The current state of the Dutch postal market
Dutch consumers and businesses send less and less mail. In the last five years, the number of sent mailpieces has dropped by a third. In 2014, consumers and businesses sent a total of 3.5 billion mailpieces. Mail transport companies have partially offset this drop in revenues by charging higher prices. These are some of the conclusions the Netherlands Authority for Consumers and Markets (ACM) has drawn from a survey among 22 mail transport companies, which was carried out at the request of the Minister of Economic Affairs.
Facts about the Dutch postal market
Less addressed mail
In the last five years, the number of sent addressed mailpieces dropped by 31% (cumulatively). In 2014, 8% less mail was sent than in 2013. The main explanation is that consumers and businesses are switching to digital alternatives.
3.5 billion mailpieces: 7% from consumers, 93% from business senders
In 2014, consumers sent 250 million letters, which is 7% of the total number of sent mailpieces. The other 93% is sent by business senders, which, in 2014, amounted to 3.3 billion letters, direct mail and periodicals.
Slight drop in turnover of mail transport companies to EUR 1.36 billion in 2014
In 2014, the total turnover was 2% lower than in 2013. The drop in turnover is smaller than the one in volume. This is because prices have been raised on average by 6%.
Tariffs for letters are higher than those for direct mail or periodicals
The average revenue in the business segment is EUR 0.37. However, within that segment, the average revenues do vary significantly: EUR 0.48 for business letters, EUR 0.23 for direct mail and EUR 0.22 for periodicals. Large business senders pay lower tariffs than do small business senders. The average tariffs for 24-hour delivery (between EUR 0.60 and 0.65) are a lot higher than those for 72-hour delivery (between EUR 0.20 and 0.25). Maintaining a 24-hour sorting and delivery network is more expensive than maintaining a 72-hour sorting and delivery network. The average tariff that consumers pay for sending mail is higher, which is EUR 0.72.
PostNL is the only player in the consumer market
Dutch postal company PostNL is practically the only player that offers services in the market for consumer mail. PostNL is the only one that has an intricate network of drop-off locations with nation-wide coverage. ACM thinks it is unlikely that a new player with a network of its own will enter this national market. The tariffs on this market are statutorily regulated.
Small mail transport companies are spread out across the country
Regional and local mail transport companies are active in various regions in the Netherlands. What is striking is that they do not solely focus on densely-populated areas, as even the densely-populated western part of the Netherlands is slightly underrepresented.
Small mail transport companies partially depend on PostNL’s network
Regional and local mail transport companies also have mail that needs to be delivered outside of their own regions. They outsource some of that mail to each other. However, for the rest of this out-of-region mail, the smaller mail transport companies depend on PostNL for delivery. Of the mail that regional or local mail transport companies collect from business customers, about half is delivered through PostNL’s network. ACM regulates the conditions and tariffs that PostNL charges other mail transport companies for delivery. The regional and local companies also transport mail of other companies such as Sandd.
PostNL’s market share is shrinking in the business market
The business market has more players than just PostNL. Sandd delivers mail in the Netherlands two days a week. This is the so-called 72-hour mail. In addition, over 100 other mail transport companies are active that deliver mail regionally or locally up to five days a week. This is the so-called 24-hour mail. Both PostNL and Sandd have significant market shares in the 72-hour mail segment. In the 24-hour mail segment, PostNL controls most of the market. The combined market share of the other companies did rise in 2014. So far, they primarily serve small business customers.
Key figures of the Dutch postal market in 2014
| 2014 | Change compared with 2013 | Change compared with 2009 | |
| Number of mail transport companies | 116 | -2% | +4% |
| Number of total addressed mailpieces | 3.51 billion | -8% | -31% |
| Combined turnover of postal market | € 1.36 billion | -2% | -21% |
| Number of addressed mailpieces of consumers | 0.25 billion | -6% | -32% |
| Number of addressed mailpieces of business senders | 3.26 billion | -8% | -31% |
About ‘the current state of the Dutch postal market’
ACM drew up ‘The current state of the Dutch postal market’ based on data from the confidential postal-market monitor. ACM publishes this monitor by order of the Minister of Economic Affairs. For the first time ever, ACM in 2014 was able to use the data of 22 mail transport companies. Together, these companies represent over 98% of the total turnover in the market. These figures thus give a comprehensive picture of the Dutch postal market.