The value of the CEP parcel market in Poland has exceeded 17 billion zlotys
The courier, express, and postal (KEP) market in Poland has been experiencing steady double-digit growth for several years, and its value has already exceeded 17 billion zlotys, according to the latest report, “Polish…”
Izabela TrancygierOctober 21, 20226-minute read
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The courier, express, and postal (CEP) market in Poland has been experiencing steady double-digit growth for several years, and its value has already exceeded 17 billion zlotys, according to the latest “Polish CEP Report 2022,” prepared by Last Mile Experts, 7R, and the consulting firm Cushman & Wakefield.
Nearly one in five Poles now buys all non-food products online. As a result, total retail sales through e-commerce channels in Poland exceeded PLN 100 billion in 2021 and grew by an average of 28.1% annually (CAGR). However, the rapid growth of the e-commerce sector comes with many challenges, among which experts most frequently cite supply chain efficiency and the need for further investment in last-mile logistics, including courier, express, and postal services. According to the “Polish CEP Report 2022,” this segment is already valued at over PLN 17 billion, and forecasts indicate that it will maintain double-digit growth rates for the 2021–2023 period, both in terms of volume (14.1%) and value (19.9%).
The value of online purchases made by Polish consumers has been steadily increasing. Since 2019, online retail sales have grown by an average of 28% annually. The largest share was recorded in consumer electronics, at nearly 24%, and fashion, which accounts for 15% of orders. In turn, the fastest-growing segment in 2021 was e-grocery, with growth of approximately 30%—though in this case, the market share remains low at just 4%. An equally interesting area of growth is the trade in secondhand goods on platforms such as Vinted and OLX. Online sellers and carriers need sufficient distribution network capacity to ensure timely and convenient deliveries for consumers. One solution is doorstep delivery, which is gaining increasing popularity both domestically and abroad.
Mirek Gral
Vice President of Last Mile Experts
The biggest players in the market
According to the “Polish CEP 2022” report, InPost is the market leader in terms of both volume and revenue. In the past year alone, the company grew by nearly 40 percent, and its key competitive advantage remains the largest network of parcel lockers in Europe. DPD ranks second in the ranking, and together the two companies account for approximately 64% of the volume and just under 50% of the revenue in the CEP market.
The rapid rise in the popularity of online shopping meant that last year the total volume of shipments in the Polish courier network surpassed the magic milestone of one billion, and forecasts indicate it will increase by another 31 percent next year. Admittedly, we are still far behind the developed German market, which achieves four times higher results—we’re talking about over 4.1 billion packages in 2021. However, the value of the Polish CEP market, at 17 billion zlotys, means it must be taken seriously, and its development trends must be closely monitored.
Damian Kołata
Head of Industrial & Logistics Poland, Head of E-commerce CEE at Cushman & Wakefield
Modern logistics infrastructure remains essential
The "Polish CEP 2022" report indicates that, despite the economic crisis and international tensions, the rapid growth of the e-commerce and CEP sectors will remain strong in the near future. The projected growth in both value and volume also means that operators and e-retailers will need to secure adequate warehouse and logistics facilities. In this context, facilities that stand out both in terms of technology and their understanding of the needs and expectations of future tenants will become increasingly important.
Current and anticipated growth in the CEP sector continues to drive the development of urban logistics. Warehouse spaces located in strategic locations within urban agglomerations (City Flex in the 7R product line) significantly increase the efficiency and flexibility of logistics operations during the “last mile” delivery stage, serving as a natural complement to logistics parks located on the outskirts. Currently, facilities dedicated to the e-commerce sectoraccount for nearly 7.5 million square meters of warehouse space in Poland, or over 30 percent of the total supply. Compared to 2019, this represents an increase of as much as 84 percent, indicating a clear upward trend.
Joanna Ociepka-Wojciechowska
Regional Leasing Director at 7R
Joanna Ociepka-Wojciechowska adds that factors such as an attractive location and easy access to strategic transportation infrastructure are just some of the distinguishing features of 7R properties.
In addition to these, we offer our tenants technologically advanced spaces that effectively support their businesses and help them continuously improve their operational performance, all while caring for the environment.
7R SA is a rapidly growing real estate developer operating in the commercial real estate market, specializing in the provision of modern warehouse and manufacturing space for lease. The company develops both multi-tenant warehouse and industrial centers as well as BTS facilities. 7R’s portfolio includes large-scale logistics parks and urban Small Business Unit warehouses that form the 7R City Flex Last Mile Logistics network. To date, the company has completed projects with a total area of over 1.5 million square meters, while over 4 million square meters are in the pipeline across various locations throughout Poland. The developer is committed to ESG initiatives, focusing on the environment, local communities, and corporate governance.
Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global advisory firm serving commercial real estate tenants and owners. Cushman & Wakefield ranks among the largest real estate advisory firms, employing approximately 50,000 people across 400 offices in 60 countries worldwide. In 2021, its revenue totaled $9.4 billion. The company’s key services include real estate, facilities, and project management; leasing brokerage; capital markets transactions; valuations; and more. For more information, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
Last Mile Experts
Last Mile Experts is a highly specialized consulting firm focused on the broad aspects of last-mile logistics for courier (CEP), postal, and e-commerce services. Our goal is to help CEP companies, postal operators, e-commerce players, potential investors, and other stakeholders improve their performance, operations, organization, and technology, as well as develop strategies or pursue mergers and acquisitions. To learn more about our company’s activities and download free industry reports, please visit: https://lastmileexperts.com/
Izabela Trancygier serves as Head of the Central-South Region at 7R and is responsible for the company’s business development in the Central-South region. She oversees the leasing and development divisions,…