Market Overview
The United Kingdom e-commerce parcel delivery market size was USD 9,194.3 Million in 2024 and is projected to reach USD 64,329.2 Million by 2033, growing at a CAGR of 24.13% during the forecast period of 2025-2033. Market growth is driven by increasing online shopping, advancements in logistics technology, rising consumer demand for fast delivery, and a shift towards sustainable practices.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
United Kingdom E-Commerce Parcel Delivery Market Key Takeaways
- Current Market Size: USD 9,194.3 Million in 2024
- CAGR: 24.13% (2025-2033)
- Forecast Period: 2025-2033
- The UK houses the third largest e-commerce market globally, following China and the U.S.
- Consumer e-commerce accounted for 36.3% of the total retail market in the UK as of January 2021.
- UK eCommerce revenue is projected to hit USD 285.60 billion by 2025, with online sales growing 36% in 2022.
- Innovations in logistics such as automated sorting systems and real-time tracking are enhancing delivery efficiency.
- Significant business partnerships and acquisitions are shaping the competitive logistics landscape.
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Market Growth Factors
E-commerce continues on to grow. COVID-19 sped it up in part. Consumers continue to switch to e-commerce for online purchases. They do so instead of visiting physical retail locations. The International Trade Administration states eCommerce revenues in the United Kingdom should increase at a compound annual growth rate of 12.6% until 2025. Consumer e-commerce sales were 36.3% of the total retail market in January 2021. In 2025, the total e-commerce revenues are expected to reach up to USD 285.60 billion. Online spending in the UK increased by its largest annual percentage since 2007 (up 36%) in 2022, driving the parcel delivery sector.
Technological innovations have also helped the industry growth in the logistics segment, including automated parcel sorters, real-time tracking, improvements to the last mile, and further such changes. A recent example is Guernsey Post’s installation of a £1.8 million automated parcel sorter in November 2023, with a capacity of processing 20 kg mail elements, which can read handwritten addresses with optical character recognition software. Furthermore, the Nigerian last mile company Fez Delivery created a shipping lane between the UK and Nigeria in November 2023.
Key alliances and purchases present additional rivalry. In February 2023, Maersk worked with ASOS for supply chain logistics. ASOS comes from the United Kingdom as a global fashion e-commerce company. More than 26 million active customers exist from over 200 countries. May 2024: UK freight software company Forward Computers Ltd was acquired via a joint venture between Cardinal Partnership, Davies Turner and Woodland Group. New company Forward Computers Alliance Limited brings together the experience of working in the freight forwarding and supply chain management sectors with a shared enterprise for market growth and innovation.
Market Segmentation
- Type Insights: The market is divided into instant delivery, same-day delivery, and two-day delivery, covering different service speeds to meet consumer expectations.
- Business Size Insights: Market analysis includes small, medium, and large businesses, reflecting diverse operations in the parcel delivery ecosystem.
- Destination Insights: Market segmentation comprises domestic and international destinations, addressing the cross-border and local delivery demands.
- Industry Insights: The market serves various industries including apparel and accessories, consumer packaged goods, consumer electronics, manufacturing and construction, healthcare, and others.
- Region Insights: The market covers major UK regions such as London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and other regions.
Regional Insights
London is among the key regions analyzed in the UK e-commerce parcel delivery market. The report includes comprehensive regional analysis for London along with South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others. This regional segmentation reflects the market distribution and consumer demand across the country.
Recent Developments & News
- In February 2023, Maersk announced a multi-year partnership with ASOS, supporting supply chain management for over 26 million customers across 200 markets.
- In May 2024, Cardinal Partnership, Davies Turner, and Woodland Group formed a holding company acquiring UK-based freight software firm Forward Computers Ltd, now trading as Forward Solutions through the Forward Computers Alliance Limited joint venture.
- Additionally, in November 2023, Guernsey Post installed a £1.8 million automated parcel sorting system enhancing delivery efficiency. Nigerian startup Fez Delivery expanded operations by launching a UK-Nigeria shipping service in November 2023.
Key Players
- Maersk
- ASOS
- Cardinal Partnership
- Davies Turner
- Woodland Group
- Forward Computers Ltd
- Fez Delivery
- Guernsey Post
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