Postal Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: August 2024
ANZSIC I5101Revenue
$11.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
46,780
Businesses
193
Wages
$X.Xbn
Postal Services in Australia industry analysis
The Postal Services industry was once the main mode of communication in Australia, but technological changes disrupted this monopoly long ago. The industry has been adapting to a long-term decline in mail volumes. As one of the largest logistics companies in Australia and a monopoly provider of certain mail services, Australia Post dominates the industry. Other postal service providers focus on third-party communications services like bulk mail-outs. These different entities are united by the delivery chain that begins with centralised collection and ends at the recipient. In contrast, the related Courier Pick-up and Delivery Services industry provides door-to-door services.
Trends and Insights
- The Postal Services industry has faced structural changes due to declining letter volumes. Postal services providers have had to adjust to decreased demand for several services.
- The parcel delivery service segment has surged in recent years in line with rapid growth in online shopping activity. A long-term decline in letter volumes has prompted Australia Post to shift its focus to parcel delivery services.
- Under Australia Post's community service obligations, domestic mail services must be accessible to all Australians, regardless of their location. The location of industry establishments is similar to the respective population shares of Australia's states and territories.
- While Australia Post has minimal competition in letter delivery services, there is competition between bulk mail service operators. Industry participants compete with one another on price and quality of service.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.2 % over the past five years, to reach an estimated $11.2bn in 2024.
Trends and Insights
Mail volumes have declined since their peak in 2008, transforming the industry’s structure
- Addressed letter volumes are continuing to decline at a rapid rate as major markets are substituting postal communications with electronic communications. Consumers are increasingly using technology to connect to people they would previously have written letters to. Social media platforms, instant messaging apps and mobile phone communications have become almost ubiquitous. However, letter delivery for important occasions, like Christmas, weddings and birthdays, remains a source of consumer demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Continued growth in the parcel delivery segment will underpin robust revenue and profitability
- Parcel services are poised to remain a growth area for the industry, driven by rising uptake of online shopping. Providers are forecast to employ more delivery drivers to match rising demand despite capital investments to diminish labour reliance.
Biggest companies in the Postal Services in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Australia Post | 9,758.5 | |
IVE | 154.1 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Reserved mail services, Non-regulated mail services and Parcel delivery. Reserved mail services is the largest segment of the Postal Services in Australia.
Trends and Insights
Parcel delivery has rapidly become the industry's primary source of revenue
- This segment includes the delivery of parcels and express post products and freight forwarding.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Courier Pick-up and Delivery Services in Australia
- Online Shopping in Australia
Complementors
- Road Freight Transport in Australia
- General Warehousing and Cold Storage in Australia
- Integrated Logistics in Australia
International industries
- Postal and Courier Pick-up and Delivery Services in New Zealand
- Postal & Courier Activities in the UK
- Postal & Courier Activities in Germany
- Postal & Courier Activities in Ireland
Table of Contents
About this industry
Industry definition
Organisations in the industry pick up and deliver letters, documents and parcels, which usually weigh less than 30 kilograms. Pick-up takes place at predetermined collection points such as post offices and postal agencies. The industry excludes the activities of couriers but includes organisations that operate collection points and bulk mail houses.
What's included in this industry?
Reserved mail servicesNon-regulated mail servicesParcel deliveryRetailBulk mail servicesCompanies
Australia PostIVEPurchase this report to view all 2 major companies in this industry.
Related Terms
UPULETTERPRE-SORT LETTERPARCELIndustry Code
ANZSIC 5101 - Postal Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Postal Services industry has faced structural changes due to declining letter volumes. Postal services providers have had to adjust to decreased demand for several servic...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The parcel delivery service segment has surged in recent years in line with rapid growth in online shopping activity. A long-term decline in letter volumes has prompted Austr...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Under Australia Post's community service obligations, domestic mail services must be accessible to all Australians, regardless of their location. The location of industry est...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
While Australia Post has minimal competition in letter delivery services, there is competition between bulk mail service operators. Industry participants compete with one ano...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Australia Post has been Australia's main postal services provider since the first Postal Act of 1825. Australia Post provides letter, parcel and courier services.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Australia Post's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of IVE's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Australia Post, and factors influencing its performance in the industry
- Description and key data for IVE, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The regulatory framework for postal services in Australia is derived primarily from the Australian Postal Corporation Act 1989. The main objectives of the act concerns the ne...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The Postal Services industry's cost structure represents an average of all firms operating in the industry. However, given the dominance of the industry's only major player, ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Postal Services industry in Australia in 2024?
The market size of the Postal Services industry in Australia is $11.2bn in 2024.
How many businesses are there in the Postal Services in Australia industry in 2024?
There are 193 businesses in the Postal Services industry in Australia, which has grown at a CAGR of 0.9 % between 2019 and 2024.
Has the Postal Services industry in Australia grown or declined over the past 5 years?
The market size of the Postal Services industry in Australia has been growing at a CAGR of 1.2 % between 2019 and 2024.
What is the forecast growth of the Postal Services industry in Australia over the next 5 years?
Over the next five years, the Postal Services industry in Australia is expected to grow.
What are the biggest companies in the Postal Services market in Australia?
The biggest companies operating in the Postal Services market in Australia are Australia Post and IVE
What does the Postal Services in Australia include?
Reserved mail services and Non-regulated mail services are part of the Postal Services industry.
Which companies have the highest market share in the Postal Services in Australia?
The company holding the most market share in Australia is Australia Post.
How competitive is the Postal Services industry in Australia?
The level of competition is moderate and increasing in the Postal Services industry in Australia.
