Global parcel volume exceeds 131 billion in 2020, up 27 percent year-over-year

Pitney Bowes has released its new Parcel Shipping Index featuring 2020 data from 13 major markets around the world.

The Index finds global parcel volume reached 131.2 billion in 2020, equating to 4160 parcels shipped per second – an increase of 27 per cent year-over-year. 34 parcels were generated per person, on average. Looking ahead, the Index estimates parcel volume could reach 232 billion or as high as 303 billion by 2026. The most likely outcome is that parcel volume will double in the next five years to reach 266 billion in 2026 with an 11 per cent CAGR from 2021-26.

Key UK parcel volume and revenue findings

• 5 billion parcels were generated in the UK, up 33 per cent from 3.8 billion in 2019
• 160 parcels were generated  every second, or around 14 million each day
• The UK generated the highest parcels per capita in the Index at 74, an increase from 56 in 2019
• Prior to the pandemic, volume grew by an average of 8 per cent. In 2020 the growth rate more than quadrupled from the previous year, from 7 per cent y-o-y growth in 2019 to 33 per cent in 2020
• The UK saw the highest increase in carrier revenue of all 13 countries in the Index, up 37 per cent to $22.2 billion (£17 billion)
• Revenue per parcel increased for the first time since 2016, reaching $4.40
• The top five carriers in the UK account for 76 per cent of UK parcel shipments by volume
• Forecast anticipates UK parcel volume to rise to 5.4 – 6 billion in 2021 – 10-14 per cent year-over-year growth – and is expected to reach 7.5-8.5 billion in 2026

The Pitney Bowes Parcel Shipping Index, now in its sixth year, reveals parcel volume increased across all regions in 2020 with the exception of India. China remains the largest market by volume, with parcel numbers reaching 83.4 billion in 2020 or 2643 parcels shipped every second. Based on forecasts from Pitney Bowes, China is expected to become the first country in the Index to reach 100 billion parcels by volume in one year, which is likely to happen in 2021. 2020 was the first year US parcel volume increased at a faster rate than China since the inception of the Shipping Index.

Carrier parcel revenue increased across all 13 countries in 2020, collectively reaching $429.5 billion, up 22 per cent since 2019.  The US remains the market with the highest carrier revenue of all regions in the Index. Countries including the US, Brazil and Australia saw their more established carriers lose market share to competitors.

The latest Index introduces a new performance measure, revenue per parcel. Tracking this datapoint provides insight into carriers’ ability to respond profitably to changing market conditions. France generated the highest revenue per parcel in the report at $9.3. China’s revenue per parcel was the lowest at $1.5.

Key findings from the latest Parcel Shipping Index include:

• Parcel volume reached 131.2 billion in 2020, up 27 per cent from 103.2 billion
• 4160 parcels shipped per second compared to 3248 in 2019
• Parcel revenue reached $429.5 billion, up 22 per cent since 2019
• Highest CAGR 2014-20 for parcel volume was generated by China at 35 per cent followed by Brazil at 18 per cent and  India at 15 per cent
• Highest CAGR 2014-20 for parcel revenue was generated by China at 27 per cent followed by India at 16 per cent and US and UK, both with 11 per cent
• The top three markets by revenue – US at $171.4 billion, China at $127.5 billion and Japan at $33.3 billion – represented 77 per cent of global parcel revenue in 2020
• United Kingdom saw the highest increase in carrier revenue, up 37 per cent year over year to $22.2 billion
• France generated the highest revenue per parcel at $9.3
• China remains the largest market in terms of parcel volume, reaching 83.4 billion, up 31 per cent from 63.5bn, followed by the US at 20.2 billion and Japan at 9.1 billion
• United States remained the market with the highest carrier revenue, reaching $171.4 billion, an increase of 29 per cent year over year
• Brazil experienced the highest year-over-year parcel volume growth at 46 per cent to 1.2 billion parcels, followed by the US at 37 per cent and UK at 33 per cent
• Japan saw an increase in parcel volume for the first time in three years, with volume reaching 9.1bn, up from 9bn in 2019
• India’s parcel volume decreased but carrier revenue continued to grow, reaching $4.5bn, up from $4.4 the previous year

“For six years, the Pitney Bowes Parcel Shipping Index has tracked monumental change across the shipping and logistics industry, reflecting shifting consumer behaviors and carriers’ ability to adapt at scale,” said Jason Dies, EVP and President, Sending Technology Solutions, Pitney Bowes. eCommerce has become fundamental to our lives, and the staggering parcel volume revealed in the latest Index reflects this. For the world’s carriers, as essential service providers 2020 was a transformative year which tested their investments in people, infrastructure and digital capabilities to the limit. The Parcel Shipping Index accurately tracks and compares their performance during one of the hardest years they’ve ever faced. The Index has never been more widely anticipated or more relevant.”

The Pitney Bowes Parcel Shipping Index measures volume and spend for business-to-business, business-to-consumer, consumer-to-business and consumer-consigned shipments with weight up to 31.5 kg (70 lbs.) in 13 major markets, representing 3.8 billion people in the U.S., Canada, Brazil, Germany, UK, France, Italy, Norway, Sweden, China, Japan, Australia and India. Based on proprietary and published data, the Index has become a valued industry benchmark and a reliable source of accurate forecasting since the inaugural report in 2016.

Parcel Shipping Index Findings by Region

 Europe (UK, France, Germany, Italy, Norway, Sweden)

• UK generated the highest increase in carrier revenue across the Index, up 37 per cent to $22.2 billion from $16.1 in 2019. Revenue per parcel increased – for the first time since 2016 – to $4.4. Of the major carriers, Hermes saw the biggest increase in market share (from 6 per cent to 11 per cent) and the highest growth in volume (63 per cent). Parcels per capita rose to 74 – the highest in the Index – from 56 in 2019.
• France generated the highest revenue per parcel in the Index at $9.3. Parcel volume reached 1.6 billion, up 18 per cent year over year. Revenue rose 11 per cent to $14.6 billion.
• Germany generated 4.1 billion parcels in 2020, up 12 per cent from 3.7 billion the previous year. Carrier revenues reached $21.6 billion, up 18 per cent, while revenue per parcel rose 5 per cent to $5.3. All larger carriers including DPD, DHL and GLS reported revenue growth, while smaller carriers comprising ‘others’ saw their growth decline.
• Italy saw parcel volumes exceed 1 billion for the first time, reaching 1.3 billion, up 31 per cent from 2019. Carriers generated $9.6 billion in parcel revenue, a 24 per cent y-o-y increase. While revenues per parcel were some of the highest in the Index at $7.4, this was a decline of 5 per cent from the year prior.
• Norway generated 98.5 million parcels, up from 76 million the previous year. Revenues reached $210.7 million. Posten Norge retained 79 per cent of carrier volume market share as it has every year since 2014, with revenue per parcel reaching $2.1.
• Sweden saw parcel volumes reach 170 million, up 26 per cent y-o-y reaching 17 parcels per capita, an increase from 13. Carrier revenue per parcel is $2.1 and had been declining since 2016.

Americas (Brazil, Canada, United States)

• Brazil’s increase in parcel volume was the highest across the study, exceeding one billion for the first time, reaching 1.2 billion in 2020 – a 46 per cent increase from 0.85 billion in 2019. Its revenue per parcel showed the highest rate of decline, at -22 per cent y-o-y. Brazil Post decreased its revenue market share by 15 percentage points with a 27 per cent revenue share decline CAGR 2014-2020.
• Canada’s increase in revenue was one of the highest in the study at 29 per cent, reaching $11.5 billion, up from $8.9 billion. Volume reached 1.6 billion, up 29 per cent.
• United States generated the highest carrier revenue in the Index, at $171.4 billion, an increase of 29 per cent y-o-y. Parcel volume rose by 37 per cent to reach 20.2 billion. Parcels per capita reached 61 in 2020, up from 45 in the previous year. The rise of Amazon Logistics was most prominent in the US as UPS’ and FedEx’s share of both parcel volume and revenue declined. Amazon Logistics generated 109 per cent y-o-y parcel revenue growth and 127 per cent increase in parcel volume.

Asia Pacific (Australia, China, India, Japan)

• Australia generated the third highest revenue per parcel across the Index, at $7.6 after France at $9.3 and the US at $8.5, although this has fallen since it reached $9.8 in 2014. Revenue reached $7.8 billion, up 9 per cent. Parcel volume reached 1 billion for the first time, up from 934 million in 2019. Australia Post retains its dominant market share of 40 per cent of the market by volume and 39 per cent by revenue.
• China reached 83.4 billion in parcel volume up from 63.5 billion in 2019, the largest of all markets by volume and the first country in the Index forecast to reach 100 billion in 2021, which it is expected to reach in 2021. Parcels per capita reached 58 from 45 in the year prior. Parcel revenue reached $127.5 billion, up 17 per cent y-o-y.
• India was the only country to see a decline in parcel volume in 2020, down 16 per cent to 2.4 billion parcels from 2.9 billion in 2019. This is likely to be a result of pandemic-related exceptional circumstances and not considered a trend. Despite this volume decline India generated a 3 per cent increase in parcel shipping revenue reaching $4.5 billion. Amazon Logistics has been steadily increasing its market share by volume with 4 per cent CAGR from 2014-20.
• Japan’s parcel volume reached 9.1 billion, up from 9 billion in 2019. Revenue increased by 6 per cent to $33.3 billion. While parcel revenue has grown steadily since 2016, parcel volumes peaked in 2017 at 9.6 billion.