• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Global Small-Parcel Market Growth Will Remain Strong in 2019

Global Small-Parcel Market Growth Will Remain Strong in 2019

February 6, 2019
John Haber, SCB Contributor

The global small-parcel market grew almost 13 percent from 2016 to 2017 to $245.5bn. Based on proprietary market research, Spend Management Experts’ annual analysis expects the global market to continue double-digit growth in 2019 due to good economic conditions, business digitization efforts as well as domestic and cross-border B2C e-commerce growth. 

North America and Asia-Pacific regions combined hold a commanding share of the global small-parcel market at 57 percent. Not only are these two regions entwined by cross-border trade, but carriers in each region have also built out intricate regional networks created to serve not only consumer demand but also for business. Not surprisingly, China and the U.S. are the largest countries, noting 8.0 percent and 10.0 percent year-over-year small-parcel growth, respectively.

Meanwhile, Europe’s small-parcel market is a mature one that is also one of the most competitive. Holding an estimated 27 percent share of the global small-parcel market, this region’s growth is primarily due to the growth in East Europe, Russia and Turkey.

Finally, Emerging Markets has an estimated market share of 8 percent. Despite the smaller share, this group, which includes Africa, the Middle East and South America, noted a year-over-year growth of 6.4 percent and holds much opportunity for small-parcel carriers due to a growing middle class and home to 85 percent of the world’s population. As such, small-parcel carriers are expanding capabilities into these locations to serve existing and future growth.

The 2019 global small-package growth will continue at a strong pace. Led by the growth in e-commerce, the market will benefit from both consumer and business demands. Despite some political risks, good economic conditions are likely to continue into 2019, which will drive domestic and cross-border growth.

The small package’s role in trade, whether domestic or international, is immense. According to UPS, the company moves 6.0 percent of U.S. GDP and 2.0 percent of global GDP through its system. Similar statistics are available for the two other largest global small-package carriers, FedEx and DHL, and the growth will only keep moving upward. Economic growth has been positive with record low unemployment in the U.S., happy consumers willing to open their wallets wider for purchases and businesses investing back into operations. 

Consumers have been ordering goods online for several years now and we’ve watched the growth of B2C skyrocket thanks to such e-commerce providers as Amazon and Alibaba. According to Shopify, global B2C e-commerce sales were $2.3tr in 2017. In addition, cross-border e-commerce is growing in double-digits which have resulted in FedEx and UPS expanding their airplane fleet.

Thanks to enhanced technology, more business transactions are moving towards online as business models digitize. As more business transactions move towards online, opportunities within the B2B market will grow for small-parcel carriers outpacing B2C growth rates. Indeed, Shopify noted that B2B e-commerce will reach $7.7tr in 2017.

The Outlook

As more transactions move online, small-parcel carriers will not only develop new solutions to manage the increased volumes but new entrants into this market, such as Amazon, will grow their capabilities to challenge legacy providers. Shippers should benefit from increased competition from a price perspective as well as service offering.

John Haber is CEO and founder of Spend Management Experts.

RELATED CONTENT

RELATED VIDEOS

Logistics Express/Small Shipments Transportation & Distribution E-Commerce/Omni-Channel
KEYWORDS E-Commerce/Omni-Channel Express/Small Shipments Logistics Supply Chain Analysis & Consulting Transportation & Distribution
  • Related Articles

    Watch: Who's Winning in the Small-Parcel Delivery Market?

    Supply Chain Finance Growth Prospects Remain Strong, Study Shows

    Strong Recovery Is Predicted in Analysis of U.S. and Global 3PL Market

John Haber, SCB Contributor

Dynamic Pricing for Last-Mile Delivery

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A PERSON HOLDS UP A TABLET COMPUTER IN A WAREHOUSE, SUPER-IMPOSED BY A GRAPHIC SHOWING A COMPLEX WEB OF SUPPLY CHAIN ELEMENTS

    Three Post-Pandemic Actions for Repairing Global Supply Chains

    Data Management (Big Data/IoT/Blockchain)
  • A MAN IN A SUIT SHAKES HANDS WITH A WOMAN IN A HARD HAT, NEXT TO A STACK OF CONTAINERS

    Three Procurement Technology Evolutions for 2023

    Sourcing/Procurement/SRM
  • DOCUMENTS BEARING THE INSIGNIA OF US CUSTOMS AND BORDER PROTECTION LIE ON A TABLE

    New CBP Regs Call for Greater Diligence by Brokers in Reporting Security Breaches

    Freight Forwarding/Customs Brokerage
  • The blank stare of a child's eye who is standing behind what appears to be a wooden frame

    The Alarming Continued Rise of Modern Slavery in Supply Chains: How Procurement Can Help Reverse the Trend

    Sourcing/Procurement/SRM
  • A GROUP OF WORKERS RANGED IN AN OFFICE, OF DIVERSE RACE, GENDER, AGE AND PHYSICAL ABILITY

    Podcast | The Supply Chain Workforce of the Future Is Already Here

    HR & Labor Management

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing