Australia Courier, Express, And Parcel (CEP) Market Size - Share Outlook, Growth Analysis Report and Forecast Trends (2026-2035)

Market Overview

The Australia CEP market is at a structural turning point. Letters and business documents historically anchored postal and courier networks, but online retail has made parcels the volume engine, and carriers are now rebuilding sortation, lockers and linehaul around residential delivery across the states.

Three forces are shaping the market: the integration of Australia Post and StarTrack networks, including the Elizabeth hub; cross-border marketplace inflows of about 200,000 parcels a day; and the shift to parcel lockers and electric delivery fleets.

In August 2025, Australia Post opened its Blacktown parcel centre, followed in October 2025 by a plan for an AUD 500 million hub in Elizabeth, South Australia. In April 2026, its Brisbane Airport facility opened with capacity for 250,000 parcels a day.

Key Market Trends and Insights

• Elizabeth hub: Australia Post announced in October 2025 a roughly AUD 500 million parcel hub at the former Holden plant in Elizabeth, South Australia, designed for 400,000 parcels a day and the first site combining Australia Post and StarTrack operations.
• Parcel lockers: Australia Post reported 1,510 parcel locker banks by August 2026, a 64.3% expansion in a year, as retailers use out-of-home collection to reduce missed deliveries and lower the cost of residential last-mile delivery.
• Customs rules: The United States ended its low-value duty exemption on 29 August 2025, and Australia Post suspended small parcels to the US from 26 August 2025, shifting exporters towards express carriers able to handle prepaid duties.
• Concentrated demand: New South Wales, Victoria and Queensland spent AUD 26.4 billion, AUD 20.0 billion and AUD 17.8 billion online in 2025, so dense metropolitan routes carry volume while long linehaul and air links serve Western Australia and remote areas.

Australia Courier, Express, And Parcel (CEP) Market Size and Forecast

The market is moving from letter-led postal networks towards parcel-led, locker-supported and air-linked networks built for online retail. Standard services lead because retailers and households accept multi-day transit on ordinary orders, while express grows fastest where time-definite and cross-border shipments dominate, and e-commerce is the strongest end-use. Queensland advances quickest on population growth and new airport capacity, while New South Wales remains the largest state. The Elizabeth hub, the Brisbane Airport facility and the Australia Post locker rollout underpin a durable, multi-year demand outlook rather than a cyclical uplift.

Key Takeaways: Australia Courier, Express, And Parcel (CEP) Market

Online Retail Anchors Long-Term Parcel Growth

Revenue is on course to expand by roughly 71% across the decade to 2035, from AUD 19,870.00 million in 2025 to AUD 33,940.00 million at a 5.5% CAGR. Online spending of AUD 82.6 billion and 9.8 million shopping households keep demand durable, while carrier investment in hubs and lockers turns that demand into funded capacity.

Express and E-Commerce Lead New Growth

Express is the fastest-growing service type at an estimated 6.6% CAGR through 2035, while e-commerce leads end-use industries at 6.7%. Time-definite delivery suits urgent and cross-border shipments, and DHL Express signed a sustainable aviation fuel agreement with Shein in March 2026, tying express volumes to lower-carbon air freight.

Brisbane Airport Opening Signals Delivery Phase

Australia Post opened its Brisbane Airport parcel facility in April 2026, a 78,000 square metre site built for 250,000 parcels a day. The Elizabeth hub in South Australia, where works started in July 2026, is planned to open in late 2028.

• Brisbane capacity reaches 250,000 parcels a day with direct tarmac access
• Express Post and StarTrack Premium services share the Brisbane Airport site
• Elizabeth hub on the former Holden site is planned for 2028

Australia Courier, Express, And Parcel (CEP) Market Report Summary

Key Insight

Demand is structural, not cyclical. Online retail and falling letter volumes push carriers to rebuild sortation, lockers and air links around parcels, with express and Queensland growing fastest.

Key Trends in the Australia Courier, Express, And Parcel (CEP) Market

The Australia CEP market is being reshaped by parcel price resets, locker-led last-mile delivery, electric delivery fleets, and United States customs rules that disrupt cross-border postal flows.

May 2026 - Australia Post Price Rise Reflects Record Delivery Costs

• Australia Post announced in May 2026 average parcel increases of 4.25% for contract customers and 4.95% for retail customers from 1 July.
• StarTrack Express and Premium fuel surcharges fell from 30.2% to 23% on the same date, partly offsetting the higher base rates.
• Shippers and online retailers gain pricing visibility but face higher delivery costs, favouring carriers that automate sortation.

March 2026 - Record Online Spending Reshapes Last-Mile Delivery Choices

• Australia Post reported online spending of AUD 82.6 billion across 9.8 million households for 2025 in its March 2026 eCommerce report.
• Average baskets fell to AUD 96 while purchase frequency rose, lifting parcel counts per household and demand for flexible collection.
• Carriers and retailers gain from lockers and collection points that cut failed first-attempt deliveries and last-mile cost.

October 2025 - Australia Post Deploys 500 Electric Three-Wheelers Ahead of Peak

• Australia Post rolled out 500 Rapide 3 electric vehicles in October 2025, each able to carry up to 150 small parcels.
• Charging points at 37 sites support a range of up to 180 km, replacing petrol motorbikes on postie rounds.
• Fleet electrification lowers fuel exposure and adds delivery capacity for peak periods and corporate emissions targets.

August 2025 - United States Duty Rules Disrupt Cross-Border Parcel Exports

• Australia Post suspended United States parcels from 26 August 2025, ahead of the end of the low-value duty exemption on 29 August.
• Shippers must now prepay duties and supply full customs data, which express integrators handle through integrated brokerage.
• Express carriers gain exporters seeking customs certainty, while postal routes wait for compliance platforms to be integrated.

Key Insight

Growth is structurally locked in. Pricing reform, record online spending and fleet and locker rollouts show policy, demand and technology moving together, keeping parcels central to retail and regional connectivity.

Recent Market Developments in the Australia Courier, Express, And Parcel (CEP) Market

Recent developments, presented from the most recent, show the Australia CEP market moving from hub announcements and carrier restructuring into measured volume growth and a reshaped competitor set.

August 2026 - Australia Post Reports FY26 Parcel Volume Growth of 5.3%

• Australia Post reported on 28 August 2026 that parcel volumes grew 5.3% while letter volumes fell 14.7%.
• It opened 14 new facilities, reached 1,510 parcel locker banks and invested AUD 413.3 million in capital projects during the year.
• Pre-tax profit reached AUD 31.8 million, but excluding property sales the group recorded an underlying loss of AUD 107.6 million.

July 2026 - McKenna Worldwide Services Acquires Sendle Brand from Liquidators

• McKenna Worldwide Services bought the Sendle brand and domain names from liquidators in July 2026, announced at a Sydney retail expo.
• The deal covers intellectual property only, not the former company or its debts, and Sendle will operate alongside Quantium Solutions.
• A relaunch for small business shippers is targeted for September 2026, after the platform stopped operating in January 2026.

April 2026 - Australia Post Opens Brisbane Airport Express Parcel Facility

• Australia Post opened its 78,000 square metre Brisbane Airport facility on 22 April 2026, processing up to 250,000 parcels daily.
• The site handles Express Post and StarTrack Premium services, with Australian Border Force examination rooms and direct tarmac access.
• It accommodates nearly 500 team members and targets a 5-star Green Star rating with a 450 kW solar system.

October 2025 - Australia Post Announces Elizabeth Parcel Hub on Former Holden Site

• Australia Post announced on 16 October 2025 a roughly AUD 500 million hub in Elizabeth, its largest investment in South Australia.
• The 83,000 square metre site targets 400,000 parcels daily, the first to combine Australia Post and StarTrack operations.
• Pelligra Group is the developer, works started in July 2026, and opening is planned for late 2028.

Key Insight

The sequence shifts from planning to delivery. The Elizabeth hub, the Brisbane Airport opening and the Sendle brand sale reshaped capacity, while parcel volume growth validates continued network investment.

Australia Courier, Express, And Parcel (CEP) Industry Segmentation

The Expert Market Research’s report on the Australia Courier, Express, And Parcel (CEP) Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Service Type

• Express
• Standard
• Others

Standard leads because most online orders, business parcels and returns do not need time-definite delivery, and Australia Post delivered nearly 111 million parcels across November 2025 and December 2025, up 7.6%. Small business specialist Sendle stopped operating in January 2026 and entered liquidation in February 2026, showing cost pressure on standard parcels. Express is the fastest-growing service type at an estimated 6.6% CAGR through 2035, supported by urgent healthcare and cross-border shipments, and DHL Express signed a sustainable aviation fuel agreement with Shein in March 2026. Others include same-day metropolitan runs and specialist overnight services, which stay small.

Market Breakup by Destination

• Domestic
• International
• Others

Domestic leads because retailers, banks and healthcare providers ship mainly within Australia, and Australia Post announced average parcel price rises of 4.25% for contract customers in May 2026. Domestic is estimated to grow at 5.3%, slightly below the headline rate. International is faster at an estimated 6.3% CAGR through 2035, as the United States signed its order ending low-value duty exemptions in July 2025 and Couriers Please linked with a cross-border platform in January 2025. Others cover bonded transit and re-export consignments passing through Sydney and Melbourne gateways, which remain marginal.

Market Breakup by End-Use Industry

• E-Commerce
• Retail
• Healthcare
• Banking, Financial Services and Insurance
• Others

E-Commerce leads and grows fastest at an estimated 6.7% CAGR through 2035, as Australians spent AUD 82.6 billion online in 2025 and Team Global Express passed one million Temu parcels in July 2025. Retail follows, with department stores growing 19.5% in 2025 and regional shopping prompting six new Australia Post parcel sites in May 2025, while Couriers Please surveyed 203 retailers in March 2025 on price rises. Healthcare relies on time-critical courier runs, while Banking, Financial Services and Insurance sends cards, documents and secure items. Others include manufacturing and education, which use couriers for spare parts and documents.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• South Australia
• Others

New South Wales dominates at an estimated 5.5% CAGR, anchored by the Blacktown parcel centre opened in August 2025 and AUD 26.4 billion of online spending. Queensland grows fastest at an estimated 5.8% CAGR through 2035, helped by the Brisbane Airport facility of April 2026. Victoria, at 5.3%, gained automated Melbourne Airport sorting in April 2025, Western Australia advances at 5.4%, and South Australia at 5.0% as the Elizabeth hub is built. Others, at 5.3%, include Tasmania, where Team Global Express received a AUD 25 million deposit in June 2025 on selling its freight business, the Australian Capital Territory and the Northern Territory.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Courier, Express, And Parcel (CEP) Market

Competitors include the national postal and parcel operator, global express integrators, and domestic carriers and franchise networks serving online retailers. Entry barriers include national linehaul and air capacity, automated sortation, last-mile density, customs expertise and retailer integrations.

Australia Post (StarTrack)

Australia Post, headquartered in Melbourne, owned by the Australian Government and with a heritage of more than 200 years, runs the national postal network, parcel lockers and StarTrack, its courier and express arm. In April 2026 it opened a Brisbane Airport facility for Express Post and StarTrack Premium parcels, and in October 2025 it announced a roughly AUD 500 million Elizabeth hub combining both networks. Its differentiators are 1,510 parcel locker banks and nationwide delivery coverage.

DHL Express

DHL Express, part of DHL Group headquartered in Bonn, Germany, and founded in San Francisco in 1969, carries time-definite documents and parcels to more than 220 countries and territories. In Australia it runs a AUD 50 million automated Sydney service centre at Mascot, opened in 2020 and handling 4,200 pieces an hour. In March 2026 it signed a sustainable aviation fuel agreement with Shein. The Sydney site holds TAPA Level A security certification and rooftop solar supplying up to 30% of annual energy.

FedEx

FedEx, headquartered in Memphis, Tennessee, and founded in 1971, provides international express, ground and e-commerce delivery. In Australia it operates through the former TNT network, acquired in 2016, and a six-year AUD 350 million agreement with Qantas Freight gives access to bellyhold and maindeck capacity. FedEx completed the spin-off of FedEx Freight on 1 June 2026, and it kept accepting United States shipments in August 2025 when Australia Post paused. Its differentiator is global air integration.

UPS

United Parcel Service, known as UPS, headquartered in Atlanta, Georgia, and founded in 1907 in Seattle, offers express, ground, customs brokerage and healthcare logistics worldwide. In Australia it serves importers and exporters with international express and clearance services. By September 2025 it had cut about 34,000 operational roles and closed 93 facilities, and in January 2026 it announced up to 30,000 further cuts and 24 closures. Its differentiators are global air and ground integration and healthcare logistics.

Other players operating in the Australia courier, express, and parcel (CEP) market include Toll Group, Couriers Please, Aramex, Sendle, and Team Global Express, alongside specialist technology platforms, franchise operators and linehaul contractors supporting sortation, last-mile delivery, and returns handling.

Key Insight

Competition rests on network density, air and linehaul capacity, customs capability and retailer integration rather than price alone. The Sendle shutdown shows how thin margins reshape the field.