Courier Pick-up and Delivery Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC I5102Revenue
$12.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
54,427
Businesses
39,192
Wages
$X.Xbn
Courier Pick-up and Delivery Services in Australia industry analysis
The Courier Pick-up and Delivery Services industry has undergone structural changes over the past few years because of changing conditions in downstream markets and the emergence of popular digital platforms like Uber Eats or DoorDash. At the same time, the surging popularity of online retail is growing demand for courier services, contributing to an expansion in the size of the industry, while encouraging an influx of new entrants. In the wake of the COVID-19 pandemic, these trends accelerated, especially during lockdown periods, when in-person shopping was shut. Overall, revenue is expected to grow at an annualised 8.8% over the five years through 2023-24, to $12.6 billion. Yet, this includes a marginal fall of 0.1% in 2023-24, as a fall in real household discretionary income has dampened downstream demand, while in-person shopping has recovered, slightly easing demand for deliveries from online purchases.Retailers, especially online-only stores, are heavily reliant on couriers to deliver goods to customers in a timely and efficient manner. Over the past decade, this aspect of the industry has surged, crowding out many other services traditionally offered by courier services. While local retailers have been responsible for most of this growth, international ecommerce sites have contributed a significant portion of demand. As online shopping has continued to grow rapidly, the industry has shifted its focus away from mining and wholesale markets, and toward parcel delivery. This dynamic has fuelled increase in the number of sole operators, which are typically subcontracted by larger businesses. They now make up over 80% of enterprises in the industry. These trends have intensified competition among different couriers, limiting price growth. This trend, in addition to rising fuel costs, has reduced industry profit margins over recent years.The industry is projected to continue expanding as online retail continues to grow in popularity and fuel costs start to ease. Industry revenue is forecast to grow at an annualised 3.1% over the five years through 2028-29, to $14.7 billion. Retailers will continue growing in importance, as online shopping continues its meteoric rise. Conversely, digital platforms, like Uber Eats or DoorDash are becoming increasingly saturated, while they may face a tighter regulatory climate. Consolidation among these services is likely, easing the rate of new entrants into the industry.
Trends and Insights
- Online retail is underpinning a boom in demand for parcel delivery through courier services. These trends have opened up opportunities for many smaller operators, which has encouraged a flood of new entrants into the industry.
- Online shopping is boosting depot-to-point delivery services. More shoppers rely on courier services to purchase and return products purchased online, which is crowding out more traditional services like point-to-point delivery.
- The distribution of couriers follows population patterns. The prevalence of online retail in the industry means that most couriers need to be based in large population centres, most often large cities like Melbourne or Sydney.
- The industry is highly competitive and fragmented. Low barriers to entry mean that most businesses in the industry are single drivers who subcontract out to major players.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 8.8 % over the past five years, to reach an estimated $12.6bn in 2023.
Trends and Insights
The pandemic drives a boom in courier and delivery services
- The COVID-19 pandemic was very beneficial for couriers, especially those segments exposed to online shopping. During periods of stringent lockdowns in major cities, consumers were left with no option but to use couriers to get access to retail products.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Internal innovation and network expansions will allow couriers to compete with Australia Post
- Growth in online retail is set to underpin higher turnover over the coming years. Yet, at the same time, the industry is forecast to become increasingly competitive. An influx of new entrants will maintain price competition and limit growth in profit margins.
Biggest companies in the Courier Pick-up and Delivery Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
DHL Express | 1,317.6 | |
Allegro Funds | 744.5 | |
Fedex Australia | 630.9 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Point-to-point delivery, Depot-to-point delivery and Set-run services. Point-to-point delivery is the largest segment of the Courier Pick-up and Delivery Services in Australia.
Trends and Insights
Online shopping has underpinned steady growth in depot-to-point delivery services
- Depot-to-point and point-to-depot delivery services have grown as a share of industry revenue over the past few years. Parcels are transported directly from airports, ports or domestic retailers to warehouses using this delivery method. Parcels are then delivered from the warehouse or depot to consumers and households.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Road Freight Transport in Australia
- Road Freight Forwarding in Australia
- Integrated Logistics in Australia
- Postal Services in Australia
International industries
- Global Courier & Delivery Services
- Couriers & Local Delivery Services in the US
- Couriers & Local Delivery Services in Canada
- Postal and Courier Pick-up and Delivery Services in New Zealand
- Postal & Courier Activities in the UK
Table of Contents
About this industry
Industry definition
Industry businesses engage in door-to-door pick-up (i.e. from residences or places of business), transport and delivery of letters, documents, parcels and other items weighing less than 30 kilograms. Industry services are provided within Australia, for both international and domestic deliveries.
What's included in this industry?
Depot-to-point deliveryPoint-to-point deliverySet-run servicesCompanies
DHL ExpressAllegro FundsFedex AustraliaPurchase this report to view all 4 major companies in this industry.
Related Terms
EXPRESS DELIVERYPOSTAL SERVICEFUEL SURCHARGEIndustry Code
ANZSIC 5102 - Courier Pick-up and Delivery Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Online retail is underpinning a boom in demand for parcel delivery through courier services. These trends have opened up opportunities for many smaller operators, which has e...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Online shopping is boosting depot-to-point delivery services. More shoppers rely on courier services to purchase and return products purchased online, which is crowding out m...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The distribution of couriers follows population patterns. The prevalence of online retail in the industry means that most couriers need to be based in large population centre...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is highly competitive and fragmented. Low barriers to entry mean that most businesses in the industry are single drivers who subcontract out to major players.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
DHL has capitalised on a surge in popularity in online shopping. Revenue surged in 2020 and 2021, especially as lockdowns shut in-person retail. A choked global supply chain ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of DHL Express's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Allegro Funds's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Fedex Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for DHL Express, and factors influencing its performance in the industry
- Description and key data for Allegro Funds, and factors influencing its performance in the industry
- Description and key data for Fedex Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Demand from online shopping is on track to continue its meteoric rise in 2023-24. This trend will continue to flow through to third-party courier services, especially larger ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
High competition and rising costs have weighed on profit margins. As new entrants came into the industry, price competition intensified, which made it harder for many courier...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Courier Pick-up and Delivery Services industry in Australia in 2024?
The market size of the Courier Pick-up and Delivery Services industry in Australia is $12.6bn in 2024.
How many businesses are there in the Courier Pick-up and Delivery Services in Australia industry in 2023?
There are 39,192 businesses in the Courier Pick-up and Delivery Services industry in Australia, which has grown at a CAGR of 13.5 % between 2018 and 2023.
Has the Courier Pick-up and Delivery Services industry in Australia grown or declined over the past 5 years?
The market size of the Courier Pick-up and Delivery Services industry in Australia has been growing at a CAGR of 8.8 % between 2018 and 2023.
What is the forecast growth of the Courier Pick-up and Delivery Services industry in Australia over the next 5 years?
Over the next five years, the Courier Pick-up and Delivery Services industry in Australia is expected to grow.
What are the biggest companies in the Courier Pick-up and Delivery Services market in Australia?
The biggest companies operating in the Courier Pick-up and Delivery Services market in Australia are DHL Express, Allegro Funds and Fedex Australia
What does the Courier Pick-up and Delivery Services in Australia include?
Depot-to-point delivery and Point-to-point delivery are part of the Courier Pick-up and Delivery Services industry.
Which companies have the highest market share in the Courier Pick-up and Delivery Services in Australia?
The company holding the most market share in Australia is DHL Express.
How competitive is the Courier Pick-up and Delivery Services industry in Australia?
The level of competition is high and increasing in the Courier Pick-up and Delivery Services industry in Australia.
