Thai Times

Covering the Thai Renaissance
Wednesday, Jul 16, 2025

Thailand's Parcel Delivery Market Faces Consolidation Amid Evolving Consumer Trends

The shift towards sustainability and robust competition transforms Thailand's Courier, Express, and Parcel (CEP) sector.
Thailand's Courier, Express, and Parcel (CEP) market is undergoing significant consolidation as it adapts to changing consumer behaviors and economic conditions.

The sector, which experienced a boom during the COVID-19 pandemic due to a surge in online shopping, is now entering a phase marked by competition and operational realignment.

According to data from SHIPPOP, a leading Thai logistics platform provider, the express parcel delivery market in Thailand is projected to expand further, with the market value expected to exceed 100 billion baht by the end of 2024.

This figure marks a 12% increase from an estimated 96 billion baht in 2023.

Mordor Intelligence also forecasts the express parcel delivery market will be worth approximately $2.86 billion (around 94 billion baht) by 2025, with expectations it will reach $4.04 billion (approximately 132 billion baht) by 2030, exhibiting a compound annual growth rate (CAGR) of 7.16%.

The growth is driven by a diverse range of products being shipped, including electronics, home appliances, food, beverages, toys, and DIY materials.

The number of e-commerce users in Thailand is expected to rise to 15.19 million by 2029, with penetration growing from 20.6% in 2024 to 24.8% by 2028.

This growth is supported by investments in infrastructure and technology.

Reports suggest the total market value for parcel delivery services will stabilize between 80-100 billion baht annually, with an average handling of 10-12 million parcels daily.

The transformation of consumer purchasing habits, particularly the shift from social commerce to 'shoppertainment', is reshaping the market dynamics, as platforms increasingly integrate video content with shopping functionalities.

THAILAND POST remains a leader in the market, reporting revenue growth and transitioning from losses to profitability in recent years.

FLASH EXPRESS ranks as the second-largest player, while J&T EXPRESS has seen notable growth, particularly benefiting from partnerships with social media platforms.

KEX EXPRESS, operating under China's SF Holding group, is re-evaluating its business strategy amidst declining revenues and high operational costs.

The adjustment reflects the wider market trend where even financially strong entities face challenges in sustaining operations without structural changes.

In contrast, THAILAND POST utilizes its extensive network for localized data and service delivery to maintain its market position.

The landscape is further complicated by the closure of logistics operations by major conglomerates, including PTT Public Company Limited, which announced a strategic refocus on core competencies, eliminating unprofitable logistics ventures.

Siam Cement Public Company Limited (SCG) has also divested from its logistics arm, citing unsatisfactory financial returns and a focus on more lucrative business areas.

Challenges facing the express parcel delivery sector in Thailand revolve around efficient network management, customer data utilization for optimized logistics, and the development of niche services.

The rise of e-commerce platforms developing their own logistics solutions, such as Shopee and Lazada, introduces additional competitive pressures, reinforcing the need for service providers to innovate and adapt to a rapidly evolving market.
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