Canada Courier, Express, And Parcel (CEP) - Market Size, Share, Trends, And Forecasts, 2026-2031 E-Commerce And Cross-Border Growth Lift Market To USD 20.67 Billion
Dublin, Nov. 11, 2026 (GLOBE NEWSWIRE) -- "Canada Courier, Express, And Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The Canada courier, express, and parcel (CEP) market is projected to increase from USD 15.37 billion in 2025 to USD 16.10 billion in 2026. The market is expected to reach USD 20.67 billion by 2031, expanding at a CAGR of 5.12% from 2026 to 2031. Growth is being supported by rising e-commerce activity, direct-to-consumer shipping, faster retail fulfillment commitments, international parcel inflows, and the expansion of automated delivery infrastructure.
Direct-to-Consumer Shipping Reshapes Parcel Volumes
Brands selling directly to households are replacing traditional wholesale distribution with higher volumes of single-unit parcel shipments. Statistics Canada recorded CAD 90.4 billion (USD 66.3 billion) in online sales during 2024, while Shopify's global merchant base exceeded 2 million. These developments have created substantial opportunities for carriers serving small and low-volume merchants.
As average shipment weights decline, delivery providers must improve stop density and maintain viable revenue per drop. Dynamic-routing algorithms, robotic sortation, and higher vehicle utilization are becoming increasingly important for protecting margins. Direct-to-consumer demand remains particularly strong across fashion, health-and-beauty, and specialty foods, where rapid and reliable delivery can directly influence customer loyalty.
Sub-24-Hour Fulfillment Raises Service Expectations
Retail investments are accelerating demand for same-day and next-day delivery across major Canadian cities. Walmart Canada's CAD 6.5 billion (USD 4.51 billion) modernization program and Loblaw's nationwide PC Express expansion demonstrate the growing importance of rapid order fulfillment.
Micro-fulfillment facilities in densely populated metropolitan areas can reduce line-haul distances to less than 15 km. However, limited industrial property availability remains a challenge, with warehouse vacancy in the Greater Toronto Area falling below 2%. Some courier providers are dedicating branded fleets to individual retailers, securing contractual parcel volumes while reducing opportunities to capture broader scale efficiencies.
Evening and weekend delivery services improve convenience but can increase shift premiums by 18-25%. Strong price competition makes it difficult for carriers to transfer all additional expenses to customers, contributing to continued margin pressure in the Canada courier, express, and parcel market.
Labor and Fuel Costs Pressure Courier Margins
Transportation and warehousing wages rose 4.8% year-over-year in 2024, exceeding broader inflation. Amazon's USD 100 million wage increase for Canadian employees also established a higher compensation benchmark, placing additional pressure on regional carriers with more limited financial resources.
Diesel prices ranging from CAD 1.40-1.80/L (USD 1.03-1.32) have complicated fuel surcharge calculations and affected cost predictability for retail shippers. Although contractor-based operating models and optimization software can improve efficiency, high driver turnover may weaken service consistency. Labor therefore remains the largest expense category for many courier businesses.
Additional market influences include the surge in lightweight international parcels entering under de minimis thresholds, the nationwide roll-out of automated parcel-locker networks, and margin erosion caused by intensifying price-led rivalry. Parcel lockers can reduce failed delivery attempts and consolidate multiple orders at a single location, improving last-mile productivity in urban markets.
E-Commerce and Healthcare Support Market Expansion
Online retail accounted for 34.71% of market revenue in FY 2025 and is forecast to grow by 4.62% annually through 2031. Mobile checkouts now represent more than 55% of transactions, increasing demand for real-time tracking, delivery notifications, and flexible delivery preference options.
Healthcare logistics is also becoming an important source of higher-margin revenue as biologics gain market share. This trend is encouraging investment in GDP-compliant depots and temperature-controlled transportation capabilities. Manufacturing and wholesale trade continue to provide stable parcel volumes, although digitization has reduced demand for physical document delivery.
International Parcel Growth Outpaces Domestic Demand
International parcels are forecast to grow at a CAGR of 5.98% through 2031, exceeding the pace of domestic expansion. Domestic shipments nevertheless represented 63.27% of the market's 2025 value. Duty-free thresholds are supporting purchases from United States and Asian online sellers, increasing air-inbound volumes and strengthening demand for customs brokerage services.
Carriers that integrate brokerage systems and clearance APIs can reduce shipment dwell times and improve the cross-border customer experience. Domestic growth, meanwhile, continues to benefit from direct-to-consumer retail strategies and sub-24-hour delivery commitments. Road transport remains central to these shipments, while zero-emission regulations are expected to accelerate the adoption of electric vans for short-haul urban routes. Rural delivery remains cost-intensive because of long distances and low stop density, requiring carriers to maintain premium tariffs in less populated regions.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Demographics
4.3 GDP Distribution by Economic Activity
4.4 GDP Growth by Economic Activity
4.5 Inflation
4.6 Economic Performance and Profile
4.6.1 Trends in E-Commerce Industry
4.6.2 Trends in Manufacturing Industry
4.7 Transport and Storage Sector GDP
4.8 Export Trends
4.9 Import Trends
4.10 Fuel Price
4.11 Logistics Performance
4.12 Infrastructure
4.13 Regulatory Framework
4.14 Value Chain and Distribution Channel Analysis
4.15 Market Drivers
4.15.1 Proliferation of Direct-to-Consumer Shipping Models
4.15.2 Retailers' Sub-24-Hour Fulfilment Commitments
4.15.3 Surge in Light-Weight International Parcel Inflows under De Minimis Thresholds
4.15.4 Nationwide Roll-Out of Automated Parcel-Locker Networks
4.15.5 Rising Demand for Temperature-Controlled Healthcare Logistics
4.15.6 Federal Incentives Accelerating Zero-Emission Last-Mile Fleet Adoption
4.16 Market Restraints
4.16.1 Escalating Courier Wage Bills and Fuel Surcharges
4.16.2 Margin Erosion from Intensifying Price-Led Rivalry
4.16.3 Urban Zero-Emission Zones Restricting Conventional Delivery Vans
4.16.4 Growing Cybersecurity Compliance Outlays for Parcel Data Systems
4.17 Technology Innovations in the Market
4.18 Porter's Five Forces Analysis
4.18.1 Threat of New Entrants
4.18.2 Bargaining Power of Buyers
4.18.3 Bargaining Power of Suppliers
4.18.4 Threat of Substitutes
4.18.5 Competitive Rivalry
5 Market Size and Growth Forecasts (Value, USD)
5.1 By Destination
5.1.1 Domestic
5.1.2 International
5.2 By Speed of Delivery
5.2.1 Express
5.2.2 Non-Express
5.3 By Model
5.3.1 Business-to-Business (B2B)
5.3.2 Business-to-Consumer (B2C)
5.3.3 Consumer-to-Consumer (C2C)
5.4 By Shipment Weight
5.4.1 Heavy Weight Shipments
5.4.2 Light Weight Shipments
5.4.3 Medium Weight Shipments
5.5 By Mode of Transport
5.5.1 Air
5.5.2 Road
5.5.3 Others
5.6 By End User Industry
5.6.1 E-Commerce
5.6.2 Financial Services (BFSI)
5.6.3 Healthcare
5.6.4 Manufacturing
5.6.5 Primary Industry
5.6.6 Wholesale and Retail Trade (Offline)
5.6.7 Others
6 Competitive Landscape
6.1 Market Concentration
6.2 Key Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (Includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, and Recent Developments)
6.4.1 Aramex
6.4.2 Asendia
6.4.3 Canada Post Corporation (including Purolator)
6.4.4 DHL Group
6.4.5 Nationex (Colispro Inc.)
6.4.6 FedEx
6.4.7 Globex Courrier Express International Inc.
6.4.8 Intelcom Courrier Canada Inc.
6.4.9 International Distributions Services (including GLS)
6.4.10 Day & Ross
6.4.11 TFI International Inc.
6.4.12 Stallion Express
6.4.13 Atlantic International Express
6.4.14 DTDC Express (DTDC Canada)
6.4.15 Metro Supply Chain Group
6.4.16 Ace Courier
6.4.17 Western Canada Express
6.4.18 Jet Worldwide
6.4.19 AMZ Prep Parcel
6.4.20 United Parcel Service of America, Inc. (UPS)
7 Market Opportunities and Future Outlook
7.1 White-Space and Unmet-Need Assessment
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