Online Retail Market
Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 4.56 Trillion
Forecasted Value (2030)
USD 9.93 Trillion
CAGR (2023 – 2030)
Fastest Growing Region (2023 - 2030)
Groceries, Apparels & Accessories, Personal & Beauty Care, Footwear, Others
Third-Party E-commerce, Own Website
The global Online Retail Market was valued at USD 4.56 trillion in 2022 and is projected to reach USD 9.93 trillion by 2030, growing at a CAGR of 10.21% from 2023 to 2030.
The online retail market has experienced exponential growth in recent years due to global digitalization. The proliferation of smartphones and the flexibility of purchasing items from home. Additionally, online retailers provide consumers with a wide range of options at competitive prices, which is contributing to the expanding demand for retail e-commerce across the globe. Furthermore, technology-enabled features such as online fitting rooms and augmented reality experiences for apparel and accessories are elevating the shopping experience and enhancing consumer demand.
Moreover, the internet has revolutionized the retail landscape by eliminating geographic barriers and allowing businesses to penetrate global markets in a cost-effective manner. As such, online retail is not constrained by traditional brick-and-mortar limitations, thus enabling businesses to increase their customer base, manage global logistics, and expand their offerings more efficiently.
Analyst’s Review on Online Retail Market
The online retail market has experienced substantial growth due to various factors, including the increasing number of internet users, rising disposable incomes, convenience, and the availability of a wide range of products at competitive prices. The adoption of emerging technologies like virtual reality presents significant opportunities for market players. However, addressing concerns surrounding data privacy is essential to maintain consumer trust and foster further growth of the online retail market.
The online retail market refers to the virtual marketplace where consumers can purchase goods and services through internet-based platforms. It encompasses a wide range of products and services, including electronics, clothing, groceries, and more. The market is characterized by the increasing number of internet users, rising disposable incomes, convenience, and the availability of a vast array of products at competitive prices. With the widespread adoption of mobile devices and high-speed internet connectivity, consumers can conveniently browse and purchase items from the comfort of their homes or on the go. The online retail market offers a seamless shopping experience, revolutionizing the way consumers access and acquire products.
The growth of the online retail market can be attributed to a number of factors, including the increasing number of internet users, rising disposable incomes, convenience, and the availability of a vast range of products at competitive prices. Moreover, the widespread adoption of mobile devices and high-speed internet connectivity has also contributed to the growth of this market, with consumers choosing to shop online due to the ease and convenience it offers.
Increasing adoption of emerging technologies such as virtual and augmented reality has increased the opportunities for market players. Around 61% of consumers are interested in trying virtual reality shopping. Retailers can leverage this technology to provide consumers with a more immersive shopping experience, leading to higher conversion rates, better customer engagement, and loyalty. Furthermore, virtual reality can also help retailers understand how customers interact with their products, offering insights into customer preferences and behavior patterns.
The apprehension surrounding the collection and usage of personal data on online retail websites is impeding the growth of the market. Although technological advancements have contributed significantly to the development of e-commerce, its misuse can result in significant financial and personal loss for consumers.
According to a report by KPMG, 55% of consumers worldwide are willing to share their personal data for personalized offers and promotions, but only if they trust the organization with their sensitive information. However, concerns over data theft, misuse, and privacy infringement have made consumers increasingly wary of sharing their personal information, leading to a loss of trust and a potential loss of sales for retailers.
The global online retail market is segmented based on products, portal, and geography.
Based on products, the market is further categorized into groceries, apparels & accessories, personal & beauty care, footwear, and others. The apparel and accessories segment accounted for approximately 32% of the e-commerce market revenue, thus dominating the segment in 2022. The availability of affordably priced, trendy fashion apparel and accessories through e-commerce platforms is a key driver of the segment's growth. E-commerce retailers are expanding their customer base by offering easy returns and convenient cash-on-delivery options. Additionally, C2C shopping has gained traction through social media, with platforms such as Facebook and Instagram offering "Buy" buttons.
Based on portal, the online retail market is dominated by third-party e-commerce marketplaces such as Amazon, eBay, and Alibaba, which provide a platform for various retailers and sellers to sell their products online. However, there has also been an increasing trend towards companies setting up their own websites to sell their products directly to consumers, bypassing the need for intermediaries.
Based on regional analysis, the global online retail market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
Asia Pacific remained the largest market for e-commerce, accounting for approximately 50% of global e-commerce sales in 2022. The region is expected to maintain its dominance in the forecast period due to the increasing adoption of mobile devices and the growing popularity of online shopping. A significant factor driving this trend is the increasing urbanization across the region, leading to a busy lifestyle for consumers who opt to shift towards e-commerce platforms for their daily necessities. Furthermore, Asian manufacturers such as Samsung, LG, and Huawei have been driving sales on the online platform.
North America and Europe are expected to witness significant growth in the online retail market. The growth of the market in North America is driven by the changing purchasing patterns of consumers, secure online transactions, and the increasing awareness of online shopping benefits. Industry experts predict that Europe is likely to experience significant growth in e-commerce sales during 2023-2030 due to the widespread availability of high-speed internet facilities and a well-established supply chain. Additionally, e-commerce sales of essential goods such as groceries, household items, and personal protective equipment (PPE) surged during the Covid-19 pandemic, contributing to the growth of the online retail market in both North America and Europe.
The global online retail industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Various strategic initiatives, such as investing in research and development activities, establishing new manufacturing facilities, and optimizing the supply chain, are encompassed within expansion and investment efforts. The key vendors in the market are
- Albertsons Companies, Inc.
- Alibaba Group Holding Ltd
- Amazon.com, Inc.
- Coupang Corp.
- Ebates Inc. dba Rakuten
- eBay Inc.
- Inter IKEA Systems B.V.
- Otto (GmbH & Co KG)
- The Kroger Co.
- Walmart Inc.
- July 2023 (Acquisition) - eBay Inc., a prominent player in global commerce, successfully finalized its purchase of Certilogo. Certilogo is a company specializing in AI-driven digital identification and authentication of apparel and fashion products. This acquisition further strengthens eBay's ability to connect millions of sellers and buyers worldwide.
- October 2022 (Merger) - Kroger and Albertsons Companies, Inc. disclosed their plans to merge their operations. This agreement was devised tobring together two organizations with renowned brands and strong community ties. The merger aimed to create a nationwide presence and align both companies with Kroger's mission to nourish the human spirit.
The global Online Retail Market is segmented as:
- Apparels & Accessories
- Personal & Beauty Care
- Third-Party E-commerce
- Own Website
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America