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Palletised Goods Freight Road Transport in the UK - Market Research Report (2015-2030)

Martha Sofia Garcia Guerrero Martha Sofia Garcia Guerrero London, United Kingdom Last Updated: September 2025 SIC SP0.402

Revenue

£16.0bn

2025-26

£16.0bn

Past 5-Year Growth

Profit

£XXX.Xm

Employees

131k

Businesses

43,530

Wages

£X.Xbn

Palletised Goods Freight Road Transport in the UK industry analysis

The Palletised Goods Freight Road Transport industry has undergone a turbulent period over the past few years, rocked by worker shortages and spiralling operating costs. Nonetheless, with weak demand in the base year of the period (2020-21), revenue is projected to grow at a compound annual rate of 2.1% over the five years through 2025-26, reaching £16 billion. In 2025-26, revenue is projected to dip 1.6% as a result of sticky inflation reducing real growth.

Trends and Insights

  • High fuel costs eat into profit. Fuel price hikes in 2022 significantly increased transport costs and businesses struggled to pass on prices to customers. Falling prices in the past couple of years have helped profit recover.
  • Dedicated freight services offer a steady source of revenue. The largest companies dominate thanks to these large contracts. For example, DHL holds contracts with Sephora, Mars and BP Pulse, while Eddie Stobart holds contracts with major supermarkets Tesco and Morrisons.
  • The Midlands' logistic prowess draws in road freight companies. The area's motorway connections, vast distribution hubs and the UK's largest dedicated freight airport make it attractive to palletised goods freight road transport companies.
  • Low entry barriers stimulate competition. The ease of market entry has led to a landscape populated by many small businesses, creating an intensely competitive environment.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 2.1 % over the past five years, to reach an estimated £16.0bn in 2025.

Trends and Insights

Volatile fuel prices eat into hauliers’ profit

  • Fuel costs are one of the biggest expenses for road transport companies, but also among the most volatile. Despite net-zero emission efforts over the past decade, the vast majority of HGVs in the UK are still powered by combustion engines, which means that fuel prices have a major influence on hauliers’ finances.
  • Additional trends and insights available with purchase
Palletised Goods Freight Road Transport in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The state of the economy drives the industry’s performance

  • Demand for road freight depends on general economic activity. High business and consumer spending fosters a healthy industry environment and stimulates demand for road freight. In its March 2025 report, the Office for Budget Responsibility forecast UK GDP to grow by more than each year 1.5% from 2026 until 2029; this exceeds growth between 2023 and 2025, which averaged below 1%.

Biggest companies in the Palletised Goods Freight Road Transport in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
DHL Supply Chain Ltd
539.4
XPO Transport Solutions UK Ltd
448.3
Eddie Stobart Ltd
393.4

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Palletised Goods Freight Road Transport in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Dedicated freight services, Part-load freight services and Full-load freight services. Dedicated freight services is the largest segment of the Palletised Goods Freight Road Transport in the UK.

Trends and Insights

Dedicated services offer steady revenue

  • Dedicated freight services involve a contractual agreement for transporting specific palletised goods for a company. Usually, this entails having the transport company pick up the pallets and then deliver them straight to their destination. Since there’s no need for storage or vehicle changes (unlike full- and part-load services), dedicated services are significantly faster and more profitable for freight businesses.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry transports palletised goods freight by road. Businesses focus on the movement of goods that are loaded onto pallets to ensure stability and ease of handling during transport. The industry encompasses the collection, transportation and delivery of various packaged commodities within the UK, leveraging the use of standard pallets.

What's included in this industry?

Products and services covered in the Palletised Goods Freight Road Transport industry in the United Kingdom include Part load freight service, Full load freight service and Dedicated freight service.

Companies

Companies covered in the Palletised Goods Freight Road Transport industry in the United Kingdom include DHL Supply Chain Ltd, XPO Transport Solutions UK Ltd and Eddie Stobart Ltd.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Palletised Goods Freight Road Transport industry in the United Kingdom include pallet, palletised goods and heavy goods vehicle (hgv).

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

High fuel costs eat into profit. Fuel price hikes in 2022 significantly increased transport costs and businesses struggled to pass on prices to customers. Falling prices in t...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Dedicated freight services offer a steady source of revenue. The largest companies dominate thanks to these large contracts. For example, DHL holds contracts with Sephora, Ma...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The Midlands' logistic prowess draws in road freight companies. The area's motorway connections, vast distribution hubs and the UK's largest dedicated freight airport make it...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Low entry barriers stimulate competition. The ease of market entry has led to a landscape populated by many small businesses, creating an intensely competitive environment.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

An ownership change boosts Wincanton's operations. Wincanton was acquired by GXO Logistics in 2024, enhancing the company's consumer base and improving efficiencies through g...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of DHL Supply Chain Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of XPO Transport Solutions UK Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Eddie Stobart Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for DHL Supply Chain Ltd, and factors influencing its performance in the industry
  • Description and key data for XPO Transport Solutions UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Eddie Stobart Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Fuel price volatility has a big influence on road haulage operations. As fuel is a significant input cost, changes in global fuel prices can drastically affect hauliers’ prof...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Big transport companies use outsourcing, creating significant subcontractor costs. For more flexibility, big logistics businesses outsource work to small regional operators. ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Palletised Goods Freight Road Transport industry in the United Kingdom in 2025?

The market size of the Palletised Goods Freight Road Transport industry in the United Kingdom is £16.0bn in 2025.

How many businesses are there in the Palletised Goods Freight Road Transport industry in the United Kingdom in 2025?

There are 43,530 businesses in the Palletised Goods Freight Road Transport industry in the United Kingdom, which has declined at a CAGR of 0.9 % between 2020 and 2025.

How may import tariffs affect the Palletised Goods Freight Road Transport industry in the United Kingdom?

The Palletised Goods Freight Road Transport industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Palletised Goods Freight Road Transport industry in the United Kingdom?

The Palletised Goods Freight Road Transport industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Palletised Goods Freight Road Transport industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Palletised Goods Freight Road Transport industry in the United Kingdom has been growing at a CAGR of 2.1 % between 2020 and 2025.

What is the forecast growth of the Palletised Goods Freight Road Transport industry in the United Kingdom over the next 5 years?

Over the next five years, the Palletised Goods Freight Road Transport industry in the United Kingdom is expected to grow.

What are the biggest companies in the Palletised Goods Freight Road Transport industry in the United Kingdom?

The biggest companies operating in the Palletised Goods Freight Road Transport industry in the United Kingdom are DHL Supply Chain Ltd, XPO Transport Solutions UK Ltd and Eddie Stobart Ltd

What does the Palletised Goods Freight Road Transport industry in the United Kingdom include?

Part load freight service and Full load freight service are part of the Palletised Goods Freight Road Transport industry in the United Kingdom.

Which companies have the highest market share in the Palletised Goods Freight Road Transport industry in the United Kingdom?

The company holding the most market share in the Palletised Goods Freight Road Transport industry in the United Kingdom is DHL Supply Chain Ltd.

How competitive is the Palletised Goods Freight Road Transport industry in the United Kingdom?

The level of competition is very high and decreasing in the Palletised Goods Freight Road Transport industry in the United Kingdom.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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