Sweden CEP Market Analysis
The Sweden Courier, Express, and Parcel Market is expected to register a CAGR of greater than 10% during the forecast period.
- Being the country with the highest e-commerce growth in 2021 (20%), Sweden is at the top of the list of target markets for expansion for many online retailers. In addition, several other e-commerce metrics indicate the country's attractiveness in northern Europe.
- The products' quality and the companies' sustainable orientation are important decision factors for Swedish online shoppers. An important part of the last point is environmentally friendly delivery methods. In addition to green shipping, reliability, and speed, the price is also a key element in the purchase decision. As in any country, certain parcel delivery services include a better reputation than others. So, offering the shipping option with the right courier directly impacts one's conversion rate. For example, 27% of Swedes abandon the purchase process if their preferred delivery method is not offered.
Sweden CEP Market Trends
Growing e-commerce is Driving the Market Growth
The pandemic significantly advanced the development of online shopping, with up to a quarter of Swedish people saying they used e-commerce more due to the pandemic. Many previously reluctant online shoppers, such as the older generations, also embraced click-and-drop convenience. The trend was, however, already well underway, with a big shift from physical stores to e-commerce well before 2020, driven by changing Swedish consumer habits.
Consumers are also happy to purchase from other countries. 80 to 90% of consumers across the Nordics engage in 'cross-border' e-commerce. This trend will likely continue with Amazon, established in Sweden, and well-established players like Zalando, Wish, and eBay.
Consumer Goods, and House Utility Products Occupied a Major Share of the Products Delivered
The Scandinavian e-commerce market is growing exponentially. Denmark, Norway, and Sweden ranked in the top 10 cross-border countries. It is an annual ranking of the best 16 European countries in cross-border online shopping by CBCommerce. Sweden is thus of high interest for e-retailers to expand to. Furthermore, the country is the frontrunner leading the way for the rest of Europe in technology and sustainability.
Sweden is, in particular, a vast country compared to the number of inhabitants. People live relatively far apart, with a rather large number of people living in remote areas, which creates distribution challenges. Both domestic and cross-border e-commerce is booming in the Scandinavian countries. It encompasses direct-to-consumer retail and shipments of electronics, pharmaceuticals, and consumer packaged goods.
Sweden CEP Industry Overview
Sweden's Courier, Express, and Parcel (CEP) market is highly consolidated. One of its most significant features is that one operator predominates the Swedish parcel delivery sector. PostNord is Sweden's most well-known delivery company regarding sales and shipping volume. Only a few other transportation providers, including PostNord, fiercely compete for the second position. These companies include UPS, DHL, DB Schenker, and Bring Parcel. This arrangement demonstrates how highly consolidated the Swedish parcel industry is relative to other European markets.
Sweden CEP Market Leaders
PostNord AB
DB Schenker
DHL
UPS
FedEx
- *Disclaimer: Major Players sorted in no particular order
Sweden CEP Market News
- October 2023: Jetpak Top Holding AB (publ) has today through its subsidiary Jetpak Group AB, signed an agreement to acquire all shares in the Swedish courier and distribution company BudAB AB. Initial acquisition price amounts to SEK 24.8 million on debt-free basis. In addition, an additional conditional purchase price of a maximum of SEK 10.4 million may be paid. The conditional additional purchase price is dependent on achieved profits for the financial year 2025.
- February 2022: DB Schenker extensively appreciated the implementation of the new EU Mobility Package that is meant to more effectively balance the safety objectives, social fairness, sustainability, and economy in the European land transport system. Over the past few years (starting in 2017), many new rules were implemented and are now in place. However, the most significant changes in road transport working conditions will be in effect from 2022.
