European eCommerce revenue is expected to reach $465 billion in 2021, a 30% jump from before the COVID-19 pandemic, according to Finaria, an Italian financial information website. The numbers are not that surprising, however, when you consider that people were forced to stay home for weeks and months in 2020 to avoid contracting the virus. If you add in the fact that so many stores were shut down, the only viable way to receive both necessities and luxuries was the internet.
Market Growth
Even before the pandemic, eCommerce was becoming more popular each year. In the beginning of 2018, the industry reported revenue of $320.6 billion, while at the end of the year, revenue reached $354.1 billion.
But there is little doubt that the intense 30% increase in 2020 was driven by pandemic lockdowns. By the end of last year, eCommerce revenue hit $425.2 billion, a year-on-year increase of $71 billion.
ECommerce’s upward trajectory is expected to continue in 2021. While vaccines for the virus have rolled out, many European countries are still struggling to keep cases down and give their economies a much-needed boost. Additionally, many consumers who had not previously shopped online but were forced to do so during the pandemic are likely to stick with online shopping due to its sheer convenience.
During 2020, people realized that they could get virtually everything online. Financial analysts predict a 9.5% year-on-year increase by the end of 2021, which will amount to nearly $570 billion.
According to Statista, the average revenue per use is expected to reach $918 by the end of 2021, up from $777.4 in 2019. Over the course of the next 4 years, users are expected to spend as much as $1,000 online.
Fashion, Media, and Electronics: The Big 3 of 2021
The big three industries of 2021 are likely to be fashion, media, and electronics. Fashion is predicted to hit $143.5 billion in 2021, 32% more than its total revenue pre-pandemic. By 2025, revenue is expected to reach $176.5 billion. That demonstrates growth of more than $30 billion in 4 years.
Media and electronics are anticipated to generate $103.5 billion revenue by the end of 2021, a whopping $95.5 billion more than they earned pre-pandemic. Furniture and appliances are expected to reach $68 billion while food and personal care items together are expected to reach $63.6 billion.
How Many Europeans are Shopping Online?
In 2017, statistics report nearly 395 million European online shoppers. In 2018, that figure rose to 424.5 million, but it was 2019 that showed the most impressive year-on-year growth with 455.5 million online shoppers. In 2020, the year of COVID, another 25 million consumers began shopping online, and by the end of 2021 that number is expected to reach 506 million. By 2025, experts anticipate 570 million online shoppers.
The United Kingdom, considered the largest European eCommerce market, is expected to bring in $104 billion by the end of this year, a 7% year-on-year increase. Germany is expected to come in second place with $95 billion in revenue from online shopping, a fair increase from $87.6 billion in 2020. France’s eCommerce industry is expected to generate $58.9 billion, and Spain can expect to see a more modest $23.8 billion in revenue
Why Is Online Shopping a Growing Industry?
The pandemic may have driven the recent spike in online shopping, but as mentioned above, the industry has been growing steadily since the advent of the internet. Why do so many people shop online? In a pandemic world, the reason for shopping online is clear. But what about pre-pandemic?
There are many benefits of shopping online, regardless of the worldwide pandemic situation. Shopping online means saving the time and hassle of going to the store. It also widens your selection and allows you to reach stores that aren’t located nearby.
Many online stores offer regular sales and free returns and shipping, which make online shopping even more appealing. And as technology advances, we can even expect to see widespread use of trying clothes on virtually. When that happens, we can expect another huge increase in the fashion sector of eCommerce.
