Amid ongoing structural change, the industry continues to grow: postal industry revenue reached €427.2bn in 2019, up €6.3bn on 2018 results. Parcels continued to fuel growth, accounting for most of the aggregate increase in revenue. Mail revenue was also up marginally: as structural volume declines continued, letter rate rises helped cover the costs of operating nationwide, one-price-goes-anywhere postal services. And as other areas such as logistics have grown in importance, non-mail segments now account for over two thirds of industry revenue.
Posts continue to optimise their operations. The average operating margin remained steady in 2019 as strong competition and cost pressures offset gains from widespread efficiency initiatives. The industry is also investing in tomorrow: capital expenditure as a share of total revenue remained high in as posts looked to automate mail sorting, expand e-commerce capacity and improve IT infrastructure. And acquisitions by postal operators have helped bolster their international revenues.
Now in its twelfth edition, this year’s IPC Global Postal Industry Report provides a more comprehensive view of the postal industry than ever before. We analyse 53 posts from Asia Pacific, Europe, Latin America and North America, as well as integrators FedEx and UPS. We continue our broad analytical coverage, from detailed performance comparisons across posts to tracking key market and industry trends. Moreover, our “In Focus” articles explore how posts are moving up the e-commerce value chain into online marketplaces and solving challenges in urban logistics, as well as gauging the global impact of the COVID-19 crisis and how the industry has rapidly adjusted operations in response.