Fairfield Market Research UK Last Mile Delivery Market Size, Share, Analysis, Growth, 2030

UK Last Mile Delivery Market

UK Last Mile Delivery Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2029 - (By Vehicle Type Coverage, By Delivery Type Coverage, By Service Type Coverage, By Topography Coverage, By Cargo Type, By End-user Industry and By Company)

Published Date: Apr 2023 | Format: | No. of Pages: 97

Industry: Automotive & Transport


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UK Last Mile Delivery Market Outlook

The UK’s last mile delivery industry exceeded revenue of US$18.3 Bn in 2022 and is likely to reach the valuation of US$35.3 Bn toward the end of 2029. The UK last mile delivery market report closely examines it to uncover how the growth will unfold.

Market Analysis in Brief

Logistics typically involves complex processes all through the supply chains. However, the last mile or final mile can be the most complex, and most expensive leg of supply chains. Influenced by the various challenges, and drivers especially amid the transformed industry dynamics post-pandemic, last mile delivery is a multi-billion-dollar industry today. The UK represents one of the world’s most important and interesting markets for last mile delivery service providers. It thus becomes imperative to comprehend the dynamics of the same considering the various associated factors like the COVID-19 impact, evolving consumer attitudes, changes in food delivery logistics during mealtimes, e-Commerce penetration rate, brand perceptions, and top growth strategies of vendors amidst boosting market competition.

UK Last Mile Delivery Market

Key Report Findings

  • The UK’s last mile delivery market is poised to demonstrate nearly 9.8% growth in revenue during 2022 – 2029
  • B2C remains the largest services type segment generating demand for last mile delivery across the UK
  • With 75.3% revenue share, Dry Goods continues to be the largest cargo type segment in the UK last mile delivery market
  • FMCG leads the UK’s last mile delivery industry
  • Royal Mail, DPD Group, Amazon, DHL, FedEx represent the top five

Growth Drivers

e-Commerce Expansion

The UK last mile delivery market reaps a massive benefit from the developments in e-Commerce. The recent ecommerceDB data refers to the UK as the 4th largest e-Commerce market, followed by Germany, and the top industry contributors include fashion, electronics, personal care, food, furniture and appliances, and DIY. The consumer comfort with shopping online has seen dramatic increase recently, further driven by the pandemic, which points to the parallelly expanding logistics and delivery services industry. The UK last mile delivery market has gained substantially from the rapidly proliferating home delivery and takeaway culture, especially post-pandemic.

Spike in Parcel Shipment Volumes in 2021

The e-Commerce boom in the UK took overall parcel shipment volumes in the UK alone beyond 4 million in the year 2021. While this brought in an excellent growth opportunity for the retail world, as well as carriers, it also meant a substantial pressure on the UK’s last mile networks, and the overall supply chain networks. Moreover, amidst growing consumer urge for faster deliveries of goods, both the retailers and carriers found it important to first optimize their delivery systems to be able to cater to the demand upsurge and create elevated delivery experiences. The UK last mile delivery market thus is on an uptrend.

The Mushrooming Home Delivery and Takeaway Trends

Although restaurants reopened with a bang post-pandemic and foodservice outlets reopened their arms to welcome customers to dine in, the number of consumers now inclined toward safer options like home delivery and takeaway has reflected a significant rise since 2021. The sustained out-of-home food trend, further complemented by the thriving home delivery and takeaway trend, are collectively uplifting the growth of UK last mile delivery market.

New Business Models Emerge

There are estimations of remarkable growth in the number of delivery vehicles on the roads of the major cities of the UK in the next few years. And if the door-to-door delivery models remain popular as ever, this growth will most likely become one of the key reasons behind traffic congestion on the streets of the UK. Alternative delivery models are thus being worked on by brands.

Another strongly linked factor here is the sustainability concerns around the carbon emissions by expanding last mile delivery vehicle fleets all over the country. Several local players in the UK are successfully working with electric vans, and cargo bikes.

Delivery Management Platforms Trend

Given the struggles of e-Commerce companies that routinely deal with low or medium shipment volumes, seamless management of the entire last mile process is an uphill job. The UK last mile delivery market however witnesses soaring popularity of some delivery management platforms like Metapack, and Paazl that assist these companies to effectively manage multiple forwarders under one roof. These platforms allow the selection of the most suitable delivery partners and options for improved customer satisfaction.

Growth Challenges

Costing Pressure

Addressing the gap between the inability to considerably raise the delivery costs and pay higher to delivery staff has become one of the prime actions of delivery companies. While models like free delivery offers help brands bode well with the cost-conscious consumer clusters, it imposes measurable pressure on both the foodservice operators, and delivery partners.

Newer takeaway innovations are emerging, one of which also includes reassessed pay structures of delivery drivers as well as foodservice staff – without increasing the delivery pricing exorbitantly. This is likely to play out as an important factor shaping the UK last mile delivery market in the future.

Growth Opportunities Across the Cities

London Leads

The City of London ranks top in the list of last mile hotspots of the UK and the report attributes this key positioning to the notably grown internal migrations (within the UK) over the recent past. The other key locations strongly performing in the UK last mile delivery market include Westminster, Kensington and Chelsea, Leicester, Ashfield and Staffordshire, Elmbridge, South Bucks, Northampton, and Coventry.

Competition Landscape – UK Last Mile Delivery Market

Some of the prominent last mile delivery providing companies in the UK include Royal Mail, Amazon, DHL, FedEx, UPS, DPD Group, Yodel, CitySprint, and Deliveroo.

Brands have been keen on experimenting with different business models to remain cost-competitive, convenient, yet efficient. Some of the popularly trending ones include the use of autonomous delivery vehicles, drone delivery, and tailored delivery windows or time slot delivery.

Recent Notable Developments

  • In 2022, Amazon announced to expand its fleet of cargo e-bikes, and walkers in the UK, leveraging the rampantly growing last mile delivery market across the nation
  • In 2023, the UK's sustainable first and last mile delivery provider Zedify announced a £5m investment in expansion of its bike delivery network in the UK
  • In 2023, DPD UK's acquisition of the last mile delivery brand Absolutely has accomplished, intending to add value to the former's same-day delivery capabilities
  • In 2023, a UAE-based last mile specialist and e-mobility start-up ONE MOTO announced investment worth US$150 Mn toward scaling up its UK’s last mile delivery operations
  • In 2023, the last mile logistics expert Stuart made an announcement of expanding its flagship Hub to Home service model throughout the UK. The company pioneers sustainable final mile logistics and operates with a 100% EV fleet

The UK Last Mile Delivery Market is Segmented as Below:

By Vehicle Type Coverage    

  • Two Wheelers
  • Light Commercial Vehicle
  • Medium & Heavy Commercial Vehicle
  • Drones

By Delivery Type Coverage  

  • Regular
  • Same Day / Fast

By Service Type Coverage    

  • B2B
  • B2C
  • C2C

By Topography Coverage      

  • Tier 1 Metros
  • Tier 2
  • Tier 3
  • Rural

By Cargo Type           

  • Dry Goods
  • Postal Goods
  • Liquid Goods

By End-user Industry 

  • Chemical
  • Pharma & Healthcare
  • FMCG
  • Hi-Tech Products
  • Food & Beverages
  • Misc.

Leading Companies   

  • Amazon
  • FedEx
  • DPD Group
  • UPS
  • International Distributions Services plc
  • Deutsche Post DHL
  • Yodel
  • Evri
  • CitySprint (UK) Ltd.
  • Kuehne + Nagel International AG
  • USPS
  • CEVA Logistics
  • Deliveroo

Inside This Report You Will Find:

1. Executive Summary
2. Market Overview
3. UK Last Mile Delivery Market Outlook, 2018 - 2029
4. Competitive Landscape
5. Appendix

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1. Executive Summary
     1.1. UK Last Mile Delivery Market Snapshot
     1.2. Future Projections
     1.3. Key Market Trends

2. Market Overview
     2.1. Market Definitions and Segmentations
     2.2. Market Dynamics
            2.2.1. Drivers
                   2.2.1.1. Surge In Online E-commerce Sales Accompanied with Rising Population
                   2.2.1.2. Rising Middle Class Population & GDP Per Capita
                   2.2.1.3. Growing Industrialization, Urbanization and Rising Preference Towards e-tailing
            2.2.2. Restraints
                   2.2.2.1. Slower transportation due to congestion, poor infrastructure facilities coupled with accidents or breakdown
            2.2.3. Market Opportunities
     2.3. Value Chain Analysis
     2.4. Supply Chain Interpretation
     2.5. Last Mile Delivery – Technological Roadmap
     2.6. Impact Analysis – BREXIT
     2.7. Impact Analysis – Vehicle Electrification
     2.8. Covid-19 Impact Analysis
            2.8.1. COVID-19: Industry Heatmap Analysis
     2.9. Porter’s Five Forces Analysis
     2.10. SWOT Analysis

3. UK Last Mile Delivery Market Outlook, 2018 - 2029
     3.1. UK Last Mile Delivery Market Outlook, by Vehicle Type, Value (US$ Mn), 2018 - 2029
            3.1.1. Key Highlights
                   3.1.1.1. Two Wheelers
                   3.1.1.2. Light Commercial Vehicle
                   3.1.1.3. Medium & Heavy Commercial Vehicle
                   3.1.1.4. Drones
     3.2. UK Last Mile Delivery Market Outlook, by Delivery Type, Value (US$ Mn), 2018 - 2029
            3.2.1. Key Highlights
                   3.2.1.1. Regular
                   3.2.1.2. Same Day / Fast
     3.3. UK Last Mile Delivery Market Outlook, by Service Type, Value (US$ Mn), 2018 - 2029
            3.3.1. Key Highlights
                   3.3.1.1. B2B
                   3.3.1.2. B2C
                   3.3.1.3. C2C
     3.4. UK Last Mile Delivery Market Outlook, by Topography, Value (US$ Mn), 2018 - 2029
            3.4.1. Key Highlights
                   3.4.1.1. Tier 1 Metros
                   3.4.1.2. Tier 2
                   3.4.1.3. Tier 3
                   3.4.1.4. Rural
     3.5. UK Last Mile Delivery Market Outlook, by Cargo Type, Value (US$ Mn), 2018 - 2029
            3.5.1. Key Highlights
                   3.5.1.1. Dry Goods
                   3.5.1.2. Postal Goods
                   3.5.1.3. Liquid Goods
     3.6. UK Last Mile Delivery Market Outlook, by End-users, Value (US$ Mn), 2018 - 2029
            3.6.1. Key Highlights
                   3.6.1.1. Chemical
                   3.6.1.2. Pharma & Healthcare
                   3.6.1.3. FMCG
                   3.6.1.4. Hi-Tech Products
                   3.6.1.5. Food & Beverages
                   3.6.1.6. Misc.

4. Competitive Landscape
     4.1. Last Mile Delivery Market – Competitive Landscape
     4.2. Top Start-ups: UK Last Mile Delivery
     4.3. Company Profiles
            4.3.1. Amazon
                   4.3.1.1. Company Overview
                   4.3.1.2. Product Portfolio
                   4.3.1.3. Financial Overview
                   4.3.1.4. Business Strategies and Development
            4.3.2. FedEx
                   4.3.2.1. Company Overview
                   4.3.2.2. Product Portfolio
                   4.3.2.3. Financial Overview
                   4.3.2.4. Business Strategies and Development
            4.3.3. DPD Group
                   4.3.3.1. Company Overview
                   4.3.3.2. Product Portfolio
                   4.3.3.3. Financial Overview
                   4.3.3.4. Business Strategies and Development
            4.3.4. UPS
                   4.3.4.1. Company Overview
                   4.3.4.2. Product Portfolio
                   4.3.4.3. Financial Overview
                   4.3.4.4. Business Strategies and Development
            4.3.5. International Distributions Services plc
                   4.3.5.1. Company Overview
                   4.3.5.2. Product Portfolio
                   4.3.5.3. Financial Overview
                   4.3.5.4. Business Strategies and Development
            4.3.6. Deutsche Post DHL
                   4.3.6.1. Company Overview
                   4.3.6.2. Product Portfolio
                   4.3.6.3. Financial Overview
                   4.3.6.4. Business Strategies and Development
            4.3.7. Yodel
                   4.3.7.1. Company Overview
                   4.3.7.2. Product Portfolio
                   4.3.7.3. Financial Overview
                   4.3.7.4. Business Strategies and Development
            4.3.8. Evri
                   4.3.8.1. Company Overview
                   4.3.8.2. Product Portfolio
                   4.3.8.3. Financial Overview
                   4.3.8.4. Business Strategies and Development
            4.3.9. CitySprint (UK) Ltd.
                   4.3.9.1. Company Overview
                   4.3.9.2. Product Portfolio
                   4.3.9.3. Financial Overview
                   4.3.9.4. Business Strategies and Development
            4.3.10. Kuehne + Nagel International AG
                   4.3.10.1. Company Overview
                   4.3.10.2. Product Portfolio
                   4.3.10.3. Financial Overview
                   4.3.10.4. Business Strategies and Development
            4.3.11. USPS
                   4.3.11.1. Company Overview
                   4.3.11.2. Product Portfolio
                   4.3.11.3. Financial Overview
                   4.3.11.4. Business Strategies and Development
            4.3.12. CEVA Logistics
                   4.3.12.1. Company Overview
                   4.3.12.2. Product Portfolio
                   4.3.12.3. Financial Overview
                   4.3.12.4. Business Strategies and Development
            4.3.13. Deliveroo
                   4.3.13.1. Company Overview
                   4.3.13.2. Product Portfolio
                   4.3.13.3. Financial Overview
                   4.3.13.4. Business Strategies and Development

5. Appendix
     5.1. Research Methodology
     5.2. Report Assumptions
     5.3. Acronyms and Abbreviations

BASE YEAR

HISTORICAL DATA

FORECAST PERIOD

UNITS

2021

 

2018 - 2021

2022 - 2029

Value: US$ Million

 

REPORT FEATURES

DETAILS

Vehicle Type Coverage

  • Two Wheelers
  • Light Commercial Vehicle
  • Medium & Heavy Commercial Vehicle
  • Drones

Delivery Type Coverage

  • Regular
  • Same Day / Fast

Service Type Coverage

  • B2B
  • B2C
  • C2C

Topography Coverage

  • Tier 1 Metros
  • Tier 2
  • Tier 3
  • Rural

Cargo Type

  • Dry Goods
  • Postal Goods
  • Liquid Goods

End-user Industry

  • Chemical
  • Pharma & Healthcare
  • FMCG
  • Hi-Tech Products
  • Food & Beverages
  • Misc.

Leading Companies

  • Amazon
  • FedEx
  • DPD Group
  • UPS
  • International Distributions Services plc
  • Deutsche Post DHL
  • Yodel
  • Evri
  • CitySprint (UK) Ltd.
  • Kuehne + Nagel International AG
  • USPS
  • CEVA Logistics
  • Deliveroo

Report Highlights

Market Estimates and Forecast, Market Dynamics, Industry Trends, Competition Landscape, Vehicle Type-, Service Type-, Delivery Type-, Topography, Cargo Type-, End-user-, Country-wise Trends & Analysis, COVID-19 Impact Analysis (Demand and Supply), Key Market Trends

FAQs : UK Last Mile Delivery Market

Growth of e-Commerce and the internet have been identified as major catalysts driving the last mile delivery market. Instant delivery demand and same-day delivery are also expected to boost the global market as companies eye greater efficiency, and accuracy.

The UK last mile delivery market is likely to hit the US$35.3 Bn mark by 2029 end.

Last mile delivery demand is growing substantially in the UK and B2C service type will be the leading segment, with a CAGR of 9.2% between 2022 and 2029.

Fairfield Market Research projects the UK last mile delivery market is likely to grow at a CAGR of 9.8% by 2029.

Companies such as Royal Mail, Amazon, DHL, FedEx, UPS, DPD Group, Evri, Yodel, CitySprint, and Deliveroo are some of the leading players in the UK last mile delivery market.

Our Research Methodology

Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.

View Methodology
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