Apex Insight has recently published a new report, European Parcels Market Insight Report 2016, that shows that the European parcels market was over €59bn in size in 2015, having grown in recent years – despite the downturn – largely because of the increased demand from online shopping. The European parcels market is highly competitive and is dominated by the largest post offices – Deutsche Post in Germany, La Poste in France and Royal Mail in the UK. All three are leaders in their domestic markets, but also operate parcel delivery networks across Europe (Deutsche Post’s DHL; La Poste’s DPD and Royal Mail’s GLS).
For the first time, Apex Insight has published data on the market segmentation of the European parcels market, by end customer. Each country’s market value is segmented by B2B / B2C / C2X – with the data clearly demonstrating that the main source of growth is the B2C segment.
A significant event since in the last year has been FedEx’s acquisition of TNT. Once integrated, FedEx will have a much greater domestic presence in European markets. In the top eight markets in Europe in 2014, TNT posted net revenues of €3,555m. In those same markets, we estimate FedEx posted revenues of €1,989m. Combined, the joint revenues are over €5,544m. Furthermore, it pushes FedEx up the ladder in terms of market position. In Spain, for example, FedEx was ranked 11th in the market. The acquisition of TNT pushes it into 3rd place in Spain. In Germany, FedEx will move from 7th to 4th.
Ecommerce is a key factor in the volumes of parcels being delivered. The report provides data that shows the average spend per head across the main markets of Europe increased from €1,069 in 2012 to €1,270 in 2014. The UK has the highest spend per head across the main markets of Europe.
Based on trends in GDP and internet shopping, as well as views from leading parcels networks, we expect market growth to continue.
More details can be view at the following page on the Apex Insight website: European Parcels Market Insight Report 2016
About Apex Insight
Apex Insight is an independent provider of research and consulting services covering business and financial services markets in the UK and Europe. It publishes insightful market reports and carries out commercial due diligence and other bespoke consulting exercises to support managers, investors and advisers in making better business decisions.
