China’s express delivery industry is soaring, showcasing unprecedented growth over the past three years and signalling a vibrant shift in the nation’s economy. In 2023, parcel volumes soared to 120 billion, surpassing 150 billion in 2024 and reaching a staggering 180 billion this year.
Often dubbed the “barometer” of economic health, the express delivery sector is revealing significant trends that position it as a crucial driver behind China’s recent economic achievements.
The 180 billionth parcel was delivered in Shenzhen using an unmanned delivery model. After a resident, surnamed Li, ordered a smart learning device, the parcel was sorted and dispatched from an automated warehouse. It was then transferred by an unmanned delivery vehicle at the last-mile station and delivered to Li’s doorstep—all on the same day.
Automation has significantly sped up this process. Inside smart warehouses, autonomous robots move swiftly between shelves, while AI-powered recognition systems enhance sorting efficiency in intelligent sorting centres. At delivery stations, unmanned vehicles work in tandem with couriers to reduce last-mile delivery times.
More than 1,300 automated sorting centres are now operational across the country, along with thousands of unmanned vehicles. Over 3 million parcels have been delivered by drones. Logistics parks and express delivery outlets are increasingly integrated with advanced information technologies, creating a leading intelligent logistics network.
In warehousing, processes like shelving, picking, and outbound logistics are becoming fully automated, leading to substantial efficiency gains. AI vision systems achieve millisecond-level recognition, minimizing errors, damage, and loss. In transportation, vertical AI models help dynamically optimize routes. Furthermore, pilot programmes for drones and unmanned vehicles are expanding, effectively lowering operational costs.
“Science and technology are key drivers, continuously energizing the express delivery market,” said Liu Jiang, director of strategic planning at the Development and Research Center of China’s State Post Bureau.
During this year’s Double 11 online shopping festival, consumer demand for trade-ins remained strong. Taking advantage of available subsidies, a woman surnamed Wang from Linyi, in east China’s Shandong province, ordered a new set of furniture. The courier arrived on time, completed the delivery and assembly, and finalized the process in under an hour.
China’s expanded consumer goods trade-in programme has effectively stimulated demand for product upgrades, providing strong momentum for the express delivery sector. In the first 10 months of this year, logistics giant SF Express reported a 30 per cent year-on-year increase in large-item deliveries, including furniture and home appliances.
This year, SF Express has established over 30 new air-cargo facilities dedicated to large items, reducing average processing times by more than three hours. The company has also upgraded over 20 ground transit hubs to enhance sorting efficiency and introduced new reverse-logistics models that combine old-item pickups with new-item deliveries. These measures have strengthened the company’s service capabilities for the consumer goods trade-in programme.
On one hand, China’s express delivery sector is embedding itself across various consumption scenarios, from tourism and culture to sports and entertainment, driving economies of scale. In the first 10 months of this year, express delivery contributed to a 6.3 per cent increase in online retail sales of physical goods.
On the other hand, by developing new service models such as in-factory logistics and international supply chains, China’s express delivery industry is becoming more integrated into industrial operations. This integration is extending industrial and value chains, fostering closer alignment between logistics services and production dynamics.
In a warehouse belonging to a fruit trade company in northwest China’s Shaanxi province, workers sort, pack, and label boxes of apples for shipment. “With couriers stationed directly in the village, parcels can be collected and shipped the same day,” said the company’s e-commerce manager. During peak harvest season, the facility processes around 100,000 orders daily.
The rapid expansion of express delivery networks into rural areas is unlocking new consumption potential. In the first 10 months of this year, Chinese express delivery company ZTO Express handled over 12.9 billion parcels, reaching more than 96 per cent of townships in China. Shipments of agricultural products from rural to urban markets rose by 21.5 per cent year on year.
From the rich tea leaves of Baoshan in Yunnan to the fresh matsutake mushrooms of Nyingchi in Xizang, products from China’s central and western regions are reaching markets nationwide with impressive efficiency, enabled by an increasingly robust express delivery network.
This year, China’s rural delivery and logistics system has expanded significantly, with central and western regions such as Guizhou, Shaanxi, Ningxia, and Xinjiang each witnessing over 30 per cent year-on-year growth in express delivery volume during the first ten months. This remarkable increase underscores the transformation of logistics in rural areas, enhancing accessibility and efficiency for both producers and consumers.
Liu noted that the express delivery industry not only streamlines the connection between production and consumption but also facilitates the movement of resources across different regions. This development plays a crucial role in shaping a unified national market, driving economic growth and ensuring that goods reach every corner of the country.
