The State of Packages in 2021 – A Detailed Overview

The State of Packages in 2021 – A Detailed Overview

Technological advancements coupled with the multitude of benefits offered by supply chain management solutions bode well for the logistics market growth. Also, e-commerce proliferation and the ensuing demand for multi-channel distribution have aided the logistics market globally. These factors are also expected to contribute to the 6.5% CAGR during 2021 – 2029.

Package management, handling, and shipping are crucial components of logistics operations. With the changing customer shopping behaviors, expectations, and the current scenario after the pandemic hit the world, industries are switching to modern and automated package management systems.

Let’s have a detailed analysis of the state of packages that reveal the vast scope of the industry. For this purpose, we will utilize the data extracted from the PackageX platform for the year 2021.

Global Logistics Market Outlook

According to statistics, the global logistics market was worth 9525.1 billion USD in 2021. However, it is expected to reach 13,326.3 billion USD by 2027, with a compound annual growth rate of 5.7% between 2022 to 2027.

Some common reasons for this predicted growth rate are:

  • Increasing global trade activities
  • Advancements in technology and transportation
  • The rise in trade-related agreements

Moreover, the Asia-Pacific region is predicted to lead the logistics market in the future, but the US is also not far behind in the race. The USA is currently one of the top ten leading global logistics markets and has the third-highest market for 3PL companies.

Global Logistics Market Outlook

State of Packages - The Data

The data we will use for the analysis comprises over 3 million packages that were processed using the PackageX platform in 2021 across 40 countries. We will breakdown the data into four sections including:

  • Total number of scans – It refers to the number of packages scanned using the PackageX app.
  • Total notified – It shows the number of packages for which the recipients were notified.
  • Total picked – The number of packages picked after the recipients were notified.
  • Same-day pickups – The number of packages picked on the same day of arrival.

Year Total Scan Total Notified Total Picked Same-day Pick-ups
2021 3,040,700 2,873,882 2,748,396 1,115,948

Analysis Based on Geographical Area

Since online shopping is booming considering the COVID-19, the package volume is increasing in every country and industry.

Let’s see how many packages were processed in different countries using the PackageX platform.

Countries Total No. of Scans Total Notified Total Picked Same-day Pickups
Australia 21,364 19,116 18,818 7042
Canada 2,388 1904 2046 972
Hong Kong 49,246 46,448 49,938 22,892
India 6 6 0 0
Norway 6,910 6052 4518 254
Spain 11,508 11,020 11,352 8304
Taiwan 46 278 274 164
United Kingdom 20,478 19,282 15,652 1096
United States 2,928,754 2,769,776 2,645,798 1,075,224

The highest number of packages were scanned in the USA, reflecting the massive scope of logistics in the country.

Analysis Based on Industries

Various industries are using the PackageX platform to manage their package volume. It reflects their increasing interest in modern and automated package management for streamlined logistics operations and accelerated business growth.

Industries Total No. of Scans Total Notified Total Picked Same-day Pickups
Corporate Offices 13,316 10,938 10,064 7540
Coworking 74,998 95,390 89706 30,996
Higher Education 506,654 444,606 420,066 227,380
Hospitality 1,801,838 1,724,764 1,694,856 627,296
Residential Real Estate 422,142 422,352 364,180 135,602
Retail Sector 64,600 33,862 59,216 43,106

Among several industries, the hospitality sector witnessed a surge in package volume. Therefore, the highest number of packages were scanned, picked, and notified in hotels.

Key Considerations

All the data above reveals a new narrative for customers and businesses. The companies and industries associated with logistics need to upgrade their strategy and operations for the coming years if they want to thrive. The following are some critical considerations for the businesses:

  • Integrate a modern package management software like PackageX Receive into your existing systems and opt for new technologies to enhance accuracy and efficiency.
  • Eliminate manual data entry from your workflows to save time and eliminate errors.
  • Constantly work out to improve the recipient experience by providing end-to-end parcel tracking.
  • Inventory can make or break the business; therefore, manage your inventory efficiently.
  • Keep your customers informed through emails, texts, viable tracking numbers, and other package-related updates.
  • Learn from your competitors and keep looking out for new modes of logistics management and staff training programs.

The Future of Logistics Industry

The logistics industry is not going anywhere. It will keep improving with a greater level of automation, digitization, and standardization in the future. Advanced technologies like AI (Artificial Intelligence), machine learning, and augmented reality are transforming logistics workflows. With the predicted growth of the global economies, the logistics market is likely to expand. According to the stats, the 3PL providers will occupy a large portion of the market. In 2017, 3PL companies in the USA accounted for 168.4 billion dollars, which is predicted to reach $266.1 billion by 2027.

Are You Prepared?

Logistics is a complicated industry that requires great attention to detail. It is rapidly growing with every passing year, which means logisticians must be prepared to excel for successful survival in this fast-paced technological world. Only those with ambition and tenacity will get new opportunities and financial success. So, make sure you are on the winning side!

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