2022
9
UK Courier and Express Delivery Market Report 2022
2022-06-09T04:04:20+01:00
OX1101839
1495
152014
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Report
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“Companies who reconfigured their supply chains after experiencing major disruptions and significant delays in deliveries over the pandemic will be best placed to benefit from new purchasing and delivery habits.

UK Courier and Express Delivery Market Report 2022

£ 1,495 (Excl.Tax)

Description

The UK Courier and Express Delivery market report provide comprehensive information and expert analysis of the UK Courier and Express Delivery market, including the behaviours, preferences and habits of the consumer. This market report covers the market size, market forecast, market segmentation and industry trends for the Courier and Express Delivery market in the UK.

Current Market Landscape 

The courier and express delivery service industry has seen a significant increase in deliveries due to people and companies switching to online shopping due to the nature of the COVID-19 pandemic, which has also seen the express delivery market share shift away from B2B towards B2C.

Even after restrictions have been lifted, e-commerce demands remain high, which saw growth in the same-day and next-day delivery market size. The growth in the same-day delivery market size is causing companies to reconfigure supply chains that are experiencing major disruptions and significant delays in deliveries. The problem has led to more and more companies reducing their dependency on overseas suppliers, gravitating towards local providers and distributed inventories, and calling for strengthened local distribution networks and supply chain diversification.

  • 72% of UK adults have received a product that they ordered from a courier or express delivery service.
  • 26% of UK adults are using a courier or express parcel delivery service more than they did a year ago.
  • 48% of UK adults ordered products online for delivery as it was easier to find products online compared to when in-store.

Future Market Trends in UK Courier and Express Delivery Market

The challenge for the courier and express delivery industry continues to be handling higher parcel volumes. Many express delivery services are battling to cope with capacity and will need to be careful to avoid ad-hoc investments in their attempts to prevent losing customers.

The rise in e-commerce has increased last-mile parcel deliveries, which has consequently affected transport sustainability. With the worldwide efforts to minimise fossil fuel use, including the UK Government’s plans to end the sales of new petrol and diesel vehicles by 2040, the UK express delivery market will also need to invest in alternative solutions such as electric vehicles and alternative modes of transport vehicles (e.g. Bikes) to facilitate last-minute deliveries.

Read on to discover more details or take a look at all of our UK Retail Market Research.

Understand Quickly

  • The impact of COVID-19 on the courier and express delivery market.
  • Market size, forecast and segmentation of the courier and express delivery market.
  • Trends in the courier and express delivery market, including the impact of Brexit on international trade.
  • Analysis of the structure of the courier and express delivery market, profiles of key companies and their recent activities.
  • Analysis of the use of courier and express delivery services, and how this has changed over the last year.
  • Analysis of the speed of deliveries received and satisfaction with delivery services.
  • Analysis of key drivers of online shopping and delivery use, and attitudes towards express delivery including trust, perceptions of the value of quicker delivery, and environmental concerns.

Covered in this Report

Brands:  Transport Exchange Group, Royal Mail, DPD, Hermes (Evri), Whistl (Parcelhub), Yodel, ArrowXL, Posttag, What3words, UPS.

Expert Analysis from a Specialist in the Field

“Companies who reconfigured their supply chains after experiencing major disruptions and significant delays in deliveries over the pandemic will be best placed to benefit from new purchasing and delivery habits. More providers will reduce their dependency on overseas suppliers, instead relying on local vendors and inventories, which will strengthen local distribution networks and supply chain diversification.”

Lewis Cone - Research Analyst
Lewis Cone
Senior B2B Analyst

 

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for courier & express delivery
      • Figure 1: Five-year outlook for courier & express delivery, 2022-26
    • The market
    • Market size and forecast
      • Figure 2: The UK market size and forecast for the courier and express delivery market, 2016/17 to 2026/27, (£ billion)
    • Market segmentation
      • Figure 3: Market forecast of the courier and express delivery market, by product type, 2022/23 to 2026/27, (£ billion)
    • The Consumer
    • Four-fifths of consumers have recent experience of courier services
      • Figure 4: Use of courier and express delivery services in the last six months, 2022
    • Same-day delivery remains a niche option
      • Figure 5: Speed of delivery of the last product ordered using a courier or express delivery service, 2022
    • Demand for services continues to grow
      • Figure 6: Change in use of courier and express delivery services over the last year, 2022
    • The vast majority of customers are satisfied with delivery services
      • Figure 7: Satisfaction with courier and express delivery services, 2022
    • Online convenience is the major driver of demand for delivery services
      • Figure 8: Factors affecting consumers’ decision to order products for delivery rather than shop in-store, 2022
    • Consumers are increasingly concerned about environmental impacts
      • Figure 9: Consumer attitudes towards courier and express delivery services, 2022
  3. Issues and Insights

    • Driver shortages remain a concern
    • Despite sustainability being a high priority, parts of the industry lobby against ban on new diesel vehicles by 2040
    • Speed of delivery is the main point of difference between brands, but it can be hard to convince people to pay
  4. Market Size

    • Market growth falls on pandemic peak but remains high
      • Figure 10: UK courier and express delivery market size, 2017/18 to 2021/22, (£ billion)
  5. Market Segmentation

    • Increase in domestic deliveries drives revenue growth with international parcel volumes remaining consistent
      • Figure 11: UK courier and express delivery market size, by product type, 2017/18 to 2021/22, (£ billion)
      • Figure 12: Annual measured parcel volume, by product type, 2016/17 to 2020/21, (millions)
    • Market competition continues to drive down domestic unitary prices, although upward pressure begins to show on outbound items
  6. Market Forecast

    • The five-year outlook for courier & express delivery
      • Figure 13: Five-year outlook for courier & express delivery, 2022-26
    • Pricing pressures remain but raised e-commerce activity will keep demand high
    • The market is forecast to grow to £18.5 billion by 2026
      • Figure 14: Forecast of the courier and express delivery market, 2016/17 to 2026/27, (£ billion)
  7. The Impact of the Economy

    • The conflict in Ukraine will hurt the UK economy
    • GDP reached pre-pandemic levels in November 2021 …
    • … but the post-COVID-19 bounce-back will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflation is the key concern for 2022 for consumers, brands and the economy
  8. Market Trends

    • Rapid acceleration in last-mile deliveries sparks drive for EVs
    • Courier price-per-mile rises above haulier price for the first time in almost a year …
    • … as driver shortage leads to delays and rising costs
    • EU import value rises whilst export value declines in post-Brexit environment
      • Figure 15: Monthly UK trade in EU goods, by imports and exports, December 2019 – January 2022, (£ billion)
      • Figure 16: Monthly UK trade in non-EU goods, by imports and exports, December 2019 – January 2022, (£ billion)
  9. Market Drivers

    • Pandemic-led rise in online shopping begins to diminish but remains above pre-pandemic levels
      • Figure 17: UK online retail sales as a proportion of total retail sales, 2019-21, (% of all UK retail sales)
      • Figure 18: Online retail sales, year-on-year growth and online sales as a proportion of retail, by category, January 2022, (%)
    • Ofcom tightens regulations for delivery companies
  10. Industry Development

    • The number of outlets and businesses operating in the postal and courier activity industries continues to rise significantly
    • Structure by number of outlets and businesses
      • Figure 19: Analysis of the changes in the structure of the postal and courier services industry, 2017-21 (number of outlets and businesses)
    • Structure by employment
      • Figure 20: Analysis of the employment structure of the postal and courier activities industry, 2020 and 2021, (number of employees and outlets)
    • Structure by turnover
      • Figure 21: Analysis of the financial structure of the postal and courier activities industry, 2020 and 2021 (£000 and number of businesses)
  11. Competitive Strategies

    • Whistl becomes a Customs Clearance Agent, opens new depot, and offers Yodel two-hour delivery option
    • Yodel unveils new sorting system
    • DPD UK adopts what3words for precise parcel deliveries
    • ArrowXL integrates with Parcelhub to expand options for SMEs
  12. Company Profiles

    • DPD UK
    • Recent company activity
    • Financial activity
      • Figure 22: Financial analysis of DPD Group UK ltd, 2016*-20**, (£ million and %)
    • Evri (formerly known as Hermes UK)
    • Recent company activity
    • Financial information
      • Figure 23: Financial analysis of Evri (formerly known as Hermes UK), 2017-21, (£ million and %)
    • Royal Mail
    • Recent company activity
    • Financial information
      • Figure 24: Financial analysis of Royal Mail Group ltd, 2017-21, (£ million and %)
    • UPS UK
    • Recent company activity
    • Financial information
      • Figure 25: Financial analysis of UPS UK ltd, 2016-20, (£ million and %)
    • Yodel Delivery Network
    • Recent company activity
    • Financial information
      • Figure 26: Financial analysis of Yodel Delivery Network Ltd, 2016-20, (£ million and %)
  13. Use of Courier and Express Delivery Services

    • Four-fifths of consumers have recent experience of courier services
      • Figure 27: Use of courier and express delivery services in the last six months, 2022
    • Higher earners more likely use couriers and express delivery to receive goods
      • Figure 28: Use of courier and express delivery services to receive a parcel in the last six months, by annual household income, 2022
  14. Speed of Delivery

    • Same-day delivery remains a niche option …
      • Figure 29: Speed of delivery of the last product ordered using a courier or express delivery service, 2022
    • … but is much more common in London and other urban centres …
      • Figure 30: Speed of delivery of the last product ordered using a courier or express delivery service, by home location, 2022
    • … and the rise in home working has provided a growing customer niche
  15. Changes in Frequency of Use

    • Demand for services continues to grow
      • Figure 31: Change in use of courier and express delivery services over the last year, 2022
    • Younger groups are driving growth in B2C deliveries
      • Figure 32: Change in use of courier and express delivery services over the last year, by age, 2022
  16. Satisfaction with Courier and Express Delivery

    • The vast majority of customers are satisfied with delivery services
      • Figure 33: Satisfaction with courier and express delivery services, 2022
    • Speed of delivery is a key point of difference
      • Figure 34: Satisfaction with courier and express delivery services, by speed of delivery of the last product ordered using a courier or express delivery service, 2022
  17. Reasons to Choose Delivery Over In-Store Shopping

    • Online convenience is the major driver of demand for delivery services
      • Figure 35: Factors affecting consumers’ decision to order products for delivery rather than shop in-store, 2022
    • COVID-19 continues to be a factor for some
  18. Attitudes towards Courier and Express Delivery

    • Consumers are increasingly concerned about environmental impacts
      • Figure 36: Consumer attitudes towards courier and express delivery services, 2022
    • Under-35s are the key market for premium, quicker deliveries
      • Figure 37: Agreement with the statement “I think it’s worth paying extra for quicker courier/express delivery”, by age, 2022
    • Negative experiences have a significant, but not destructive impact on satisfaction and trust
      • Figure 38: Response to the statement “I trust courier/express parcel delivery service providers to deliver packages securely”, by response to the statement “I have experienced lost/damaged packages using a courier/express parcel delivery service”, 2022
  19. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  20. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
    • Total market
      • Figure 39: The UK market size and forecast for courier and express delivery, 2016/17 to 2026/27, (£ billion and %)
    • Domestic
      • Figure 40: The UK market size and forecast for domestic courier and express delivery, 2016/17 to 2026/27, (£ billion and %)
    • International Inbound
      • Figure 41: The UK market size and forecast for international inbound courier and express delivery, 2016/17 to 2026/27, (£ billion and %)
    • International Outbound
      • Figure 42: The UK market size and forecast for international outbound courier and express delivery market, 2016/17 to 2026/27, (£ billion and %)
    • Market drivers and assumptions
      • Figure 43: Key drivers affecting Mintel’s market forecast, 2020-26 (% change)
    • Forecast methodology
  21. Further Sources and Contacts

    • Trade associations
    • Trade magazines
    • Trade events

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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