Online retail spending in Germany has experienced notable growth. It is expected that online spending will continue to increase over the next four years, with an average annual growth of 4.2 percent. “Online retail is gaining momentum again – and the drivers are diverse.”
These findings come from a new report on the online retail industry in Germany, by IFH KÖLN. The research institute expects a growth rate between 2.7 and 5.7 percent this year, reaching up to 110 billion euros. Last year, online shopping spending in Germany increased by 3.8 percent.
After a few years of decline, ecommerce in Germany is on the rise again, as confirmed by figures from other sources. The largest online stores in Germany, with Amazon leading the way, are particularly benefiting from this growth.
Momentum
According to IFH KÖLN, several factors are driving this renewed momentum: “The digitization of physical stores, social media, and the smartphone as a constant companion are making online purchases more frequent. At the same time, the declining density of physical stores accelerates growth, and local shortages in the supply chain make online shopping a necessary option in some areas”, says market expert Hansjürgen Heinick.
‘Declining store density accelerates online growth’
IFH KÖLN sees online growth in all product categories. Food stands out with a growth forecast of 14.6 percent for this year. Significant growth is also expected in the health and wellness category, with a projected increase of 8.8 percent.
Online retail until 2030
For its growth forecasts, IFH KÖLN uses scenario analyses in three variants. In all these scenarios, online retail will continue to grow through 2029. In the middle scenario, growth will average 4.2 percent over the next four years, resulting in 128 billion euros in online retail spending by 2029. In the strongest growth scenario, the amount will reach up to 141 billion euros.
