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

Japan 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 (Services, Wholesale and Retail Trade, Healthcare, Industrial Manufacturing, and Other End Users). The report offers size and forecasts for all the above segments in value (USD billion).

Market Snapshot

Japan domestic courier, express, and parcel market
Study Period: 2018-2027
Base Year: 2021
CAGR: >7 %

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Market Overview

The Japanese courier, express, and parcel (CEP) market is expected to record a CAGR of over 7% during the forecast period 2022-2027.

The e-commerce market has grown as a result of the COVID-19 pandemic, resulting in a growth in the volume of shipments shipped across the country. Despite online shopping for product sales being inextricably linked to home delivery, online shopping for product sales grew by 21.7% in 2020, while parcel delivery (trucks) grew by 11.5%. According to an announcement by the Ministry of Land, Infrastructure, Transport, and Tourism, the number of parcel delivery services (trucks) handled in FY2020 was 4.78 billion, an increase of 494.31 million over the previous year.

As demand for B2C e-commerce grows, the role of last-mile logistics has gained prominence in Japan. In recent years, there has been a significant increase in the last mile market due to increased demand for high-speed delivery and growing internet penetration, which has resulted in a higher number of regions being active online. In terms of the number of parcels handled by the three major courier companies in FY2020, Yamato Transport increased by 16.5%, Sagawa Express increased by 7.2%, and Japan Post increased by 11.9%.

E-commerce is one of the primary drivers of the Japanese CEP market's expansion. Due to increasing internet user penetration, the e-commerce industry's revenue is expected to reach USD 128 billion by 2024. The domestic CEP market is likely to witness growth and hold the major share during the forecast period in line with the B2C e-commerce boom.

Scope of the Report

Courier, express, and parcel (CEP) refer to the collection of services that involve 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 Japanese 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 the Japanese domestic courier, express, and parcel market in value (USD billion) for all the above segments.

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

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Key Market Trends

Increase in Parcel Volumes Fueling the CEP Market’s Growth

In the fiscal year 2020, the number of parcels handled by door-to-door delivery services in Japan reached a record high of 4.84 billion packages. Three service providers dominated this market, accounting for more than 90% of the traffic.

In the fiscal year 2020, Yamato Transport's TA-Q-BIN parcels were the leading door-to-door parcel delivery service in Japan and accounted for almost 43% of all parcels handled via trucks. Hikyaku Express came in second place, reaching a share of slightly over 28%.

All major carriers in the Japanese parcel market (courier and mail) reported an increase in sales in 2020. According to data from the Ministry of Land, Infrastructure, Transport, and Tourism, the total shipment volume of courier and mail services increased by 1% year-on-year, while those of courier services alone increased by 12% year-on-year.

The strong growth of courier services is due to the increase in electronic commerce. It was further accelerated by changes in consumer behavior due to the COVID-19 pandemic. Global economic uncertainty and supply chain problems are accelerating the surge in online shopping and delivery.

Japan domestic courier, express, and parcel market share

E-commerce Growth Driving the Market

Japan is the world's third-largest economy, with a GDP of USD 5 trillion. GDP per capita in 2021 was USD 42,927, with a projected increase to USD 51,620 by 2026. Japan is the world's fourth-largest e-commerce market, behind the United Kingdom, China, and the United States.

The Ministry of Internal Affairs and Communications conducts monthly surveys of Japanese shoppers' online expenditures and services, with a recent report showing a 13.7% increase from January 2018 to January 2020, while households’ online shopping increased from 36.3% to 42.8%.

There were 117.4 million internet users in Japan, and internet penetration was at 93% as of January 2021. Internet penetration in Japan was the highest in the age groups 20-59 (all over 97%), with 60-69-year-olds at 90.5%, and dropping slightly to 74% in the following age group (70-79). Smartphone penetration was 82% overall, with 20-29-year-olds having the highest penetration at 93%.

E-commerce growth in the market is estimated to be 6.24% per annum, with a market value of USD 143 billion by 2025. Food and Personal Care was the largest segment, worth USD 28 billion in 2021, followed by Fashion and Beauty (worth USD 25 billion), Toys, DIY, and Hobbies (worth USD 21 billion), and Electronics and Media (worth USD 18.9 billion).

M-commerce is popular in Japan, with revenue increasing year-on-year from USD 9 billion in 2010 to USD 41.5 billion in 2019. In 2021, m-commerce accounted for 45.5% of all e-commerce sales.

 Japan domestic courier, express, and parcel market report

Competitive Landscape

Japan's domestic CEP market is fragmented in nature, with a mix of global and local players, which makes the sector highly competitive. Some of the strong players in the country include Yamato, Sagawa Express, United Parcel Service, Japan Post, TNT Express, etc. The local companies are facing high competition from multinational companies that have a comparatively well-developed infrastructure. To leverage the opportunity of fast growth in the CEP industry, many new startups have entered the market. As a result of increasing market activity, the market is witnessing high competition among players.

Recent Developments

In September 2021, Japan Post, a government-owned corporation offering postal and package delivery services, and Sagawa Express, a major Japanese transportation company, stated that they had reached a basic agreement to collaborate on parcel delivery operations to meet the COVID-19 pandemic-induced growth in delivery demand.

In July 2021, Nippon Express, a Japanese logistics services company, opened a new temperature-controlled facility at Kansai International Airport. The newly opened NEX-PHARMA Logistics Hub Kansai Airport will focus on handling cargo for the pharmaceutical industry, aiming to comply with the Japanese version of GDP guidelines issued by the Ministry of Health, Labour, and Welfare. The total floor area of the hub is 568.96 square meters.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Government Regulations

    4. 4.4 Overview of the Logistics and Warehousing Market in Japan

    5. 4.5 Brief on Japan Freight Forwarding Market

    6. 4.6 Spotlight on Japan E-commerce Sector (Commentary on Domestic E-commerce)

    7. 4.7 Impact of COVID-19 on the CEP Market (Short-term and Long-term Impact on the Market and Economy)


    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 Threat of New Entrants

      2. 5.4.2 Bargaining Power of Buyers/Consumers

      3. 5.4.3 Bargaining Power of Suppliers

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry


    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


    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 Yamato

      2. 7.2.2 Sagawa Express

      3. 7.2.3 United Parcel Service

      4. 7.2.4 Japan Post

      5. 7.2.5 TNT Express

      6. 7.2.6 Schenker-Seino

      7. 7.2.7 Seino Transportation

      8. 7.2.8 DHL

      9. 7.2.9 FedEx

      10. 7.2.10 Takuhai

      11. 7.2.11 Nippon Express Company

      12. 7.2.12 National Air Cargo *

    3. *List Not Exhaustive

  9. 9. APPENDIX

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Frequently Asked Questions

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

The Japan Domestic Courier, Express, and Parcel (CEP) Market is growing at a CAGR of >7% over the next 5 years.

Yamato, Sagawa Express, United Parcel Service, Japan Post, TNT Express are the major companies operating in Japan Domestic Courier, Express, and Parcel (CEP) Market.

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