United Kingdom Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q2 2023 Update

According to the publisher, the Ecommerce market in United Kingdom is expected to grow by 7.76% on annual basis to reach US$312.4 billion in 2023. The Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 6.73% during 2023-2027. The Ecommerce gross merchandise value in the country will increase from US$289.9 billion in 2022 to reach US$405.5 billion by 2027. Rising inflation and surging cost of living have severely impacted consumer spending in the United Kingdom. With the increase in energy prices, most brits are finding it difficult to manage their household budgets, and as a result, have cut down their spending on non-essential items. Consequently, leading to a significant decline in online shopping in the country in H2 2022.
Players across Ecommerce segments have struggled to gain growth momentum in 2022. Amid the current economic uncertainty, food delivery platforms are also shutting down their operations in some global markets. With the Bank of England expected to further announce a hike in interest rates, the rising cost of borrowing is projected to further impact Ecommerce growth in the United Kingdom from the short to medium-term perspective.

Retail sales declined in the United Kingdom amid weaker online shopping trends

Despite the year-end shopping season and events like Black Friday and Cyber Monday, retail sales have reported a decline in the United Kingdom, largely due to the reduced online spending by consumers.

• According to data released by the Office for National Statistics, sales volume declined by 0.4% in November 2022. With consumers spending less on spurlging and saving more for essentials and daily-use items, Ecommerce platforms have experienced a decline in order volume. Cash-strapped individuals have even adopted a buy now pay later solution to fund their groceries and fuel purchases. This shows the impact that rising inflation has had on the purchasing power of brits in H2 2022.

With recessionary fears, consumers are expected to save more in H1 2023, which will further result in a decline in orders for Ecommerce marketplaces and direct-to-consumer retailers in the United Kingdom. Consequently, the publisher expects the economic uncertainty to have a major growth impact on the Ecommerce market from the short to medium-term perspective.

Like the broader economic condition, food delivery firms have also faced a tumultuous year in 2022. With losses widening and order volume decreasing due to reduce spending on takeaways amid the current macroeconomic environment, food delivery firms are exiting international markets to cut down costs and focus on profitability.

• In November 2022, Deliveroo, the United Kingdom-based food delivery firm, announced that the firm is shutting down operations in Australia. The competition in the segment has surged significantly in Australia, where the firm is competing with Uber Eats and DoorDash. This coupled with the pullback on takeaways due to rising prices has resulted in lower order volumes. In H1 2022, Australia counted for 3% of the total gross merchandise value for Deliveroo. Before Australia, the firm also announced an exit from the Netherlands market in August 2022. The move came after Deliveroo reported a larger pre-tax loss of US$177 million in H1 2022.

The firm announced that it could not reach sustainable profitability without investing significantly in these markets. Consequently, Deliveroo made a strategic exit from these markets to cut down on costs, while focusing on profitability in its home market. With the cost-of-living biting into the firm’s profitability, Deliveroo has also moved into the in-app advertising segment in 2022.

• In November 2022, Deliveroo announced that it has secured an agreement with Sky for advertising on its platform. Sky Glass is also the first non-grocer partner to advertise on the platform. With the majority of its partners belonging to the grocery industry, Deliveroo is focused to offer its users a food-first experience in the United Kingdom.

As food delivery businesses continue to struggle amid the current economic uncertainty, the publisher expects more players to cut their operations in loss-making international markets, while adding another revenue stream to support their path to profitability from the short to medium-term perspective.

Paid video-on-demand users are expected to fall significantly in the United Kingdom market

The global pandemic outbreak resulted in a high-growth environment for video-on-demand services, such as Netflix and Amazon Prime. However, 2022 has been a difficult growth year for these firms, as the rising cost of living and inflation is eating into the paid subscriber number of these firms.

New players, including Paramount+, have entered the United Kingdom in Q3 2022. This has further intensified the competition for customer acquisition. To make up for the lost revenue, firms such as Netflix have launched an ad-supported plan for their subscriber in the United Kingdom.

While new players are entering the market and existing ones have adopted a different business strategy, the macroenvironment environment is projected to have an impact on the subscriber growth for these firms, as consumers are finding it difficult to even manage their grocery bills, let alone buying different video-on-demand subscriptions.

This report provides a detailed data centric analysis of Ecommerce market dynamics, covering over 100 KPIs in United Kingdom. It details market opportunity across key Ecommerce verticals - Retail Shopping, Travel & Hospitality, Online Food Service, Media and Entertainment, Healthcare and Wellness, and Technology Products and Services. It provides market share by key players across key verticals along with sales channels (Platform to Consumer, Direct to Consumer, Consumer to Consumer). In addition, it provides spending pattern by payment instruments along with a snapshot of consumer behaviour in United Kingdom.

The report also covers niche trends such as market size by live streaming engagement model and cross border purchases. It also covers ecommerce spend share by operating systems, device (mobile vs desktop) and cities.

In addition, to detailed data-centric analysis, this report provides analyst commentary on key trends, drivers, strategies, and innovations in the Ecommerce industry in United Kingdom.

Scope

This report provides a detailed data-driven look at the United Kingdom Ecommerce industry, covering various segments and highlighting areas of interest across the verticals in the industry. In addition, it provides a comprehensive understanding of market dynamics and future forecast.

United Kingdom Ecommerce Market Size and Future Growth Dynamics

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Gross Merchandise Volume Trend Analysis

United Kingdom User Statistics and Ratios of Key Performance Indicators

• User Statistics
• Card Abandonment Rate and Product Return Rate
• Ecommerce Per Capita and GDP Per Capita
• GDP Per Capita Trend Analysis

United Kingdom Ecommerce Market Share by Key Players

• United Kingdom Retail Shopping Ecommerce Market Share by Key Players (Amazon, Best Buy, Etsy, Target, Walmart)
• United Kingdom Travel Ecommerce Market Share by Key Players (Booking Holdings, Expedia, Gett, Lyft, Uber Taxi)
• United Kingdom Food Service Ecommerce Market Share by Key Players (Doordash, Grubhub, Instacart, Kroger, Uber Eats)

United Kingdom Ecommerce Market Size and Forecast by Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2018-2027)

• Retail Shopping (breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
• Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
• Online Food Service (breakdown by aggregators, direct to consumer)
• Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
• Healthcare and Wellness
• Technology Products and Services
• Other segments

United Kingdom Ecommerce Market Size and Forecast by Retail Shopping Sales Channel

• Platform to Consumer
• Direct to Consumer
• Consumer to Consumer

United Kingdom Ecommerce Market Share by Travel and Hospitality Sales Channel

• Market Share by Travel and Hospitality Sales Channel
• Aggregator App – Gross Merchandise Value Trend Analysis
• Direct to Consumer – Gross Merchandise Value Trend Analysis

United Kingdom Ecommerce Market Size and Forecast by Online Food Service Sales Channel

• Aggregator App
• Direct to Consumer

United Kingdom Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2018-2027)

• Website Based
• Live Streaming

United Kingdom Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2018-2027)

• Cross Border
• Domestic

United Kingdom Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2018-2027)

• Mobile
• Desktop

United Kingdom Ecommerce Market Size and Forecast by Operating System

• iOS/macOS
• Android
• Other Operating Systems

United Kingdom Ecommerce Market Size and Forecast by City

• Tier 1
• Tier 2
• Tier 3

United Kingdom Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2018-2027)

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Cash
• Other Digital Payment

United Kingdom Ecommerce Consumer Demographics

• Market Share by Age Group
• Market Share by Income Level
• Market Share by Gender

Reasons to buy

• In-depth Understanding of Ecommerce Market Dynamics: Understand market opportunities and key trends along with forecast (2018-2027). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
• Insights into Opportunity by Ecommerce Categories: Get market dynamics by sales channel to assess emerging opportunities across various segments.
• Detailed analysis of market share by key players across key Ecommerce verticals.
• Insights into Opportunities across key Ecommerce verticals: Retail shopping, travel & hospitality, online food service, media and entertainment, healthcare and wellness, and technology products & services.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate a Ecommerce strategy; assess market-specific key trends, drivers, and risks in the Ecommerce industry.
• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Ecommerce KPIs, including spend by age, gender, and income level.