Portugal E-commerce - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Portugal E-commerce - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Portugal E-commerce Market was estimated at USD 4.76 in the current years and is expected to register a CAGR of 11.16%, reaching USD 9.06 billion in five years. The Portugal E-commerce Market has expanded rapidly in recent years, providing exciting potential for online retailers in various industries. According to Eurostat, Portugal is a developed economy, and internet penetration is significant in the nation, with 88.15 percent of households with internet access in Portugal. This suggests that the awareness of online shopping is substantial and contributes to market growth.

Key Highlights

• Due to e-commerce convenience, accessibility, and variety of product options, online shopping is becoming increasingly popular among Portugal customers. The popularity of e-commerce platforms has been propelled even further by the rise in disposable income, urbanization, and lifestyle changes. A dramatic change in consumer behavior due to the COVID-19 epidemic led to increased internet buying. To satisfy their demands while observing social seclusion policies and lockdown restrictions, consumers turned to e-commerce platforms. This behavior change has caused Portugal customers to develop new habits and rely more heavily on online shopping.
• In addition, one of the latest trends reshaping the retail industry is the usage of social media platforms for buying and selling. Social media platforms such as Facebook, Instagram, YouTube, TikTok, and so on also hold a significant share in the sales medium and contribute to the e-commerce market in the country.
• The increasing adoption of advanced technology has significantly influenced the growth of the e-commerce market in Portugal. As businesses continue to leverage the latest technological advancements, the e-commerce sector will likely experience consumers and drive overall economic growth in the country.
• Concerns about data security are a restraining factor in the market. Data security is critical for businesses and consumers engaging in online transactions. Data breaches and cyber-attacks can erode consumer trust in e-commerce platforms.
• The COVID-19 outbreak significantly increased online product sales because, due to governmental restrictions, lockdown, and safety purposes, it became the new normal as companies and customers went digital by offering products and services through e-commerce channels during the pandemic in Portugal. E-commerce advanced significantly, even among people over 60, during the pandemic. This transformation of buying behavior has compelled retail shops to go for online sales channels in the country, which has fueled the country's e-commerce market in the post-pandemic scenario.

Portugal E-commerce Market Trends

Increase in the Adoption of Advanced Technology Drives the Market Growth

• As internet penetration continues to expand in Portugal, more people have asses to online shopping platforms. This increased connectivity allows businesses to reach a broader customer base and consumers to shop conveniently from the comfort of their homes.
• According to Statistics Portugal, in Portugal, in 2022, 88 percent of households had an internet connection. The proportion of families with a fixed internet connection was approximately 83 percent, while mobile internet connections were about 48 percent. Broadband access reached 85 percent of households.
• The widespread use of smartphones and tablets has led to the rise of mobile commerce or m-commerce. Mobile apps and optimized websites make it easier for consumers to browse, shop, and make purchases on the go. This has significantly contributed to the growth of the growing e-commerce in Portugal, as it caters to the preferences of modern consumers who prefer mobile devices for shopping.
• The emergence of user-friendly e-commerce platforms and content management systems has made it easier for businesses to set up online stores. These platforms often have features like secure payment gateways, inventory management, and marketing tools, making it simpler for businesses to establish and manage their online presence.
• Advanced technology has facilitated the rise of social media as a marketing tool for e-commerce businesses. Social media platforms offer businesses to connect with their target audience directly, while influencer marketing has proven to be an effective way to promote products and drive sales.

Fashion and Apparel Application Segment is Expected to Hold Significant Market Share

• Fashion and apparel are analyzed to hold a significant share of the Portugal e-commerce market. The clothing and fashion industries encompass textiles and other clothes such as shoes, watches, jewelry, eyewear, bags, accessories, accessories, and boys, women, and girls. Portugal has witnessed a significant rise in internet penetration, paving the way for the surge in online shopping. Additionally, online sales promotions through mega sales, festive offers, and social media marketing have also contributed to the market growth rate.
• According to Statistics Portugal, In 2020, almost 40 percent of Portuguese e-commerce users placed online orders from EUR 100 (USD 109.56) to EUR 499 (USD 546.71). Over the observed years, the share of e-commerce users spending under EUR 50 online decreased, reaching 18 percent in 2021. In the same year, only 6.4 percent of the respondents said they spent one thousand euros or more online. In 2022, the share of people spending less than EUR 50 (USD 54.78) increased to 19 percent, but the percentage of people spending higher amounts also rose. The Proportion of persons aged 16 to 74 years using e-commerce clothes, shoes, or accessories is 65.9 percent.
• Furthermore, social media platforms have emerged as powerful influencers in the fashion and apparel industry. Portugal consumers frequently use social media channels for fashion inspiration and product discovery. Fashion brands and retailers leverage these platforms to showcase their offerings and engage with their target audience.
• The growth of the Portugal fashion and apparel segment in the e-commerce market has been supported by the emergence and expansion of local online platforms. These platforms provide a marketplace for established and emerging fashion brands to showcase their products and reach a broader customer base. These platforms offer diverse fashion and apparel options, facilitating secure transactions and reliable delivery services.
• Furthermore, the Portugal government has recognized the potential of e-commerce and has implemented initiatives to support its growth. The national e-commerce strategy focuses on enhancing digital infrastructure, improving payment systems, and fostering innovation. The government's commitment to digital transformation has enabled the fashion and apparel sector to thrive in the e-commerce industry.
• The growth of the Portugal fashion and apparel segment in the e-commerce market is a testament to the changing retail landscape and evolving consumer preferences. With increasing internet penetration, mobile commerce dominance, and social media's influential role, the fashion and apparel industry is well-positioned for sustained growth. The government's support and investment in digital infrastructure further bolster this growth trajectory. As Portugal's e-commerce ecosystem expands, the fashion and apparel segment will remain at the forefront of this dynamic industry.

Portugal E-commerce Industry Overview

The Portugal E-commerce Market is highly fragmented due to the presence of both global players and small and medium-sized enterprises. Some of the major players in the market are Amazon, Inditex Group (Zara Portugal), Apple, Worten, and Zalando. Players in the market are adopting strategies such as partnerships, sale announcements, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

In September 2022, Amazon announced Amazon's Prime Early Access Sale in many countries, including Portugal, which gives its customers a chance to peruse early deals this holiday season. The new two-day shopping extravaganza will feature hundreds of bargains in all key categories, including electronics, fashion, home, gourmet, pets, toys, and Amazon gadgets.

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