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Latin America displays significant B2C E-Commerce market growth potential

The latest publication from Hamburg-based research company yStats.com titled “Global B2C E-Commerce Market 2023” shares insights into the B2C E-Commerce market development, latest trends, and forecasts worldwide, including the projected future market developments. Among many other details, the publication reveals that Latin America is forecasted to show the biggest B2C E-Commerce market growth by 2025.

The E-Commerce market growth in Europe and the U.S. is expected to be moderate

Globally, B2C E-Commerce markets saw significant growth during the pandemic years, reaching a record high in online shopping adoption. Following this peak, global B2C E-Commerce sales growth declined to a single-digit percentage in 2022, the lowest in many years, as reported by yStats.com. The projected trend indicates steady growth in the B2C E-Commerce market size by 2026, albeit with an annual growth rate forecasted to remain in the single digits. A similar pattern is observed in the U.S., where the annual growth in online sales surged to a mid-range double-digit percentage in 2020 but then dropped to the lowest single-digit value since at least 2013. The B2C E-Commerce market in Western Europe is also predicted to experience a Compound Annual Growth Rate (CAGR) of under 5% between 2022 and 2026, signaling limited development potential post the preceding ‘pandemic boom’. Notably, several European countries, including Norway, Denmark, the Netherlands, and Sweden, maintained high online shopping penetration over the previous year.

Asia-Pacific and Latin America are set to emerge as drivers of B2C E-Commerce growth

Despite the subdued growth projected for developed markets like the U.S. and Europe, retail E-Commerce sales in Southeast Asia are anticipated to maintain a double-digit CAGR between 2022 and 2026. In 2022, Asia-Pacific achieved the highest B2C E-Commerce sales value, surpassing North America and Western Europe. Furthermore, Asia-Pacific accounted for nearly half of the global B2C E-Commerce sales value in 2022, while North America constituted around one-third and Western Europe represented one-tenth of the global sales value. Additionally, China is expected to reach a B2C E-Commerce sales value of nearly USD 1 trillion by 2025, significantly surpassing the U.S. and Europe. Latin America also shows substantial growth potential in the B2C E-Commerce market, with projections indicating a mid-range double-digit CAGR by 2025, resulting in almost a doubling of market value between 2022 and 2025. In 2022, Brazil led the region in B2C E-Commerce market size, trailed by Mexico and Argentina. While Argentina ranked third in market size, it is forecasted to lead in market CAGR by 2025, followed by Colombia and Mexico, all displaying a mid-range double-digit percentage growth.