Home Shopping Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Home Shopping Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The home shopping market is projected to register a CAGR of 16.92% during the forecast period 2022-2027.

The global market has seen major advances in e-commerce since the COVID-19 pandemic started as consumers found it to be a safer and more time-efficient shopping choice. The pandemic forced companies and countries, in general, to develop online shopping platforms as a way to maintain their businesses.

The outbreak led to a shift in online consumer behavior in several countries worldwide. For example, as per the United Nations Conference on Trade and Development, the dramatic rise in e-commerce amid movement restrictions induced by the pandemic increased online retail sales’ share of total retail sales from 16% to 19% in 2020. The pandemic accelerated digital adoption and left consumers craving convenience, which is expected to be a long-term impact of the COVID-19 pandemic.

Over the long term, rapid digitalization and high adoption of online shopping through e-commerce sites, such as Amazon.com Inc. and Walmart Inc., are expected to be the key factors driving the market. Moreover, technological advancements, improved logistics, and safe payment systems, coupled with increasing internet and mobile access and consumer demand for convenience, have boosted the purchase of household goods.

The internet is increasingly becoming a key tool for merchants trying to expand their services in the virtual market, driven by the rapid growth of internet users, improved internet connections, and advances in security and encryption. This has largely increased consumer confidence and dependence on home shopping and, in turn, inflated the market’s growth. Globally, individuals using the internet stood at 4119 million in 2019, which reached 4901 million in 2021, as per the International Telecommunication Union (ITU). As of 2017, internet penetration in Europe stood at 79.24%, which increased dramatically to 82.49% in 2019. Additionally, the increased affordability of the internet and increased mobile phone ownership have also driven sales in the home shopping market. In India, about 77% of urban users and 92% of rural users consider mobile as the primary device for accessing the internet, primarily driven by the availability and affordability of smartphones. Thus, the growth potential for e-commerce in the market is directly correlated to internet and smartphone penetration, as mobile apps have emerged as a major gateway for customer purchases.

The home shopping market is highly dominated by Asia-Pacific, with China being the most prominent country in the region. Other countries, including South Korea, Singapore, Japan, and India, have accelerated the market’s growth. Asia-Pacific is a rapidly growing region with increases in the inclination of consumers toward home shopping and a large number of imports from various countries. For instance, China's online shopping market has grown strongly in recent years, and it has become the new engine of economic development. The number of online shoppers in China has been increasing exponentially, from below 34 million in 2006 to over 749.39 million users in June 2020, as per the China Internet Network Information Center (CNNIC), thereby enabling this enormous growth in China's e-commerce sector.

China accounts for more than one-fourth of imports from other countries (excluding Asian countries). The home shopping market in United States is dominated by accessories, books, and music. Asia-Pacific holds the largest share in the global home shopping market in the personal care and cosmetics segments. Players like Taobao, Alibaba, and Amazon hold the majority market share in China and India among countries in the Asia-Pacific region.

The home shopping market is highly competitive, with a strong presence of regional and global players. The market demand is mostly driven by efficient delivery, brand preferences, and consumer awareness. Some of the major players in the market globally include Alibaba Group, Amazon.com, JD.com Inc., and Walmart Inc., among others. In the market studied, established players that have invested heavily in marketing and expansion have gained traction over the years. In the study period, market players were also involved in mergers and acquisitions and partnerships with a focus on expanding their presence in the market. In order to achieve deeper market penetration, potential players are partnering with retailers, branded sports distributors, manufacturers, and ski event organizers. For instance, in 2018, Walmart announced its acquisition of a 77% stake in India’s largest e-commerce store Flipkart. The investment may help accelerate Flipkart’s customer-focused mission to transform commerce in India through technology.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support