eCommerce: European Market
European eCommerce Market 2024: Could Be Worth US$750 Billion by 2027
Online shopping in Europe is on the rise, and by 2027, it's expected to hit a value of US$750 billion based on our research. Keep reading to find out more.February 21, 2024
European eCommerce Market 2024: Key Insights
Europe stands out as a key player in the global economy, known for its strong manufacturing sectors and a significant role in the digital economy.
The eCommerce scene in Europe shows high penetration rates in major economies, with untapped potential in smaller markets.
European eCommerce revenue is on a growth path, expected to exceed US$750 billion by 2027 despite some fluctuations.
The number of European eCommerce users is steadily increasing, indicating a growing consumer base for online shopping.
Ireland, Czechia, and Belgium lead in eCommerce revenue share, highlighting diverse market dynamics across European countries.
Europe, although geographically small, is one of the most important economic centers in the world. Historically renowned for strong manufacturing industries such as automotive, chemical, and electronics, among others, the continent has also become a driving force in the global digital economy.
While Europe’s leading economies like Norway, the UK, Germany, or the Netherlands already have eCommerce penetration rates of around 80% and higher, there is a lot of potential still to be tapped in smaller economies in the South and East like Greece, Portugal or Poland.
On average, 62% of consumers in Europe used online shopping channels in 2022. But what about Europe’s eCommerce market size in terms of revenue? It's critical to look at how this sector is performing financially. Revenue is a key indicator, providing nuanced insights into the health and growth of eCommerce within Europe.
European eCommerce Market Revenue to Surpass US$750 billion by 2027
The revenue of the eCommerce market in Europe has seen notable fluctuations over the past years.
The market grew steadily from US$308 billion in 2017, reaching a peak of US$649 billion in 2021. However, 2022 saw a decline to US$591 billion. After 2023's rebound, US$621 billion, 2024 is projected to set a new peak, reaching US$659 billion.
The long-term outlook remains optimistic, with the market anticipated to reach US$756 billion by 2027. This suggests that despite short-term fluctuations, the general trend for eCommerce in Europe is upward.
While revenue figures give us a snapshot of the market's financial health, understanding the rate of user adoption offers a fuller picture.
Market Growth: More B2C eCommerce
Users in Europe
The number of B2C eCommerce users in Europe has been on a steady upward trajectory.
In 2017, there were 390 million users, and this figure grew to 540 million by the end of last year. Forecasts suggest the growth will continue, with 552 million users expected in 2024 and as many as 586 million by 2027.
The steady increase in users suggests that businesses should fine-tune their strategies to meet the evolving needs of a larger and potentially more diverse consumer base.
After gaining a broad understanding of the number of B2C eCommerce users, it is valuable to delve into how the revenue pie is divided among European countries.
Ireland, Czechia, and Belgium Lead in eCommerce Revenue Share in Europe
The distribution of eCommerce revenue shares by companies in various European countries in 2022 offers a window into a competitive landscape marked by varying degrees of market penetration.
Ireland stands out with a 33% share, followed by Czechia at 30% and Belgium at 29%.
Luxembourg and Sweden both capture a 26% share, with Denmark slightly behind at 24% and Slovakia at 23%.
A cluster of countries—Norway, the Netherlands, Spain, and Hungary—all hold a 20% share, underscoring a more evenly distributed eCommerce environment in these nations, while also suggesting opportunities for growth and market entry across Europe.
From a general discussion on revenue share distribution, it’s useful to then drill down into the eCommerce market size of individual countries.
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UK Leads in Online Shopping; Denmark and Greece Show Strong Adoption
Data from PPRO on Europe's online shopping market reveals key differences among countries. The United Kingdom leads with its eCommerce market making up 9.3% of its GDP. Denmark, Greece and Sweden, though smaller in market size, have significant eCommerce sectors comprising respective 7.3%, 5.9% and 5.8% of their GDPs.
Despite having a larger economy, Spain has an online shopping market that accounts for about 5.7% of its total GDP, followed by Finland and France, both at 5.2%. Portugal, Czechia and Norway round out the top 10 with shares varying between 4.6 and 4.8%.
Sources: Eurostat, Statista, ECDB