Market Size of UK E-commerce Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 280.55 Billion |
Market Size (2029) | USD 750.80 Billion |
CAGR (2024 - 2029) | 21.76 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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UK E-commerce Market Analysis
The UK E-commerce Market size is estimated at USD 280.55 billion in 2024, and is expected to reach USD 750.80 billion by 2029, growing at a CAGR of 21.76% during the forecast period (2024-2029).
- E-commerce has experienced significant growth over the past few decades, driven by consumers' increasing preference for online shopping. This trend has been supported by substantial investments from internet-focused enterprises and traditional retailers transitioning to digital platforms. While sales in physical retail stores have stagnated, regional revenues from online shopping have surged dramatically.
- The appeal of online retailing lies in its ability to offer superior value for money. Consumers, particularly those interested in health, fashion, consumer electronics, travel services, and home and garden products, are drawn to the internet for competitive prices and attractive deals.
- In the United Kingdom, heightened awareness of online identity theft has led consumers to prioritize secure financial transactions. Nearly all online businesses in the country now accept credit and debit card payments, with Mastercard and Visa being the most widely accepted, followed by American Express and other cards. Additionally, many websites utilize payment services such as PayPal.
- With the continued rise of social networking and mobile internet access, businesses are expected to increase their investments in e-commerce through social media marketing in the coming years. This trend highlights the stark contrast between the robust growth of online sales and the challenges faced by brick-and-mortar retailers, many of which are filing for bankruptcy or administration.
- The expansion of e-commerce has the potential to intensify competition in retail markets, enhance consumer choice, and drive innovation in product distribution. However, recent enforcement and advocacy efforts by several competition agencies have revealed concerns about anticompetitive behavior in the online marketplace. These concerns about potential market fragmentation are significant among organizations that have examined the competitive dynamics of e-commerce.
UK E-commerce Industry Segmentation
Conducting an e-commerce business means fostering relationships and selling information, services, and goods over computer communication networks. The study aims to analyze and understand the UK e-commerce market's current growth, opportunities, and challenges.
The UK e-commerce market is segmented by B2C e-commerce (beauty and personal care, consumer electronics, fashion and apparel, food and beverage, furniture and home, and others [toys, DIY, media, etc.]) and B2B e-commerce. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By B2C E-commerce | ||||||||
Market Size (GMV) for the Period of 2022-2029 | ||||||||
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By B2B E-commerce | |
Market Size (GMV) for the Period of 2022-2029 |
UK E-commerce Market Size Summary
The UK e-commerce market is experiencing significant growth, driven by a shift in consumer spending towards online shopping. This trend has been supported by investments from internet-focused enterprises and the expansion of online retailing, which has become a preferred choice for consumers seeking value for money. The market is characterized by a diverse range of payment methods, including credit and debit cards, e-wallets, and contactless payments, which have facilitated the ease of online transactions. The rise of mobile shopping and social media marketing is further propelling the market, contrasting with the challenges faced by traditional brick-and-mortar retailing. The COVID-19 pandemic has accelerated this shift, with companies increasingly adopting online platforms to meet changing consumer preferences.
The fashion and apparel segment is expected to contribute significantly to the market, with e-commerce technology enhancing the shopping experience through features like intelligent styling algorithms and effective filtering systems. Prominent players such as Amazon UK, eBay, and Asos are leading the market, while the development of distribution centers across the country supports the growing industry. The market's fragmentation is evident, with numerous players vying for market share. Initiatives like Amazon's collaboration with the UK government to support small businesses highlight the ongoing efforts to promote UK brands globally. As the market continues to evolve, the adoption of alternative payment methods and the increasing popularity of e-wallets are expected to drive further growth.
UK E-commerce Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness-Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Key Market Trends and Share of E-commerce of Total Retail Sector
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1.4 Impact of Macro Economic Trends on the E-commerce Sales
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2. Market Segmentation
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2.1 By B2C E-commerce
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2.1.1 Market Size (GMV) for the Period of 2022-2029
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2.1.2 Market Segmentation - by Application
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2.1.2.1 Beauty and Personal Care
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2.1.2.2 Consumer Electronics
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2.1.2.3 Fashion and Apparel
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2.1.2.4 Food and Beverage
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2.1.2.5 Furniture and Home
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2.1.2.6 Others (Toys, DIY, Media, etc.)
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2.2 By B2B E-commerce
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2.2.1 Market Size (GMV) for the Period of 2022-2029
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UK E-commerce Market Size FAQs
How big is the UK E-commerce Market?
The UK E-commerce Market size is expected to reach USD 280.55 billion in 2024 and grow at a CAGR of 21.76% to reach USD 750.80 billion by 2029.
What is the current UK E-commerce Market size?
In 2024, the UK E-commerce Market size is expected to reach USD 280.55 billion.