Top 5 Industries with Immense eCommerce Growth Potential in 2023
- 8 months
The rise of eCommerce is no surprise. As the online shopping mediums continue to grow in reach, importance, and influence, it is becoming even more challenging for offline businesses to sustain and stay profitable. But, which industry is likely to take the biggest piece of this pie?
In this article, we are going to find an answer to this question by putting the spotlight on five major industries that are expected to grow more than others in the coming five years. So, let’s get started.
Food and Beverages
Despite the Food and Beverages Industry being the biggest in the USA, it has always fallen behind its counterpart in adopting eCommerce and other technologies. The reason? There are many, the major ones being the perishable nature of products and special storage/delivery conditions required. But, the time is changing!
Thanks to the advancement in technology and ever-evolving consumer behavior after the arrival of the pandemic. People are now not reluctant to buy food items online, resulting in the increased growth potential of the Food and Beverage eCommerce industry. In fact, according to a report by Statista, revenue from the online food and beverage industry in the US was $34.2 billion in 2021, an increase of approximately $8.2 billion as compared to the revenue of the year 2020.
Food and Beverage Retail eCommerce Revenue in the USA
During the pandemic, the online food delivery market made up 13% of the entire restaurant market in the USA, and it is expected to grow by 21% by 2025. Isn’t it fascinating?
Also, because this industry is flourishing, it is easier to scale your eCommerce food business in the market. Even traditional food stores in countries like the USA, UK, and Europe are now keeping aside millions to build their eCommerce processes. As a result, investors are also putting their funds into eCommerce food and beverage startups that look promising.
According to another report by Statista, the Fashion eCommerce industry’s CAGR is expected to reach 14.2% between 2017 and 2025, and the industry is expected to be valued at more than $672.71 billion by the end of 2023. Now, what is driving this immense growth?
Here are some important reasons:
- Increasing smartphone and internet access
- Growth of influencers and social media culture
- Emerging global middle classes with high income
- The pandemic effect and changing consumer behavior
- Expanding worldwide markets outside the West
In addition, lower barriers to entry for all types of clothing retailers provide the opportunity to market, sell, and cater to the global demand very easily. All they need to do is launch an online fashion store, market it well, and boom!
As a result, global revenue and ARPU are both expected to only grow in the online fashion market. If you also belong to the fashion industry and want to establish your brand online, this is high time for you to take action. Here is How Retailers Can Capitalize on the Fashion eCommerce Industry, which is now growing by all leaps and bounds.
The home decor eCommerce industry is also transforming fast. People are now more elite and specific about their choices and want best-in-class services and products from around the world for decorating their homes. In addition, they are open to experimenting and selecting new brands to work with that provide amazing quality.
In the year 2021, we have seen amazing eCommerce acceptance in this sector as we completed several home decor projects during the year that are now up and running. Here are some stats to understand the dynamics of this market:
- ‘The global online home decor market is expected to reach $348.3 billion by 2027
- The online home furniture market, which is an important segment of the industry, will grow with a CAGR of 19.1% during this period
- The USA market is estimated at $29.2B, while China is forecasted to expand at a 19.1% CAGR.
The reasons behind this expected growth are many. Evolving consumer behavior, advancements in online shopping technologies, adoption of AR/VR to make buying decisions, features like Buy Now Pay Later, and easy financing – all of them are contributions to the growth of the online home decor industry.
The online retail market was always and will always be a big part of the eCommerce industry. According to Statista, global eCommerce retail sales reached $4.9 trillion worldwide, and this number is expected to grow by over 50% in the next four years, reaching $7.4 trillion by 2025.
As many physical stores and shops were closed in the midst of lockdowns, the retailers opted for online channels to sell and keep the cash flow coming in. A number of businesses went through a digital transformation during that time and switched to retail commerce, it is a process that otherwise takes years to complete.
And, now, even when limitations are being lifted, purchasers are reluctant to head outside for shopping. They are bound to keep ordering things on the web since it is safe and more advantageous. eCommerce retail has frequently been a go-to business idea for many organizations and entrepreneurs. Furthermore, presently in the midst of the chaos, starting your online retail business makes more sense.
A decade ago, who would have thought that we would be studying online? But, the pandemic and advancements in technology made that happen too. Private schools and other educational institutes suffered the biggest blow during the last two years that even accelerated closures.
However, because of this change, other methods of education delivery have been put into use across the globe. Online education applications like Coursera, Udemy, Verbling, and many others made billions in revenue, and the push they saw in terms of the number of users is beyond any explanation. Specifically, the eLearning industry made $200 billion in revenue in 2019, and by 2026, it is expected to be a $370 billion industry.
eCommerce has changed the shopping trends across the world. If you are also planning to leave a mark on the online shopping industry with your offerings, it is high time to take action and build something extraordinary that adds value to the lives of consumers. Reach out to experts at Envision eCommerce for the same!