The courier market - France

1.2 Global market growth

Revenue from courier delivery activities - World World, ****-****, $ billion Source: Ti-insight CAGR +*.**%

In ****, the global courier market was valued at $***.* billion, up from $***.* billion in ****, which equates to a CAGR of *.**% per year over the period. This growth is driven by an increase in fast-moving consumer goods (***), primarily in emerging markets. In addition, the consumption of goods, especially through e-commerce, is increasing, which is also increasing the demand for courier and delivery services.

According to globenewswire, the market is expected to grow at a CAGR of *% after ****. In other words, the market will continue to grow in the future, albeit at a relatively slower pace than between **** and ****.

1.3 The domestic market

Revenues from delivery and courier activities - France France, ****-****, in billion euros Source: ****

In France, the courier market is growing rapidly. In ****, this market was worth €*.** billion, and was estimated to reach €*.** billion in ****, which equates to a CAGR of **.**% over the period. Globally, France accounted for approximately *.*% of the total market in ****.

To obtain this market size, we use the turnover index provided by INSEE for NAF code **.** "Other postal and courier services". On this basis, we obtain a reference year in **** on which we base our calculations. We multiply this value by each of the following year's average changes in the revenue index, also provided by INSEE.

The main driver of this growth is the increase in e-commerce. The French are buying more items online than ever before; thus, **.* million French people ordered at least one item online in ****. The same source reports that between **** and ****, revenue in the French e-commerce market increased by **% (***). Delivery services are always a necessity in this case, which is why mail services are benefiting from this trend[***].

2.1 Analysis of the French consumer

Preference for parcel deliveries France, ****, in percent Source: ****

In ****, French consumers were asked about their preferences for package delivery. It can be seen that **% of those surveyed said they prefer home delivery. The second most common category was pickup at a collection point (***).

This is relevant to the delivery services and courier market, as they are looking to invest in transportation options that meet the demand of the French. In other words, since the French are most likely to order home delivery items, companies need to have vehicles that can travel on different types of roads. In addition, since this is the most popular way to get packages, demand will be stable.

Top items purchased in e-commerce France, ****, in percent Source: ****

E-commerce is totally linked to the courier and delivery market: indeed, there is a shift in consumption and retail from physical stores to online commerce for almost all product segments. For example, in ****, the share of retail conducted in e-commerce was *% versus *.*% in ****.[***]

The chart above is an important metric because it provides insight into the most purchased items, and thus the most sought-after package types. For example, beauty and health products often require less space per product than shoes. ...

2.2 Demand trends

Do you think the drone is a good option in the following cases? France, ****, in % Source: ****

Drones could revolutionize the courier and delivery industry. In ****, **% of respondents said they saw potential in this sector.

Drones can perform many functions in this sector. For example, they can transport goods from ports to city centers, but also deliver blood to hard-to-reach locations. [If this means of transport comes into effect, efficiency (***) could increase significantly, posing a serious threat to incumbents.

Indeed, in ****, La Poste launched its first drone intended for parcel delivery. However, the use of drones remains marginal in France because this mode of transport faces profitability difficulties.[***]

2.3 The impact of the Covid-19 crisis on the sector

Delays in delivery of products purchased online during Covid-** containment France, ****, in % Source: ****

In general, mail and packages continue to be delivered, albeit with some delay as we can see above. The global pandemic is disrupting supply chains, and the courier and delivery market is no exception.

From the chart above, it is clear that the problem of delays in France between the beginning of March and the end of April actually got worse; in the first week of March, only **% of products ordered online were delayed. By the end of April, this figure had risen to **%. One reason for this is the increase in traffic on e-commerce platforms, which meant that the supply of couriers and deliveries could not keep up with demand. For example, Amazon hired **,*** workers to keep up with the increase in purchases. [***]

The effect on the courier market is difficult to quantify, as there are no exact figures on how many packages ordered online are delivered by this means of transport. However, it is likely that small businesses have benefited, as they can help bridge the gap between supply shortages and increased demand. This potential positive effect can also be leveraged by the fact that non-food ...

3.1 Market structure

In France, La Poste, a state-owned enterprise, dominates mail services, measured by sales (***), but also geographically. For example, the latest postal law specifies that at least ** percent of the national population must be within * km, or less than ** minutes by car, of a La Poste point of contact. In other words, La Poste's mail services are present throughout the national territory. [***]

In France, in ****, the distribution of packages delivered for ChronoPost was approximately **% B*B and **% B*C. It can be assumed that this distribution is representative of the entire French territory. In other words, half of the parcels are related to commercial activity, and the other half are commercial.

The market is very saturated and will remain so as long as the demand for parcels increases. Again, it is mainly the strong growth of e-commerce that explains the saturation of the market. LaProvence explains it as "a market where there is room for everyone, so much so that investments in new logistics platforms are pouring in". For example, Mondial Relay has experienced double-digit growth over the past ** years in France, and has about **,*** points nationwide. Chronopost has about *,*** physical collection points and about **,*** offices. Amazon is also in the parcel ...

3.2 Analysis of sector revenues

The figures below are based on NAF code **.** "other postal and courier activities. Although this NAF code encompasses activities outside the scope of this study, it is still worth considering this data as it provides an overview of trends in the sector.

Revenue Index France, February **** - December ****, base *** in **** Source: ****

The chart above illustrates the turnover index for NAF code **.**. The index describes the evolution of revenues, with **** as the base year (***). We can see that overall revenues have increased since ****, with the index reaching ***.** in March ****.

This rapid increase in revenue also explains why the market is fragmented with an increasing number of new entrants seeking to establish themselves and gain market share.

In ****, the total pre-tax revenue of NAF **.* companies was €*.*** billion. By ****, that figure had increased to €*.*** billion. Again, this figure is larger than the market size we saw in section *.*, which can be explained by the fact that the code under consideration is not limited to courier players alone.

Industry Revenue Cyclicality France, February **** - December ****, base *** in **** Source: ****

The chart above analyzes the revenue cyclicality for actors related to NAF code **.**. In general, demand for this service peaks around December - which can be explained ...

3.3 Distribution

Breakdown of the means of transport used by the Services-Courier-Colis branch of the French La Poste Group World, ****, number of units Source: ****

The fleet of vehicles used by La Poste in **** is shown above. While not entirely representative of the entire sector, it is a good indicator of distribution in general since La Poste is by far the largest operator in France. We see that La Poste used **,*** cars, which is also the most common vehicle category, about **.* percent (***).

It is interesting to note that electric bicycles and electric vehicles in general were already widely used; it is likely that today, three years later, these numbers are even higher given the development of this industry.

Number of companies registered under NAF code **.* France, **** - ****, in number of companies Source: ****

The graph above shows the evolution of the number of companies operating in the NAF **.** sector "other postal and courier activities". We can see that the number of companies remains stable between **** and **** (***)

Workforce registered under NAF code **.**Z France, **** - ****, in numbers Source: ****

However, despite the constant number of companies in the sector, there has been an increase in the number of employees, from **** in **** to **** in ****, an increase of **%, testifying ...

3.4 Market share

Market share of major players in value France, ****-****, in millions of euros Source: ****

Due to differences in reporting, the revenue for some of the companies above has changed today. However, the turnover is the last reported and the ranking remains unchanged.

At the top, and by far the most dominant player in postal and mail services in France, is La Poste. The company had revenues of nearly €** billion in ****; of the top * companies shown above, this represents about **% of the market in terms of revenues. In second place, Chronopost had revenues of €*** million, but Chronopost is owned by La Poste, which confirms its dominance in the French market. The following players are all much smaller than La Poste.

4.1 Analysis of the offer

As mentioned in point *.*, the courier and delivery market is part of a larger market, namely that of light transport, which, according to the Syndicat National des Transports Légers (***) of less than *.* tons". More precisely, light transport is structured around four segments:

Urban mail: this covers all operations from the collection of a shipment directly from the sender to its transport to the recipient without any break in the load. The urban delivery service focuses mainly on letters and parcels weighing less than ** kg, for the secondary and tertiary sectors. The motorized fleet consists of * or * wheels, but in recent years a new generation of couriers has emerged on bicycles or non-polluting vehicles. There are different structures in the urban delivery market including for example couriers integrated in a circuit (***), etc. Classic delivery: with delivery in ** or ** hours or express delivery (***). Delivery services are based on the use of light trucks and vans, with drivers assigned to regular collection and delivery services, within the framework of circuits supported by groupage operations. Emergency: covers a wide range of tasks on national and even transnational routes, on behalf of the secondary sector: management of after-sales service, transport of specific parts to production ...

4.2 Price analysis

Source: ****

The companies are paid by commissions taken from the partners (***). On average, the commission varies between ** and **%. This percentage is variable and depends on the number of orders placed. The price often depends on the size of the items to be delivered and the distance to be covered by the carrier.

4.3 Cost analysis

Repair costs and expenses associated with NAF code **.* France, ****, in % Source: ****

The largest costs associated with "other postal and courier activities" are related to lease payments for real estate, which account for nearly **% of the value. Fuel purchases account for just over a third of the costs (***), and finally electricity expenses are also significant, at about **% of the total cost. This chart is important to consider for any entrepreneur looking to get established in this sector.

In addition, the fact that real estate expenses represent such a large share of costs may help explain why there are a growing number of startups that do not host an actual office but instead rely on technology and external parties to deliver packages. Examples of such companies in France include Couriier, Stuart, etc. The next section will discuss these types of players.

5.1 Regulatory framework

Reflecting the constant debate about the working conditions of couriers, French regulations are constantly evolving. [***]

According to sntl.fr transport for hire or reward is a commercial activity regulated by general or specific texts of the Civil Code, the Commercial Code and the Labor Code.

The LOTI, law of orientation of the Internal Transports. The GAYSSOT law of February *, **** regulates the exercise of the profession of light carrier for *-wheelers - application decree of August **, **** and orders. It should be noted that the urban *-wheeler race for hire or reward, for a time not concerned by the law and the decree, has entered in its turn in its field (***) The decree n°****-**** of December **, **** and its * related orders are intended to allow the application of the "Road Package". General standard contracts for goods, subcontracting and freight forwarding. The national collective agreement for road transport and auxiliary activities. The "Racing" rider n°** inserted in the collective agreement, the rider ** and ***. The texts relating to the responsibility of the principals and the repression of abusively low prices

To work for these companies, workers are often self-employed. On the consumer side, the flexibility is clearly an esset. Using the same application, consumers have ...

6.1 Segmentation

• La Poste
• Presstalis
• Couriier
• Coursier.fr
• Colisud Express
• Colisweb
• AppliColis
• Colis Privé
• Relais Colis