery Timings

                                                                                                                    • Only a minority of consumers have used same-day delivery
                                                                                                                      • Enhanced convenience spearheaded by younger, urban consumers
                                                                                                                          • Figure 26: Delivery of most recent parcel, February 2019
                                                                                                                      • Reasons for Delivery

                                                                                                                        • Cost and convenience drive online purchases
                                                                                                                          • The growing role of unlimited delivery subscriptions
                                                                                                                            • Figure 27: Reasons for having product delivered rather than shopping in-store, February 2019
                                                                                                                        • Influencing Choice of Delivery Method

                                                                                                                          • Cost and convenience are the key factors
                                                                                                                              • Figure 28: Most important considerations behind choice of delivery option, February 2019
                                                                                                                          • Usage of Returns

                                                                                                                            • Returns start to pressure margins
                                                                                                                              • The growth of returns
                                                                                                                                • Figure 29: Use of return services in the last six months, February 2019
                                                                                                                              • Half of returners used a courier/postal service
                                                                                                                                • Figure 30: Method of return, February 2019
                                                                                                                            • Attitudes towards Future Enhancements

                                                                                                                              • 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
                                                                                                                                      • Figure 31: Attitudes towards future enhancements, February 2019
                                                                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                      • Abbreviations
                                                                                                                                        • Methodology
                                                                                                                                          • Consumer research methodology
                                                                                                                                          • Further Sources and Contacts

                                                                                                                                            • Trade associations
                                                                                                                                              • Trade magazines
                                                                                                                                                • Trade events

                                                                                                                                                Courier and Express Delivery - UK - April 2019

                                                                                                                                                US $1,912.55 (Excl.Tax)