India is set to overtake Australia as 4th largest online retail market in Asia Pacific in 2019, according to Forrester research.
The analysts have updated their outlook for APAC’s ecommerce market with data showing that the region continues to be the largest for online retail sales globally, comprising both the largest market (China) and fastest-growing market (India).
China accounts for nearly 83 per cent of online retail sales for the region. Japan and South Korea are the other big markets, followed by Australia and India.
But as the fastest growing ecommerce market in the world, India is set to surpass Australia next year. Despite slowdowns in 2016 and 2017, India is expected to grow at a compound annual growth rate (CAGR) of 29.9 per cent, reaching $73 billion in 2022. Australian ecommerce is expected to grow at 9 per cent CAGR over the same period.
The report, Forrester Data: Online Retail Forecast, 2017 To 2022 (Asia Pacific) found smartphones are driving online retail growth in the region. 80 per cent of online retail sales in Asia Pacific will be made from a mobile device by 2022, up from $735 billion in 2017 to reach $1.7 trillion in 2022.
Forrester also expects that a quarter of the total retail sales in Asia Pacific will occur online by 2022.
The report predicts China will be the the first global market with $1 trillion in online retail sales in 2018.
The number of online buyers in China will reach 631 million in 2022, with a CAGR of 4.6 per cent from the current 502 million.
The analysts are also bullish on the future of online grocery shopping in the region. They expect the online grocery market in Asia Pacific to reach $241 billion by 2022, with China being the largest market for online grocery and South Korea leading in terms of penetration.
In comparison, global online grocery sales are expected to double from $150 billion in 2017 to $334 billion by 2022, according to the report.