Download the 2019 IPC Global Postal Industry Report Key Findings report here.
Posts are delivering more B2C parcels than ever before
Volumes of parcels (weighing 2-30kg) delivered by posts grew 9.1% on average in 2018, while their aggregate volumes have almost doubled since 2008. However, volume growth still lags behind that of the e-commerce market, which quadrupled in size over the same period, offering posts opportunities for further development.
Driven by growth for lightweight e-commerce packets, as well as rate increases, posts saw aggregate mail revenue grow €1.8bn in 2018, despite accelerating volume decline. Mail volumes were down 5.9% on average in 2018, following a 5.0% average drop in 2017.
Posts continue to diversify…
As mail volumes continue to fall, posts are seeing increasing value in diversification: close to two thirds have seen mail revenue shares fall since 2013. Non-mail services accounted for 67.5% of industry revenue in 2018, with some posts generating as little as 10% of revenue from mail. Alongside parcels, financial services were a key driver for industry growth in 2018.
In pursuit of new revenue opportunities, posts have acquired controlling stakes in almost 300 companies since 2008, with more than half of new subsidiaries operating in the parcels and logistics sectors. Moreover, just under a third of acquisitions were made in nearby or neighbouring markets, as posts continued to seek international growth, particularly in sectors that support e-commerce.
… and increase competitiveness in e-commerce markets
With e-commerce growth continuing apace, global integrators, regional delivery firms, e-retailers and start-ups are looking to gain a firmer foothold in the B2C delivery market. As competition for e-commerce delivery heats up, price and cost pressures persist for posts. Many have launched targeted efficiency initiatives to streamline and modernise their delivery and retail networks, but profitability continues to be squeezed. While average revenue growth remained stable in H1 2019, at 2.6%, posts’ EBIT margins dropped to 2.2% on average, down from 3.2% in H1 2018.
Want to know more? The full version of the IPC Global Postal Industry Report 2019 includes over 140 pages of industry and operator analyses. The report is available to IPC members for free, and is also available for purchase by non-members. A full table of contents, as well as further details on how to purchase the report, are available here.