Spanish CEP market to recover slightly this year

The Spanish CEP market is expected to recover slightly this year with 2% revenue growth aftertwo years of decline, the annual survey by the leading Spanish market research company DBK

The express and parcels market will grow by 2% to revenues of more than €6.6 billion in 2011,following a dramatic 10% fall in 2009 and a slight 0.8% drop in 2010, DBK said. This growth willtherefore still leave the market below where it was in 2008.

The predicted revenue growth is due to the international activities of Spanish companies whichwill show a better performance than their domestic business as the customer demand goesincreasingly abroad and the Spanish market weakens.

According to DBK, the slowing Spanish economy, the high level of unemployment in the country,continuously low consumption and sales levels along with the increased price pressure explain thenegative growth on the Spanish CEP market in 2009 and 2010, when it reached €6.5 billion.

The ‘business parcel’ sector showed a more negative development in 2010 than the overall marketwith a decrease of 1.3% to revenues of €3.9 billion. The industrial parcel market, which had shownsome recovery in the first months of 2010, deteriorated in the second half closing the year at €2.6billion, which was the same level as the previous year.

With the international focus of many Spanish companies and the declining domestic business, thesegment of international services grew by 5.5% in 2010.

In terms of the market structure, the number of registered companies active in the CEP sectorincreased 5% to 6,178 in 2010. Despite the slow demand, the dynamic development of activities incertain areas has attracted new operators.

However, the unfavourable economic situation and financial problems have limited the number ofacquisitions and mergers although market consolidation has continued due to some business closures.In 2010, the top ten companies in the business parcel segment reached a combined market share of70% generating 65% of the overall revenues.

Looking ahead, DBK predicted a slight recovery on the market in 2011 and 2012 even though theweak domestic demand in an unfavorable economic environment and the high prices would limit revenuegrowth which could amount to 2% in 2011 and 3% in 2012.

Depending on the economic situation, international business would continue to show a moredynamic development with projected growth of 5-6% in 2011-2012 which is 3 percentage points higherthan the domestic activities, the research company concluded.