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

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

The Thailand courier, express, and parcel (CEP) market is expected to record a CAGR of more than 7% during the forecast period. CEP operators will have a lot of potential in Thailand's CEP market in the future. In comparison to other industries in the country, delivery operations were relatively unaffected by the COVID-19 pandemic. Despite the pandemic and unexpected government restrictions in 2020, the CEP market's commercial environment remained bright, with e-commerce and pharmaceutical sales expanding significantly compared to pre-COVID trends.

• Order fulfillment must be quick, effective, and trustworthy to maintain customer satisfaction with express delivery, but it is also one of the most difficult challenges any firm faces.
• Due to a lack of tourists and exports during the COVID-19 pandemic, Thailand's GDP contracted at its fastest rate in more than two decades in 2020. In comparison to the previous year, GDP fell by 6.1%.
• Southeast Asia's second-largest economy declined for the third year in a row. Exports, which fell 5.8% due to sluggish global demand, contributed to a significant portion of the economic loss. Thailand exported USD 272.01 billion in goods to countries worldwide in 2021, down from USD 292.2 billion the previous year. Thailand imported USD 295.85 billion in goods from all over the world last year.
• Thailand is located at the heart of Southeast Asia, and supported by its superior roadways network, the express delivery services market in the country is growing. The parcel delivery market in the country has been witnessing strong growth in the past few years in line with Thailand's e-commerce market, which is also growing by more than 10%.
• The growth in the market is being driven by consumer behavior changing toward a growing preference for online shopping on online marketplaces such as Lazada, Shopee, JD Central, Priceza, and social commerce through social media platforms such as Facebook, Line, and Instagram.
• The support of the Thai government for developing SMEs is also propelling the growth of the market. Going forward, average transportation costs are expected to decrease. The companies are focusing on reducing operating costs and service costs, which helps them secure more volume and gain market share. The increasing number of foreign players in the Thai courier services market has increased competition, making it difficult for newer players to establish a market presence.

According to government statistics, Thailand's e-commerce industry grew by more than 15% in 2021. The need for last-mile and express delivery is increasing as the country's e-commerce business grows.

Due to the emergence of e-commerce, the traditionally business-oriented parcel delivery market is expanding to include consumer deliveries. The e-commerce logistics services market in Thailand is being driven by the expansion of small and medium-sized firms selling online and well-connected technical infrastructure.

All the leading companies in Thailand's e-commerce market are international platforms, and cross-border e-commerce with neighboring nations is on the rise. The COVID-19 pandemic resulted in an 81% increase in the e-commerce market, which now stands at THB 294 billion (USD 8.50 billion), up from the THB 220,000 billion (USD 6,659.59 billion) predicted earlier.

The Thai e-commerce market is growing faster than projected as a result of the COVID-19 pandemic. The Thai e-commerce business has a lot of room to grow in the future.

More than 60% of products in Thailand's e-marketplaces are imported from the Greater Mekong Sub-region, according to the agreement on facilitating cross-border transportation between member nations of the Greater Mekong Sub-region (GMS-CBTA).

Similarly, when Thai e-commerce enterprises' sales to foreign nations increase, there are various cross-border logistics restrictions that assist them in avoiding paying taxes.

The country's growing foreign trade is driving more demand for international express services. Government and private sector measures to encourage cross-border e-commerce and assist Thai SMEs in reaching global markets are fuelling the international CEP market, which is predicted to grow at a rate of more than 9% over the forecast period.

Supporting cross-border business and exporting goods to foreign markets are among the government's Thailand 4.0 initiatives, as is boosting trade with CLMV (Cambodia, Laos, Myanmar, and Vietnam) countries.

Thailand has a population that is mostly upper-middle-income, and the country is ASEAN's second-largest economy after Indonesia. Thailand is the 14th most important export destination for United States.

Thai exports to United States totaled USD 41.23 billion in 2021, while US exports to Thailand totaled USD 12.7 billion. In addition to United States, Thailand's main trading partners are China, Japan, Vietnam, Australia, and Singapore. Thailand's trade relies significantly on road transportation, which is dominated by third-party logistics companies.

The courier, express, and parcel (CEP) market in Thailand is consolidated in nature, dominated by a few players, and highly price competitive. The two key players in the market are Kerry Express and Thailand Post, and their combined market share accounts for more than 50%. Some other significant players include Nim Express, SCG Express, DHL, and Lazada Express.

Besides the aforementioned companies, some large international companies have entered the Thai CEP marketspace and made the competition more intense. Some of them include BEST Logistics and Flash Express from China, J & T Express from Indonesia, and CJ Logistics from Korea.

Additionally, some on-demand delivery companies, such as Lalamove and Grab Express, also add to the competition. However, these players have fewer effects due to their relatively high pricing.

• The market estimate (ME) sheet in Excel format
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