Posted: February 19, 2020 | Newsletter
The courier, express, and parcel market analysis considers sales from B2B, B2C, and C2C customer types have been researched. A study finds the sales of courier, express, and parcel in APAC, Europe, North America, South America, and MEA.
In 2018, the B2C segment had a significant market share, and this trend is expected to continue over the forecast period. Factors such as rising e-commerce sales will play a vital role in the B2C segment to maintain its market position.
However, lack of supply chain visibility affecting vendor-customer relationships, threat from sharing-based business models, and growth of on-demand delivery services from e-commerce industry may hamper the growth of the courier, express, and parcel industry over the forecast period.
Seeing growth in contract manufacturing of Fast Moving Consumer Goods (FMCG) in emerging markets.
Consumer durables can be categorized based on FMCGs and slow-moving goods. Brazil, Russia, India, China and South Africa (BRICS) nations contribute the largest share to the consumer goods market, whereas Asian countries such as Thailand, Korea, China, and Taiwan hold prime positions in the manufacturing sector. This is due to the growing penetration of electronic devices, changing lifestyles, and the availability of multiple online payment methods.
This will boost the demand for online products and need for shipments adding benefit to the CEP industry through the delivery of these goods. Thus, the growth of contract manufacturing of FMCGs in emerging markets will lead to the expansion of the global courier, express, and parcel market at a CAGR of over 5% during the forecast period.
Growing cross-border trade in developing economies.
Domestic and inter-border online e-commerce sales are increasing. Cross-border e-commerce involves the online purchase of goods in a country and shipping them overseas. The domestic online sales market is continuously growing in the US and the European Union (EU). Cross-border online sales are increasing rapidly due to improved logistics facilities, easy payment options, and increased disposable incomes.
Trade liberalization among countries has also increased export and import activities. Emerging economies like China, India, and Brazil are changing their trade and investment patterns to gain new opportunities in the global market. This development is expected to have a positive impact on the overall market growth.
There are alternatives to the Duopoly known as FedEx and UPS in the US domestic market. See editorial below, “Emergence of new parcel player” on our opinion of the growing parcel market and suppliers that serve them.