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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the UK - Courier and Express Delivery: Incl Impact of COVID-19 market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

COVID-19 will accelerate the growth of the courier and express delivery market. Online retailers have witnessed a sudden spike in demand as a result of social distancing measures and the closure of many physical stores. Courier services have benefitted from the dramatic increase in the volume of parcels that consumers have requested to be delivered to their homes.

All reports purchased from the Mintel Store now come with free access to our COVID-19 Global Insights Hub, allowing you to understand how industries and consumer behaviour is changing worldwide.


What does the COVID-19 Global Insights Hub give you access to?

  • Over 450 pieces of research (with more published each week) addressing markets across the globe.
  • Discover how people in countries at different stages of the crisis are adjusting to the 'new normal'.
  • Trending industries which have seen growth due to the changes in circumstance.
  • Our latest consumer research surveys, allowing you to see customers views right now.

Expert analysis from a specialist in the field

Written by Francesco Salau, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The courier and express delivery sector has greatly benefited from the meteoric rise of ecommerce and online retailing. COVID-19 will prompt a sharp acceleration in growth in 2020, as behavioural changes arising from social distancing guidelines boost online shopping activity. Francesco Salau
B2B Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

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

            • The market
              • Courier services fill the gap and see gains from the COVID-19 outbreak
                • Figure 1: Forecasted value of the UK courier and express delivery market, pre- and post-COVID-19, 2019-24
              • Impact of COVID-19 on courier and express delivery services
                • Figure 2: Expected impact of COVID-19 on the courier and express delivery sector, short, medium and long-term, 29 April 2020
              • Companies and brands
                • The consumer
                  • Courier and express delivery usage
                    • Figure 3: Courier and express delivery usage in the past six months, February 2020 (% of respondents)
                  • Online shopping drivers
                    • Figure 4: Most important factors behind ordering online, February 2020 (% of respondents)
                  • Return service usage
                    • Figure 5: Return service usage, February 2020, (% of respondents)
                  • Delivery pass uptake
                    • Figure 6: Delivery pass uptake by product category, February 2020 (% of respondents)
                  • What we think
                  • The Impact of COVID-19 on Courier and Express Delivery Services

                    • Short, medium and long-term impact on the industry
                      • Figure 7: Expected impact of COVID-19 on the courier and express delivery sector, short, medium and long-term, 29 April 2020
                    • Opportunities and threats
                      • Newly acquired warehouse space could provide a lucrative revenue stream
                        • Shift in distribution of food and drink presents opportunities for couriers
                          • Opportunity to kick-start smart parcel deliveries
                            • Impact of COVID-19 on the courier and express delivery market
                              • Market to receive bounce in 2020 as delivery becomes the default option
                                  • Figure 8: Forecasted value of the UK courier and express delivery market, pre- and post-COVID-19, 2019-24
                                • How the crisis will affect courier and express delivery’s key consumer segments
                                  • How a COVID-19 recession will reshape the courier and express delivery sector
                                    • COVID-19: UK context
                                    • Issues and Insights

                                      • The COVID-19 shock will lead to rapid short-term growth in the sector
                                        • The facts
                                          • The implications
                                            • Pressure of competition is lowering prices but adapting operating model is required for it to remain viable
                                              • The facts
                                                • The implications
                                                • The Market – What You Need to Know

                                                  • The Brexit resolution and past planning shores up consumer spending and sectoral investment
                                                    • Lower revenues despite growing volume is the result of intense competition
                                                      • Market to continue riding the ecommerce wave for the foreseeable future
                                                      • Market Size

                                                        • Consumer spending holds sector steady as headwinds lift temporarily
                                                            • Figure 9: UK courier and express delivery market value, 2015-19, (£ billion)
                                                        • Market Segmentation

                                                          • International volumes and revenues outpace domestic growth on ecommerce wave
                                                            • Figure 10: Annual measured parcel volume*, 2014/15 – 2018/19 (millions of parcels)
                                                            • Figure 11: Annual revenue of national parcel operators*, excluding letters and same day delivery**, 2014/15 – 2018/19 (£ million)
                                                          • Next-day popularity is growing while cost is declining
                                                              • Figure 12: Next day and later than next day deliveries as a share of total parcel volume and revenue, 2014/15 – 2018/19 (% of total)
                                                          • Market Forecast

                                                            • Increased online shopping to drive record jump in 2020
                                                              • Figure 13: Forecasted value of the UK courier and express delivery market, pre- and post-COVID-19, 2019-24
                                                              • Figure 14: Forecasted annual growth in UK courier and express delivery market value, 2020-24
                                                          • Market Trends

                                                            • Per parcel revenue declines due to subcontractor competition
                                                              • Electric vehicle uptake
                                                              • Market Drivers

                                                                • Demand for return boosts volumes at retailers’ expense
                                                                • Companies and Brands – What You Need to Know

                                                                  • Sector remains dominated by micro-firms acting as contractors
                                                                    • Green innovation steps up a gear as the 2035 deadline begins to cast its shadow
                                                                    • Industry Structure

                                                                        • Changes in industry structure
                                                                          • Figure 15: Analysis of changes in postal and courier activities, by number of businesses and outlets, 2015-19 (units)
                                                                        • Structure by employment
                                                                          • Figure 16: Analysis of the employment structure of postal and courier activities, by number of outlets, 2018 and 2019 (unit)
                                                                        • Structure by turnover
                                                                          • Figure 17: Analysis of the turnover structure of postal and courier activities, by number of companies, 2018 and 2019 (£000 and unit)
                                                                      • Company Profiles

                                                                        • DPD Group UK Ltd
                                                                            • Figure 18: Financial analysis of DPD Group UK Ltd, 2014-18 (£ million and %)
                                                                          • Hermes Parcelnet Ltd
                                                                              • Figure 19: Financial analysis of Hermes Parcelnet Ltd, 2015-19 (£ million and %)
                                                                            • TNT UK Ltd
                                                                                • Figure 20: Financial analysis of TNT UK Ltd, 2014-18 (£ million and %)
                                                                              • UPS UK Ltd
                                                                                  • Figure 21: Financial analysis of UPS UK Ltd, 2014-18 (£ million and %)
                                                                                • Yodel Delivery Network
                                                                                    • Figure 22: Financial analysis of Yodel Delivery Network, 2014-18 (£ million and %)
                                                                                • The Consumer – What You Need to Know

                                                                                  • Impact of COVID-19
                                                                                    • Courier and Express Delivery Usage
                                                                                      • Online Shopping Drivers
                                                                                        • Return Service Usage
                                                                                          • Delivery Pass Uptake
                                                                                          • Courier and Express Delivery Usage

                                                                                            • Over-45s lead delivery usage but under-45s more likely to send a parcel
                                                                                              • Figure 23: Courier and express delivery usage in the past six months, February 2020
                                                                                              • Figure 24: Changes in courier and express delivery usage over the past year, by age group, February 2020 (% of respondents)
                                                                                            • Geographical circumstances may limit over-45s’ use of faster delivery
                                                                                                • Figure 25: Delivery speed of most recent parcel, February 2020 (% of respondents)
                                                                                              • Delivery pass model offers retailer a collaborative way to improve the delivery experience
                                                                                                  • Figure 26: Most important considerations in choosing delivery method, February 2020 (% of respondents)
                                                                                              • Online Shopping Drivers

                                                                                                • What convenience means differs across generations
                                                                                                    • Figure 27: Most important factors behind ordering online, February 2020 (% of respondents)
                                                                                                • Return Service Usage

                                                                                                  • Under-45s’ preference for returns will underlie future service expectations for retailers
                                                                                                    • Figure 28: Return service usage, February 2020 (% of respondents)
                                                                                                    • Figure 29: Method of return, February 2020 (% of respondents)
                                                                                                • Delivery Pass Uptake

                                                                                                  • Amazon dominates pass subscriptions and has paved the way for model’s future
                                                                                                    • Figure 30: Delivery pass uptake by product category, February 2020 (% of respondents)
                                                                                                    • Figure 31: Delivery pass uptake by product, February 2020 (% of respondents)
                                                                                                • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                    • Abbreviations
                                                                                                      • Methodology
                                                                                                      • Further Sources and Contacts

                                                                                                        • Trade associations
                                                                                                          • Trade magazines
                                                                                                            • Trade events

                                                                                                            About the report

                                                                                                            This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                            • The Consumer

                                                                                                              What They Want. Why They Want It.

                                                                                                            • The Competitors

                                                                                                              Who’s Winning. How To Stay Ahead.

                                                                                                            • The Market

                                                                                                              Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                            • The Innovations

                                                                                                              New Ideas. New Products. New Potential.

                                                                                                            • The Opportunities

                                                                                                              Where The White Space Is. How To Make It Yours.

                                                                                                            • The Trends

                                                                                                              What’s Shaping Demand – Today And Tomorrow.

                                                                                                            Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                            Description