Research firm Forrester predicts Asia Pacific’s (APAC) online retail sales to 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%, the firm says APAC will account for 28% of total global retail sales.
Leading the region’s online retail sales is China which Forrester said reached $1 trillion in 2018, accounting for 82% of Asia Pacific online retail sales. The analyst expects this to double and reach $2 trillion by 2023.
But the fastest growing region in the world is India, with a CAGR of 25.8% to reach $85 billion by 2023.
Mobile accounts for 72% of online retail sales in APAC. 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,” said Forrester.
Online fashion, including apparel and footwear, is the largest category in APAC, 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. Forrester forecasts online grocery to grow at a CAGR of 26.5% to reach $260 billion by 2023.