Distribution
Distribution Industry (Last Leg Delivery)
Q3 2022: Mergers and Acquisitions Trend Report
Industry Overview
- The Distribution Industry consists of freight, courier, logistics, packaging, mail delivery, and last-leg delivery.
- The Couriers and Local Delivery Services industry has observed rising growth due to a combination of factors, including; an increase in consumer orders placed online and delivered through third-party services, and a higher demand for temperature-controlled shipping from the healthcare industry.
- The Distribution Industry is expected to grow significantly over the next decade, driven by a strong expansion of ecommerce sales allowing new companies to enter the market, leading to an anticipated 8.5% increase in the number of enterprises in the industry.
- Employment in the industry will grow at a slower annualized rate of 4.7% to 1.1 million workers.
- Key players are the United Parcel Service, FedEx, and Deutsche Post Ag.
Key Industry Trends
- Industry revenue fluctuates with overall consumer spending and sentiment, which dictates the demand for goods that are distributed by industry operators.
- B2B partnerships account for a large portion of the Distribution Industry revenue because companies rely on couriers to deliver key goods and materials.
- E-commerce sales represent a vital growth area for industry operators. E-commerce sales have expanded as a wide range of product offerings, the ease of providing services and making purchases, and social media influence entices consumers to use E-commerce channels.
Recent M&A Transactions

Historical Performance
- The average profit margin for the Distribution Industry has increased over the past five years.
- The Distribution Industry revenue has increased 6.9% annually to $151.6 billion, over the five years.

Future Industry Growth
- Over the next six years, the Distribution Industry is anticipated to benefit from renewed growth in consumer spending and an increase in the number of businesses.
- Industry revenue is anticipated to increase 3.6% annually to $181.2 billion over the next five years.
- E-commerce is a key market for the Distribution Industry and will support further industry growth as consumers increasingly make purchases online rather than through brick-and-mortar locations.

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