After an increase of 16 percent revenues year-over-year of parcel volume in the U.S. — with a record-breaking 21.5 billion packages in 2021 — Pitney Bowes is forecasting more growth is on the horizon.
The company’s latest index revealed that 59 million parcels were generated in the U.S. every day in 2021, compared to 56 million in 2020. With no signs of slowing down, by 2027, the company predicts U.S. parcel volume is likely to come close to doubling to reach 25 billion to 40 billion packages.
Much of the increase in packages, the company said, is due to consumers’ online shopping behaviors that were established during the pandemic and remain firm. Taking a look at what the increased number of packages means for the consumer, Pitney Bowes broke down the number of 2021 parcels per household and found an average of 166 parcels shipped per U.S. household.
“Last year saw the industry rocked by outside influences as carriers continued to manage the impact of the pandemic,” said Jason Dies, executive vice president and president of sending technology solutions at Pitney Bowes. “Despite these challenges, carrier revenues and parcel volumes reached a record high, showcasing the resiliency of the U.S. consumer and the industry’s ability to absorb their growing appetite for internet retail.”
Further, according to the company’s April 2022 BOXpoll consumer survey, which looked at current events, culture and e-commerce logistics, 23 percent of U.S. shoppers are shopping online more than they did earlier this year with nearly 37 percent of all purchases being made online.
Looking at carrier volume, Pitney Bowes data found USPS shipped 6.9 billion parcels in 2021 down from 7.3 billion in 2020; UPS shipped 5.3 billion parcels in 2021, up from 4.9 billion, and FedEx shipped 4.2 billion, up from 3.7 billion. To consider, the combined parcel volume from smaller carriers grew by 94 percent.
Pitney Bowes global shipping index, which includes 13 countries including the U.S., Canada, Brazil, Germany, U.K., France, Italy, Norway, Sweden, China, Japan, Australia and India, will be launched later this year.
FOR MORE WWD BUSINESS NEWS:
Are Rising Prices Breaking Consumers’ Trust?
Consumer Surveys Reveal Key BNPL Trends in the U.S.
Accenture Finds Consumer Desire for ‘Virtual Living’ Is Gaining Traction