Global Online Retail Market, by Product Type (Fashion, Media & Entertainment, Beauty & Personal Care, Furniture, Food & Beverages, Sports & Recreation, Electronics, Toys, and Others), and Geography - Industry Insights till 2025

Global Online Retail Market - Insights

Online retail is increasingly gaining favor in both developed and developing countries, as it offers wide range of branded products under a single website, has attractive discounts, and offers free delivery. According to a worldwide e-commerce association, the Ecommerce Foundation, online retail sales accounted for 7% of total retail sales worldwide in 2015 and is expected to reach 17% by 2021. The online retail market was valued at US$ 2,171.22 billion in 2016 and is expected to expand at a CAGR of 18.28% to reach US$ 9,572.96 billion by 2025.

Asia Pacific stands to be the largest market for online retail and is also projected to be the fastest growing market. Countries such as China, India and the ASEAN bloc is playing a key factor driving demand for online sales in the region. In addition to this, rising middle class population with growing purchasing power is further boosting market growth in the region. According to Chinese government sources, the middle class in China is expected to expand from 430 million in 2017 to 780 million by 2025. This segment is among the largest contributors towards online sales, and thus, rapid growth of this segment is projected to fuel growth of the online retail market.

According to the industry trade association Associated Chambers of Commerce and Industry in India (ASSOCHAM), the online retail market in India was valued at US$ 38.5 billion in 2017 and is expected to reach US$ 50 billion by 2025. This is due to increasing internet penetration in the country. According to the Internet and Mobile Association of India (IAMAI), the number of internet users in the country is expected to surpass 500 million by June, 2018. This coupled with strong GDP growth and increasing purchasing power of consumers will result in India being the fastest growing market for online retail in the world. In 2016, Flipkart—a major e-tailer in the country—reported that up to two-thirds of the company’s sales were from tier-2 and tier-3 cities in India.

North America and Europe are particularly developed in terms of internet and smartphone penetration. According to World Bank statistics, North America and Europe had average internet penetration rates of 78% and 75%. The market in these regions will be driven by shifting consumer preference from offline to online retail.

Global Online Retail Market Share, by Region (%), 2017

online retail market

Source: Coherent Market Insights (2018)

Among product type, the fashion segment held a dominant position in the online retail market in 2016. The segment was valued at US$ 347.50 billion in 2016 and is expected to exhibit a CAGR of 13.43% over the forecast period. Fashion specific online marketplaces have gained popularity in owing to the high demand. Zalando S.E. is a Germany-based company operates an online marketplace for fashion products. The company recorded a revenue of US$ 5.5 billion in 2017. The company showcases over 2,000 products on its online platform. The company is expected to be a key player in the online retail market.

The food & beverages segment is a major opportunity area for market players. So far, growth of online retail of food & beverages has been slack due to concerns over quality and freshness of products. Amazon Fresh is a service from Amazon Inc. which offers same day delivery of grocery items. Similar services have emerged in countries such as India, China and U.K. albeit by local players such as iFresh, Grofers and Sainsbury. All these services offered by these players at discounted offerings and free delivery services have the potential to boost the food & beverages segment. The electronics segment is one of the key segments that has been driving the growth of the online retail market. Electronics industry players have tied up with online retailers for the marketing and sale of their products. For example, in China, Alibaba Group picked up a 20% stake in electronics retailer Suning Group. The synergy achieved by the stake acquisition will drive up electronic sales of the company.

The global online retail market is marked by intense competition from major players operating in this market. Strategic mergers and acquisitions, innovative marketing, are among the key strategies adopted by companies to ensure long-term sustenance in the market. In India, Flipkart acquired competitors Myntra and Jabong in 2014 and 2016 respectively. This allowed Flipkart to expand into the fashion online retail segment. U.S. based Amazon Inc., has developed innovative ancillary services which include Amazon Prime which includes entertainment and delivery options for the subscribers. eBay Inc. in 2017 acquired Terapeak Inc. to bring improvements to its online platform.

Some of the major players operating in the market are Amazon Inc., Alibaba Group, eBay Inc., Otto GmbH & Co KG, JD.com Inc., Groupon Inc., Shopify Inc., Flipkart, Rakuten Inc., and Zalando S.E.

Online retail is a steadily growing retail channel where consumers are able to purchase goods on online marketplaces. Growth of online retail has been triggered by certain services offered by online retailers such as product delivery, wide range of products, multiple payment options and discounts to loyal customers. These factors coupled with rapid growth of the retail industry in emerging economies has boosted the online retail market.

Market Dynamics

Online retail has gained increased acceptance over conventional retail channels in recent years. The online retail market has exhibited high growth in both developing and developed markets. A rise in internet penetration coupled with innovative marketing strategies has led to a shift of consumer preference towards online retailing. Also, the presence of young demographic profile in developing countries has bolstered market growth in regions such as Asia Pacific and Latin America. Asia Pacific is projected to be the fastest growing region in the online retail market. Aggressive expansion by both local and international players has piqued consumer interest in purchasing online. Discounts, ancillary services and logistical services are among the strategies being adopted by market players to attract customers. Investments are being made by players across the supply chain to boost profitability. For example, Flipkart in March 2018 announced plans to set up a 100 acre logistics park in Bengaluru.

Key features of the study:

  • This report provides in-depth analysis of the online retail market, market size (US$ Mn), and Cumulative Annual Growth Rate (CAGR %) for the forecast period (2017 – 2025)
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market. It provides valuable insights about market drivers, restraints, opportunities, new product launches or approval, pipeline products, regional outlook, and competitive strategy adopted by the leading players.
  • It profiles leading players in the global online retail market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, key developments, and future plans
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions with respect to their future product launch, market expansion, and marketing tactics
  • The global online retail market report caters to various stakeholders in this industry, including investors, product developers, distributors, healthcare companies, research institutes, new entrants, and financial analysts
  • Stakeholders would greatly benefit in decision-making through the various strategy matrices used in analyzing the online retail market

Detailed Segmentation:

  • Global Online retail Market, By Product Type:
    • Fashion
    • Media & Entertainment
    • Beauty & Personal Care
    • Furniture
    • Food & Beverages
    • Sports & Recreation
    • Electronics
    • Toys
    • Others
  • Global Online retail Market, By Geography:
    • North America
      • U.S.
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Canada
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
    • Europe
      • U.K.
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Germany
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Italy
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • France
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Spain
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Russia
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Rest of Europe
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
    • Asia Pacific
      • China
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • India
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Japan
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • ASEAN
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Australia
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • South Korea
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Rest of Asia Pacific
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
    • Latin America
      • Brazil
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Mexico
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Argentina
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Rest of Latin America
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
    • Africa
      • Northern Africa
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Central Africa
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • South Africa
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
    • Middle East
      • GCC
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Israel
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
      • Rest of Middle East
        • By Product Type:
          • Fashion
          • Media & Entertainment
          • Beauty & Personal Care
          • Furniture
          • Food & Beverages
          • Sports & Recreation
          • Electronics
          • Toys
          • Others
  • Company Profiles
    • Amazon Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Alibaba Group
    • eBay Inc.
    • Otto GmbH & Co KG
    • JD.com Inc.
    • Groupon Inc.
    • Shopify Inc.
    • Flipkart
    • Rakuten Inc.
    • Zalando S.E.

 “*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objective and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet By Product Type
      • Market Snippet By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Market Drivers
      • Market Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New Product Approvals/Launch
    • Cost Tier Down Analysis
  4. Global Online Retail Market, By Product Type, 2016- 2025 (USD Million)
    • Introduction
      • Market Share Analysis, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, 2016 - 2025
      • Segment Trends
    • Fashion
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Media & Entertainment
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Beauty & Personal Care
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Furniture
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Food & Beverages
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Sports & Recreation
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Electronics
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Toys
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
    • Others
      • Introduction
      • Market Size and Forecast, and Y-O-Y Growth, 2016 - 2025, (USD Million)
  5. Global Online Retail Market, By Region, 2016 - 2025 (USD Million)
    • Introduction
      • Market Share Analysis, By Region, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, For Regions, 2016 - 2025
    • North America
      • Market Share Analysis, By Country, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, By Country, 2016 - 2025
        • U.S.
          • Country Trends
          • Market Size and Forecast, By Fashion, 2016 - 2025 (USD Million)
        • Canada
          • Country Trends
          • Market Size and Forecast, By Fashion, 2016 - 2025 (USD Million)
    • Europe
      • Market Share Analysis, By Country, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, By Country, 2016 - 2025
        • U.K.
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Germany
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Italy
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • France
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Spain
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Russia
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Rest of Europe
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
    • Asia Pacific
      • Market Share Analysis, By Country, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, By Country, 2016 - 2025
        • China
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • India
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Japan
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • ASEAN
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Australia
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • South Korea
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Rest of Asia Pacific
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
    • Latin America
      • Market Share Analysis, By Country, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, By Country, 2016 - 2025
        • Brazil
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Mexico
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Argentina
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Rest of Latin America
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
    • Africa
      • Market Share Analysis, By Country, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, By Country, 2016 - 2025
        • Northern Africa
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Central Africa
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • South Africa
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
    • Middle East
      • Market Share Analysis, By Country, 2016 and 2025 (%)
      • Y-O-Y Growth Analysis, By Country, 2016 - 2025
        • GCC
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Israel
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
        • Rest of Middle East
          • Country Trends
          • Market Size and Forecast, By Product Type, 2016 - 2025 (USD Million)
  6. Competitive Landscape
    • Heat Map Analysis
    • Market Share Analysis (3x3 Matrix)
    • Company Profiles
      • Amazon Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Alibaba Group
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • eBay Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Otto GmbH & Co KG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • JD.com Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Groupon Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Shopify Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Flipkart
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Rakuten Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Zalando SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
    • Analyst Views
  7. Section
    • References
    • Research Methodology
    • About us and Sales Contact

* Browse 200 market data tables* and 120 figures* on "Online Retail Market” - Global forecast to 2025.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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