UK Last Mile Delivery Market on a Growth Trajectory, Set to Reach US$35.3 Billion by 2029

The UK last mile delivery market continues to surge, exceeding revenues of US$18.3 billion in 2022, with a projected valuation of US$35.3 billion by the end of 2029, according to a comprehensive market analysis report.

Market Insights

The last mile delivery sector, known for its complexity and cost challenges within supply chains, has witnessed significant growth, driven by various factors, including the impact of COVID-19, evolving consumer preferences, changes in food delivery logistics, e-Commerce expansion, and the strategies employed by industry leaders amidst heightened competition.

Key Findings

1. Impressive Growth: The UKs last mile delivery market is expected to achieve nearly 9.8% revenue growth between 2022 and 2029.
2. B2C Dominance: Business-to-Consumer (B2C) services remain the largest segment, driving the demand for last mile delivery services across the UK.
3. Dry Goods Domination: Dry goods represent the largest cargo type segment, capturing 75.3% of revenue share in the UK last mile delivery market.
4. FMCG Leadership: The Fast-Moving Consumer Goods (FMCG) sector leads the last mile delivery industry in the UK.
5. Industry Leaders: Top players in the UK last mile delivery market include Royal Mail, DPD Group, Amazon, DHL, and FedEx.

Growth Drivers

1. e-Commerce Expansion: The UKs last mile delivery market benefits from the robust growth of e-Commerce, with the UK ranking as the 4th largest e-Commerce market globally. Key contributors include fashion, electronics, personal care, food, furniture, and DIY products.
2. Parcel Shipment Surge: The e-Commerce boom in 2021 led to over 4 million parcel shipments in the UK, driving opportunities for retailers and carriers. To meet the demand for faster deliveries, optimization of delivery systems has become a priority, boosting the last mile delivery market.
3. Home Delivery and Takeaway Trends: The trend toward home delivery and takeaways, accentuated during the pandemic, continues to fuel growth in the UKs last mile delivery market.
4. New Business Models: To address congestion and sustainability concerns, brands are exploring alternative delivery models, including electric vehicles and cargo bikes.
5. Delivery Management Platforms: The popularity of delivery management platforms such as Metapack and Paazl is on the rise, enabling e-Commerce companies to streamline last mile processes and enhance customer satisfaction.

Challenges

1. Costing Pressure: Balancing delivery costs while ensuring fair compensation for delivery staff poses a challenge. Innovations in takeaway pricing structures and delivery driver compensation are expected to shape the markets future.

Growth Opportunities Across Cities

1. London Leads: London stands out as the top last mile hotspot in the UK, driven by internal migrations. Other high-performing locations include Westminster, Kensington and Chelsea, Leicester, Ashfield and Staffordshire, Elmbridge, South Bucks, Northampton, and Coventry.

Competition Landscape

Prominent last mile delivery providers in the UK include Royal Mail, Amazon, DHL, FedEx, UPS, DPD Group, Yodel, CitySprint, and Deliveroo. These companies are adopting innovative approaches, including autonomous delivery vehicles, drone delivery, and tailored delivery windows, to remain cost-competitive, convenient, and efficient.

UK Last Mile Delivery Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2029 (By Vehicle Type Coverage, By Delivery Type Coverage, By Service Type Coverage, By Topography Coverage, By Cargo Type, By End-user Industry and By Company) https://www.fairfieldmarketresearch.com/report/uk-last-mile-delivery-market

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This press release first seen on Brilad

COMTEX_440940455/2840/2023-09-25T23:43:18