The IPC has published its Global Postal Industry Report 2022 Key Findings, which reveal that despite global uncertainty and reduced e-commerce growth, the postal industry shows resilience and an average revenue growth of 0.1%.
On aggregate, total postal industry revenue reportedly reached €492.8bn (US$540.5bn) in 2022, up €17.2bn (US$18.9bn) or 3.6% on 2021 results. In 2022, logistics and freight contributed more than €9bn (US$9.8bn) growth to 2022 industry revenue. Parcels and express is no longer the primary driver for industry expansion. With an average growth of 0.1% (when all posts are weighted equally) posts show resilience despite global uncertainty, high energy prices and the cost-of-living crisis.
According to the report, the slowdown in e-commerce growth resulted in declining parcel volumes in 2022. With the end of the Covid-related restrictions and the increased cost of living, growth in the last-mile delivery market flattened in 2022. The significant growth trend in e-commerce was curbed, directly affecting posts’ business.
Although rates of decline were found to have slowed in the past two years – partly due to the bounce-back effect from the Covid-19 pandemic – digitalization and e-substitution continued to affect demand and mail volumes fell a further 6.2% in 2022 on average. Driven by the double blow of a high-inflationary post-pandemic economic environment, and global energy and material shortages precipitated by war, mail division revenue declined by 3.9%. The revenue decline is less acute than in 2020, when the postal industry was hit by the pandemic.
The researchers also found that mail’s share in the postal industry’s overall revenue has decreased over the past five years to less than 28% of postal revenue. Parcels and express now account for more than 25% of the overall postal revenue. Posts are driving growth by investing in sectors that build on core capabilities and expertise, such as e-commerce logistics, retail financial services and digital communications. Furthermore, more than 20% of postal revenue was found to be derived from international operations.
Holger Winklbauer, the CEO of the IPC, stated, “Posts’ efforts to diversify and innovate have allowed them to sustain growth despite global uncertainty and the cost-of-living crisis. The transformation of the posts from mail into more diversified companies is further accelerated.”
The IPC also recently published the results of its 2022 IPC Sustainability Measurement and Management System (SMMS). To find out more, click here.