While physical stores have staged a post-pandemic resurgence, the relentless growth of e-commerce continues unabated, and it’s on track to dominate the global retail landscape. According to Boston Consulting Group (BCG), e-commerce is poised to command a substantial 41% share of global retail sales by 2027, marking a significant leap from its 18% share in 2017.
BCG’s report, titled «Winning Formulas for E-Commerce Growth,» draws from an extensive global survey conducted in Q2. This comprehensive survey engaged 410 retail and 415 consumer packaged goods (CPG) companies worldwide, spanning a wide range of revenue from $50 million to over $10 billion. The study provides invaluable insights into e-commerce trends, encompassing the period from the onset of the pandemic to the present year.
In 2022, e-commerce sales demonstrated remarkable regional growth, with a 3% increase in Europe and a significant 7% surge in both the US and Asia. The global e-commerce sector is primed for robust expansion, anticipating a 9% compound annual growth rate (CAGR) through 2027. While this projection doesn’t fully return to the 12%-14% pre-Covid growth rate, it still outpaces the expected growth rate for physical stores, which lingers at just 4%.
Martin Barthel, a partner and managing director at BCG and a co-author of the study, underscores the evolving e-commerce landscape, noting, «While e-commerce is gradually returning to its pre-Covid trajectory, the landscape has undergone a notable and lasting transformation.» He emphasizes the heightened competition between emerging players and established incumbents, fueled by the purchasing behaviors of Baby Boomers and Gen X. These generations collectively wield substantial influence over the modern e-commerce environment.
