The Great Delivery Shake-Up: Thailand's Parcel Wars Enter a New Era

Thailand's express parcel delivery market, once booming, is now undergoing intense consolidation as major players adapt to fierce competition, evolving consumer behaviour, and economic pressures, with a shift towards sustainable business models and new challenges from integrated e-commerce logistics

 

The fiercely competitive landscape of Thailand's Courier, Express, and Parcel (CEP) market is entering a profound period of consolidation.

 

Following an unprecedented boom during the COVID-19 pandemic, when online shopping became an indispensable part of daily life and attracted a swarm of new domestic and foreign entrants, the sector now finds itself in a ruthless culling phase.

 

The earlier era was characterised by relentless price wars, aggressive promotional campaigns, and massive capital injections in a desperate bid for market share.

 

However, as normalisation takes hold, consumer behaviour evolves, the economy decelerates, and saturation looms, only a handful of players are demonstrating genuine survivability and profitability.

 

Data from SHIPPOP, a leading Thai logistics platform provider, suggests the nation's express parcel delivery market is poised for continued expansion.

 

This sustained growth is underpinned by a diverse array of online sales platforms for merchants and a consistent uptick in e-commerce adoption.

 

Consequently, the market value for parcel delivery services is projected to have already exceeded 100 billion baht by the close of 2024, representing a 12% increase from an estimated 96 billion baht in 2023.

 

Echoing this optimism, Mordor Intelligence, a global market research and consultancy firm, estimates Thailand's express parcel delivery market to be worth approximately $US 2.86 billion (roughly 93.999 billion baht at current exchange rates) in 2025.

 

This figure is expected to surge to $US 4.04 billion (approximately 132 billion baht) by 2030, reflecting a robust Compound Annual Growth Rate (CAGR) of 7.16%.
  



 

The burgeoning demand for parcel services is predominantly driven by goods such as electronics, home appliances, food, beverages, toys, and DIY products.

 

Concurrently, the number of e-commerce users in Thailand is forecasted to reach 15.19 million by 2029, with user penetration escalating from 20.6% in 2024 to 24.8% over the next four years.

 

This upward trend is further bolstered by ongoing investments in infrastructure and the pervasive adoption of new technologies.

 

Reports from the Digital Economy Promotion Agency, central bank research centres, and private sector analyses largely corroborate these estimations, pegging the total market value for 2024-2025 at approximately 80-100 billion baht per annum, handling an average of 10-12 million parcels daily.

 

 

 

Shifting Consumer Habits Reshape the Market

Crucially, Thai consumer purchasing habits have undergone a significant transformation.

 

While social commerce once dominated, it is now rapidly losing market share to the phenomenon of "Shoppertainment."

 

Nearly all platforms now integrate short video content with immediate "add to basket" functionalities, enabling viewers to make instant purchases. This paradigm shift is compelling the Thai express delivery sector to undergo a dramatic and compelling adaptation.

 

Among the five principal players in the Thai express parcel delivery market, Thailand Post remarkably retains its market leadership, reporting increased revenues and successfully transitioning from a loss to profitability last year.

  

Flash Express has ascended to become the market's second-largest player, exhibiting swift growth. J&T Express has witnessed substantial expansion, particularly buoyed by parcel volumes from TikTok. KEX Express (Kerry Express Thailand) is currently undergoing a significant strategic repositioning, streamlining its business portfolio, while several other transport companies have already ceased operations.

 



 

The Intensifying Battleground

Industry insiders in the digital and parcel logistics sectors interpret KEX's portfolio adjustment, operating under China's SF Holding group, as a clear indication of weariness in the fiercely contested market.

 

Despite its former status as Thailand's market leader, decelerating revenue streams and high operational costs have prompted the company to re-evaluate its strategy.

 

The closure of unprofitable segments within the broader SF Group signals that even "major capital" does not guarantee enduring viability without fundamental structural adaptation.

 

In contrast, Thailand Post, leveraging its extensive nationwide network, benefits from inherent strengths in localised data, unwavering user trust, and a deeply embedded infrastructural presence within Thai society.

 

This has enabled it to maintain a robust foothold in terms of both revenue and profitability. Intriguingly, at a time when many private entities are retreating or struggling, Thailand Post has been adept at "capitalising" on the market segments that others have relinquished.

 

It achieves this not through aggressive price wars, but by prioritising stable service delivery, even in remote areas.

 

Another entity warranting close observation is Flash Express, founded by Komsan Lee, one of Thailand's few logistics unicorns.

 

Flash carved out its reputation by rapidly establishing logistics infrastructure and emphasising its technological prowess and 365-day, non-stop service. However, a persistent challenge remains its "ongoing operating losses".

 

Despite an extensive expansion of services, from Flash Fulfilment to cross-border logistics, it is widely believed that Flash's substantial investments and service diversification are likely to steer the business towards future profitability.

 

The unfolding dynamics in this market are not merely about market share acquisition; they represent a fundamental transition from an "era of heavy investment" to an "era of sustainability".

 

This shift will rigorously test which business models are truly robust, which entities can effectively manage costs, and which can leverage technology to enhance efficiency beyond simply increasing parcel volumes or service points.

 

Many smaller players are expected to gradually exit the market or be absorbed by larger conglomerates. Mid-sized players, conversely, may need to forge new partnerships or pivot towards niche markets, such as specialised delivery for particular product categories like pharmaceuticals, fresh food, or time-critical documents.

 

 

 

Corporate Giants Exit Logistics

Kongkrapan Intarajang, CEO and President of PTT Public Company Limited, recently stated that the PTT Group will concentrate on its core competencies and revenue-generating businesses.

 

Notably, its logistics ventures, including fruit transportation by rail, have been entirely discontinued. The PTT Group will now exclusively focus on activities that align with its core business and foster internal group synergies.

 

Krungthep Turakij previously reported on PTT's expansion into logistics.

 

On October 6, 2022, PTT Public Company Limited informed the Stock Exchange of Thailand that the board of Siam Management Holding Co., Ltd. (SMH), a PTT subsidiary, had approved the establishment of Global Multimodal Logistics Co., Ltd. (GML).

 

SMH held a 100% stake in GML with a registered capital of 230 million baht, intending to engage in logistics, particularly connecting all of Thailand's transport networks, including international links.

 

In 2023, GML furthered its business by signing a cooperation agreement with the Marketing Organization for Farmers (MOF) to expand the export market for agricultural and consumer goods via rail transport.

 

This initiative aimed to build an international logistics network and bolster the entry of Thai agricultural products into regional trade markets.

 



 

SCG Closes Loss-Making Logistics Arm

Similarly, Siam Cement Public Company Limited (SCG) has divested from unprofitable ventures, including its logistics operations under SCG Express Co., Ltd. (colloquially known as "Black Cat").

 

Thammasak Sethaudom, SCG's President and CEO, informed Krungthep Turakij that despite the business's growth, its financial returns were meagre, making it uncertain how much more capital would be required and who would ultimately benefit.

 

Comparing logistics to more lucrative businesses like recycled polymers, SCG is compelled to pursue ventures that offer greater long-term value.

 

The company has also announced organisation-wide cost reductions, the closure of unprofitable operations, and the divestment of assets.

 

Krungthep Turakij's investigation into SCG Express through the Department of Business Development revealed that the company was registered on September 22, 2016, with a registered capital of 1,463 million baht.

 

It provided express parcel delivery services for both general and temperature-controlled food items, catering to the expanding needs of e-commerce clients.

 

However, its operations consistently generated losses: 184 million baht in 2023, 247 million baht in 2022, 212 million baht in 2021, 216 million baht in 2020, and 305 million baht in 2019.

 

 

 

Watch Out: Shopee and Lazada's Full Logistics Offensive

The pathway to success in the express parcel delivery business moving forward transcends mere capital investment. It hinges on:


Efficient network management.
Leveraging customer data for optimised route planning.
Tailoring services to cater to specific niche demands.
Cultivating brand trust, not solely through competitive pricing, but through punctual and transparent service.
Resilience against pressure from e-commerce platforms that are increasingly developing their own logistics ecosystems, such as Shopee Xpress and Lazada Logistics, which are emerging as formidable long-term rivals.


 

Despite these intense pressures, the Thai e-commerce market continues its growth trajectory, ensuring the parcel delivery sector remains fiercely competitive.

 

Each service provider must innovate, seek new opportunities, and devise compelling strategies to retain customer loyalty and accommodate the ever-evolving and diverse demands of consumers, integrating new technologies and fostering more environmentally conscious services

(2025/06/02-00:00)