E-commerce to account for 24% of retail sales by 2027

China, Indonesia, India, Malaysia, Vietnam and Thailand will boost the growth.

E-commerce is expected to be the fastest-growing retail channel as it is projected to account for a 24% share in global retail sales by 2027 from 21% in 2023, with Asia Pacific markets expected to lead the growth.

According to a Kearney report, e-commerce is growing twice as fast as the brick-and-mortar sector with a compound annual growth rate of around 11% to 12% per year, led by leading marketplaces such as Amazon, eBay, Etsy, AliExpress, Rakuten, Lazada, Taobao, Walmart, and Mercado Libre, amongst others.

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It is expected to contribute an absolute sales value of $1.4t from 2022 to 2027, with emerging markets comprising over 64% of the value.

“Cross-border e-commerce is set to decline as more local and hybrid actors enter e-commerce markets in developing nations and some developing nations look at ways to regulate the inflow of international goods in an attempt to balance consumer choice, product safety, and stimulating local and domestic retailers,” the report read.