APAC online retail to add US$1 trillion by 2025: Forrester | WARC | The Feed

APAC online retail to add US$1 trillion by 2025: Forrester

As Asia Pacific (APAC) countries became the first to be affected by the pandemic, and also the first to impose stay-at-home restrictions – leading to store closures that pushed buyers online – e-commerce grew by 16% in APAC in 2020, according to Forrester Research.

Why it matters

Online retail growth varies significantly across APAC, and the prevailing macroeconomic conditions and the agility to frame policies tackling the pandemic are two key factors.

Key insights

• In 2020, APAC’s year-over-year e-commerce growth was lower than in other regions but still added US$230 billion, with China accounting for one third of the additional global sales.
• Online retail in APAC grew faster in 2020 than in 2019, and by 2025, it will reach US$2.8 trillion, up from US$1.7 trillion in 2020.
• Among retail categories, grocery grew the fastest at 46% in the region in 2020 – a trend seen continuing in 2021.
• Grocery alone will maintain 2020’s growth momentum to reach US$473 billion by 2025, overtaking consumer electronics – the top category in dollar terms – for the first time in 2024.
• The most notable factors that influenced the e-commerce market in 2020 in Asia Pacific are country growth, category growth and buyer growth.
• Online retail in Asia Pacific is set to reach about one third of total retail sales by 2025.