Courier and Mail Services Australia Market Intelligence


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  • Supplier Watchlist for 3 suppliers*
  • Supplier Shortlisting Tool*

With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)


*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

Report Coverage

  • Cost Drivers
  • Pricing Model
  • Domestic Mail and Parcel Rate Benchmark: Australia
  • International Mail and Parcel Rate Benchmark: Australia

Table of contents

  1. Courier and Mail Services Australia Executive Summary
  2. Executive Summary
  1. Courier and Mail Services Australia Market Overview of Courier Market
  2. CEP and Mail Market Overview: Australia
  3. PPI: Courier Pick-up & Delivery Services
  4. Market Trends
  5. Cost Drivers
  1. Courier and Mail Services Australia Supplier Analysis
  2. Supplier Analysis
  1. Courier and Mail Services Australia Pricing Model and Rates
  2. Pricing Model
  3. Domestic Mail and Parcel Rate Benchmark: Australia
  4. International Mail and Parcel Rate Benchmark: Australia
  5. Mail Rates

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Regional Market Outlook on Courier and Mail Services

The Australian domestic CEP market is expected to grow at a CAGR of 6.2%. With rise of e-commerce, Australia's parcel market is expected to grow to more than 1 billion parcels a year by 2021. With rise of digitization, the mail market volume is expected to decline at a CAGR of 5.6 percent (2016-2020).


Australia CEP Market Size and Growth Forecast (2016–2020F)

  • Parcel shipping generated AUD 9.2 billion in revenue in 2017, an increase of 6.2 percent over 2016. Parcel volume has increased to 841 million in 2017 from 778 million in 2016 .
  • The entry of global e-commerce players Amazon and Alibaba in 2017 caused this dramatic change in CEP market.
  • Australia CEP market is dominated by top 3 carriers – Australia post, Toll group and TNT, which  deliver more than 45% of the parcel shipments.

Australia Mail Volume Size and Growth Forecast (2016–2020F)

  • The mail market is viewed to get adversely affected by digitization. This continues to drive the structural decline in traditional letter mail volume The industry has been adapting to a long-term decline in mail volumes over the past five years.
  • As one of the largest logistics companies in Australia and a monopoly provider of certain mail services, Australia Post dominates the mail industry

PPI: Courier Pick-up & Delivery Services

  • The annual rate increases for courier services in Australia is in line with global average announced by major logistics integrators such as DHL and FedEx
  • Producer price index of postal and courier services increased by approximately 6.3% annually between 2017 and 2018, mainly due to increased costs associated with last-mile delivery .
  • The trend is expected to continue in 2019 with 1.31% recorded growth from Q4 2018 to Q1 2019

Market Trends  

The Australian CEP and Mail market is getting affected by the E-commerce boom. With entry of Alibaba and Amazon, CEP market is witnessing major challenges with regards to increase in parcel delivery.

The National postal Operator – Australia Post is witnessing historic low volumes of Mail being circulated due to rise of social media and mobile devices. Hence both mail and CEP market is moving towards adjusting to this increased demand.

Merger and Acquisition

  • Australian CEP market is getting consolidated with few major regional and global players owing to changing dynamics in the CEP market.
  • There is a growing trend of merger and acquisition happening in the industry as suppliers seek to attract volume and extend their network in order to deal with the growing parcel demand.
  • Ex: Australia Post formed alliance with Aramex, Alibaba, China Post and Qantas for global e-commerce delivery capabilities

Supplier Market Landscape

  • Australian Mail market is dominated by the National Postal Operator – Australia Post.
  • CEP market is dominated by global players and there is rise in consolidation of market with players being acquired.
  • Ex: Toll Group (acquired by Japan Post) and TNT (acquired by FedEx)

Service Differentiation

  • The ecommerce revolution in Australia has contributed significantly to the strength of the parcel shipping market.
  • The parcel delivery market is seeing an exponential growth backed by ease of shipping, delivery and tracking parcels domestic and internationally.
  • Factors such as simplified and reliable service, accelerated delivery times, and transparent and accurate tracking will be the key to success for suppliers. Hence, players are finding ways to improve their delivery service, improve technology such as online tracking  and aim for faster delivery of parcels.

Australian Mail Services Market Overview

  • The Australian mail service market is highly regulated with the power residing with the Australian Competition and Consumer Commission (ACCC)
  • Section 29 of Australian Postal Regulation 1998 provides an exclusive right to Australia Post to carry out postal services
  • Non-legislative barriers to entry such as product differentiation and high sunk cost reduce the entry of potential competition in the market
  • Reforms were passed in 2015 to introduce a two-speed letter service system, with a price increase in regular letters and introducing a priority service at a higher cost
  • The cost of letter services has seen an increase of 7.76 per cent (2008-2018) to AUD 1 from AUD 55 cents in 2008
  • Revenue with respect to mailing sector has declined due to switch to digital communication and high fixed cost of delivering mail. These are the major drivers influencing the price increase
  • The Australian mail service market is facing a reduction in volume size due to digitalized communication. Prices of post have seen an increase due to high fixed cost of delivery and the lack of competition. 
  • Due to the monopolistic nature of Australia Post, the community service and 4000 + postal point requirements have seen the postal price gone up
  • Rise of digital transactions and communications have reduced the postal volume
  • E- Substitutions such as Digital letters, SMS updates and internet are the drivers of digitization

Why You Should Buy This Report

  • Information on the Australian mail service market overview, trends, cost drivers, etc.
  • Supplier analysis of the Australian mail services industry
  • Australia mail pricing models and rates


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