Couriers & Local Delivery Services in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 49222CARevenue
$18.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
80,716
Businesses
31,274
Wages
$X.Xbn
Couriers & Local Delivery Services in Canada industry analysis
Rising fuel costs and the boom in e-commerce have immensely impacted couriers and delivery services over the last five years. Constant fluctuations in fuel prices forced deliverers to apply and remove surcharges to compensate for heightened operating costs, leading to heavy volatility. The surge in online shopping brought mixed effects, spiking revenue by increasing demand for package deliveries while pushing document delivery services further into the past. Traditional local deliverers saw their work dwindle as most everyday documents transitioned to digital formats, leaving only legal paperwork requiring physical delivery. Revenue has stagnated amid these mixed effects, growing at a CAGR of 0.0% to an estimated $18.1 billion over the five years through 2024 despite a 2.9% surge in 2024 alone.
Trends and Insights
- Fuel is the top expense for couriers and local delivery services in Canada. A dramatic incline in the price of fuel has enabled deliverers to boost revenue through fuel surcharges at the cost of some profit.
- Local delivery messengers struggle to keep up with growing trends toward digitalization, but small- to medium-sized couriers have capitalized on an influx of demand. Even so, large couriers operating via air and ground have succeeded despite surging fuel costs.
- The distribution of carriers in Canada largely mirrors population trends. Couriers and local delivery services tend to be in densely populated areas because of their larger pool of potential clients and end destinations.
- Delivery services compete primarily based on price, with larger courier services leveraging economies of scale to better manage costs and achieve profit. Location is paramount for local delivery services as nonemployers compete over smaller niche markets.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.0 % over the past five years, to reach an estimated $18.1bn in 2024.
Trends and Insights
High fuel costs are supporting revenue but straining profit
- Fuel represents the top expense for couriers and local delivery services. Sudden changes in the world price of crude oil have substantial effects on the price of gasoline, which dramatically impacts how much deliverers charge for their services. Rising fuel costs translate to fuel surcharges and revenue growth for couriers and local deliverers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improving economic conditions will deliver a boon to couriers
- Consumer spending is set to climb through the next five years, enabling Canada's manufacturing and retail sectors to boost their production capacities. Heightened production will bring up the volume of goods being transported, elevating demand for deliverers.
Biggest companies in the Couriers & Local Delivery Services in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Canada Post Corporation | 5,296.7 | -190.4 | -3.6 | |
United Parcel Service Inc. | 3,316.9 | 370.8 | 11.2 | |
TFI International Inc. | 787.0 | N/A | N/A |
To view the market share and analysis for all 3 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 Couriers, Messengers and local deliveries and Other services. Couriers is the largest segment of the Couriers & Local Delivery Services in Canada.
Trends and Insights
Courier services generate the bulk of the industry's revenue.
- Couriers pick up documents and packages needing to be sent or received quickly and deliver them to a specified location. This segment has declined as a share of revenue as clients looked to more cost-effective solutions through the pandemic and its aftermath, leading to a surge in demand for local delivery services.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Freight Packing & Logistics Services in Canada
Complementors
- Local Freight Trucking in Canada
- Long-Distance Freight Trucking in Canada
- Local Specialized Freight Trucking in Canada
International industries
- Global Courier & Delivery Services
- Couriers & Local Delivery Services in the US
- Courier Pick-up and Delivery Services in Australia
- Postal and Courier Pick-up and Delivery Services in New Zealand
- Postal & Courier Activities in the UK
Table of Contents
About this industry
Industry definition
This report combines two separate industries: the Couriers industry and the Local Messengers and Delivery Services industry. Couriers are establishments that primarily engage in delivery services between urban centres using a network of air and surface transportation systems. In contrast, local messengers provide delivery services within a single urban area and are excluded from courier networks.
What's included in this industry?
Providing courier servicesProviding local messenger and delivery servicesProviding independent delivery servicesCompanies
Canada Post CorporationUnited Parcel Service Inc.TFI International Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
COURIER SERVICEEXPRESS DELIVERYLOCAL MESSENGERSIndustry Code
NAICS 492 - Couriers & Local Delivery Services in Canada
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
Fuel is the top expense for couriers and local delivery services in Canada. A dramatic incline in the price of fuel has enabled deliverers to boost revenue through fuel surch...
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
Local delivery messengers struggle to keep up with growing trends toward digitalization, but small- to medium-sized couriers have capitalized on an influx of demand. Even so,...
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
The distribution of carriers in Canada largely mirrors population trends. Couriers and local delivery services tend to be in densely populated areas because of their larger p...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
Delivery services compete primarily based on price, with larger courier services leveraging economies of scale to better manage costs and achieve profit. Location is paramoun...
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
Canada Post has increased employee wages and benefits throughout the period. The industry's largest company recently made an agreement that led to a 2.0% increase in wages an...
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 Canada Post Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of United Parcel Service Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of TFI International Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Canada Post Corporation, and factors influencing its performance in the industry
- Description and key data for United Parcel Service Inc., and factors influencing its performance in the industry
- Description and key data for TFI International Inc., 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
Volatility in the world price of crude oil has impacted couriers and delivery services. Profit swelled as production ramped up and fuel prices dipped in 2023, but OPEC+ membe...
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
Couriers use a variety of transportation methods to provide delivery services, including trucks, vans and airplanes. Local delivery companies are generally smaller and experi...
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
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- 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 Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
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 Couriers & Local Delivery Services industry in Canada in 2024?
The market size of the Couriers & Local Delivery Services industry in Canada is $18.1bn in 2024.
How many businesses are there in the Couriers & Local Delivery Services in Canada industry in 2024?
There are 31,274 businesses in the Couriers & Local Delivery Services industry in Canada, which has grown at a CAGR of 13.6 % between 2019 and 2024.
Has the Couriers & Local Delivery Services industry in Canada grown or declined over the past 5 years?
The market size of the Couriers & Local Delivery Services industry in Canada has been growing at a CAGR of 0.0 % between 2019 and 2024.
What is the forecast growth of the Couriers & Local Delivery Services industry in Canada over the next 5 years?
Over the next five years, the Couriers & Local Delivery Services industry in Canada is expected to grow.
What are the biggest companies in the Couriers & Local Delivery Services market in Canada?
The biggest companies operating in the Couriers & Local Delivery Services market in Canada are Canada Post Corporation, United Parcel Service Inc. and TFI International Inc.
What does the Couriers & Local Delivery Services in Canada include?
Providing courier services and Providing local messenger and delivery services are part of the Couriers & Local Delivery Services industry.
Which companies have the highest market share in the Couriers & Local Delivery Services in Canada?
The company holding the most market share in Canada is Canada Post Corporation.
How competitive is the Couriers & Local Delivery Services industry in Canada?
The level of competition is high and steady in the Couriers & Local Delivery Services industry in Canada.
