Online shopping boom expected to outlast Covid

Boom will fuel growth in the already competitive parcel delivery market, said ComReg

The parcel delivery market was worth up to €722m before the Covid-fuelled acceleration in online shopping, in 2019, said ComReg. 

Consumer demand for online spending is likely to remain high beyond the pandemic, new research commissioned by the communications regulator ComReg claims.

It said this will fuel growth in the already competitive parcel delivery market.

In a detailed report on the parcel delivery market, ComReg said the sector was worth up to €722m before the Covid-fuelled acceleration in online shopping, in 2019. 

It said business-to-consumer deliveries now make up nearly two-thirds of volume.

“Our research suggests that demand is likely to grow further over the next few years," said ComReg.

All of the key players in the sector are expecting current demand levels to continue to grow over the next few years.” 

This week, An Post, which is investing €100m in upgrading its parcel capabilities, said its parcel delivery business grew 100% last year, but has dropped off by 20% since shops reopened. 

It still expects 15% annual growth in each of the next two years from parcels.

ComReg said price competition between the seven leading parcel operators, An Post, UPS-Nightline, GLS, Fastway, TNT, DPD, and DHL Express, has intensified. 

It said the seven operators had an annual turnover of €585m in 2019 and processed 105m parcels — again, prior to the Covid boom in online orders.

An Post sees future demand for its physical post offices partially coming from them acting as collection points for out-of-home e-commerce deliveries.