Germany B2C Ecommerce Market Report 2023-2027 - New Food Delivery Firms are Entering the Multi-Billion Market and Raising Funding Rounds to Expand their Presence

Rhea-AI Summary

The Germany B2C Ecommerce Market is projected to grow 10.96% annually, reaching US$58.4 billion in 2023. A steady CAGR of 8.95% is expected from 2023 to 2027, increasing the Gross Merchandise Value from US$52.7 billion in 2022 to US$82.3 billion by 2027. However, consumer spending is anticipated to decline due to rising inflation and living costs, leading to a 16.8% drop in online sales during late 2022. New food delivery companies are entering the market, raising funds to enhance competition. Moreover, increased consolidation in the grocery delivery segment is expected to continue in 2023.

Positive

• Projected growth of Germany's B2C Ecommerce Market by 10.96% in 2023.
• CAGR of 8.95% anticipated from 2023 to 2027.

Negative

• Decline in consumer spending expected due to rising inflation.
• Online sales fell 16.8% in late 2022 compared to the previous year.
• Increased procurement and logistics costs affecting online retailers.

 DUBLIN, Feb. 21, 2023 /PRNewswire/ -- The "Germany B2C Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q1 2023 Update" report has been added to  ResearchAndMarkets.com's offering.

B2C Ecommerce market in Germany is expected to grow by 10.96% on annual basis to reach US$58.4 billion in 2023. The Medium to long-term growth story of B2C Ecommerce industry in Germany promises to be attractive.

The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 8.95% during 2023-2027. The country's B2C Ecommerce Gross Merchandise Value will increase from US$52.7 billion in 2022 to reach US$82.3 billion by 2027. The online shopping industry is projected to record strong growth in the German market over the next five years.

The growth in the B2C e-commerce industry will be partly driven by the shift in consumer behavior that has arisen after the global pandemic outbreak. The need to hunt for bargains amid the current macroeconomic scenario is also projected to drive new consumers to online channels.

While the long-term perspective of the German B2C e-commerce market remains strong, the industry is expected to experience a decline in consumer spending, across different sales channels, including marketplaces, social platforms, and direct-to-consumer. In H1 2023, the publisher expects the surging cost of living and rising inflation, among other macroeconomic factors, to keep affecting industry growth in Germany.

E-commerce order volume declined significantly during the year-end shopping season

German online retailers have been one of the most affected by the decline in consumer spending. With inflation and energy prices shaking up the monthly budget of consumers, online sales have reported a significant decline even during the year-end shopping season in the country.

According to a report from the German Federal Association for eCommerce (bevh), online sales dipped 16.8% between October 1 and November 30, when compared to the same period last year. Clothing remained the worst affected segment with sales declining 28.1%, followed by entertainment at 19.5% during the period.

For e-commerce marketplaces, sales declined by 9.4% in Germany. Direct-to-consumer retailers reported a decline of 23.4%, whereas multichannel retailers experienced a decrease of 29.5%.

Apart from declining consumer spending, e-commerce retailers are struggling because of increased procurement costs, logistics, and increased packaging costs. These firms are expected to remain under pressure from the short to medium-term perspective, as consumer sentiment is projected to further worsen in H1 2023.

New food delivery firms are entering the competitive market and raising funding rounds to expand their presence in Germany

The online food delivery segment has become increasingly competitive in the German market. The industry has the presence of several regional and domestic firms competing for customers amid the current macroeconomic environment. With new players entering the segment through their innovative business models, the publisher expects the competition to further intensify. These firms are also raising funding rounds to expand their presence across the country.

In December 2022, Circus, the Germany-based food delivery firm, announced that the firm had raised €11 to drive innovation in the sector and expand its presence in more German cities. Through its innovative business model, the firm is seeking to address various challenges in the food delivery market, including expensive, unhealthy, and unsustainable. The firm has a network of drivers and micro-kitchen hubs. With over 100 dishes on the menu, starting at €3, Circus currently enables customers in Hamburg to order their food and get them cooked and delivered as they want.

While the food delivery segment is currently undergoing a period of consolidation, innovative business models and startups with strong fundamentals are projected to keep attracting venture capital and private equity dollars over the next three to four years.

Merger and acquisition activities in the grocery delivery segment are projected to further increase in 2023

The quick commerce segment has undergone a major consolidation period in 2022 and the trend is projected to further continue in 2023, as economic uncertainties are expected to persist in H1 2023. Consequently, the publisher expects merger and acquisition activities to continue in the segment from the short-term perspective.

In December 2022, Getir, one of the leading players in the grocery delivery segment, announced that the firm is acquiring Germany-based delivery service Gorillas. This is a major consolidation deal in the on-demand grocery delivery space. Both of these firms announced major layoffs in 2022 to cut down costs. Because there is an overlap in the operations of these firms, more layoffs might be announced in 2023.

In 2022, Gorillas also announced that it will focus on a handful of markets such as the United Kingdom, the Netherlands, the United States, and Germany. These are also the markets where Getir has operations. In addition to these markets, the firm also has a presence in France, Spain, Italy, and Portugal.

Scope

Germany B2C Ecommerce Market Share by Key Players

• Germany Retail Shopping Ecommerce Market Share by Key Players (Amazon, Lidl, MediaMarkt, OTTO, Zalando)
• Germany Travel Ecommerce Market Share by Key Players (Booking.com, Expedia, FlixBus, HolidayCheck, Trivago)
• Germany Food Ecommerce Market Share by Key Players (Lieferando, Wolt, Uber Eats, HelloFresh, Gorillas)

Germany B2C Ecommerce Market Size and Future Growth Dynamics

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Gross Merchandise Volume Trend Analysis

Germany User Statistics and Ratios of Key Performance Indicators

• User Statistics
• Card Abandonment Rate and Product Return Rate
• B2C Ecommerce Per Capita and GDP Per Capita
• GDP Per Capita Trend Analysis

Germany B2C Ecommerce Market Size and Forecast by B2C Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2018-2027)

• Retail Shopping (breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
• Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
• Online Food Service (breakdown by aggregators, direct to consumer)
• Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
• Healthcare and Wellness
• Technology Products and Services
• Other segments

Germany B2C Ecommerce Market Size and Forecast by Retail Shopping Sales Channel

• Platform to Consumer
• Direct to Consumer
• Consumer to Consumer

Germany B2C Ecommerce Market Share by Travel and Hospitality Sales Channel

• Market Share by Travel and Hospitality Sales Channel
• Aggregator App - Gross Merchandise Value Trend Analysis
• Direct to Consumer - Gross Merchandise Value Trend Analysis

Germany B2C Ecommerce Market Size and Forecast by Online Food Service Sales Channel

• Aggregator App
• Direct to Consumer

Germany B2C Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2018-2027)

• Website Based
• Live Streaming

Germany B2C Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2018-2027)

• Cross Border
• Domestic

Germany B2C Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2018-2027)

• Mobile
• Desktop

Germany B2C Ecommerce Market Size and Forecast by Operating System

• iOS/macOS
• Android
• Other Operating Systems

Germany B2C Ecommerce Market Size and Forecast by City

• Tier 1
• Tier 2
• Tier 3

Germany B2C Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2018-2027)

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Cash
• Other Digital Payment

Germany B2C Ecommerce Consumer Demographics

• Market Share by Age Group
• Market Share by Income Level
• Market Share by Gender

For more information about this report visit https://www.researchandmarkets.com/r/o9oym3-b2c?w=5

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FAQ

What is the projected growth rate for the Germany B2C Ecommerce Market in 2023?

The Germany B2C Ecommerce Market is projected to grow by 10.96% in 2023.

How much will Germany's B2C Ecommerce Gross Merchandise Value increase by 2027?

The Gross Merchandise Value is expected to reach US$82.3 billion by 2027.

What was the decline in online sales during the year-end shopping season in 2022?

Online sales in Germany declined by 16.8% between October 1 and November 30, 2022.

Which market segment is facing significant competition in Germany?

The online food delivery segment is becoming increasingly competitive in Germany.

What challenges are e-commerce retailers facing in the current market?

E-commerce retailers are struggling with increased procurement costs and declining consumer spending.