The express transport market - France (2023)

1.2. The global express freight market benefits from a stimulating economic environment

The size of the global express delivery market was estimated at $***.** billion in **** and is expected to reach $***.** billion in ****, representing growth of *.*%. The market is then expected to grow at a CAGR of *.*% until ****.

Estimated growth in the size of the global express delivery market World, **** - ****, in $ billions Source: ****

The global express market benefits from an economic environment consisting of dynamic B*B flowsflows, but also theexpansion of e-commerce, resulting in a boom in B*C flows.The importance ofcross-border e-commerce is a growth factor for the sector worldwide, although the vast majority of express parcel shipments remain domestic today: cross-border express freight trade is benefiting from the increase in volumes of goods traded to and from France, particularly between European countries.

Growth in the express delivery market is currently hampered by a lack of infrastructure and high operating costs. However, factors such as technological advances in delivery services and the emergence of last-mile delivery solutions, combined with innovations in delivery vehicles, are likely to stimulate further expansion of this market.

Asia-Pacific dominates retail and e-commerce sales, accounting for **.*% of retail sales and **.*% of digital sales, largely thanks to China.North America andWestern Europe follow with **. *% and **. *% of retail ...

1. 3. express freight: a thriving market in France

The French express freight market is registered under NAF code **.**A, which groups together the courier and express freight markets. Thus, the size of the express freight market can be obtained by studying this broader sector.

courier and express freight market sales trends France, **** - ****, in € billions Source: ****

In ****, sales amounted to €*.*** billion, while by **** they will have risen to €*.*** billion. This represents an increase of **.**% over the same period. Sales trends have fluctuated over the years. After a slight increase between **** and ****, there was a noticeable drop in ****, probably attributable to the economic crisis. However, sales gradually recovered after ****, with particularly strong growth after ****, peaking in ****. This upward trend indicates sustained business growth over the years.

In ****, express freight will account for **.*% of the branch's total sales, down *.* points on the previous year[***]. As a result, the French express freight market was worth *.*** billion euros in ****, of which domestic express freight accounted for **.*%, down *.* points on last year, returning to almost the same level as in ****.

In France, there are over **,*** companies specializing in express freight transport. The majority of these companies are small, employing fewer than ** people each. It is common for large companies to delegate the delivery of ...

1.4. A special feature of the market: e-commerce, a growth driver for the sector

E-commerce refers to all commercial transactions carried out via digital interfaces, essentially on the Internet using computers, tablets, smartphones and other devices.

Total sales generated by e-commerce, by type of purchasing device France, ****-****, € billion Source: ****

In ****, sales in the e-commerce sector, including products and services, will total €***.* billion, marking an increase of **.*% on the previous year. This growth is mainly attributed to the notable increase in sales in the transport, tourism and leisure sectors, which boosted the services sector with a **% year-on-year rise, representing a **% increase over ****. However, sales of online products were down *% on ****, although up **% on ****.

Number of active e-commerce sites France, ****-****, thousands Source: ****

In ****, the number of active e-commerce sites in France increased by *% year-on-year, reaching a total of ***,***. This growth, which represents more than **,*** new sites, is attributed in part to the impact of the pandemic, which prompted retailers to expand their online presence. Changes in purchasing behavior, with a growing preference for online shopping, also contributed to this increase.

E-commerce and B*C flows are growth drivers for express freight : they multiply the number of parcels to be delivered to individuals. They also make parcel delivery more complex, as more and more parcels ordered ...

2.1. Home delivery and parcel tracking: French preferences

The consumption habits of the French population are favorable to express freight: the French are more inclined to have deliveries made to their homes, and to be able to track their deliveries in real time.

Home delivery is preferred in France, but delivery to a relay point is also popular:

A study conducted by Getbyrd reveals that for **% of e-commerce consumers, the delivery method is a determining factor in their purchasing process. This suggests that e-tailers need to constantly improve and diversify their delivery options to effectively meet their customers' expectations, particularly in terms of speed and flexibility[***].

According to the FEVAD/Médiamétrie barometer of January ****, **% of online shoppers already preferred home delivery as a delivery method. With the expansion of telecommuting, this delivery option has become even more popular[***].

According to an OpinionWay survey, relay delivery is one of the most popular delivery methods for the French, with **% using it during the health crisis. The groups most likely to use this delivery method are **-** year-olds (***).

Main reasons why consumers prefer relay point delivery France, ****, in Source: ****

The criteria of ease of collection and delivery times are more highly valued by certain categories of people. In fact, **% and ...

2.2 A minority of French are prepared to pay more for shorter delivery times

According to an OpinionWay survey published in ****, too long a delivery time is the second reason leading customers to abandon their order. In fact, **% of those surveyed said they had already abandoned an online purchase because of a delivery time that was too long.

Reasons for abandoning an online purchase France, ****, in % Source: ****

Furthermore, we see that the shorter the delivery time, the more consumers are willing to pay more.

are you willing to pay more for the following types of delivery? France, ****, in Source: ****

However, the proportion of people actually prepared to pay more for faster delivery remains in the minority, still representing less than a fifth of respondents. According to a survey conducted by Research Now for Neopost Shipping, **% of consumers consider delivery charges to be too high. What's more, when these costs exceed a certain amount, **% of consumers opt for in-store purchases.

According to a survey of French retailers and consumers, there is a divergence of opinion regarding delivery preferences.

Do customers prefer free or fast delivery? France, ****, in % Source: ****

While **% of retailers believe French customers prefer free delivery, **% believe they prefer fast delivery. However, when consumers are questioned directly, **% express a preference for free delivery, while only ...

2.3 French people's preferences for different parcel delivery companies

Numerous delivery companies operate in France, but it's clear that consumers prefer French groups.

How the French rate the different parcel delivery companies France, ****, in Source: ****

The three groups preferred by the French are French brands: Colissimo (***). The appreciation gap between French brands and those of other nationalities is wide, since UPS ranks *ᵉ with only **.*% appreciation.

Appreciation of parcel delivery companies by gender France, ****, in % Source: ****

There is a distinction between the sexes: women tend to prefer French players (***).

Appreciation of parcel delivery companies by age group France, ****, in Source: ****

We can see that for French brands, it's the ** - ** age group that gives the best score. For foreign players, on the other hand, the highest-scoring age group is **-**. This can probably be explained by the fact that older age groups are more likely than younger ones to prefer French brands.

Appreciation of parcel delivery companies by socio-professional category France, ****, in Source: ****

There is no clear trend in the appreciation of French parcel delivery companies according to socio-professional category. CSP+ people prefer Colissimo and Chronopost, but they like Mondial Relay the least. On the other hand, when it comes to foreign players, it's almost systematically the CSP+ who give the ...

3.1. The French express freight market is becoming increasingly concentrated

The number of courier and express companies in France is steadily declining, from *,*** in **** to *,*** in ****, corresponding to a drop of around **%.

number of establishments in the courier and express freight sector France, **** - ****, in number of establishments Source: ****

This phenomenon reflects a concentration of the business, with the biggest companies in the sector buying out players.

The number of employees in the market has varied little since ****, rising slightly to **,*** in ****, an increase of *.*% compared to ****.

Number of employees in the courier and express freight sector France, **** - ****, in number of employees Source: ****

This structural increase in the number of employees is reassuring against a backdrop of automation of parcel sorting and movement processes in the ever larger and more modern warehouses built by the major parcel delivery companies.

What's more, the business failure rate in the postal and courier sector has been falling since ****, and will be *% in **** and ****.

change in business insolvency rate in postal and courier activities France, **** - ****, in % Source: ****

In ****, the government measures introduced during the health crisis were still in force, which surely explains the very good default rate results. These measures include freezing the date of cessation of payments, setting up a solidarity ...

3.2. Strengthening national and international players

The two world leaders in express parcel delivery are American giants FedEx and UPS. Lately, FedEx has benefited from an influx of customers from UPS, which has been affected by the threat of strikes. An agreement was reached with employees ahead of the *ᵉʳ August **** deadline, averting the strike. In addition, FedEx's freight arm has picked up part of the business of Yellow Corp. a truck delivery service, which declared bankruptcy earlier this month[***].

The major international players have several sites and depots in France, such as FedEx Express, which has operated a hub at Roissy - CDG since ****, with economic spin-offs estimated at *** million euros a year[***].

DHL Express is the market leader in international parcel delivery in France, with a **% market share. It employs over *,*** people, placing it ahead of its main competitors, FedEx and UPS.

French groups are also expanding internationally, such as Bordeaux-based Sterne, which acquired Germany's Nox NachtExpress in early ****. The company, which had sales of €*** million in ****, has grown from *,*** to *,*** employees, enabling it to expand into Austria, Belgium and the Netherlands[***].

Companies revolving around these major players are also expanding, such as CT Express, an express transport brokerage and consulting firm founded in ****. It focuses ...

3.3. The different phases of parcel delivery and the last mile

Sending a parcel is a process that requires a number of different stages to ensure that it runs smoothly and is optimized, which is why express delivery companies are so efficient.

The last stage in the parcel delivery process is the so-called"last mile". This term designates the final segment in the delivery of an order to the home, generally the most difficult to manage and the most costly, representing ** to **% of total delivery costs. This problem has grown with the expansion of e-commerce and the increasing number of parcels to be delivered. The complexity of the last mile lies in the actual delivery of the product and the availability of the recipient to receive the parcel. What's more, transport costs for this segment are generally not shared or mutualized with other parcels, thus increasing its cost[***].

To overcome the difficulties of the last mile, express carriers are focusing on technological innovation or entering into partnerships with start-ups in order to gain greater flexibility (***).

4.1. Road freight, the main medium for express deliveries

There are different types of express freight, depending on the delivery method used:

road rail maritime air

Modal shares of land freight transport France, ****, in Source: ****

In ****, for the first time since ****, the share of road transport by heavy goods vehicle in overland freight transport (***) has fallen, from **.*% in **** to **.*%. However, this method is still the most widely used. At the same time, the share of rail freight transport, which had been declining steadily since ****, increased in **** to **.*%, compared with *.*% in ****. The share of river transport remained relatively stable, hovering around *%. The majority of truck flags are French.

Share of French and foreign flags France, ****, as % of total Source: ****

In ****, more than half (***). Moreover, **.*% of this transport was carried out under foreign flags, a proportion down one point on the previous two years, returning to the **** level. The international activity of the French flag, for the portion of journeys made in France, made a more limited contribution to domestic road transport, representing around *.*% in ****.

4.2. A steady rise in prices

The following graph shows the production price indices for French courier and express freight services. These indices have been rising since ****.

Output price indices for French services to French courier and express companies France, Q*-**** - Q*-****, in price indices Source: ****

The rise in prices can be explained by the increase in fuel prices caused first by the energy crisis at the end of ****, then by the outbreak of the Russian-Ukrainian conflict in February ****. Inflation is also undoubtedly responsible for this price rise.

4.3. Transport prices

Websites such as tarif-colis.com enable consumers to easily compare prices and encourage competition. The procedure simply involves entering the country of departure and arrival, and the weight and dimensions of the parcel: a list of carriers detailing the service and price is then proposed by the website.

Prices vary according to a number of factors, including

the distance between the point of departure and the destination ; parcelsize and weight; delivery times and location.

For example, for a national shipment of a parcel weighing a maximum of *kg and measuring **x**x* cm, to be dispatched within a maximum of D+* (***), here are the different offers available:

4.4. Innovation at the heart of the express freight sector: some French start-ups make their mark

Faced with the big global players with their substantial economies of scale, some French start-ups are trying to assert themselves by being more innovative, flexible and digital.

Trusk, for example, aims to revolutionize delivery. The company's business model is based on the express transport of bulky objects, with delivery within the hour by professionals and handlers, at an advantageous price. The startup raised €* million in March **** from funds via ID and Daphni. It now aims to go international in Europe.

Another start-up, Cubyn, is an e-commerce logistics platform that offers professionals a range of services to simplify their deliveries: it is at once a courier to search for products to be delivered in under three hours, a prospector to detect the most attractive rate between several delivery companies (***) and a logistician to pack the products to be delivered. It has carried out over two million shipments since its creation and raised €** million in July **** from DN Capital[***].

Major players are taking advantage of this craze to sign contracts with some of these most promising start-ups. For example, in ****, DHL Express teamed up with collaborative delivery startup You*You, acquired by Yper in ****, to improve its last-mile deliveries in city centers.yper ...

5.1 Installation constraints

Professional road haulage contractors are subject to specific regulations. They must register their company, whether using two- or four-wheel motorized vehicles, on the transporters' register managed by the Direction Régionale de l'Environnement, de l'Aménagement et du Logement (***). Before registering, they must obtain authorization from the regional prefect, via the DREAL, to operate their business.

Registration in the transport register requires compliance with four obligations:

professional competence must be demonstrated by appointing a transport manager responsible for various tasks, including vehicle maintenance and contract verification. This manager, who may be a manager, a full-time employee or an external service provider, must obtain a certificate of professional competence; the company must demonstrate financial capacity, with specific amounts for vehicles weighing less than *.* tonnes. A bank guarantee can cover up to **% of the required amount in the event of shortfall; the company must have its head office in France and keep its administrative and accounting documents on site, while maintaining a fleet of vehicles assigned to the activity; the legal representative or transport manager must be in good standing, and must not be banned from exercising a commercial or industrial profession, or have committed certain criminal offences.

Individuals and entities in the ...

5.2 The main points of professional regulations

Regulation of road haulage is based on the law of December **, ****, known as the"LOTI".the Loi d'Orientation des Transports Intérieurs (***), recodified in the Transport Code in December ****, establishes a right to transport that aims to enable travel under reasonable conditions of access, quality, price and cost for the community. It also provides a framework for relations between transit authorities and operators, requiring the signing of a contract between the two parties. This law facilitated the application of the "Sapin Law" in ****, by advocating the search for the best cost for the organizing authority and the principle of contracting.

In the road haulage sector, a company is authorized to subcontract up to **% of its annual sales. If it exceeds this subcontracting threshold, the company must obtain the status of freight forwarder.

Since ****, regulations have required all employees in the light transport and racing sector using a motorized vehicle (***) to undergo specific training. This training consists of a main three-day session to be completed as soon as the employee joins the profession, followed by an additional two-day training session to be completed within six months of the initial training[***].

6. Segmentation

• Geodis
• DB Schenker
• FedEx
• GLS (Royal Mail)
• UPS
• Colissimo La Poste
• Chronopost (La Poste)
• Mondial Relay (Otto group)
• DHL International Express France
• TNT Express
• DHL Group
• InPost
• Top Chrono
• Coursier.fr
• Coursier Privé
• Les Nouveaux Coursiers
• Coursier.com - À Toute Vitesse
• Central Courses
• Gemeaux Courses
• Excelcourses
• Deliver.ee
• Deliveroo
• Novéa
• Birdiz
• Fends la bise
• Urban Cycle
• Becycle