The worldwide postal industry accelerated to 4.3% revenue growth last year as surging B2C parcels volumes more than outweighed the declining mail business, according to figures published today by the International Post Corporation (IPC).
Preliminary figures covering 38 leading international postal operators showed combined revenue growth of 4.3% in 2018, IPC said. This was “significantly higher” than in 2017, which saw a 2.8% increase, and in 2016, with a 2.2% rise. Growth rates did vary between the different companies but more than two thirds saw year-on-year growth of 1% or more, the association pointed out.
The stronger revenue growth last year “clearly indicated that continued diversification and efficiency measures are paying off” as increasing B2C parcels and express volumes – both domestic and cross-border – supported revenue growth for many posts, IPC noted.
Holger Winklbauer, CEO of IPC, said: “Postal industry revenue is growing solidly despite ongoing traditional mail decline. More than two thirds of posts analysed saw year-on-year growth of 1% or more, which clearly demonstrates that they continue to develop through broadening their service offerings and improving their existing network and efficiency. E-commerce does remain the main and common growth driver and posts are expanding their networks and capacity to respond to the increasing demands.”
He continued: “The ongoing increase in cross-border e-commerce volumes, mainly driven by lightweight and low-value items, represents an opportunity for postal operators worldwide. For them to fully reap the potential of e-commerce, posts must offer an integrated cross-border delivery platform including a delivery duty payment system upfront.”
In 2017, 50 postal operators covered by IPC’s annual industry report increased combined revenues by 2.8% to €392 billion. They increased overall parcel volumes by 14.3% and revenues by 10.8% as e-commerce generated a boom in domestic and cross-border B2C parcels. In contrast, mail, which still dominates business for some operators, saw 0.4% revenue growth with volume down by 4.6%.
IPC plans to release complete 2018 results as well as results for the first half of 2019 in its Global Postal Industry Report in November 2019. This will include a comprehensive and detailed review of the postal industry, covering 50 postal operators worldwide and analysing key market trends.
