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Rapid growth in its e-commerce market, higher levels of disposable income and increased Internet penetration have made India among the top three fastest-growing markets for parcel shipment. India experienced high growth in parcel volumes in 2018, up 21 per cent year-over-year to 2.5 billion, and revenues achieved a CAGR of 20 per cent, according to the Pitney Bowes Parcel Shipping Index.
The annual report discovered global parcel volumes reached 87 billion in 2018, up from 74 billion parcels in 2017, and the highest since the index began. Despite unprecedented global trade uncertainty, the report forecasts this figure will more than double within the next six years, and reach 200 billion parcels by 2025, with a 13.7 per cent CAGR for 2019-2023.
The Pitney Bowes Parcel Shipping Index measures both volume and spend for business-to-business, business-to-consumer, consumer-to-business and consumer consigned shipments, with weight up to 31.5 kg (70 lbs) in 13 major markets, representing 3.7 billion people - the US, Canada, Brazil, Germany, the UK, France, Italy, Norway, Sweden, China, Japan, Australia and India. Based on proprietary and published data, the index has been compiled annually since 2015.
“India is experiencing a CAGR of 25 per cent in parcel volume since 2013-18 and year-over-year growth of 21 per cent," the report said. Safex, BlueDart and DTDC account for 25 per cent of the highly fragmented market in India.
Global shipping volumes remain on track to surpass 100 billion parcels in 2020 in aggregate, across the 13 countries reviewed . China remains the strongest influence on the market, with 51 billion parcels shipped in 2018. Excluding China, parcel volumes increased by 6 per cent, from 34 billion in 2017 to 36 billion in 2018. The global parcel revenue remains strong, reaching $317 billion – up 13 per cent since the previous year.
Key findings
1) China’s parcel industry volumes have achieved a CAGR of 41 per cent from 2013-2018. Volume grew 26 per cent year-over-year, although growth has declined from the 48-61 per cent growth seen since 2012-16.
2) The US ranks highest on the index for parcel shipping revenue at $119 billion. Brazil sees the second-highest year-over-year growth rate in the index, with a 25 per cent increase in year-over-year parcel volume from 2017-18
3) India is experiencing a CAGR of 25 per cent in parcel volume since 2013-18 and year-over-year growth of 21 per cent
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