UK Last Mile Delivery Market Will Attain Revenue Worth US$35.3 Bn in 2029, Says Fairfield Market Research


UK Last Mile Delivery Market to Exhibit 9.8% Revenue Growth Between 2022 and 2029

London, April 28, 2023 (GLOBE NEWSWIRE) — The ecommerce DB report says the UK houses the 4th largest e-Commerce industry, which has taken the UK’s parcel shipment volumes in excess of 4 million till the year 2021. While the pandemic has worked dramatically for the already thriving logistics and delivery service sectors, drastically increased significance of the vendors handling final mile deliveries gave the country’s last mile delivery market a shot in the arm.

A recently released report of Fairfield Market Research says the UK last mile delivery market will witness robust growth over the upcoming years, and the post-pandemic transformation of industry dynamics will play a vital role in shaping last mile delivery industry of the UK. Up from the revenue worth US$18.3 Bn attained in the year 2022, the UK last mile delivery market size is forecast to reach past US$35.3 Bn by the end of 2029,” states the analyst.


Key Research Insights

  • Between the years of forecast, 2022 and 2029, the market is poised to demonstrate a strong growth outlook at a CAGR of 9.8%
  • The FMCG sector generates the maximum demand for last mile delivery services and solutions in the UK
  • Dry goods continue to represent the leading cargo type category with more than 75% share of the total market pie
  • By services type, B2C is likely to be the spearheading segment

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Insights into Segmentation Analysis

As per the insights drawn in the report, the FMCG segment will continue to be the top performing category as demand for doorstep delivery of several consumer goods has skyrocketed recently, especially since the time of COVID-19 pandemic. Based on the cargo type, dry goods continue to generate the maximum demand for last mile delivery solutions across the UK. Dry goods currently account for over 75% share of the overall revenue of the UK last mile delivery market. In terms of service type, the B2C segment remains the largest category in the market, marks the report.

Key Report Highlights

  • The UK’s local players have made it a point to raise dependency on electric delivery vehicles, cargo bikes, and e-vans
  • The out-of-home food trend retains its pace across the UK, which is more recently receiving tailwinds from the expanding takeaway and home delivery culture
  • With soaring popularity of doorstep delivery services, the UK last mile delivery market is all set to rise high in the next few years.

Insights into Regional Analysis

The report findings after a detailed analysis of the cities performing notably in the UK’s last mile delivery space reveal London’s dominance. The city represents the final mile hotspot of the country and witnesses a consistently growing activity in both the logistics and e-Commerce sectors. Following London, Kensington and Chelsea, Leicester, Westminster, Ashfield and Staffordshire, Northampton, South Bucks, Elmbridge, and Coventry have been highlighted in the report as the next lucrative pockets for the UK’s last mile delivery service providers.

Key Market Players

In addition to the top five revenue contributors, i.e., Amazon, FedEx, Royal Mail, DHL, and DPD Group, some other prominent players have been subject to a thorough strategic analysis as a part of the report’s competitive analysis section. The other companies include CitySprint, Yodel, Deliveroo, and UPS.

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Report Attributes Details
Base Year 2021  
Forecast Year 2022 – 2029
Market Size in 2022 US$18.3 Bn
Estimated Market Size in 2029 US$35.3 Bn
CAGR 9.8%  
Key Players Amazon, FedEx, Royal Mail, DHL, DPD Group, CitySprint, Yodel, Deliveroo, and UPS

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

Learn More About the Report Inclusions, and Research Methodology:

About Us

Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.


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