The UPU’s latest Postal Statistics yearbook release shows that real postal revenue is in decline across all regions – a signal that current operating strategies are insufficient and driving the call for swift diversification of postal business models.
The report collected data from 186 countries and territories, up to 31 July 2025. According to the data, 2024 was the third consecutive year that real postal revenues declined. This decline was felt universally – even in regions with the highest level of postal development.José Anson calls the findings an “alarm signal” for postal operators.
Posts had the opportunity to grasp their relevance during COVID-19 when much of the world’s population relied on delivery services to access necessities, he explains. The years following show that postal operators did not evolve rapidly enough to maintain this relevance once the situation cleared.
While, in general, postal operators have focused on boosting parcels services to offset losses in letters volumes, the strategy has not brought about the desired effect for all of them.
Domestic parcel volumes grew by 6% in 2024, demonstrating a slight recovery after two years of consecutive shrinkage. International parcels grew a slight 1.3% in 2024 but are still low compared to pre-COVID levels. The data shows that letter post still accounts for 33.3% of revenue, on average.
“One could have been thinking that parcel logistics would be a silver bullet for postal operators, but it has actually not been the case,” explains Anson. “There is heavy competition in the parcels market and profit margins are quite small. While a number of postal operators have improved the delivery experience for customers, others still need to better cater to the needs of e-shoppers.”
Diversification without contraction
While the trends are worrying, Anson says there are opportunities for rebound.
“This situation necessitates serious thought about the future of postal services – only deeper changes could start fixing the situation,” he says.
While declining revenue has been a broadly global phenomenon, there have been outlier success stories. The UPU analysed these cases as part of its State of the Postal Sector 2025 report and found that investing in diversification while reinforcing the physical postal network was a winning strategy.
The advice goes against the move by operators to close post offices in a bid to reduce operating costs without revisiting the concept of postal access and proximity.
“Having a physical network leads to engagement will all your customers. If you reduce that network to save money without alternative plans to ensure access postal services, you are trading savings with relevance and this could eventually backfire,” says Anson. “Posts can provide new services at the counter, with a human face, that are critical to peoples’ daily lives. Those who do this, often do better.”
Anson emphasizes that postal operators still have yet to grasp the full potential of e-commerce and associated services.
“Cross-border e-commerce is growing but not our share in it – why can’t we benefit from this growth in cross border purchases?” he asks, adding that the UPU will be critical to ensuring Posts have the tools, knowledge and agreements in place to facilitate new services here.
Improving data collection
The annual postal statistics is collected by the UPU via a survey sent to the designated postal operators and regulatory bodies of its 192 member countries. The data collected forms the foundation of critical research, including the yearly State of the Postal Sector report and its associated Integrated Index for Postal Development, explains UPU statistician Lukasz Piotrowski.
Incomplete questionnaires reduce the value of the longitudinal data used to track and inform the sector’s progress. “If we don’t measure the sector properly in times like this, we don’t have the relevant metrics to help provide advice,” says Piotrowski.
The UPU’s Council of Administration has recently launched an informal working group to guide the reform of UPU Postal Statistics that will focus on reforming how and which statistics are collected. Experts from member states and the International Bureau are working together to identify response barriers, information gaps and typical data collection procedures to produce a new format that will be tested in 2027 and rolled out in 2028.
This article first appeared in Union Postale Spring/Summer 2026.