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DUBLIN, March 03, 2022–(BUSINESS WIRE)–The “United Kingdom Courier, Express, and Parcel (CEP) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The United Kingdom Courier, Express and Parcel (CEP) market is anticipated to register a CAGR of 3.5% during the forecast period.
Even though, the ongoing COVID-19 pandemic is benefiting the online retail from the large-scale substitution of purchases from various physical stores the weakening economy is likely to force people to reduce non-essential purchases. The recent lockdown relaxations have even further surged the CEP market in UK.
The United Kingdom courier, express, and parcel (CEP) market is growing with the increasing number of same-day delivery transactions. The United Kingdom along with Italy has been the faster-growing market in the European region owing to the powerful digital trends which are driving the market. The key market players are continuously reinventing the post and parcel industry with technology-driven innovations.
The growing internet penetration is changing the retail to shift toward the digital world. The post and parcel companies are focusing on strategies to re-engineer their core businesses to meet the new face of rapidly expanding B2C parcel delivery especially the same-day delivery. The same-day strategy led by Amazon changed the pace of the delivery market and is becoming more widely offered.
Technological innovations and use of robotics for automated sorting in hubs and depots is helping the market to fulfill the promises in a faster manner. The Royal mail plc, which is one of the leading market players of the CEP market in the United Kingdom has led the market with over 1.3 billion parcels and 13 billion letter deliveries.
Key Market Trends
B2B Market Segment is driving CEP Market
The UK is a B2B nation and has a huge influence on the global B2B market. According to the research, nearly 40% of UK companies derive all/ majority of their income from B2B activity and a further 42% are blended business, with some of their income from B2B.
B2B focuses on four key sectors – business administration and support, information and communication technology, professional, scientific and technical and (surprisingly to me) construction. The production sector (which includes manufacturing) accounts for a relatively small number of B2B businesses, but the firms operating here tend to be extremely large and global outfits.
Industrial customers have been under strain in terms of operational efficiency, profitability, and performance. They too have expected faster time-to-market, lower defect rates and customised products. Indeed, in some manufacturing industries, the pace of changing customer expectations has been even faster than that of the private end-consumer.
B2B eCommerce is set to witness a strong growth in the UK as businesses look to move investment online, away from stores and branches as was the case earlier. Companies are focusing on the digitalization of their sales platforms in order to achieve greater customer penetration and long-term efficiencies. The UK B2B eCommerce market is estimated to grow from USD 249 billion in 2021 to USD 391 billion in 2025 at a CAGR of 11.9%, with a cumulative value of just over USD 1.5 trillion over the period.
The growth in international trade is another factor driving the market with a high percentage of businesses now trading internationally. The B2B Segment after Covid 19 lockdown Relaxation has surged and is driving the CEP Market in UK.
Increasing e-commerce Penetration is Anticipated to Drive the Market
With a turnover of USD 105 billion in 2020, the United Kingdom is the third largest market for e-commerce, after only Japan and the United States. While E-commerce is the most recent mainstream retail trend to hit the United Kingdom in the last decade. Despite the fact that e-commerce platforms have been around for a long time, they have only recently gained widespread notice. When compared to the rest of the world, the growth of online shopping in the UK has been astounding.
E-commerce revenue in the United Kingdom is expected to grow to USD 150 billion in 2022. Also, when it comes to the number of online retail users, according to Industry Sources, the number of e-commerce users in the United Kingdom is expected to grow to 58.4 million in 2025.
The United Kingdom is one of the early adopters of internet commerce (e-commerce) in the world with a high penetration rate and by 2025 penetration rate is expected to reach 84.2%. With substantial internet shopping in recent years, the CEP market has been registering many new companies entering the market.
The United Kingdom occupies a one-third share of the European e-commerce market and the highest share of online retailing in the world. The country’s B2C e-commerce turnover has been increasing rapidly than its European rivals Germany and France. The United Kingdom is also one of the global leaders in terms of consumer spend on the internet and the consumers spend more than USD 2730 per head online every year.
Competitive Landscape
United Kingdom Courier, Express, and Parcel (CEP) market is relatively consolidated with the top 4 companies occupying a major share of the market. With the growing demand for CEP services in the country, the companies are becoming more competitive to capture the huge opportunity by investing in new technologies like Blockchain, WMS and Drones.
The international players are making strategic investments to establish a regional logistics network, such as the opening of new distribution centers, smart warehouses, etc. The local companies are facing high competition with multinational companies that have a comparatively well-developed infrastructure.
There has been Mergers and acquisitions taking place for instance in 2021 DPD UK acquires same delivery specialist CitySprint, the acquisition will help DPD to enhance its same day delivery operation.
Again, In 2021 Culina Group has announced an agreement to take over GreenWhiteStar Acquisitions. GreenWhiteStar Acquisitions comprises of Eddie Stobart, Eddie Stobart Europe, iForce, The Pallet Network, and The Logistics People.
Companies Mentioned
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Royal Mail PLC
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DPDgroup
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Hermes Parcelnet Ltd
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DHL
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UPS
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FedEx
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Yodel
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Amazon Logistics
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DX Group
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Parcelforce
For more information about this report visit https://www.researchandmarkets.com/r/ph6e1i
View source version on businesswire.com: https://www.businesswire.com/news/home/20220303005496/en/
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