A new report from the ILR shows that postal services revenue reached €209 million in 2023, marking an 8% increase from 2022.
On Monday, the Luxembourg Regulatory Institute (ILR) published a new report covering the key figures for the postal services market in 2023 and their development since 2020. The document is based on data collected from 34 providers active in the Luxembourg postal services market in 2023, including one new provider active in the mail services market.
Postal services market turnover reached €209.69 million in 2023, up 8% compared with 2022. Revenue from mail services totalled €115 million, a 10% rise compared to 2022. Parcel services generated nearly €95 million, reflecting a 5% increase.
Providers' average revenue per parcel is on a downward trend, falling from €12.63 to €11.46 between 2022 and 2023, while average revenue per letter is on an upward trend, rising from €0.77 to €0.88.
Mail services represented 131.41 million units, down 6% compared to 2022. Mail traffic shows a continuous decline with a compound annual rate of -5.5% over the period 2020/2023. The designated universal postal service provider, POST Luxembourg, handles 97.5% of total mail traffic.
Parcel services totalled 18.36 million units, up 10.9% compared with 2022. Growth in the parcel services market is being driven mainly by growth in incoming cross-border traffic, which is up 12.2% to 14.85 million parcels.
The report also highlights the significant role of subcontracting in the postal services sector, with nearly 80% of total parcel traffic being handled by third-party providers. Subcontracting is particularly prevalent in the cross-border parcel services market. Out of 15 service providers surveyed, 13 reported using subcontractors for parcel services.
In terms of access to postal services, Luxembourg hosts 99 POST Luxembourg points of sale, and 102 locations operated by ten other service providers. Additionally, the number of POST Luxembourg automatic distribution points (Pack up) increased to 141 in 2023, up by 24 from 2020.
The postal sector employed nearly 2,000 people in 2023, with POST Luxembourg accounting for over 1,200 of these positions, or 63% of the sector's workforce.
