The online retail sector is experiencing significant growth, primarily fueled by ongoing technological advancements and changing consumer habits.
New Delhi, Feb. 07, 2025 (GLOBE NEWSWIRE) — As detailed in the latest research from Astute Analytica, the global online retail market is estimated to grow at a CAGR of 10% during the forecast period 2023-2031.
The global online retail market is experiencing robust growth, fueled by several key factors, including a significant increase in internet users worldwide and the widespread penetration of internet access across various regions. As of early 2025, approximately 5.56 billion people are utilizing the Internet, representing 67.9 percent of the global population. This expansive reach highlights the growing accessibility of online resources and services, which, in turn, supports the expansion of e-commerce.
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Recent data from GWI indicates that 55.8 percent of internet users aged 16 and older make online purchases on a weekly basis. This statistic underscores a significant shift in consumer behavior, as more individuals embrace online shopping as a regular part of their lives. In particular, mobile devices have emerged as the preferred choice for making purchases, surpassing traditional desktops and laptops.
However, computers still play a vital role in online shopping, especially in regions like North America and Europe, where they remain integral to many consumers’ shopping habits. For example, in 2022, there were approximately 268 million online shoppers in the United States, and this figure is expected to grow to nearly 285 million by 2025.
As the online retail landscape evolves, major e-commerce platforms like Amazon, Walmart, eBay, and AliExpress continue to dominate in terms of visitor traffic. These companies have established themselves as leaders in the market by offering diverse product selections, competitive pricing, and consumer-friendly shopping experiences.
Rising Adoption of Social Media: Transforming the Online Retail Industry
The emergence of social commerce is fundamentally transforming the online retail landscape by seamlessly integrating purchasing capabilities within social media platforms. Previously viewed primarily as venues for social interaction, major platforms like Facebook, Instagram, and TikTok are now evolving into vibrant marketplaces. This shift allows users not only to connect but also to discover, engage with, and purchase products directly, creating a more immersive shopping experience that blurs the lines between social networking and retail.
According to the DHL 2024 E-Commerce Trend Report, social media commerce is gaining momentum and is poised to impact the retail sector. The report highlights that 50% of shoppers have made purchases through social media channels, indicating a profound shift in consumer behavior. This trend is expected to escalate, with industry forecasts suggesting that the social commerce market could reach an astonishing $2 trillion by 2025. Such projections underscore the immense potential that social commerce holds for reshaping retail dynamics and consumer engagement.
The effectiveness of social commerce lies in its ability to leverage the high levels of engagement and vast user bases that social media platforms provide. By utilizing features like shoppable posts, live-stream shopping events, and in-app checkout options, social commerce enhances the purchasing process, making it more intuitive and seamless for users.
These tools not only streamline the buying journey but also create a sense of urgency and excitement around products, driving higher conversion rates. As consumers increasingly seek convenience and a more personalized shopping experience, social commerce is well-positioned to meet those demands and redefine the future of online retail.
Asia Pacific is the Major Revenue Contributor in Online Retail Industry
The Asia Pacific online retail market has established itself as a dominant force in global e-commerce, commanding a substantial share exceeding 50% in 2020. This trend is projected to continue, with the region anticipated to experience the fastest growth from 2021 to 2027. A significant factor driving this growth is the increasing inclination among businesses to engage in transactions via B2B e-commerce platforms.
As companies recognize the efficiency and reach of these platforms, they are more likely to shift their operations online. Moreover, the development of infrastructure and the rising number of internet users across the region are expected to accelerate market expansion, creating an environment ripe for online retail growth.
China has held the title of the largest online retail market in the world for an impressive twelve consecutive years. In the past year, online retail sales in China reached an astounding 15.5 trillion yuan (approximately $2.16 trillion), as reported by the country’s commerce ministry. The wholesale and retail sectors have also shown remarkable performance, reaching 13.8 trillion yuan (around $1.9 trillion) in 2024.
These sectors contribute significantly to the national economy, accounting for 10.2% of the gross domestic product. Furthermore, they play a crucial role in streamlining the circulation of goods, generating employment opportunities, and reducing logistics costs, as highlighted by a state-controlled news outlet.
A report from Bain in 2023 underscores the rapid ascent of social commerce in India, projecting an impressive 55% annual growth rate, with expectations to reach $70 billion by 2030. Social commerce distinguishes itself from traditional e-commerce by fostering personal connections and community engagement. It heavily relies on peer recommendations, influencer collaborations, and user-generated content to establish trust and stimulate sales. This approach resonates particularly well with consumers in tier 2 and 3 cities, where social commerce is perceived as more approachable and relatable.
The growth of the Asia Pacific online retail market is further bolstered by the presence of major e-commerce players such as Alibaba, JD.com, and Rakuten. These companies have significantly contributed to the regional market’s expansion by offering a wide range of products, maintaining competitive pricing, and establishing robust logistics networks. Their efforts have not only enhanced consumer accessibility but have also set high standards for service and efficiency in the online retail space, paving the way for sustained growth in the sector.
Key Companies
- Albertsons Companies, Inc.
- Alibaba Group Holding Ltd
- Amazon.com, Inc.
- Best Buy, Coupang Corp.
- Ebates Inc.
- eBay Inc.
- Inter IKEA Systems B.V.
- The Home Depot
- JD.com, Inc.
- Otto (GmbH & Co KG)
- Rakuten
- Taobao
- The Kroger Co.
- Walmart Inc.
- Others
Market Segmentation
By Product:
- Groceries
- Apparels and Accessories
- Footwear
- Personal and Beauty Care
- Furniture and Home Décor
- Electronic Goods
- Others
By Business-Model:
- B2B
- B2C
By Application:
- BFSI
- IT and Telecommunications
- Manufacturing
- Retail and Consumer Goods
- Healthcare
- Transportation and Logistics
- Education
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
For more information about this report visit: https://www.astuteanalytica.com/industry-report/online-retail-market
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