India's Express Parcel Market Growing Rapidly, Expected to Reach 24-29 Billion Shipments in Logistics by 2030

New Delhi (The Uttam Hindu): India's express parcel market is on a rapid growth trajectory, adding 24-29 billion shipments to the logistics sector by FY 2030, according to a latest report on Friday.

This is expected to grow at a compound annual growth rate (CAGR) of 19-23 per cent from the scale of 8-9 billion shipments by FY24.

According to a RedSeer Strategy Consultants report, in FY25, the market is projected to reach 10-11 billion shipments, driven by the rise of the e-commerce sector, especially non-horizontal and hyperlocal/quick commerce.

E-commerce (excluding hyperlocal) accounted for over 50 per cent of the express parcel market in FY25, with around 4.8-5.5 billion shipments.

It is expected to grow to 15-16 billion shipments by FY2030, contributing to 55-60 per cent of the express parcel market by that time.

The report noted that India's express parcel market is shifting from traditional couriers to e-commerce and hyperlocal shipments, driven by growing digital adoption and urbanisation.

“People now expect faster, more convenient deliveries, which is driving a boom in e-commerce and hyperlocal shipments, while traditional parcels are growing at a much slower pace,” said Mrigank Gutgutia, partner, RedSeer Strategy Consultants.

He added that with express parcel volumes expected to witness spectacular growth between FY2020-30 owing to the surge in e-commerce, express logistics players need to realign their strategies to stay ahead and take advantage of the fast-growing e-commerce and hyperlocal opportunity landscape.

Quick commerce has emerged as the fastest-growing segment, contributing 7-10 per cent to the total express parcel market in FY 2024 and FY 2025.

According to the report, it is expected to grow at a CAGR of 33-50 per cent from FY 2024 to FY 2030.

Online food ordering, pharmacy deliveries, and hyperlocal C2C shipments are expected to account for 13 per cent of total shipment volumes by FY30, but their overall growth rate will be slower than quick commerce.

The traditional courier segment accounted for 17 per cent (2 billion parcels) of the express parcel market in FY25 and is projected to grow at a CAGR of 7 per cent till FY2030.