DUBLIN--(BUSINESS WIRE)--The "United Kingdom Domestic Courier, Express, and Parcel (CEP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The United Kingdom domestic courier, express, and parcel (CEP) market is expected to grow with a CAGR of 7% during the forecast period.
The unprecedented outbreak of coronavirus has caused a surge in demand for domestic couriers for residential deliveries, owing to the surge in e-commerce and deliveries of food and groceries which faced a sudden increase in demand.
The coronavirus crisis drove a meteoric rise in online shopping as a result of lockdown and social-distancing measures that were enacted in response to it.
Over 2020-21, forced store closures and social distancing measures encouraged consumers to increasingly turn towards ordering products online and having them delivered through couriers rather than shopping in person. This shift online is expected to be a more permanent change in consumer behavior.
E-retail has disrupted traditional supply chains. New models are emerging such as Click and Collect use of same-day delivery for consumers, and Amazon's delivery network. E-substitution of media (books, music, and films) is reducing the number of small parcels, whilst numbers of the larger parcels from clothing and footwear retailers are growing rapidly.
United Kingdom domestic courier, express and parcel industry revenue is anticipated to increase over the forecast period as the coronavirus pandemic boosts demand, particularly for medical couriers and retailers. Both these types of couriers are anticipated to be a key growth segment over the forecaste period.
Key Market Trends
Increasing E-commerce Penetration is Anticipated to Drive the Market
The United Kingdom is a world leader in e-commerce and British online shoppers are well-versed in online shopping procedures. Currently, the country's e-commerce industry is ranked third in the global online retail market, trailing only China and the United States. In 2021, its total e-commerce sales value reached an estimated GBP 693 billion, which is greater than the combined value of the e-commerce markets of Germany and France.
Mobile apps account for a significant portion of e-commerce sales in the United Kingdom. Mobile devices are being used to make six out of every ten online purchases. Furthermore, mobile apps appear to be gaining popularity among online shoppers, as they account for 45% of transactions in 2021.
The percentage of sales from online shopping is taking bigger chunks at the UK's total retail sales. Data from the beginning of the year, particularly in January 2021, showed that internet shopping accounted for 36.3% of total retail sales in the country.
During the pandemic, British consumers turned to ecommerce to meet their needs. T his is reflected in the most recent the UK online grocery sales figures for 2021. By the end of January 2021, the UK had seen a staggering 121% increase in online grocery sales. That equates to GBP 1.4 billion in sales in just one month, with new online shoppers accounting for GBP 770 million of that total.
It is estimated that the UK ecommerce industry will grow at a compound annual growth rate of 5.16%. The industry is expected to be worth GBP 113 billion and the user penetration rate to be around 90% by 2025.
Increase in Volume of Parcel Shipments
COVID-19 began to impact the United Kingdom's domestic parcels volumes in the early months of 2020. However, the more significant implications for the postal sector and consumers became apparent in Q1 of 2020-21.
The temporary closures of retail outlets led to a sharp rise in online shopping, driving increased demand for parcel delivery services. This has been sustained into the second half of 2020, and some parcel operators are expanding their delivery networks and creating new jobs in response.
The pandemic has also highlighted the importance of the postal sector in providing key services to consumers, such as government, NHS, and bank communications, and the delivery and collection of COVID-19 testing kits.
Since 2015, the volume of parcel shipments (including B2B, B2C, C2B, and consumer consigned shipments) saw annual growth of more than 1.5 billion in the United Kingdom. In 2020-21, the annual volume of parcel shipments amounted to 4.17 billion, this was an increase of over 1.3 billion parcels relative to the previous year.
Competitive Landscape
The United Kingdom Courier, Express, and Parcel (CEP) market is relatively consolidated with some companies occupying a major share of the market. With the growing demand for CEP services in the country, the companies are becoming more competitive to capture the huge opportunity.
Local companies are facing high competition with multinational companies that have a comparatively well-developed infrastructure.
Companies Mentioned
- Royal Mail PLC
- UPS Limited
- Whistl Group Holdings Limited
- DHL Parcel UK Limited
- The Delivery Group Limited
- Dx Network Services Limited
- FedEx
- Aramex (UK) Limited
- Skynet (London) Limited
- Yodel
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