Australia Courier, Express, and Parcel (Cep) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Australia Courier, Express, and Parcel (Cep) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Australian CEP market is expected to register a CAGR of 5.46% over the forecast period, 2022 – 2027. Australia’s parcel market grew to more than 1 billion parcels a year in 2021. The parcel delivery market is seeing exponential growth backed by the ease of shipping, delivery, and tracking parcels domestically and internationally. Australians receive an average of 40 parcels each year, driven by fast growth in e-commerce sales in 2020-21.

COVID-19 has impacted all the sectors in Australia, but it drove the CEP market in the e-commerce sector. As the lockdown was relaxed in 2021, the CEP market surged in all sectors. Australia generated the third-highest revenue per parcel after France and the US in 2020.

The e-commerce revolution in Australia has contributed significantly to the strength of the parcel shipping market. The seamless experience provided by many online marketplaces has driven consumers’ expectations for convenience, price, and availability of products from around the world, made possible through global e-commerce.

The Australian market is gearing for exponential growth, as more e-commerce companies are looking to the shipping industry with a value proposition. As the competition heats up, simplified and reliable service, accelerated delivery times, and transparent and accurate tracking will be the key to success.

The courier pick-up and delivery services market in Australia is efficient and very well developed. Major players include Toll, FedEx, Star Track Express (owned by Australia Post), TNT Express, DHL, and UPS.

E-commerce is flourishing across the world, and Australia is no exception. With a population of 25 million, Australia is one of the top e-commerce markets. Australia was ranked the 11th largest E-Commerce market in the world and had the world in 2020, and it experienced strong growth over the past period. The COVID-19 pandemic will further drive e-commerce sales at a compound annual growth rate of 13.76% between 2022 and 2025.

As social distancing, border closures, and lockdowns became commonplace, Australians turned online for the things they needed. The convenience brought by e-commerce through home deliveries and PUDO networks is expected to gain popularity, reach wider audiences, and increase sales for retailers in the years to come.

The growth in e-commerce deliveries paved the way for the same-day delivery, i.e., express delivery, and this enhanced the CEP Market in Australia. Due to this, Australia Post saw an increase in parcel revenue share from 36% to 39% and a parcel volume share increase from 37% to 40% in 2020.

The Australian CEP market bears a huge potential. It serves several businesses that operate extensively. Few such industries include electronic appliances, life sciences, food and beverage, and others (such as automotive, mining, etc.).

The Australian manufacturing sector surged when compared to 2020. While the easing of COVID-19 disruptions continued to support manufacturing sector expansion, both new orders and output growth surged from recent peaks in November 2021. According to industry sources, supply constraints were reported to have hampered production. Foreign demand expanded at a faster rate, aided by the easing of COVID-19 restrictions abroad.

Each of the six manufacturing sectors reported positive trends in their trading conditions. The machinery and equipment sector and the textiles, clothing, footwear, paper, and printing products sector were most buoyant. The machinery and equipment sector benefited from higher demand from across the industrial, mining, and agricultural sectors, while the metal products and building equipment sectors supplied healthy levels of residential construction and infrastructure activity.

The food and beverages (tobacco) sector produced USD 27.4 billion in real value-added output in 2021 (25% of manufacturing real value-added output). New orders, inventory levels, employment, and deliveries were all strong as export demand rose.

Due to manufacturing activities, there is a need for far faster delivery of products, and hence, this is driving CEP market in Australia.

Australia’s courier, express, and parcel (CEP) market is highly competitive, with the presence of major international players, like FedEx, DHL, and UPS, and regional players, like Courier Please and Australian postal Corporation. The Australian CEP market presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, Australia’s CEP market has an observable level of consolidation. Most of the players are developing a competitive edge through the infusion of technology in their systems, like the use of drones and WMS systems.

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