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The International Post Corporation (IPC) has published its new report on the global postal industry. According to it, postal companies, internationally, saw revenues grow by 3.8% on average in 2021, compared to 1.4% in 2020 and 5.5% in 2019.
As the pandemic “evolved” throughout the year, growth in the postal industry was characterized by strong demand for B2C e-commerce deliveries, IPC reports.
Parcel traffic growth continued in 2021, with some regions reporting volumes up by more than a third compared to the previous year.
Holger Winklbauer, CEO of IPC, commented on the results: “The 2021 results show the resilience of the postal sector and its ability to build on the growth of e-commerce.
However, cost pressure in the parcel delivery market remains high, partly due to rising fuel prices and labor shortages.
Some regions in Europe reported a decline in the volume of inbound international e-commerce packages in the second half of 2021, as VAT exemptions for low-value goods were abolished in the EU in July.
The financial crisis and the war in Ukraine are likely to further affect volumes.”
Strong competition in the B2C market
As IPC reports, competition remained very strong in the B2C parcels market as companies continued to compete to win new contracts, major e-retailers increasingly invested in their logistics networks and new market entrants sought to capture share. in the last-mile market.
In the mail / “traditional” mail sector, electronic substitution has been the main driver of letter volume decline.
Many companies reported a decline in overall mail volume in 2021, although some saw a partial recovery in promotional mail as business activity picked up when governments eased COVID-19 restrictions during the year.
Throughout the year, companies focused on improving the efficiency of their mail operations and adjusted their prices.
“Looking to the future, electronic substitution is expected to lead to a continued decline in the volume of mail worldwide.
Meanwhile, the structural shift from post to parcels is set to continue as companies strive to meet the ever-evolving needs of consumers through the provision of fast, reliable and competitive delivery services,” the IPC underlines.
Source: Capital
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