Canada Courier, Express, And Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Canada Courier, Express, And Parcel (CEP) Market Analysis

The Canada courier, express, and parcel market was valued at USD 15.37 billion in 2025 and estimated to grow from USD 16.22 billion in 2026 to reach USD 20.70 billion by 2031, at a CAGR of 5.01% during the forecast period (2026-2031). The Canada courier, express, and parcel market is expanding because e-commerce continues to escalate parcel volumes, international trade diversification is redirecting flows into premium express channels, and federal sustainability incentives are reshaping fleet strategies. Rising demand for same-day fulfillment in the Greater Toronto Area and Metro Vancouver, intensified cross-border activity along the 150-mile U.S. border corridor, and strategic infrastructure investments under the National Trade Corridors Fund collectively sustain growth momentum. Meanwhile, technology-enabled competitors such as Amazon Logistics are redefining service benchmarks, triggering accelerated network upgrades among traditional integrators. Fleet electrification commitments from incumbents like FedEx and UPS mitigate fuel-price exposure and align service offerings with corporate procurement policies that now mandate emissions transparency.

Canada Courier, Express, And Parcel (CEP) Market Trends and Insights

E-commerce Boom and Omnichannel Retail

Retailers accelerate omnichannel strategies to satisfy shoppers who now expect unified click-and-collect, curbside pickup, and one-day drop-off options. Walmart’s CAD 6.5 billion (USD 4.90 billion) supply-chain modernization over 2025-2029 exemplifies how brick-and-mortar chains outsource specialized middle- and last-mile work to third-party carriers. Peak-season surges during Cyber Week compel carriers to pre-position inventory and activate overflow hubs, emphasizing the importance of flexible capacity agreements. White-glove installation, reverse logistics, and value-added returns handling have become differentiators that protect margins in a commoditized ground market. As retailers rationalize physical footprints, demand concentrates in metro fulfillment nodes, reinforcing density advantages for carriers with granular route optimization.

Demand for Same-/Next-Day Delivery

Amazon’s introduction of 7-hour same-day windows across Southern Ontario and Metro Vancouver reset consumer baselines in 2024. Incumbents such as Purolator responded by expanding sortation capacity and accelerating scheduled line-haul departures to achieve sub-24-hour cycle times. Network densification through micro-fulfillment centers reduces stem miles and supports steady driver utilization, yet cost-to-serve remains high in ex-urban zones. Carriers leverage dynamic pricing to recoup premium capacity deployed during evening waves, though rural communities still face service-level gaps. Route-planning algorithms that ingest real-time traffic and weather data are critical to avoiding service-credit penalties under increasingly stringent shipper SLAs.

High Labor and Fuel Costs

Amazon’s USD 100 million wage boost in 2024 signaled sector-wide escalation, raising the baseline for driver compensation across Ontario and British Columbia. Tight labor pools elevate turnover, inflating recruitment and training spend for unionized and non-union fleets alike. Diesel volatility, averaging CAD 1.92 (USD 1.44) per liter in 2025 per federal data, pushes operating ratios above 88% for asset-heavy carriers. Although ZEVIP rebates accelerate electrification, capital outlays strain balance sheets for family-owned regional couriers. Technology adoption—ranging from automated shift-planning to AI-based fuel-route optimization—yields incremental savings but cannot fully offset macro cost pressures in the near term.

Other drivers and restraints analyzed in the detailed report include:

1. Cross-Border E-Commerce Expansion
2. Out-of-Home (Locker) Networks Growth
3. Price Competition Pressures

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

E-commerce produced 35.90% of 2025 parcel demand and rises at a 5.46% CAGR through 2031, cementing its role as the engine of the Canada Courier, Express, and Parcel market. Home healthcare expansion and aging demographics propel medical logistics, a niche strengthened by UPS’s USD 1.6 billion take-over of Andlauer Healthcare Group that gives it GDP-compliant cold-chain reach.

Manufacturing and wholesale hold steady but feel pressure from digitized inventory models that cut parcel frequency. Financial and legal sectors keep requiring tamper-evident document service, although volume growth is modest. The net effect is a portfolio where consumer-facing verticals dictate investment cycles, and carriers that align with online checkout, returns automation, and subscription e-commerce capture outsize wallet share.

International parcels are growing at a 5.18% CAGR for 2026-2031 even though domestic traffic still delivers 64.05% of 2025 revenue, showing how the Canada Courier, Express, and Parcel market is pivoting toward cross-border e-commerce. Dense urban coverage from more than sixty-five Amazon logistics sites keeps domestic fulfillment fast and predictable, while 90% of Canadians living within 150 miles of the United States border fuels same-day cross-border demand. The CARM customs platform further trims clearance times, pushing carriers to scale premium air corridors that connect Western Canada to Asia and Eastern Canada to Europe. Yet brokers must still wrestle with duty calculations and currency swings that can erode profit on thin-margin consumer goods.

Canada Courier, Express, and Parcel market providers deepen United States gateway integrations, adding bonded lanes that bypass congested ground crossings during peak season. GLS’s plan to fold Canadian routes into its European network exemplifies how integrators monetize rising transatlantic flows. At the same time, domestic flows ride sustained e-commerce momentum, especially in Toronto and Vancouver, where click-to-door expectations average under twenty-four hours. The two streams together create a balanced revenue mix that cushions carriers from domestic economic swings while demanding constant technology upgrades to maintain end-to-end visibility.

The Canada Courier, Express, and Parcel (CEP) Market Report is Segmented by Destination (Domestic and International), Speed of Delivery (Express and Non-Express), Model (Business-To-Business (B2B), and More), Shipment Weight (Heavy Weight, Light Weight, and Medium Weight), Mode of Transport (Air, Road, and Others), and End User Industry (E-Commerce, and More). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. A-Way Express
2. Asendia
3. Canada Post Corporation (including Purolator)
4. DHL Group
5. DTDC Express Limited
6. FedEx
7. Globex Courrier Express International Inc.
8. Intelcom Courrier Canada Inc.
9. International Distributions Services (including GLS)
10. J.B. Hunt Transport, Inc.
11. TFI International Inc.
12. United Parcel Service (UPS)

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support