India's express parcel market to touch 24-29 billion shipments by FY30: Report

Mumbai: India's express parcel market is expected to witness a sharp uptick and touch 24-29 billion shipments by FY30 driven by the expanding e-commerce sector, and the rise of hyperlocal and the quick commerce segment, Redseer said in a report on Friday.

For the current financial year (FY2025), the parcel market is estimated to reach 10-11 billion shipments in FY25, the report said, adding that the e-commerce segment accounted for more than 50 per cent of the express parcel market, with approximately 4.8-5.5 billion shipments this fiscal.

"India's express logistics market is going through a major shift, driven by growing digital adoption and consumers becoming more comfortable with e-commerce," said Mrigank Gutgutia, Partner at Redseer Strategy Consultants.

Gutgutia further noted that express logistics players need to realign their strategies to stay ahead and make the most of the fast growing e-commerce and hyperlocal opportunity landscape.

The report suggests that the trends in the domestic express parcel segment is shifting from traditional couriers to e-commerce and hyperlocal shipments, driven by digital adoption, demographic shifts, and urbanisation.

According to the report, traditional couriers, which accounted for around 17 per cent of the express parcel market in FY 2025 (around 2 billion parcels) and is projected to grow at around 7 per cent CAGR till FY 2030.

At the same time, e-commerce shipments, which will account for 4.8-5.5 billion shipments in FY 2025, are projected to grow at a CAGR of 23-24 per cent from 4.4 billion shipments in FY24 shipments and are expected to reach 15-16 billion shipments by FY30, it said.

According to the Redseer report, increasing variety of online shopping categories, deeper geographical penetration, and enhanced supply chain infrastructure are key enablers of this growth.

Moreover, while traditional courier players are expanding into servicing e-commerce segments, at the same time, e-commerce players are also diversifying into documents express and the lines between the documents and e-commerce players is getting blurred, the report said.