Australia parcel shipping market now worth AU$9.6bn

25 November 2016

Australia’s parcel shipping market grew by 8.8% in volume and 8.2% in spend in 2015, leading the Asia-Pacific region in terms of growth, according to a new index.

The inaugural Pitney Bowes Parcel Shipping Index, an annual report that measures volume and spend for shipments with weight up to 31.5 kg, found the Australian parcel shipping market was worth AU$9.6bn.

Parcel volume dipped by 1.7% in Japan, the region’s biggest market, primarily due to an 8.8% decline in packets, though the parcel shipping spend in Japan increased by 2.6% to ¥2,480bn.

In the other Asia Pacific markets to appear on the index, India’s parcel volume grew by 8.2% and spend increased 17.2% to €110.15bn.

Globally the index forecasts parcel shipping volume to grow annually at between 5% and 7% annually and to rise by an overall 20% by 2018, with cross-border shipping leading the way.

Worldwide, the parcel shipping market is being driven primarily by growth in e-commerce.

In North America, parcel shipping volume grew 3.6% in 2015 to 11.8bn shipments in the world’s largest market, US businesses spent more than $85bn on parcel shipping in 2015. This was up 1.2% percent from 2014.

US parcel market growth was driven mainly by more frequent consumer online shopping, increased office shipping and growing global trade. Office shipping accounts for around 40% of the US parcel market.

In Europe, Germany represents the largest parcel market, with more than 2.9bn shipments in 2015. Spending in Germany rose by 6.4% to €12.7bn in 2015.

The UK represented the continent’s next largest market, which grew by 6% to 2.2bn parcels and was worth £8.9bn.

“The strong growth we are seeing in parcel shipping has led to increasing complexity for businesses of all sizes,” said Mark Shearer, executive vice president and president, Pitney Bowes Global SMB Solutions. “Small and medium businesses in particular are having trouble managing the growing number of shipping options, service levels and 24/7 tracking.”

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