Summary

The market for Courier, Express, and Parcel (CEP) in Thailand is estimated to be valued at more than USD 1.2 billion and is estimated to grow at a CAGR of more than 7.5% during the forecast period.

Key Highlights
Thailand, being located at the heart of the Southeast Asia and supported by its superior roadways network, the express delivery services market of 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 at more than 10%.
The growth in the market is being driven by changing consumer behaviour with 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, Instagram. The support of the Thai government for developing SMEs is also propelling the growth of the market.
Going forward, the average transportation costs are expected to decrease. The companies are focusing on reducing the operating costs as well as service costs which helps them to secure more volume and gain market share.
The increasing foreign players in the Thai courier services market have increased the competition in the market, making it difficult for newer players to establish a market presence.


Key Market Trends

E-Commerce driving the share of B2C segment:

One of the major enablers of CEP and last mile in Thailand is the booming e-commerce industry. As the e-commerce market is growing in the country, the demand for last mile and express delivery is increasing. With the rise of e-commerce, the share of consumer deliveries is increasing in the formerly business-oriented parcel delivery market. The e-commerce logistics services market in Thailand is mainly fueled by the increase in the number of small and medium-sized enterprises, who sell online and well-connected technological infrastructure.

Some of the key factors that companies need to focus in future include technology (more investments in automation and smart technologies), workforce (demand for drivers and technological skills is expected to increase) and keeping up with government regulations.

For instance, the agreement on facilitating cross-border transportation between member countries in the Greater Mekong Sub-region (GMS-CBTA) as more than 60% of products on e-marketplaces in Thailand are imported from the member countries in the Greater Mekong Sub-region. Similarly, as the sales of Thai e-commerce companies are foreign countries are also increasing, there are some regulations related to cross-border logistics which help them in tax exemption.

International CEP Market to witness Significant Growth:

The increasing international trade of the country is boosting the demand for international express services. The initiatives of government as well as companies to promote cross-border e-commerce and help SMEs in Thailand to reach global markets is propelling the growth of the international CEP market, which is expected to grow at more than 9% during the forecast period.

The Thailand 4.0 initiative of the government includes supporting cross-border trading and the selling of goods to international markets and fostering trade with CLMV countries (Cambodia, Laos, Myanmar, and Vietnam). The USD 428 million partnership between Chinese e-commerce giant Alibaba with Thai government on durian fruit sales in Apr 2018 has significantly boosted the cross-border e-commerce in the country. Since then, many partnerships and collaborations have happened in various areas such as cross-border trade, logistics, payment systems, etc.

In Feb 2020, the Bank of Thailand formed an alliance with Singapore, Myanmar and Cambodia to expand cross-border payments using QR codes. The new digital payment system is scheduled to become effective in the middle of 2020.

Competitive Landscape

The Courier, Express, And Parcel (CEP) market in Thailand is consolidated in nature dominated by few players and is highly price competitive. The two key players in the market include Kerry Express and Thailand Post - the market share of these two companies together account for more than 50%. Some other significant players include Nim Express, SCG Express, DHL, and Lazada Express amongst others.

Besides the aforementioned companies, some of the large international companies have entered the Thai CEP marketspace making 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, there also exists some on-demand delivery companies such as Lalamove, and Grab Express which further add to competition. However, these players have less effect due to their relatively high pricing nature.

Additional Benefits:

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

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