UK Courier and Express Delivery Market Report 2024

The UK courier and express delivery market has returned to growth in 2024, though it remains below the peak levels seen during the pandemic. This market is on a gradual upward trajectory, with an estimated growth of 8.4% between 2024 and 2029. The cost of living crisis has shaped consumer behaviour, driving demand for lower-priced delivery options, yet the market shows resilience as inflation eases.

High reliance on courier services is driven by the continued boom in e-commerce. Despite high satisfaction levels, nearly half of users have experienced issues with lost or damaged parcels. Major players like DPD, Evri, Royal Mail, UPS, and Yodel are focusing on technology, sustainability, and service expansion to stay competitive. Investments in AI, automation, and electric vehicles highlight the industry’s focus on innovation and environmental responsibility.

This report looks at the following areas:

Embracing technology and automation in last-mile delivery and improving out-of-home options offers a significant growth opportunity.

Claudia Preedy, Senior B2B Analyst

Market Definitions

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 both to 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.