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

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).

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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

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

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

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

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

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

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.