China CEP - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

China CEP - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

The China CEP Market size is estimated at USD 144.33 billion in 2024, and is expected to reach USD 270.48 billion by 2029, growing at a CAGR of 13.39% during the forecast period (2024-2029).

The Chinese express parcel market may continue to grow at high double-digit rates, with international business playing a bigger role in the future.

In 2020, influenced by the flare-up of COVID-19 in China, many express organizations could not regularly work from January to February 2020. Toward the beginning of March, express organizations' transportation limit fundamentally returned to typical levels. Significant organizations in the business were increasingly ready to oppose the negative effect of COVID-19. For instance, SF Express finished 1.7 billion express tickets in the primary quarter of 2020. The sales income of the organization expanded to USD 4.8 billion.

Meanwhile, the country continuously focuses on developing CEP services by initiating the 14th five-year plan in 2022. Under this plan, China planned to develop international logistics networks, including improving the organization of China-Europe freight train services, enhancing overseas warehousing, and encouraging major logistics providers to improve their global service networks.

However, courier express delivery is witnessing significant growth in the country. In 2021, according to the State Post Bureau of China, the express delivery sector's total sales volume amounted to more than CNY 1,033 billion (USD 152 billion), at a growth rate of 17% compared to the previous year, with international express business contributing nearly 11% to the total express delivery sales. In addition, Shanghai is one of the major cities in China, with the largest express delivery sales of CNY 170 billion (USD 25 billion), followed by Guangzhou, Shenzhen, Hangzhou, etc.

China CEP Market Trends

Rise in E-Commerce Sector to Boost the CEP Market in China

In 2022, e-commerce platforms witnessed significant growth in China. In addition, e-commerce platforms and couriers multiplied their supply and express channels to deliver food and other essentials to Shanghai residents during the lockdown. Shanghai authorities promised to ensure daily supplies for all 25 million residents and solve delivery problems in the city to mitigate the pandemic's impact. In addition, e-commerce platforms such as JD.com and Ele. I also assured a full supply of food to Shanghai residents.

As per JD.com, daily necessities transported to Shanghai included more than 80,000 packs of maternity and infant products such as infant formula powders and diapers, nearly 100,000 medicines and virus prevention supplies, 10 tons of mutton, etc. Along with JD.com, nearly 4,000 stores are providing online food delivery platforms in the country. These types of online platforms are driving the courier express market in the country.

Meanwhile, in October 2022, China's e-commerce drove express logistics by more than 4.9% annually. This surge was due to increased online sales during China's biggest annual online shopping festival. In addition, in 2022, as per the State Bureau of China, total shipments during the 2021 Double 11 shopping festival reached 696 million at a growth rate of 18%. The fastest recovery of China's air freight also supported this sales growth. In Q3 2022, Chinese B2C e-commerce platforms witnessed significant growth, and Tmall is one of the major platforms that made more than 63% of online retail transactions on B2C platforms, followed by JD.com, Vipshop, etc.

Increasing Investments Driving the Market

In 2022, according to the general office of the state council, China released its first five-year plan to modernize its logistics sector by the end of 2025. The plan includes promoting the digital transformation of the logistics sector, increasing the quality and efficiency of services, and enhancing businesses' competitiveness. Under this plan, China plans to promote green packaging materials, prioritize the development of cold chain logistics, and reduce energy use and emissions in the logistics sector.

This plan also includes key measures, such as improving modern logistics by fuelling the digital and smart upgrading of the transportation, delivery, storage, and packaging sectors and strengthening weak links in rural areas and cold chain logistics. However, China operates the world's largest logistics sector and leads in terms of cargo transport volume and the number of shipments. In 2021, according to the National Development and Reform Commission (NDRC), the logistics sector's total sales reached more than USD 1.7 trillion. The country is continuously investing in the sector to meet the growing demand for cargo shipments.

Meanwhile, the Chinese government is focusing on developing infrastructure by investing in developing the Belt and Road Initiative, which supports the country in becoming a major player in the transportation and logistics industry. In 2021, the total amount of investment and financing for the country's logistics sector was more than CNY 180 billion (USD 26 billion), nearly an increase of three times from the previous year.

China CEP Industry Overview

The report covers the major players operating in the Chinese CEP market. The market is highly competitive with a few players occupying the major share in the international CEP market. The market is expected to grow during the forecast. The major players in the Chinese CEP market are DHL, SF Express, YTO Express, and STO Express.

Additional Benefits:

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