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United Kingdom Courier, Express, and Parcel (CEP) Market Size

The United Kingdom Courier, Express, and Parcel (CEP) market is experiencing growth driven primarily by the e-commerce sector, which significantly contributes to the expansion of both domestic and international segments. The market's expansion is influenced by the increasing demand for online purchases, particularly in fashion, consumer electronics, and entertainment. Major players in the market, including Royal Mail and Amazon Logistics, are implementing sustainable practices to reduce their carbon footprint, aligning with their goals for net-zero carbon emissions in the future.

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Market Size of united kingdom courier, express, and parcel (cep) Industry

United Kingdom Courier, Express, and Parcel (CEP) Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 17.13 Billion
svg icon Market Size (2030) USD 20.87 Billion
svg icon Largest Share by Destination Domestic
svg icon CAGR (2024 - 2030) 3.35 %
svg icon Fastest Growing by Destination International
svg icon Market Concentration High

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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United Kingdom Courier, Express, and Parcel (CEP) Market Analysis

The United Kingdom Courier, Express, and Parcel (CEP) Market size is estimated at 17.13 billion USD in 2024, and is expected to reach 20.87 billion USD by 2030, growing at a CAGR of 3.35% during the forecast period (2024-2030).

17.13 Billion

Market Size in 2024 (USD)

20.87 Billion

Market Size in 2030 (USD)

2.75 %

CAGR (2017-2023)

3.35 %

CAGR (2024-2030)

Fastest Growing Market by Speed of Delivery

3.81 %

Projected CAGR, Express, 2024-2030

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Major online retailers are collaborating with various parcel delivery companies and expanding services for express delivery due to the rising demand.

Fastest Growing Market by Model

4.35 %

Projected CAGR, Business-to-Consumer (B2C), 2024-2030

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The segment's growth is fueled by the adoption of technology and the emergence of delivery models, including same-day and drone deliveries.

Largest Market by Shipment Weight

60.92 %

value share, Light Weight Shipments, 2023

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The delivery of goods like cosmetics, medicines, and groceries is majorly driving the segment's growth.

Largest Market by End User Industry

33.79 %

value share, Manufacturing, 2023

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The manufacturing sector’s growth is driving the demand for courier, express, and parcel services in the United Kingdom.

First leading Market player

36.55 %

market share, International Distributions Services (including Royal Mail), 2022

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International Distribution Services operates in the United Kingdom with its subsidiary Royal Mail, which has more than 500 years of presence. Royal Mail handled 1,517 million parcels in 2022.

Growing carbon footprint reduction initiatives owing to increasing e-commerce CEP orders are expected to positively impact CEP industry

  • The e-commerce industry is a leading driver of growth in the domestic and international CEP segments, and the industry's value is expected to register a CAGR of 3.50% from 2023 to 2029. The most common goods purchased online by UK consumers in 2022 were fashion goods , with clothing accounting for a 63% share and shoes for a 47% share. These were followed by consumer electronics, with a 35% share, and books, movies, and games, with a 33% share in 2022. All these item deliveries collectively drove CEP demand in the United Kingdom.
  • The top parcel delivery companies in the United Kingdom consist of Royal Mail, Amazon Logistics, Hermes Parcelnet, United Postal Service (UPS), DHL, and DPD Group UK. Other companies in the market include APC Overnight, City Link, Parcelforce, Schenker, TNT, Tuffnells, Whistl, and Yodel. The top five carriers in the country alone accounted for 75% of UK parcel shipments by volume. In 2021, Royal Mail held the highest share of the UK courier market. Meanwhile, with a market share of 15%, Amazon Logistics is emerging as a significant player in the UK parcel market.
  • CEP companies with some of the biggest market shares are taking significant steps to reduce the carbon footprint generated by delivering huge volumes of parcels. For instance, Royal Mail has allowed 90,000 posties to make on-feet deliveries. Two-thirds of the deliveries are made purely by foot or through a 'park and loop' method, which is mostly on foot. The company is also aiming to have 5,500 electric vans by 2023 in a further effort to reduce carbon emissions. Amazon also started on-foot and electric cargo bike delivery in London in 2022. Initiatives by both companies are a part of their commitment toward all shipments having net-zero carbon emissions by 2040.
United Kingdom Courier, Express, and Parcel (CEP) Market

United Kingdom Courier, Express, and Parcel (CEP) Industry Segmentation

Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.

  • The e-commerce industry is a leading driver of growth in the domestic and international CEP segments, and the industry's value is expected to register a CAGR of 3.50% from 2023 to 2029. The most common goods purchased online by UK consumers in 2022 were fashion goods , with clothing accounting for a 63% share and shoes for a 47% share. These were followed by consumer electronics, with a 35% share, and books, movies, and games, with a 33% share in 2022. All these item deliveries collectively drove CEP demand in the United Kingdom.
  • The top parcel delivery companies in the United Kingdom consist of Royal Mail, Amazon Logistics, Hermes Parcelnet, United Postal Service (UPS), DHL, and DPD Group UK. Other companies in the market include APC Overnight, City Link, Parcelforce, Schenker, TNT, Tuffnells, Whistl, and Yodel. The top five carriers in the country alone accounted for 75% of UK parcel shipments by volume. In 2021, Royal Mail held the highest share of the UK courier market. Meanwhile, with a market share of 15%, Amazon Logistics is emerging as a significant player in the UK parcel market.
  • CEP companies with some of the biggest market shares are taking significant steps to reduce the carbon footprint generated by delivering huge volumes of parcels. For instance, Royal Mail has allowed 90,000 posties to make on-feet deliveries. Two-thirds of the deliveries are made purely by foot or through a 'park and loop' method, which is mostly on foot. The company is also aiming to have 5,500 electric vans by 2023 in a further effort to reduce carbon emissions. Amazon also started on-foot and electric cargo bike delivery in London in 2022. Initiatives by both companies are a part of their commitment toward all shipments having net-zero carbon emissions by 2040.
Destination
Domestic
International
Speed Of Delivery
Express
Non-Express
Model
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Shipment Weight
Heavy Weight Shipments
Light Weight Shipments
Medium Weight Shipments
Mode Of Transport
Air
Road
Others
End User Industry
E-Commerce
Financial Services (BFSI)
Healthcare
Manufacturing
Primary Industry
Wholesale and Retail Trade (Offline)
Others
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United Kingdom Courier, Express, and Parcel (CEP) Market Size Summary

The United Kingdom Courier, Express, and Parcel (CEP) market is experiencing steady growth, driven primarily by the booming e-commerce sector. This growth is reflected in the increasing demand for parcel deliveries, particularly for fashion goods, consumer electronics, and media products. The market is characterized by a few dominant players, with companies like Royal Mail, Amazon Logistics, and DHL leading the charge. These companies are not only focusing on expanding their delivery networks but also on reducing their carbon footprints through innovative delivery methods such as on-foot and electric cargo bike deliveries. The market's expansion is further supported by government investments in infrastructure to enhance transportation connectivity and warehousing facilities, which are crucial for accommodating the rising volume of e-commerce shipments.

The CEP market in the UK is fairly consolidated, with a significant portion of the market share held by the top five companies. These major players are continuously adapting to market demands and technological advancements to maintain their competitive edge. The introduction of new logistics platforms and trials of innovative delivery solutions, such as parcel lockers, highlight the industry's commitment to improving efficiency and customer convenience. Despite challenges such as rising fuel prices and global supply chain disruptions, the market is poised for continued growth, with strategic initiatives aimed at enhancing operational capabilities and sustainability. The ongoing developments in the sector underscore the dynamic nature of the CEP market in the UK, as it evolves to meet the changing needs of consumers and businesses alike.

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United Kingdom Courier, Express, and Parcel (CEP) Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes Market Value in USD, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Destination

      1. 1.1.1 Domestic

      2. 1.1.2 International

    2. 1.2 Speed Of Delivery

      1. 1.2.1 Express

      2. 1.2.2 Non-Express

    3. 1.3 Model

      1. 1.3.1 Business-to-Business (B2B)

      2. 1.3.2 Business-to-Consumer (B2C)

      3. 1.3.3 Consumer-to-Consumer (C2C)

    4. 1.4 Shipment Weight

      1. 1.4.1 Heavy Weight Shipments

      2. 1.4.2 Light Weight Shipments

      3. 1.4.3 Medium Weight Shipments

    5. 1.5 Mode Of Transport

      1. 1.5.1 Air

      2. 1.5.2 Road

      3. 1.5.3 Others

    6. 1.6 End User Industry

      1. 1.6.1 E-Commerce

      2. 1.6.2 Financial Services (BFSI)

      3. 1.6.3 Healthcare

      4. 1.6.4 Manufacturing

      5. 1.6.5 Primary Industry

      6. 1.6.6 Wholesale and Retail Trade (Offline)

      7. 1.6.7 Others

United Kingdom Courier, Express, and Parcel (CEP) Market Size FAQs

The United Kingdom Courier, Express, and Parcel (CEP) Market size is expected to reach USD 17.13 billion in 2024 and grow at a CAGR of 3.35% to reach USD 20.87 billion by 2030.

In 2024, the United Kingdom Courier, Express, and Parcel (CEP) Market size is expected to reach USD 17.13 billion.

United Kingdom Courier, Express, and Parcel Market Report Snapshots

United Kingdom Courier, Express, and Parcel (CEP) Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030