Summary

The market for Courier, Express, and Parcel (CEP) in China is estimated to grow at a CAGR of more than 8% driven by the growth in the e-commerce segment. The Chinese express parcels market will keep growing at high double-digit rates, with international business playing a bigger role in the future.

China's courier industry is relied upon to deal with 74 billion packages this year, as per the country's postal service regulator, an average of 52 deliveries for each individual. The figure will speak to an 18% year-on-year increment by the end of this year, According to the State Post Bureau, said at its yearly work meeting on recently, adding that revenues in the sector will reach about USD 127 billion. According to the bureau, more than 63 billion packages were delivered through express service a year ago, up 24 % year-on-year.

In 2020, influenced by the flare-up of COVID-19 in China, many express organizations couldn't work regularly from January to February 2020. Toward the start of March, the transportation limit of express organizations fundamentally came back to typical. Significant organizations in the business are increasingly ready to oppose the negative effect of the 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.

With the expanding interest for e-commerce shopping in the second and third level urban communities and western locales, and the improvement of online business in rustic regions, it is evaluated that the business volume of Couriers in China will surpass 74 billion units in 2020, up by 16.5% from 2019.

Key Market Trends

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

With around USD 1.5 billion revenue projected in 2025, the e-commerce market in China is the largest in the world. China is home to the largest online community in the world. The domestic segment holds the major share in the e-commerce sector during the review period with almost 99% in 2017. However, the cross-border segment witnessed growth during the forecast period rising from 0.6% in 2017 to 1.6% in 2019.

The Chinese internet population was around 840 million in 2019 and would rise up to 975 million by 2023. Affordable smartphones play an important role in China’s rising internet population. In 2019, over 90 percent of Chinese people accessed the internet through mobile phones. To provide more affordable and faster internet services, measures have been carried out in the country to reduce service rates and extend the 1,000-Megabyte broadband connection to over 300 cities.

In 2019, the government announced to roll out 5G networks in Beijing, Shanghai, Shenzhen, and other major cities. The technology advancement would likely enhance internet accessibility in rural areas, further increasing the country’s internet user base. With rise in the internet usage among citizens, the e-commerce industry is set to undergo a rapid growth which in turn propels the growth in CEP market in China.

Domestic Segment Holds Largest Share in the Market

The total CEP market in China is valued at USD 85.22 billion by the start of 2019 with the Domestic market holding up the major share. The revenue generated by the domestic CEP market has amounted to USD 65.72 billion by the start of the year 2019, which is approximately 76.5% of the total revenue generated by the China CEP market. The domestic CEP market is likely to witness the growth and hold the major share during the forecast period driven by the B2C e-commerce boom.

China accomplished the objective of covering each of the 556,000 administrative villages with direct postal services a year ago in 2019, one year ahead of the schedule. More than 30,000 express service outlets have been set up in townships up until now, covering more than 96 percent of every such area, as indicated by the bureau. The delivery service helps the farmers, a large portion of whom make their living planting oranges and tangelos, reduce their logistics costs, and dodge genuine misfortunes in the low season or in a lopsided market. The State Bureau additionally focused on that the nation would step up efforts in reinforcing the interconnection of the global postal system and promoting the development of global postal administrations this year with the emphasis on Southeast Asia.

As B2C e-commerce demand continues to grow, the role of last-mile logistics has taken the spotlight in China. Increasing demand for speed of delivery and expanding internet penetration leading to a greater number of regions active online has led to a significant rise in the last mile market in recent years.

Competitive Landscape

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

Additional Benefits:

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

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