China Domestic Courier, Express and Parcel (CEP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

China Domestic Courier, Express, and Parcel Market is Segmented by Business Model (Business-to-Business (B2B), Business-to-Customer (B2C), and Customer-to-Customer (C2C)), Type (E-commerce and Non E-commerce), and End User (Service, Wholesale and Retail Trade, Healthcare, Industrial Manufacturing, and Other End Users). The report offers market size and forecasts for all the above segments in value (USD billion).

Market Snapshot

China Domestic Courier, Express and Parcel (CEP) Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >8 %

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Market Overview

The Chinese courier, express, and parcel (CEP) market is expected to record a CAGR of over 8% during the forecast period 2022-2027.

Due to the COVID-19 pandemic, several express firms in China were unable to operate regularly from January to February 2020. The transportation restriction of express companies reverted to normal at the beginning of March 2020. Significant corporate organizations have become prepared to fight the COVID-19 pandemic's detrimental impact. For example, in the first quarter of 2020, SF Express sold 1.7 billion express tickets. The organization's sales revenue increased to USD 4.8 billion.

China remains the Parcel Shipping Index's powerhouse. In 2020, China shipped more than 83 billion parcels, increasing 31% from 64 billion in 2019. This equated to 2643 parcels each second or approximately 228 million per day.

The rise of e-commerce platforms like Alibaba has been one of the key factors in the development of the courier, express, and parcel (CEP) sector in China even before the boost provided by the COVID-19 pandemic.

Scope of the Report

Courier, express, and parcel (CEP) refer to the collection of services that involves the delivery of various goods and products through different mediums such as air, water, and land across regions. These packages delivered by CEP are mainly non-palletized and weigh around a hundred pounds collectively. The Chinese domestic courier, express, and parcel market is segmented by business model (business-to-business (B2B), business-to-customer (B2C), and customer-to-customer (C2C)), type (e-commerce and non e-commerce), and end user (service, wholesale and retail trade, healthcare, industrial manufacturing, and other end users). The report offers size and forecasts for the Chinese domestic courier, express, and parcel market in value (USD billion) for all the above segments. The impact of the COVID-19 pandemic will also be covered in the report.

By Business Model
Business-to-Business (B2B)
Business-to-Customer (B2C)
Customer-to-Customer (C2C)
By Type
E-commerce
Non E-commerce
By End User
Services
Wholesale and Retail Trade
Healthcare
Industrial Manufacturing
Other End Users

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Key Market Trends

Growth of E-Commerce in China Driving the CEP Market

China’s e-commerce market is not only large but diverse, providing rich pickings from a variety of brands. Although richer cities like Beijing, Shanghai, Guangzhou, and Shenzhen remain important, the main growth drivers are smaller and less wealthy cities. These cities are home to emerging middle-income buyers who have turned to online stores in droves due to limited access to physical retail stores in their cities. They mainly purchase value-for-money consumer and household necessities rather than high-end goods.

In 2021, China contributed more than half of the world's e-commerce retail sales, with its sales value exceeding that of Europe and the United States combined. In 2021, China had the world's largest digital buyer population, with over 840 million people.

In 2021, over 90% of e-commerce sales in China were through mobile devices versus 43% in the United States. More broadly, in 2021, China had 932 million mobile internet users representing 99.2% mobile internet penetration.

The government announced plans to build 5G networks in Beijing, Shanghai, Shenzhen, and other key cities in 2019. In 2021, operators had 450 million customers, or 27% of all subscribers, and 1.15 million 5G base stations. In 2021, the handset sector shipped 210 million 5G phones, up 69% from 2020.

The improvements in technology are projected to improve internet connectivity in rural regions, hence boosting the country's internet user base. With increased internet usage among residents, the e-commerce industry is expected to develop rapidly, thus, propelling the expansion of China's CEP market.

China Domestic Courier, Express and Parcel (CEP) Market Trends

Growth of Courier and Parcel Market Fueling CEP Growth in China

According to the country's postal service regulator, China's courier industry handled more than 74 billion packages in 2021, an average of 52 deliveries for each individual. According to the bureau, over 63 billion packages were delivered via express service in 2020, recording a 24% increase year-on-year.

According to the State Post Bureau, the Chinese express delivery development index stood at 316.2 in 2021, up 11.1% year-on-year. The development scale sub-index was 343.8, up 26.2% year-on-year, while the service quality sub-index was 483.3, up 5.6% year-on-year.

New delivery service models have been emerging, bringing courier services to more villages. In 2021, a courier-postal service combination was introduced to 155,000 administrative villages.

In 2021, the State Post Bureau (SPB) continued to tap into the rural market's potential, constructing 40 new high-quality programs demonstrating courier services' facilitation of modern agriculture, bringing the total to 100. In 2021, 37 billion express parcels were collected and shipped to rural areas across China, facilitating USD 290.26 billion in rural-urban commodity exchanges.

China Domestic Courier, Express and Parcel (CEP) Market Growth

Competitive Landscape

The Chinese domestic CEP market is fragmented, with a mix of global and local players, which makes the sector highly competitive. Some of the key players in the market include China Post, SF Express, YTO Express, etc. The market has also seen the entrance of new players, with logistics startups like J&T Express, Hivebox, and Lalamove. The local companies are facing high competition from multinational companies that have a comparatively well-developed infrastructure. China’s CEP market witnessed some acquisitions and disinvestments in 2021. Delivery and parcel companies are investing in technologies like parcel tracking and click-and-collect systems to gain an edge and scale their services in the country.

Recent Developments

In February 2022, China Postal Express & Logistics, a logistics and supply chain company, signed a strategic cooperation agreement with CTS International Logistics, a logistics and supply chain company. This is one of many concrete actions taken by both sides to accelerate the development and expansion of modern logistics enterprises' international competitiveness, promote high-quality development of China's logistics industry, better serve the real economy, and fulfill the mission and responsibility of the logistics industry's "national team."

In March 2021, self-driving truck technology company Plus announced that SF Express, a Chinese multinational delivery services and logistics company, had selected it for China’s first commercial freight pilot to demonstrate how supervised autonomous trucks improve logistics operations.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Value Chain/Supply Chain Analysis

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Technological Trends and Automation

    5. 4.5 Insights into China Postal and Mail Services

    6. 4.6 Insights into the E-commerce Market

    7. 4.7 Insights into Startups and Venture Capital Funding in the CEP Industry

    8. 4.8 Elaboration on Storage Functions and Value-added Services in CEP Business

    9. 4.9 Brief on Courier Rates

    10. 4.10 Insights into Reverse Logistics and Same-day Delivery Market

    11. 4.11 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints/Challenges

    3. 5.3 Market Opportunities

    4. 5.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Buyers/Consumers

      2. 5.4.2 Bargaining Power of Suppliers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Business Model

      1. 6.1.1 Business-to-Business (B2B)

      2. 6.1.2 Business-to-Customer (B2C)

      3. 6.1.3 Customer-to-Customer (C2C)

    2. 6.2 By Type

      1. 6.2.1 E-commerce

      2. 6.2.2 Non E-commerce

    3. 6.3 By End User

      1. 6.3.1 Services

      2. 6.3.2 Wholesale and Retail Trade

      3. 6.3.3 Healthcare

      4. 6.3.4 Industrial Manufacturing

      5. 6.3.5 Other End Users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 China Post

      2. 7.2.2 SF Express

      3. 7.2.3 YTO Express Group Co. Ltd

      4. 7.2.4 ZTO Express

      5. 7.2.5 STO Express Co. Ltd

      6. 7.2.6 Best Inc.

      7. 7.2.7 Deppon Logistics Co. Ltd

      8. 7.2.8 Yunda Express

      9. 7.2.9 China Postal Tracking

      10. 7.2.10 Haihang Tiantian Express

      11. 7.2.11 FedEx

      12. 7.2.12 Kerry Logistics

      13. 7.2.13 ZJS Express*

    3. *List Not Exhaustive
  8. 8. FUTURE OF THE MARKET

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport/Courier Industry to Economy)

    2. 9.2 Key Statistics Related to CEP Sector (such as Sales/Revenue, Consumer Preferences, etc.)

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Frequently Asked Questions

The China Domestic Courier, Express, and Parcel (CEP) Market market is studied from 2018 - 2027.

The China Domestic Courier, Express, and Parcel (CEP) Market is growing at a CAGR of >8% over the next 5 years.

China Post, SF Express, YTO Express Group Co. Ltd, Deppon Logistics Co. Ltd, STO Express Co. Ltd are the major companies operating in China Domestic Courier, Express, and Parcel (CEP) Market .

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