Online retail sales to hit $2.5 trn in Asia by 2024: Forrester Research

Topics online retail | Asia

Representative image

Riding on the surge in grocery demand in the Covid-19 times, online retail sales in Asia will grow from $1.5 trillion in 2019 to $2.5 trillion in 2024, with a compound annual growth rate (CAGR) of 11.3 per cent, a new Forrester report said on Friday.

Due to the pandemic, adoption of online grocery is getting a boost, with an expected CAGR growth of 30 per cent during the forecast period and online penetration doubling from 5.1 per cent in 2020 to 10.6 per cent in 2024.

"Grocery is the largest retail category, accounting for 35 per cent of total retail sales in 2019 but just 6 per cent of online retail sales. This makes it an important category for retailers and one that is going to drive future growth of online retail sales," said Satish Meena, Senior Forecast Analyst with the global market research firm Forrester.

"Driven by the uptick in online grocery adoption due to COVID-19, online retail sales will grow at a CAGR of 30 per cent from 2019 to 2024 and reach $359 billion," Meena added.

India is witnessing a surge in demand for online grocery.

The latest Reliance takeover of Future Group's retail business is a major consolidation of organised grocery retail.

In terms of grocery retail, the revenue of Reliance Retail in FY20 was Rs 346 billion and that of Future Retail's annualised revenue of FY20 was Rs 100 billion.

Earlier reports said that Reliance's partnership with Facebook could result in the company becoming a market leader in the online grocery space.

According to Meena, grocery will also be the category where most marketplaces' investment will be made in the next five years.

Online retail sales in Asia Pacific will get a boost from new buyers due to Covid-19, but at the same time, consumer spending will take a hit due to the slowdown of economies.

China will remain the largest market, reaching $2 trillion by 2024 and accounting for 50 per cent of global online retail sales in 2020.

In contrast to Europe and the US, the smartphone is the preferred device for online buyers in Asia Pacific countries.

"In 2020, 75.8 per cent of online retail sales will occur on smartphones, and we expect online retail sales by smartphone to grow at a CAGR of 13.6 per cent to reach $2 trillion by 2024," Meena said.

--IANS

na/


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel