Business activities that will need any type of courier or messengers’ services to ship their parcels will boost the market for courier and messengers’ services in the forecast period. In the past, offices had its own office delivery personnel to deliver the couriers from the office to the desired destinations, but now, the trend has shifted to a courier company model to reduce the cost of overheads. Increase in e-commerce business activities such as online food deliveries, online shopping for groceries, household stuffs, personal stuffs, electronic items and others is also driving the courier and messengers service market. In developing countries, increasing incomes and the increased penetration of mobile phones increased the number of online shoppers. In 2019, global retail e-commerce sales accounted for 3.53 trillion US dollars, and is projected to grow to 6.54 trillion US dollars in 2022. Increase in such business activities will drive the courier and messengers’ services market in the forecast period.
The global couriers and messengers’ market is expected to grow from more than $541.5 billion in 2019 to almost $825 billion in 2023 at a compound annual growth rate (CAGR) of 11.1%.
Rising demand for food delivery services is expected to contribute to the growth of the couriers and messengers’ market in the forecast period. Several factors such as rising disposable incomes, increasing number of families with dual earners, changing consumption patterns, and ease of ordering are increasing the demand for online food delivery services, which is estimated to reach $200 billion by 2025. The increasing demand for food delivery services will contribute to the growth of the global couriers and messengers’ market in the forecast period.
Changing buying patterns, increased penetration of the internet, and limited availability of time encourages people to order groceries online, which in turn will drive the market for couriers and messengers’ services during the forecast period. According to a report, in 2019, online grocery sales grew by 15%, and accounted for 6.3% of U.S. households’ total grocery-related spending. Home delivery services accounts for 22% of all online grocery orders. For instance, according to Statista, the UK will become the second-largest online grocery market after China in 2020.
Consumers are increasingly opting for convenience and personalized delivery. In 2018, a survey was conducted by Sorted, a UK-based global software as a service (SaaS) company, on the couriers and messengers’ industry. Customer expectations steadily increased in e-commerce delivery and 46% of consumers chose convenient and a personalized delivery service, as it was a key factor in buying online. The survey also found that 25% of failed online deliveries were due to consumers unable to change their delivery options with companies failing to provide convenient service once an item was delivered.