DUBLIN–(BUSINESS WIRE)–The “Australia Ecommerce Market Opportunities Databook – 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics – Q2 2023 Update” report has been added to ResearchAndMarkets.com’s offering.
Ecommerce market in Australia is expected to grow by 7.84% on annual basis to reach US$53.2 billion in 2023. The Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 6.64% during 2023-2027. The Ecommerce gross merchandise value in the country will increase from US$49.4 billion in 2022 to reach US$68.8 billion by 2027.
Australia recorded a significant surge in online shopping after the global pandemic outbreak and the trend further accelerated in H1 2022. This assisted players like Australia Post to record high-growth revenues. However, in H2 2022, the impact of the rising cost of living and inflation dampened the growth momentum and a slowdown was visible in online shopping in the country. The trend is projected to further continue in H1 2023 with consumers forecasted to spend less on splurging and save more amid the fears of a potential recession in 2023.
The last 12 months have been a difficult period for food and grocery delivery platforms in Australia. Rising competition from domestic and global players, coupled with reduced takeaways, has had a severe impact on revenue growth for players like Deliveroo, who has also announced an exit from the Australian market as a result. In the entertainment space, video-on-demand service providers are also projected to feel the pressure of rising inflation and declining consumer spending from the short to medium-term perspective.
Online shopping activities projected to slow down in H1 2023 amid rising rates in Australia
Shopping events like Black Friday and Boxing Day sales are projected to drive incremental revenue for brands and marketplaces. Consumers are planning to shop big during the year-end shopping season in Australia. However, the spending is projected to decline significantly thereafter in the country.
Rising interest rates will be the foremost factor that will result in a decline in consumer spending in H1 2023. Furthermore, tighter household budgets will lead to more price-sensitive consumers in Australia. This will lead to a significant shift in consumer behavior, as more and more consumers will turn to marketplaces that offer better value for their purchases.
For smaller retailers seeking to drive their revenue in the highly competitive Australian Ecommerce industry, they will have to partner with dominant marketplaces such as Amazon, which is gaining more market share from other players, including eBay.
Domestic and global food and grocery delivery providers are shutting down operations in Australia
With the declining number of consumers ordering food and groceries online, food delivery providers have faced a difficult year amid the various economic challenges arising due to geopolitical and macroeconomic factors. These challenges, along with growing competition in the space, meant that domestic and global firms are shutting down operations in the Australian market.
In December 2022, YourGrocer, the domestic delivery service provider, announced that the firm is closing operations in Australia. Being battered by rising petrol and food prices, higher interest rates, and investor skepticism, informed the customers that it will no longer deliver their orders starting December 16th.
Before YourGrocer, United Kingdom-based Deliveroo also announced that the firm is closing operations in Australia, owing to increasing competition faced from firms like Uber Eats and DoorDash. Deliveroo announced that it cannot reach sustainable profitability in the Australian market without making any significant investment. However, with the firm already reporting heavy net losses and Australia counting for only 3% of its total revenue, Deliveroo decided to exit the market as part of its cost-cutting strategy.
Revenues for other firms have been also affected significantly in 2022. Players such as Milkrun are announcing new product launches as they seek to drive more revenue for their business. From the short to medium-term perspective, the publisher expects the food and grocery delivery segment to remain subdued in Australia, as firms continue to face macroeconomic challenges.
Firms are extending their strategic collaborations to further strengthen their position in the Ecommerce category
The online pharmacy space garnered significant growth during the pandemic outbreak. With convenience and easy access, more consumers have turned to online channels for their health-related requirements, thereby driving industry growth. To capitalize on the growing momentum, firms are extending their collaborations in Australia.
In December 2022, HealthyLife, an independently operated firm under Woolworths Group, announced that the firm had extended its alliance with SuperPharmacy, which has been the Group’s partner since 2021. The partnership will enable HealthyLife to access warehouse assets offered by SuperPharmacy, and in turn, will provide Ecommerce services and platforms.
From the short to medium-term perspective, the publisher expects more such strategic collaboration in the Australian Ecommerce market, thereby providing growth support to the industry over the next three to four years.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 110 |
| Forecast Period | 2023 – 2027 |
| Estimated Market Value (USD) in 2023 | $53.22 Billion |
| Forecasted Market Value (USD) by 2027 | $68.82 Billion |
| Compound Annual Growth Rate | 6.6% |
| Regions Covered | Australia |
Scope
Australia Ecommerce Market Share by Key Players
Australia Ecommerce Market Size and Future Growth Dynamics
Australia User Statistics and Ratios of Key Performance Indicators
Australia Ecommerce Market Size and Forecast by Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2018-2027)
Australia Ecommerce Market Size and Forecast by Retail Shopping Sales Channel
Australia Ecommerce Market Share by Travel and Hospitality Sales Channel
Australia Ecommerce Market Size and Forecast by Online Food Service Sales Channel
Australia Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2018-2027)
Australia Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2018-2027)
Australia Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2018-2027)
Australia Ecommerce Market Size and Forecast by Operating System
Australia Ecommerce Market Size and Forecast by City
Australia Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2018-2027)
Australia Ecommerce Consumer Demographics
For more information about this report visit https://www.researchandmarkets.com/r/sl6w0u
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