For 150 years, postal networks have been essential for communication, commerce and connectivity. From the early days of steamships and horse-drawn mail coaches to today’s digital age of e-commerce and logistics, the Universal Postal Union (UPU) has played a central role in shaping this industry. To mark this milestone, the UPU has released the State of the Postal Sector 2024, a landmark report that examines where postal services stand today and how they can evolve in the future.
State of the Postal Sector: a landmark analysisThe report builds on the UPU’s annual Integrated Index for Postal Development (2IPD), which evaluates postal performance across four key dimensions, namely reliability, reach, relevance and resilience. This data-driven framework paints a multifaceted picture of how well different postal systems function, enabling stakeholders to assess service efficiency, international postal connectivity, market adaptability and sectoral robustness in response to economic, environmental or technological shifts. Together, these pillars help stakeholders to gauge “postal health”, highlight areas for improvement and compare best practices globally. However, this year’s edition introduces a robust new approach – the natural postal development level – that fundamentally changes how we assess a postal system’s performance by factoring in local economic and geographical realities.
Understanding natural postal development
Traditional postal rankings measure absolute performance, often overlooking contextual factors that shape outcomes. The natural postal development level bridges this gap by providing a benchmark designed to account for what a country’s postal performance should be, given that country’s population size and unique geographic, economic, infrastructural and other conditions.
This approach allows for a more nuanced and fairer comparison of postal systems. Instead of simply ranking countries solely by raw performance, this framework sets an expected performance range, identifying those countries exceeding expectations and those with untapped potential despite respectable rankings.
For example, consider two countries with similar economic profiles: one consisting of scattered islands and another with a compact, urbanized landscape. While both may achieve the same overall 2IPD score, the logistics challenges facing the island nation mean that it has probably outperformed its predicted development level, whereas the urbanized country may still have significant room for improvement in terms of digital transformation or network expansion.
By shifting focus from absolute rankings to contextualized postal performance, this methodology offers deeper insights into where strategic improvements should be made. From international parcel logistics to small-scale local deliveries, postal operations respond differently to economic and demographic conditions. By comparing actual results to a “natural” baseline, policymakers and operators gain insight into which areas need urgent attention, where resource allocation can be optimized, and how peer countries deal with similar challenges. The report frames these revelations as opportunities for sharing knowledge, forging partnerships and making data-driven reforms.
Key findings and implications for postal resilience, digital transformation and sustainability
The rapid expansion of global e-commerce has added complexity to postal operations. Although some marketplaces bypass traditional postal networks, certain Posts are positioning themselves as key facilitators of cross-border trade. Some Posts continue to face major logistical hurdles, including limited air transport capacity, outdated fleet management or inadequate addressing systems, particularly in rural areas.
Benchmarking against natural development levels enables postal operators to identify vulnerabilities and implement adaptive, crisis-resistant solutions. The findings highlight the need for investment in upgrading digital services, such as smart logistics, AI-powered sorting systems and digital postal services, to forge cross-sector alliances. No single blueprint applies everywhere, but the index offers a navigation tool, enabling each postal service to chart a personalized path forward.
The natural postal development concept is aligned with the UPU’s mission to foster inclusive and sustainable postal growth. By offering a data-driven roadmap, it enables policymakers, postal operators and development agencies to prioritize investment effectively. The UPU can tailor development programmes to address postal inefficiencies in countries where performance falls below the natural benchmark. This approach helps to pinpoint areas where modernization efforts, such as upgrading mail processing centres, enhancing postal banking services and improving last-mile delivery, will yield the greatest impact. By recognizing countries that exceed their expected performance, the model encourages knowledge-sharing and replication of best practices across the global postal sector.
A roadmap for future postal growth
As the postal sector evolves, progress is about more than meeting universal targets. It entails recognizing context, seizing opportunities and adapting in order to deliver what people need most – communication, commerce and connection. By pairing the 2IPD’s robust measurement framework with each country’s natural development benchmark, the UPU offers a roadmap for sustainable postal growth that respects both global ambitions and local realities.
Visit the dedicated webpage on the State of the Postal Sector 2024 here.
A dedicated article entitled “2024 State of the Postal Sector report charts roadmap for longevity”, published in Union Postale, is available here.
José Anson, Ph.D.
As the UPU’s economist, José Anson spearheads initiatives in postal economics, big data research and artificial intelligence.