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:
- Market growth trends and future projections
- Consumer usage patterns and satisfaction levels
- Competitive landscape and major players’ strategies
- Technological advancements in the industry
- Sustainability initiatives and environmental impacts
- Growth of online retail and its influence on the market
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.
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Executive Summary
- What you need to know
- Key takeaways
- Market predictions
- Opportunities for the courier and express delivery market
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Market Dynamics
- Market size
- Market returns to growth
- Graph 1: courier and express delivery market size, 2019-24 (est), (£bn)
- Market segmentation
- The domestic market is where revenues are declining most heavily
- Graph 2: courier and express delivery market size, by product type, 2018/19-2022/23
- Domestic volumes still slowly falling
- Graph 3: annual measured parcel volumes, by product type, 2018/19-2022/23
- Market forecast
- Gradual growth expected over the next five years
- Graph 4: market size and forecast for courier and express delivery, 2020-29
- Market growth expected despite challenges and competition
- Market drivers
- Value of trade in goods with the EU
- Graph 5: monthly value of trade in goods with the EU, by imports and exports, 2019-24
- Value of trade in goods with non-EU countries
- Graph 6: monthly value of trade in goods with non-EU countries, by imports and exports, 2020-24
- GDP growth
- Graph 7: GDP, 2021-24
- CPI inflation
- Graph 8: CPI inflation rate, 2021-24
- Consumer confidence for the year ahead
- Graph 9: the financial confidence index, 2016-24
- Online retail spending is returning to growth
- Graph 10: market size for online retail sales (inc. VAT), 2019-24
- …but rate of growth is slowing as inflation eases
- Graph 11: annual % change in total online retail sales, 2022-24
- Internet sales as a proportion of total retail sales remains above pre-pandemic levels
- Graph 12: Internet sales as a percentage of total retail sales, 2019-24
- Internet sales growth by major category
- Graph 13: internet sales growth, by major category, 2023-24
- Breakdown of online sales by product category
- Graph 14: estimated breakdown of online sales, by product category, 2023
- Amazon accounts for almost a third of online sales in the UK
- Graph 15: leading online retailers' market shares, 2023
- Online retailers: market shares
- Growth in peer-to-peer selling and online marketplaces
- Graph 16: estimated value of sales through marketplaces and peer-to-peer sites, 2018-23
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What Consumers Want And Why
- Usage
- Growth in courier and express services driven by e-commerce boom
- Graph 17: usage of courier and express delivery services in the last six months, 2022-24
- Usage to receive parcels is high across all generations
- Graph 18: usage of courier and express delivery services to receive a parcel in the last six months, by generation, 2024
- Younger people drive increased usage of courier and express delivery services to send parcels
- Graph 19: usage of courier and express delivery services to send a parcel to another person in the past six months, by generation, 2024
- Change in frequency of use
- One in five use services more than a year ago
- Over a third of Gen Z use services more than a year ago
- Graph 20: change in use of courier and express delivery services over the last year, by age, 2024
- Speed of delivery
- Limited consumer shift towards rapid delivery despite available services
- Graph 21: delivery method of last product received by courier or express delivery service, 2023-24
- Satisfaction with courier and express delivery
- Most people satisfied with courier/express delivery services
- Graph 22: satisfaction with courier and express delivery services, 2024
- Reasons to choose delivery over in-store shopping
- Key factors driving online shopping: convenience, cost, and variety
- Graph 23: factors affecting the decision to order products for delivery rather than shop in-store, 2024
- Attitudes towards courier and express delivery
- Big majority trust service providers
- Graph 24: consumer attitudes towards courier and express delivery services, 2024
- Improving satisfaction and addressing parcel safety in delivery services
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Competitive landscape
- Company profiles
- DPD UK
- Sustainability initiatives
- Recent acquisitions and  strategic partnerships
- Financial information
- Evri
- Recent company activity
- Evri invests in AI strategy
- Financial performance
- Royal Mail Group
- Investment in parcel network and sorting capabilities
- Royal Mail's sustainability initiatives
- Expanding customer choice and convenience
- Financial performance
- UPS UK
- Recent company activity in the UK
- Financial performance
- Yodel Delivery Network
- Acquisition by YDLGP
- Investment in capacity
- Fleet expansion
- Financial performance
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Appendix
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Report methodology
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