Courier Activities in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: September 2023
SIC SP0.286Revenue
£15.8bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
128k
Businesses
11,383
Wages
£X.Xbn
Courier Activities in the UK industry analysis
Over the five years through 2023-24, couriers' revenue is projected to mount at a compound annual rate of 5.9% to £15.8 billion. A key trend has been the decline in traditional letter and document delivery as the economy becomes ever-more digitalised amid the growing availability of electronic substitutes. In response to this changing landscape, couriers have promoted premium offerings, including express delivery options, tracking and proof-of-delivery facilities and click-and-collect points. The use of zero-hour contract workers has a dominant theme, although this quickly began to change following the government's workplace reforms in December 2018, which granted casual workers greater job security and higher wages.Demand for courier services spiked over 2020-21, spurred by strong demand from retailers as shops were forced shut after the COVID-19 outbreak, forcing consumers to shop online. Medical couriers were in particularly high demand due to rapid testing and vaccination delivery. Despite the reopening of the high street in 2021-22, e-commerce has continued to thrive, supported by a permanent shift in consumer behaviour. In spite of this, inflationary pressures and deflated consumer confidence during 2023-24 are placing downwards pressure on growth – revenue is slated to rise by just 4.2% in 2023-24.Industry revenue is projected to grow at a compound annual rate of 5.2% over the five years through 2028-29 to £20.3 billion. Couriers will face numerous challenges, including labour shortages post-Brexit and intensifying competition. Nonetheless, opportunities for growth remain. Delivering for e-commerce companies will remain in high demand, offering the biggest growth potential as consumers continue to shift purchases online. As competition grows, couriers will likely further expand their service offerings, particularly next- and same-day delivery options, in an attempt to differentiate themselves and gain market share. Investment in infrastructure, technology and merger and acquisition activity will be a dominant theme as couriers expand their geographical coverage and services.
Trends and Insights
- E-commerce drives up the need for couriers. The growth of online retailing and multi-channel offerings – especially during COVID-19 – have created a greater need for parcel delivery, bringing significant revenue opportunities.
- COVID-19 drives more people to same-day delivery. Companies expanded their same-day courier services during the pandemic, as online orders of household essentials and medical supplies drove a surge in demand.
- The South East's wealth and population attract couriers. The region's high disposable income and large consumer base make it a lucrative spot for couriers, despite pricier warehousing.
- Price and service reign supreme in courier competition. Companies that offer high-quality services, a range of delivery options and competitive pricing are more likely to attract and retain customers.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 5.9 % over the past five years, to reach an estimated £15.8bn in 2023.
Trends and Insights
Online retailing growth proves pivotal to revenue
- E-commerce growth has fuelled huge demand for parcel services, driven by a growing number of online retailers and the expansion of multichannel offerings like click-and-collect services across the retail sector.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Intensifying competition reshapes the industry's landscape
- Digitalisation, particularly in areas like electronic communication and cloud computing, is reducing demand for traditional document courier services.
Biggest companies in the Courier Activities in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
DPDgroup UK Ltd | 1,390.2 | |
UPS Limited | 1,224.2 | |
Evri Ltd | 1,184.6 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Courier Activities in the UK
Products & Services
Industry revenue is measured across several distinct product and services lines, including Next-day delivery, Same-day delivery and Other. Next-day delivery is the largest segment of the Courier Activities in the UK.
Trends and Insights
Next-day delivery services accounts for the bulk of revenue
- Next-day deliveries include those with and without specified or guaranteed delivery times. Also known as “guaranteed by” or “precise deliveries”, next-day deliveries with specified times ensure goods are delivered before a certain point or time in the day.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- There are no industries to display.
International industries
- Global Courier & Delivery Services
- Couriers & Local Delivery Services in the US
- Courier Pick-up and Delivery Services in Australia
Table of Contents
About this industry
Industry definition
Companies in the Courier Activities industry pick up, sort, transport and deliver letters and parcels, bulk materials, documents and medical supplies. The industry includes both licensed and unlicensed couriers.
What's included in this industry?
Next-day delivery Same-day delivery Other delivery timesCompanies
DPDgroup UK LtdUPS LimitedEvri LtdPurchase this report to view all 6 major companies in this industry.
Related Terms
CLOUD COMPUTINGCLICK AND COLLECTGIG ECONOMYIndustry Code
SIC 53 - Courier Activities in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
E-commerce drives up the need for couriers. The growth of online retailing and multi-channel offerings – especially during COVID-19 – have created a greater need for parcel d...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
COVID-19 drives more people to same-day delivery. Companies expanded their same-day courier services during the pandemic, as online orders of household essentials and medical...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The South East's wealth and population attract couriers. The region's high disposable income and large consumer base make it a lucrative spot for couriers, despite pricier wa...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price and service reign supreme in courier competition. Companies that offer high-quality services, a range of delivery options and competitive pricing are more likely to att...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
DPDgroup sees robust growth amid expansion strategies. Opening new hubs, forming high-impact partnerships, making key acquisitions and implementing digital transformations ha...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of DPDgroup UK Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of UPS Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Evri Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for DPDgroup UK Ltd, and factors influencing its performance in the industry
- Description and key data for UPS Limited, and factors influencing its performance in the industry
- Description and key data for Evri Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The government’s Good Work Plan creates challenges. Courier companies must now provide workers with stable hours and proper provisions for paid leave from day one, altering t...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Couriers’ profitability comes under pressure. Heightening price competition, staff shortages, rising fuel prices and dwindling consumer confidence are all contributing to dim...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Courier Activities in the UK industry in United Kingdom in 2024?
The market size of the Courier Activities in the UK industry in United Kingdom is £15.8bn in 2024.
How many businesses are there in the Courier Activities in the UK industry in 2023?
There are 11,383 businesses in the Courier Activities in the UK industry in United Kingdom, which has grown at a CAGR of 5.0 % between 2018 and 2023.
Has the Courier Activities in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Courier Activities in the UK industry in United Kingdom has been growing at a CAGR of 5.9 % between 2018 and 2023.
What is the forecast growth of the Courier Activities in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Courier Activities in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Courier Activities in the UK market in United Kingdom?
The biggest companies operating in the Courier Activities market in United Kingdom are DPDgroup UK Ltd, UPS Limited and Evri Ltd
What does the Courier Activities in the UK in United Kingdom include?
Next-day delivery and Same-day delivery are part of the Courier Activities in the UK industry.
Which companies have the highest market share in the Courier Activities in the UK in United Kingdom?
The company holding the most market share in United Kingdom is DPDgroup UK Ltd.
How competitive is the Courier Activities in the UK industry in United Kingdom?
The level of competition is high and increasing in the Courier Activities in the UK industry in United Kingdom.
