Singapore – Online retail sales in the Asia-Pacific region are anticipated to rise from US$2.2t in 2023 to US$3.2t in 2028, with China leading the region. This is according to the latest report by research and advisory firm Forrester.
In the study, it was noted that the top five countries for Asia Pacific in terms of online retail sales include China, South Korea, Japan, India, and Australia. China and South Korea, more specifically, are among the two countries leading globally in e-commerce penetration, each surpassing a 40% online retail penetration rate by 2028.
Meanwhile, it was also reported that retail e-commerce sales in Southeast Asia reached $93b in 2023 and are projected to increase to US$193b by 2028, capturing 17.4% of total retail sales. Leading the region in this sense is Indonesia, followed by Malaysia and Singapore.
Over the next five years, the Philippines and Vietnam will also see a CAGR of more than 20%, outpacing other countries in the region.
Talking about the findings, Jitender Miglani, principal forecast analyst at Forrester, shared, “The growth of online marketplaces, social commerce, livestream selling, and direct-to-consumer commerce will accelerate global online retail sales growth over the next five years.”
“However, e-commerce maturity and growth opportunities vary vastly by region. Retailers and brands must therefore have a thorough understanding of the key drivers of retail and e-commerce growth in their priority markets and tailor their strategies appropriately to succeed,” Jitender further explained.
Total global online retail sales will grow from US$4.4t in 2023 to US$6.8t by 2028 at an 8.9% compound annual growth rate (CAGR). The report also featured online retail sales growth in the Americas and Europe.
