Online retail spending to reach US$ 300 billion by 2030: Report

Online retail spending in India is expected to grow nearly sixfold to US$ 300 billion by 2030, according to a report by BCG.

According to the report, the number of digitally-influenced shoppers in 2021 has grown from 260 million to 280 million and online shoppers have grown from 210 million to 230 million.

The report expects these figures to expected to almost triple over the next decade, aside from a nearly sixfold increase in online retail spending. Experts said that Covid-19 has boosted online shopping and the growth of expenditure in e-commerce platforms by 3-4 Years.  

Digitally influenced retail spending is set to surpass US$ 1.5 trillion by 2030 and will account for about 80% of total retail spending.

The data was an aggregated result of analysing purchase transactions of over 800,000 consumers, which included 200,000 e-shoppers, along with numerous industry reports and expert interviews. The survey in the report was conducted by engaging with over 10,000 Indian consumers across 40+ metros, tier-4 cities, and 50 rural towns and villages

Important drivers

India is set to become the second-largest digital economy by the number of internet users.

With growing internet penetration due to lower smartphone and data-pack costs and an increase in online shopping platforms, the country is experiencing a dramatic rise in e-commerce and digitally influenced spending.

Besides industries like smartphones, electronics, and travel having a greater share in the retail spending market, categories like online food orders, FMCG, fashion, and beauty & personal care (BPC) items have seen growth in sales by three to five times in recent years and are expected to be the fastest-growing sectors.