Postal and Courier Services in Australia Industry Market Research Report now updated by IBISWorld

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Mail delivery has been negatively affected by alternative forms of communication, such as e-mail and the internet. At the same time, it has benefited from an increase in the volume of internet shopping, which has seen greater demand for parcel deliveries. Other factors influencing demand, and hence revenue, have included changes in economic activity, legislation and disposable income. For these reasons, industry research firm IBISWorld has updated its report on the Postal and Courier Services industry.

IBISWorld Market Research

IBISWorld Market Research

Growth in online shopping drives demand for mail deliveries, particularly parcels

Mail delivery has been negatively affected by alternative forms of communication, such as e-mail and the internet. At the same time, it has benefited from an increase in the volume of internet shopping, which has seen greater demand for parcel deliveries. Other factors influencing demand, and hence revenue, have included changes in economic activity, legislation and disposable income. IBISWorld expects that growth has occurred within the promotional mail segment. IBISWorld industry analyst Nick Sallmann says ‘Postal and Courier Services industry revenue in Australia will reach $12.6 billion in 2011-12, after averaging growth of just 0.3% per annum over the past five years.’ Adoption of new products and services are expected to boost revenue in 2011-12 by 1.1%.

Parcel delivery accounts for more than half of industry revenue, while mail accounts for the remainder and includes transactional mail, social mail and promotional mail. The Postal and Courier Services industry is classified as having a moderate level of concentration; the top four players are Australia Postal Corporation, TNT Australia PTY Ltd, Toll Holdings Ltd and DHL Express. The industry is dominated by small businesses. However, Sallmann adds ‘the postal segment of this industry differs from the overall structure because it is highly concentrated, with Australia Post dominating the market.’ Australia Post holds a monopoly in letters weighing less than 250 grams (known as reserved services). However, other areas such as parcel delivery have been opened to competition.

The rise of electronic documentation, billing and invoicing is expected to cause many of the Postal and Courier Services industry's traditional clients to transition to these cheaper and faster formats in the future. Hence, Australia Post's foothold will become increasingly eroded. Generally, couriers deliver items from online sales for security purposes. In the coming five years, industry revenue is projected to increase, as the trend of online shopping will continue to offer opportunities for industry players.

For more information, visit IBISWorld’s Postal and Courier Services report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry includes businesses in the collection and delivery service. Operations consist of mail and parcel collection from the door, letterboxes and post offices; mail sorting and distribution (both domestic and international); and mail delivery. The service may involve the use of one or more modes of transport, which may be owned privately or publicly. Industry participants may also sell postage stamps and rent out mailboxes.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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