According to preliminary results published today by International Post Corporation (IPC), postal operators worldwide saw revenue increase by 2.1% on average in 2023 , despite weaker economic growth rates globally.
Holger Winklbauer, CEO of IPC, commented on the results: “Preliminary results show that posts did overcome the post-covid dip of 2022 and renewed with moderate growth, despite overall challenging economic conditions and slower economic growth. Continuous efforts of posts to enhance performance and meet evolving consumer needs are paying off but need to be pursued.”
Although there was modest economic growth in 2023, it was weaker than previous years. The global economic slowdown is impacting costs and postal revenue, with mail volumes and profit margins down in some areas.
Logistics and parcels are posts’ main source of growth as traditional letter mail continues to decline. E-commerce and the rise of online shopping has boosted parcel delivery volumes. Although e-commerce still is a key revenue driver as it is driving parcel volumes up, growth has slowed from pandemic highs.
Considering the continuous advancement of digitalisation and changes in communication methods, letter volumes pursue their decline. The shift from letters to logistics and parcels has necessitated improvements in logistics and last-mile delivery services to meet consumer demand for fast and reliable delivery.
The postal industry tries to diversify into financial services and logistics and is investing heavily in digital technologies to improve operational efficiency. This includes automation, AI, and data analytics to optimise sorting and delivery processes.
Postal operators are increasingly collaborating on a global scale to streamline international shipping and customs processes. This cooperation helps to ensure faster and more efficient cross-border deliveries, benefiting both consumers and businesses engaged in international trade.
The complete 2023 results will be presented in the IPC Global Postal Industry Report, which will be published in November 2024. The report will include a comprehensive and detailed review of the postal industry, covering over 50 postal operators worldwide and analysing key market trends. A publicly available summary, the IPC GPIR Key Findings, will also be published in November.
For more information on the IPC Global Postal Industry Report, please visit:
http://www.ipc.be/services/markets-and-regulations/market-intelligence/global-postal-industry-report
