The COVID Pandemic Will Contribute Significantly to the $542 Billion Couriers and Messengers’ Market
The Business Research Company offers “Couriers And Messengers Market By Type (Domestic Couriers Market, International Couriers Market) Type Of Coverage (Couriers And Express Delivery Services, Local Messengers And Local Delivery) End-User (B2B, B2C, Others), And Region | Global Forecast To 2023” from its research database.
The unprecedented outbreak of corona virus is boosting the couriers and messengers’ market globally. The virus, which originated in the Wuhan Province of China, later spread across the world. With governments across the world advising people to stay indoors and practice social distancing, to reduce the spread of the pandemic, individuals are ordering essential groceries and other food items online. This fear of contamination is enabling people to order food and other essential items online, thereby driving the market for food delivery services. This is in turn boosting the couriers and messengers’ market. The global couriers and messengers’ market is expected to grow from $541.6 billion in 2019 to $824.9 billion in 2023 at a compound annual growth rate (CAGR) of 11.1%.
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Increasing Demand For Meals And Groceries Delivery
Rising demand for food delivery services is also expected to contribute to the growth of the couriers and messengers’ market in the forecast period. Several factors such as rising disposable incomes, increasing number of families with dual earners, changing consumption patterns, and ease of ordering are increasing the demand for online food delivery services, which is estimated to reach $200 billion by 2025.
Changing buying patterns, increasing penetration of the internet, and limited availability of time is encouraging people to order groceries online. According to the Institute of Grocery Distribution, online grocery shopping in the top 12 markets in Asia is expected to grow from $99 billion in 2019 to $295 billion in 2023. The rising demand for food delivery services and online groceries shopping is expected to contribute to the growth of the couriers and messengers’ market in the forecast period.
Shifting Focus From B2B To B2C Delivery
With the ecommerce market growing rapidly, courier companies are shifting their focus from B2B to B2C deliveries to cater to the increasing client base. Traditionally, couriers’ companies focused on urgent orders and high value-low volume goods from B2B clients. B2C customers are difficult to reach, have a higher number of deliveries per day, and require innovative techniques for route and resource planning than B2B delivery services, due to which courier companies are offering customized services to B2C customers. For example, FedEx, the world’s leading courier delivery services company, is aggressively targeting B2C customers in Tier II and Tier III cities in India to focus on small parcel logistics. A 2015 study conducted by Accenture indicates that B2C will surpass B2B delivery in terms of parcel volumes in Asia and North America by 2020. Growth in the B2C segment is mainly due to rising urbanization, internet penetration, smartphone penetration, and international eCommerce. In 2017, according to a global transport Intelligence report, 49% of B2B e-commerce buyers prefer making purchases from B2C sites.
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Newer Delivery Models
The courier services companies are introducing new business models in delivering parcels so that they can make timely deliveries with less interruptions and reduced costs. A few companies such as FedEx and UPS are still following the traditional approach of logistics, but new entrants in the market such as Uber, Google (GOOGL), and Amazon (AMZN) are trying out newer approaches to cut costs and delivery times. For instance, Uber launched its courier services, which involve its taxi drivers, bikers, and on-foot messengers delivering parcels to the customers. Similarly, Amazon plans to launch an app that will let ordinary people earn by delivering packages which will be in their routes to their destinations.
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