eCommerce Growth – 2020 Summary
The COVID 19 pandemic has hugely accelerated the trend that we have been seeing since 2010. The eCommerce industry will gain terrain year by year over the retail industry, and experts affirm that by 2022 or 2023, the eCommerce industry will surpass the retail industry in terms of sales. By now, and as Global X ETFs data shows, there has been a huge increase in the eCommerce industry in the first months of 2020.
This has coincided with the lockdowns throughout the world, making people unable to go to physical stores and forcing them to buy online. Although the following months started to see a slight decline in eCommerce sales, the trend is still much better than past years predictions:
In the graph below, we can see more detailed information about the predictions of eCommerce growth during the next years:
If things had not been interrupted by a global pandemic, the eCommerce industry penetration was expected to grow by 21,67% for the next few years. But if we take into consideration the new forecasts since the effects of the pandemic were felt, we can see that the predictions increased to 34,43%. This means that the eCommerce industry will become even more important, with more and more people shopping online.
The 2 types of eCommerce that have experienced the largest growth during the lockdown period are “Food & Beverage:”
Food & beverage eCommerce experienced a large growth in the first months of 2020 because of the early lockdown, but this sector is expected to return to the pre-COVID 19 forecasts, with an expected growth of 8.30% by 2024.
On the other hand, another eCommerce sector that has experienced large growth is “Health” eCommerce:
Due to the pandemic, people took all the health concerns more seriously and the sector grew way more than expected – from a declining forecast of 9.09%, to an increase of 10.65%.
When looking at which countries have more developed and financially significant eCommerce industries, the data shows:
As we can see, China and the United States are in the top positions in terms of eCommerce sales. Right now China is the leading country, having 3 times more eCommerce sales than the US, and with one of the highest growth rates since 2018 with 27,3%.
The United kingdom with $141.93, Germany with $75.93 and France with $69.43 and the highest growth rate (11.5%), lead the eCommerce market in Europe.
That being said, the country that has experienced the largest growth is India with 31,9% and $46.05 during 2019. Although we don’t have statistics from 2020 yet, we are pretty sure that this trend will be maintained during the next few years.
And how does this affect the global eCommerce sales growth? With all the previous information that we have shared, let’s take a look at for the forecast for the next few years:
eCommerce industry sales will still continue to grow into at least 2023, so if you don’t have an eCommerce store yet, we highly recommend that you build your own store and don’t miss this opportunity.
Did you find this information useful? Did we miss any important information? Let us know in the comments section below and don’t forget to join our newsletter and follow us on our social media pages! Also, don’t forget to look at our other eCommerce tips from the blog!