India's Express Parcel Boom: E-commerce Surge Set to Transform Market

India's express parcel market is projected to reach 24-29 billion shipments by FY30, driven by e-commerce and hyperlocal sectors. Currently, e-commerce represents over 50% of the market with significant growth predicted. Traditional couriers are adapting, and both sectors are increasingly overlapping as digital adoption accelerates.

In a recent report, Redseer revealed that India's express parcel market is on the brink of a substantial expansion, forecasted to hit 24-29 billion shipments by FY30. A significant driver of this growth is the burgeoning e-commerce sector alongside the hyperlocal and quick-commerce segments.

For FY2025, the market is expected to reach 10-11 billion shipments, with the e-commerce sector alone accounting for more than half of this volume at an estimated 4.8-5.5 billion parcels. Mrigank Gutgutia, a partner at Redseer Strategy Consultants, emphasized the pivotal role of increased digital adoption and consumer comfort with online shopping.

The report indicates a pivotal industry shift from traditional couriers to e-commerce and hyperlocal shipments, fueled by demographic changes, urbanization, and technological infrastructure improvements. As the market evolves, both traditional and e-commerce entities are blurring operational lines to capture emerging opportunities.

(With inputs from agencies.)