According to a report by Bain & Company, India’s e-commerce business might overtake the US to become the second-largest consumer base in the next one to two years with 190 million online buyers.
The estimated US$ 40 billion Indian e-retail sector is expected to grow to US$ 50 billion in 2022 and continue to develop at a 25–30% annual rate over the following five years, with a continuous rise in user base.
Behind China and the US, India currently boasts the third-largest online consumer base worldwide. “According to Worldpay projections, India will be the world’s second largest e-commerce market by 2034, thanks to massive surges in internet penetration, a swelling millennial population and the rising uptake of mobile phones,” it added.
Massive headroom in terms of smartphone penetration (36% in India compared to 63% in China and 76% in the US) and rising wealth (US$ 2,000 per capita in India vs. US$ 12,000 in China and US$ 69,000 in the US) will boost consumption and raise per-shopper spending, in addition to already cheap data pricing.
Future e-retail growth will continue to be driven by customer addition. By 2027, it is predicted that India would have 400–450 million internet shoppers. While just 180–190 million of these consumers made online purchases in 2021, the majority of them are already in the digital funnel—450–500 million of them accessed Social Media.
Worldpay analysed 30 markets around the world, including India, China, Hong Kong, South Korea, Singapore and Australia in Asia-Pacific. The Global Payments Report is compiled using a combination of Worldpay’s data and insights as well as external findings and secondary data.
