The business-to-consumer (B2C) market is propelling the express courier industry to unprecedented levels of growth, according to a new report by Transport Intelligence (Ti).“Ti’s data portrays the dramatic rise of B2C sales since before the pandemic,” reads the report. “B2C as a percentage of the global express market has grown by 9.5% between 2019 and 2021, and now represents 60.3% of the global express market. This growth is predominantly due to the introduction of global pandemic restrictions and the rise in B2C e-commerce trade that followed.”In 2021, Ti valued the B2C market at €278 565.9 million, and the B2B market at €183 572m.All indications are that the B2C market will continue to grow, retaining market dominance. Ti predicts that by 2026, the B2C market will represent 65.9% of the global express market, up by 5.6% compared to 2021. The business-to-business (B2B) segment’s market share, which is predominantly linked with GDP growth, is expected to decrease by 2026 as B2C parcel growth continues to outpace B2B parcel growth.The global B2B and B2C markets are expected to be worth €198 635.8m and €304 898.2m respectively by the end of 2022. By 2026, both markets will be worth €220 948.9m and €427 300m, respectively.The growing e-commerce sector, along with increased cross-border trade, is one of the key factors driving the growth of the courier, express and parcel market. In emerging nations in particular there is an increased demand for B2C shipments as international trade becomes more entrenched. The increasing consumer preference for shopping online through various e-commerce portals is also boosting market growth.According to a report by market intelligence firm The Business Research Company, the development of the e-commerce industry is predicted to contribute significantly to the growth of the same-day delivery services market. “The e-commerce industry has transformed the process of buying and selling goods. It is rapidly expanding due to increased population density and urbanisation, the use of smartphones and tablets, the availability of internet access, the adoption of digitalisation and online payment modes, faster-purchasing options, lower costs, reduced travel costs and time, and, convenience. The demand for same-day delivery services is increasing as same-day delivery is becoming the preferred shipping option for people shopping online,” reads this report.In South Africa, the express courier industry is also set to see further growth on the back of increased e-commerce sales.According to FNB, currently the local e-commerce market is estimated at just under R200 billion per annum, and it estimates that it will reach more than R400bn by 2025 on the back of more than one billion transactions per annum.While the industry is expected to continue to see growth, Ti warns that ongoing global economic uncertainty could impact the sector.A number of express carriers have throughout the year reported lower-than-expected results, which in turn have resulted in significant price hikes – as high as almost 10% across the sector.
