Jimmy Rodriguez
The last few years have been a rollercoaster for ecommerce industries as consumers flocked to online shopping and discovered stores and websites they never knew existed. One thing is clear: ecommerce has become a permanent fixture in the consumer lifestyle.
The pandemic accelerated e-commerce growth across most categories. Total ecommerce sales for 2023 were estimated at US$1,118.7 billion, an increase of 7.6% (±1.2%) from 2022. And, by 2026, 24% of retail purchases are expected to take place online.
There has never been a better time for businesses to pursue ecommerce strategies, either as a standalone or to expand the reach of a brick-and-mortar presence. But with all the ups and downs across ecommerce industries, which ones are your best bet today? Let’s take a closer look at the ecommerce industries poised to reap the benefits of the new normal in 2024.
Food & Delivery
The food and delivery industry has experienced big wins and new challenges since its ecommerce market was transformed by lockdowns. As an industry that relied heavily on foot traffic, many businesses had to rethink their traditional models and forge ahead into ecommerce. The results speak for themselves.
- The online food delivery industry is on a remarkable growth trajectory, with revenue projected to soar at nearly 13% per year, reaching an impressive $1.65 trillion by 2027.
- The grocery delivery sector is also experiencing a surge, with revenue expected to grow by 29% in the United States in 2024.
- The meal kit delivery sector is also witnessing a steady growth, with revenue expected to exceed $20 billion in 2025 and near $25 billion by 2027.
The growth in these sectors offers an opportunity for traditional grocery stores and food businesses to match the delivery capabilities of their more digitally adept competitors. Consumers have made the shift to grocery delivery permanent, which will make grocery the largest ecommerce category in the United States by 2026.
If you’re thinking of opening an ecommerce business in the food and drink industry, research trends on the rise, like the growing popularity of vegan and vegetarian foods. Dietary preferences are increasing, like gluten-free or lactose-free foods, non-meat proteins, and food that’s sustainably and ethically produced.
The meal kit delivery business has changed home cooking experiences. The market for preprepared or ready-to-assemble food kits is heavily dominated by consumers who would rather stay home than dine out. Either way, it’s a great opportunity for food and beverage ecommerce sites and apps.
Fashion & Luxury
While many retailers were able to shift their stores online quickly, global luxury brands had to battle consumer behavior that favored in-store shopping. As consumers have become more comfortable with online purchasing, luxury brands are benefiting.
The ecommerce fashion industry is expected to reach a $1 trillion valuation by 2024. Online luxury sales are expected to triple as a proportion of the total global luxury market sales by 2025, reaching $91 billion. Nearly one-fifth of all personal luxury sales will take place online.
To capture their piece of that pie, luxury and fashion ecommerce retailers need a well-designed mobile site or app and responsive social media. A luxury purchase most often begins with online research through social media conversations or by browsing a luxury brand’s website. For some, that research still concludes with an offline purchase.
However, openness to online purchasing of luxury items is higher among younger consumers, particularly in China and the United States, where their purchases will account for 50.6% of total luxury sales by 2027.
These younger shoppers are socially conscious and prefer to buy from brands with values they support. For example, Stella McCartney is known for cruelty-free and vegan fashion, while Tiffany & Co. is committed to sourcing its diamonds ethically and transparently. Sustainability is also a priority for these shoppers, and luxury ecommerce retailers can further endear themselves by promoting the long-term value and timelessness of their products.
Pharmaceuticals
E-pharmacies have become increasingly popular with consumers who appreciate the convenience of having prescriptions delivered to their door. This is an attractive model for an ecommerce business, as maintenance medications offer perpetual income, especially when dealing with patients who have prescription drug plans.
The global online pharmacy sector was estimated at $32 billion by the end of 2023. In the United States, forecasts indicate this figure would reach approximately $5.7 billion, solidifying its position as one of the largest online pharmacy markets.
As competition in the market grows, e-pharma businesses are doubling down on convenience by offering a wide range of health care products, including over-the-counter medications, vitamins and supplements, and personal care items. The ease of getting medicines from the comfort of home, especially OTC medications for minor illnesses, such as flu, fever, backache, cough and cold, will increase the market demand for online pharmacies.
Automotive Parts & Accessories
Automotive business owners have turned to the world of ecommerce to increase sales and overall profitability. Online revenue for automotive parts was estimated to reach $41 billion in 2023 in the United States, and the industry’s compounded annual growth rate is projected to be just under 9% through 2025.
Without question, having an ecommerce site is now an essential part of running your auto parts and accessories business.
Traditional auto parts retailers have adapted to this trend by integrating omnichannel sales systems, leveraging their existing distribution networks to enhance the online shopping experience. Streamlined online services, including the option for online ordering with in-store pickup, have allowed retailers to secure an increasing portion of online sales.
Consumers are keeping their vehicles longer today, and the automotive parts and accessories ecommerce market will be there to meet those service needs. Car enthusiasts can express their love with trim configurations and one-of-a-kind version packages that can turn any vehicle into a custom creation.
Mass Merchants
Online marketplaces like Alibaba, Amazon and Temu are estimated to reach $3.5 trillion in sales by 2024. For businesses looking for quick access to vast numbers of potential customers, what’s not to like about ecommerce marketplaces?
As a seller, you have access to built-in tools, fast launch times, streamlined processes, and protection against the risk of unpaid bills, fraud and disputes. That explains why 56% of online retailers prefer to sell on marketplace platforms.
Most marketplace platforms give sellers access to data and analytics tools that provide in-depth insights into customer shopping behaviors that can help retailers optimize their marketplace strategy.
You also benefit from the marketing power of the big name. Mass merchants already have visibility on search engines, and these marketplaces tend to draw the same customers back over and over.
These mass merchants also have the capital to invest in the latest technology trends, like AI to personalize customer experiences and recommendations, voice search through smart speakers, chatbots and more.
Consumer Electronics
Whether it’s a smartphone, a laptop, a fitness tracker, a video game console or a trusty pair of headphones, there are some devices we just can’t live without. We can’t say for sure what the next essential consumer electronics product will be. But we do know how that product will be sold: online.
Revenue for consumer electronics in the U.S. ecommerce market is estimated to reach a new peak of $99.64 billion in 2028. That growth will be driven by unflagging consumer appetite for the latest and greatest models of existing items like smartphones and interest in emerging segments such as wearables, VR headsets and domestic robots.
The average person is expected to purchase three consumer electronics in 2024. With the rise in popularity of smart home devices, the United States is witnessing a surge in demand for consumer electronics that offer seamless integration and automation.
Sports & Supplements
As sporting goods are more commonly purchased in brick-and-mortar stores due to consumers’ need to have physical contact with their purchases, sporting goods e-commerce still generates billions of dollars in revenue each year. In the United States, the value of sporting goods e-commerce sales was $33.6 billion in 2022.
Many sporting goods stores have cracked the Amazon code, using their retail stores as local distribution centers for ecommerce transactions. Another promising avenue for ecommerce revenue in this industry is nutraceuticals.
Health-conscious consumers want the convenience of online shopping to browse a vast array of products, read detailed descriptions, and make informed decisions. Ecommerce marketplaces allow nutraceutical businesses to showcase a diverse product offering, from multivitamins to specialized supplements addressing various health concerns.
The naturally recurring nature of supplement and nutraceutical purchases lends itself well to automation and a subscription model with customer-friendly features like the ability to skip, modify or delay deliveries.
Travel & Airlines
The travel industry was one of the hardest-hit by the pandemic, but the urge to get up and go is powering its rebound. Statista estimates in the travel and tourism market, 74% of total revenue will be generated through online sales by 2026, and airlines expect record traveler numbers and revenues in 2024.
Like all industries, the mass migration to ecommerce has changed consumer expectations. Travelers are used to technology enabling more seamless journeys, from AI-powered travel assistants creating customized itineraries to contactless payment and check-in technologies and biometric security systems, 2024 will see businesses trying out new methods of making things easier for travelers.
A travel trends report by Hilton found that 85% of travelers are prioritizing cultural connections, dining and experiences in general when booking trips, with 81% looking forward to the unknown. Online travel businesses — already the first stop for younger generations — should gear up to meet the needs of Gen Z (72%) and millennial (71%) shoppers who are planning to spend more on travel in 2024.
Ticketing
The ticketing and events industry was almost completely transformed over the past several years. While it was once a market that was shared by websites and brick-and-mortar box offices, the pandemic shifted nearly everything online.
Online ticketing continues to grow in popularity as more consumers use smartphones and mobile devices to make their purchases. The online event ticketing market is estimated at $81.10 million in 2024 (hat tip to Beyonce and Taylor Swift), and it’s expected to reach $101.94 million by 2029.
Moving ticketing online has opened new avenues to improving the customer experience. E-tickets can include handy extras such as a map to the venue and information about the event and timings. Using the data on mobile phones (from previous purchases, social media posts and more) will allow businesses to offer customized event suggestions, addons and VIP experiences.
Satisfying the 2024 Ecommerce Consumer
Across all these industries, it’s clear how drastically ecommerce has changed. It’s also clear that ecommerce has changed the consumer and what they expect from online shopping.
Each satisfying and convenient shopping experience a consumer has raises the bar for what they expect from the next ecommerce store, regardless of the industry. Each of the promising industries we’ve reviewed is taking advantage of ecommerce technology to continually improve the user experience.
Whether you’re expanding your offline presence or diving directly into ecommerce, we hope you’ll find the insights into these ecommerce industries encouraging.
