Forrester: Online retail sales in Asia Pacific to reach $2.5 trillion by 2023; China to reach $2 trillion by 2023
Forrester estimates that online retail sales in Asia Pacific will almost double in the next five years, growing from $1.3 trillion in 2018 to $2.5 trillion in 2023, with a compound annual growth rate (CAGR) of 14.0% and accounting for 28% of total retail sales. Asia Pacific remains the largest region for online retail sales globally.
Other highlights from the report include:
- China became the first market to reach $1 trillion in online retail sales in 2018 and continues to be the largest market, accounting for 82% of Asia Pacific online retail sales. We expect this to double and reach $2 trillion by 2023.
- India continues to be the fastest growing region in the world, with a CAGR of 25.8% to reach $85 billion by 2023.
- Mobile accounts for 72% of online retail sales in Asia Pacific. Smartphone usage is the key driver, especially in China and India. We expect online retail via mobile to even grow further, at a CAGR of 16.9%, to reach $2 trillion in 2023, up from $911 billion in 2018 and accounting for 81% of online retail sales in 2023.
- Online fashion, including apparel and footwear, is the largest category in Asia Pacific, accounting for $232 billion in online retail sales in 2018. Grocery is the fastest growing category, with China remaining the largest market for online grocery, followed by Japan and South Korea. We expect online grocery to grow at a CAGR of 26.5% to reach $260 billion by 2023.