Missed delivery: The industry will suffer as online services continue replacing traditional mail

IBISWorld’s industry research report on Postal Service can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.


Market Share of Companies
Industry Statistics & Market Size
Annual Growth
Annual Growth

Industry Threats & Opportunities

  • Although e-commerce growth mitigated some of the negative effects of online services, overall mail volume is expected to decline steadily
  • High gasoline and energy prices have constricted profit
  • Mail volume is expected to continue contracting moving forward

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    Industry Analysis & Industry Trends

    The US Postal Service (USPS), the sole operator in the Postal Service industry, has historically suffered revenue losses. Over the past five years, internet services such as online banking and e-mail have increasingly replaced traditional mail. E-commerce growth mitigated some of the negative effects of online services, since goods purchased online require package delivery services. Still, overall mail volume is expected to decline steadily during the period. Profit has also plummeted due to the Postal Accountability and Enhancement Act (PAEA) of 2006...

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    Industry Report - Industry Key Buyers Chapter

    USPS is the only operator in this industry, effectively giving it a 100.0% market share. USPS is mandated by law to operate in every geographic region in the United States and provide services for the entire population, to every home address. Services are separated into dominant products (first-class mail, standard mail and periodicals) provided only by USPS and competitive products (Priority Mail, Express Mail and bulk parcels). Competitive products and services are subject to external competition from courier and messenger services.


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    Additional Insights for the Postal Service Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Postal Service Industry are

  • Ability to quickly adopt new technology
  • Ability to pass on cost increases
  • The development of alliances
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Corporate profit in the Postal Service industry impact industry performance..

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    Industry Products

    What is the Postal Service Industry?

    This industry includes establishments that operate the national postal service and perform one or more postal services such as sorting, routing and delivery. Establishments that operate on a contract basis (except the bulk transportation of mail) are included in this industry.

    Industry Products
    First-class mail
    Marketing mail (formerly standard mail)
    Shipping and package services
    International mail
    Other mail services
    Industry Activities
    Local postal delivery services operated by United States Postal Services (USPS).
    Local postal delivery services operated on a contract basis.
    Postal services operated by USPS.
    Postal stations operated by USPS.
    Postal stations operated on a contract basis.

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • Corporate profit
  • Percentage of services conducted online
  • commerce sales

  • Current Performance
  • Online services suppress mail volume
  • Healthcare contributions cripple profit
  • Universal Service Obligation
  • Attempt to revive profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability will remain weak
  • Special privileges and alternative sources of revenue
  • Stable fundamentals
  • Table: Postal Service Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Postal Service Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Utilities
  • Magazine & Periodical Publishing
  • Telecommunications Resellers
  • Finance and Insurance
  • Public Administration

  • Key Selling Industries
  • Copier & Optical Machinery Manufacturing
  • Local Freight Trucking
  • Long-Distance Freight Trucking
  • Office Stationery Manufacturing

  • Products & Services
  • First-class mail
  • Marketing mail (formerly standard mail)
  • Shipping and package services
  • International mail
  • Periodicals
  • Other mail services
  • Chart: Postal Service Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential - city
  • Residential - rural
  • Residential - PO box and other
  • Business
  • Chart: Major Market Segmentation for the Postal Service Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Postal Service

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Postal Service Industry

  • Industry Globalization
    Major Companies
    United States Postal Service
  • Table: United States Postal Service - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Postal Service Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Postal Service Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Percentage of services conducted online (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
  • The charge for the conveyance of a letter or other matter sent by mail, usually prepaid by means of a stamp or stamps.
  • Competitive Product
  • These services compete against couriers and other shipping industries. This product segment includes priority mail, express mail, bulk parcel and bulk international shipping.
  • Dominant Product
  • These industry services are only provided by the USPS. This product segment includes first class mail and standard mail.
  • E-Mail
  • A system for sending messages from one individual to another via telecommunications links between computers or terminals.
  • Usps
  • United States Postal Service
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Postal Service:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Postal Service market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Postal Service, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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