FMCG Drives Online Retail Growth In Germany, Study Finds

The Online Retail Industry Report 2025 revealed that the growth trend of 2024 will continue in 2025.

Overall e-commerce revenue growth is projected to rise from 2.7% to 5.7%. In 2024, the German online retail market recorded growth of 3.8%, ESM Magazine reports.

The projected increase equates to a market volume of up to €110 billion in value, according to IFH.

FMCG As Top Driver

The report further revealed that FMCG is at the forefront of e-commerce growth, with a expected increase of 14.6%.

IFH added that nearly all sectors of the online retail market are experiencing growth.

The health and wellness category is forecast to grow by 8.8%.

Hansjürgen Heinick, online market expert at IFH, said, “FMCG is currently showing strong momentum: Particularly in the food sector, large providers are expanding their reach and extending delivery areas; in some cases, quick-commerce services are also regaining importance.

“Fast availability and flexible delivery options resonate with consumers.”

Strong Forecast

Germany’s online retail market has only recently experienced a significant growth.

Despite the country’s uncertain economic situation and rising prices, IFH forecasts solid and continuous expansion for the sector.

The report indicated that online retail is expected to grow by an average of 4.2% annually until 2029.

Sales volume is projected to reach at least €128 billion and potentially up to €141 billion by 2029.

Heinick, noted, “Online retail is regaining momentum – and the drivers are diverse. The digitalisation of brick-and-mortar stores, social media, and the smartphone as a constant companion are increasingly directing purchases online.

“At the same time, the decreasing density of physical stores is accelerating growth, and local supply gaps are making online shopping a necessary option in some places.”