Analysis of Historical Mail Volume Trends

From the OIG: Analyzing mail volume trends over the past 16 fiscal years makes clear the difficult situation facing the Postal Service. First‑Class Mail, historically the focus of the agency’s operations, has steadily declined as people move toward electronic alternatives. This has decreased operating revenues and put strains on the Postal Service’s expansive network as people rely less on Market Dominant mail as an essential means of communication and transaction. Marketing Mail, the other large profitable mail class, has also declined as advertisers can choose from a variety of digital channels that may provide a higher return on investment. Periodicals have declined significantly, although the fact that they have long been a money‑losing product for the Postal Service may reduce concerns about this trend.

Click for OIG Report: Analysis of Historical Mail Volume Trends

The factors driving mail volume trends represent a significant and irreversible change in the way
our society communicates. Under the Delivering for America plan released in March 2021, the
Postal Service has focused, among many priorities, on network optimization and winning the growing
package market as the key to a financial turnaround.

Yet, Market Dominant mail still contributed 53 percent of the Postal Service’s revenue in FY 2023, and so future trends in mail volumes will have a critical impact on the Postal Service’s ability to restore its
profitability going forward.