Overview of the E-Commerce Market Growth and Trends in 2025

The e-commerce market in 2025 is expected to continue strong growth, driven by increasing digital adoption, evolving consumer preferences, and technological innovations. Key trends shaping this growth include:

• Market Size and Growth: The e-commerce market is projected to exceed US$10 billion in gross merchandise value (GMV) by 2025, up from about US$8 billion in 2023, with revenue expected to grow by nearly 43% between 2025 and 2029.

• User Penetration and Spending: Online shopping user penetration is forecasted to rise significantly, reaching over 80% by 2029, with an average revenue per user (ARPU) around US$1,445 in 2024, indicating a mature and high-spending consumer base.

• Live Commerce and Social Media Integration: Live commerce is gaining traction, supported by high social media engagement. Around 71% of consumers engage with live commerce for deals, and 66% watch live streams for product reviews, making it a vital channel for e-commerce growth.

• Convenience and New Service Models: Innovations such as Deliveroo Shopping, which expands beyond food to include health, pharmacy, and beauty products, highlight the trend toward convenience and diversified product offerings in online retail.

• Payment Innovations: Alternative payment methods like Apple Pay and the increasing adoption of buy now, pay later (BNPL) options are expected to grow, with BNPL projected to reach $1.19 billion in 2024, reflecting changing consumer payment preferences.

• Post-Pandemic Consumer Behaviour: The pandemic accelerated digital shopping habits, especially for essentials like groceries, which have become a permanent part of consumer behaviour. Online grocery markets alone are valued at over US$1.4 billion in 2024 and continue to expand.

• Government and Infrastructure Support: Continued investment in high-speed internet and digital infrastructure supports the growth of e-commerce by enabling seamless online shopping experiences.

Overall, the e-commerce market in 2025 is characterised by rapid growth, high consumer engagement, technological innovation, and evolving payment and delivery models, making it a highly competitive and dynamic sector for businesses to navigate.