Global e-commerce market to reach $11t by 2028

The global e-commerce market is set to hit $11t by 2028, driven by advancements in technology, improved delivery services, and increasing internet penetration, according to GlobalData.

The market is projected to grow at a compound annual growth rate (CAGR) of 11.1% between 2023 and 2028.

China and the United States dominate the sector, holding 33% and 30% market shares, respectively.

Aisha U-K Umaru, strategic intelligence analyst at GlobalData, noted that these two nations are home to some of the world’s largest tech giants, including Alibaba and Amazon, which capitalise on vast amounts of consumer data generated on their platforms.

She said that companies must innovate to meet consumer demands, embrace ESG compliance, and leverage data-driven strategies to stay competitive.

Subscription-based services have also emerged as a growing segment within the e-commerce market.

Additionally, Umaru highlighted the importance of ESG compliance for e-commerce businesses.

“ESG regulations such as the EU taxonomy for sustainable activities are also a method of clamping down on greenwashing, the practice of inflating a company’s ESG performance for marketing purposes,” she said.

The report also said terms like “carbon neutral” and “environmentally friendly” are now under strict regulation, and failure to comply could lead to legal consequences.

Moreover, Umaru highlighted the role of social equity in the sector, noting initiatives like the Fifteen Percent Pledge, which encourages US retailers to dedicate at least 15% of their shelf space to Black-owned businesses.

“Additionally, issues such as supply chain transparency and diversity remain critical, as brands strive to align with the evolving ESG priorities of Gen Z and Millennial consumers,” she said

Retail Asia