While computer and mobile shopping were behaviors already adopted by at least ********* of global consumers before COVID-19, the pandemic gave a boost to a variety of e-commerce technologies and services. Among Gen Z and millennials surveyed in 2022, ** percent said they had adopted contactless payment methods during the coronavirus and continued to use them after the crisis. In contrast, ** percent said they did so during the health emergency but no longer use them. Moreover, the COVID pandemic also drove the uptake of delivery alternatives such as Buy Online, Pick-up in Store (BOPIS) and curbside pickup.

In 2021, ** percent of baby boomers preferred in-store shopping, while only ** percent chose online shopping as their primary method of buying. Many millennials and Generation Z shoppers also opted for in-store shopping but showed a way greater interest in hybrid buying methods, at a rate of ** and ** percent, respectively. Favorite brands among young shoppers When comparing male and female Generation Z shoppers in terms of brand preferences in the United States, it was apparent that both groups enjoyed many of the same household names. For instance, brands such as Amazon, Walmart, YouTube, and Netflix appeared on both lists, making them some of the generation’s most popular brands. That said, preferences were far from identical: more Gen Z women liked Doritos, Oreo, and KitKat, while a higher number of Gen Z men had a favorable opinion of Gatorade, PlayStation, and Nike. Sustainable considerations Climate change is a hot topic and is on many consumers’ minds in recent years. As such, a considerable share of people in the United States, and around the world, have started taking up more sustainable habits. For example, many have adapted their shopping and consumption behavior: according to a survey conducted in early 2022, more than half of consumers worldwide planned to avoid buying new goods for sustainability reasons, perhaps intending to buy secondhand or repair the goods they already owned instead.

Abstract — The evolution of e-commerce has significantly transformed consumer behavior, particularly among Generation Z in Jakarta. This study examines the combined impact of e-commerce trends and trust on the shopping habits of this demographic. With a focus on social media engagement, platform usability, and perceived trustworthiness, the research identifies critical factors influencing purchase decisions. Using data from Jakarta-based respondents and analyzed through Smart-PLS, this study offers actionable insights for businesses targeting Generation Z’s unique preferences and expectations.

Social media's influence on Gen Z shopping habits has surged dramatically in recent years. A 2024 survey reveals that ** percent of Gen Z consumers discovered new products or brands through social media influencers, up from ** percent in 2023. This shift underscores the growing importance of digital platforms in shaping consumer behavior, particularly among younger demographics. Beauty and personal care e-commerce growth The rising impact of social media on Gen Z purchasing decisions aligns with broader trends in e-commerce, particularly in the beauty and personal care sector. Global revenue in this market is forecast to increase by ***** percent between 2024 and 2029, reaching a new peak of ****** billion U.S. dollars. This growth trajectory suggests that the digital landscape will continue to play a crucial role in consumer discovery and purchasing habits. Payment preferences among young consumers Traditional payment methods remain popular among Zoomers. A survey across North America, Europe, and Latin America found that debit and credit cards are still preferred by Gen Z for online shopping and travel bookings. However, younger consumers are showing a growing demand for diverse payment options, indicating potential shifts in the e-commerce landscape as digital wallets gain prominence, particularly in Asia-Pacific markets.

In 2023, about two-thirds of millennials in the United States said they would prefer to shop mostly online for leisure, sports, and hobby products. Only about 14 percent of millennial consumers said they would prefer to shop predominantly in-store for such goods.

In 2023, over ** percent of millennials in the United Kingdom (UK) said they would prefer to shop mostly online for leisure, sports, and hobby products if they could choose freely. Only about ** percent of millennial and Gen Z consumers said they would prefer to shop predominantly in-store for such goods. In the United States, a higher share of consumers said they would prefer to buy these products mostly on the web.

As of early 2023, approximately a quarter of Gen Z consumers in the United Kingdom (UK) said they would mostly purchase automotive spare parts or accessories online, given the choice. About a quarter of Gen Z shoppers had no strong preference when it came to such items.

In 2023, approximately 46 percent of zoomers in Spain said they would do most of their clothing and footwear shopping online if they had the freedom to choose. Only about 29 percent of millennials and 32 percent of Gen Z consumers had a preference for buying apparel and shoes in physical stores.

Learn how to effectively manage Gen Z in the workplace. Discover their passion for making a difference, their desire for responsibility, and their eagerness to collaborate.

In 2024, Gen Z and Baby Boomers in the United States provided insight into whether it is important to see models who look like them in ads when buying beauty products. Baby Boomers were less likely than Gen Z to find this important when purchasing beauty products, with 37 percent stating it was not important at all, while only 19 percent of Gen Z respondents said that the representation did not matter at all. Purchase influences The impact of social media on beauty product purchases is significant, particularly among younger consumers. In 2023, 46 percent of U.S. consumers reported spending more on beauty products due to social media influence, with this trend more pronounced among millennials and Gen Z. Content creators play a crucial role, with 83 percent of female Gen Z consumers in the U.S. making online beauty purchases based on influencer recommendations, compared to 60 percent of the general population. Gen Z's beauty shopping habits Gen Z consumers are heavily invested in the beauty market, with 27 percent spending between 51 and 100 U.S. dollars monthly on online beauty products in 2023. Their purchasing decisions are largely influenced by user-generated content, with almost all Gen Z respondents reading ratings and reviews before buying. If TikTok in the U.S. were to be banned, Gen Z respondents indicated they would turn to Instagram for beauty product discovery. This demonstrates the importance of visual platforms in shaping beauty trends and purchases among younger consumers.

According to a survey conducted among consumers in the United States, ** percent of Millennial respondents said sustainability was a driving factor behind their purchasing decisions. Gen Z respondents driven by sustainability amounted to ** percent.

This statistic shows the grocery shopping habits of Millennial moms in Canada as of May 2016. During the survey, 71 percent of respondents said they shopped where the prices were consistently the lowest.

Snapshot img

E-Commerce Retail Market Size 2025-2029

The e-commerce retail market size is forecast to increase by USD 4,833.5 billion at a CAGR of 12% between 2024 and 2029.

The market is experiencing significant growth, driven by the advent of personalized shopping experiences. Consumers increasingly expect tailored recommendations and seamless interactions, leading retailers to integrate advanced technologies such as Artificial Intelligence (AI) to enhance the shopping journey. However, this market is not without challenges. Strict regulatory policies related to compliance and customer protection pose obstacles for retailers, requiring continuous investment in technology and resources to ensure adherence.
Retailers must navigate these challenges to effectively capitalize on the market's potential and deliver value to customers. By focusing on personalization and regulatory compliance, e-commerce retailers can differentiate themselves, build customer loyalty, and ultimately thrive in this dynamic market. Balancing the need for innovation with regulatory requirements is a delicate task, necessitating strategic planning and operational agility. Fraud prevention and customer retention are crucial aspects of e-commerce, with payment gateways ensuring secure transactions.

What will be the Size of the E-Commerce Retail Market during the forecast period?

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In the dynamic market, shopping carts and checkout processes streamline transactions, while sales forecasting and marketing automation help businesses anticipate consumer demand and optimize promotions. SMS marketing and targeted advertising reach customers effectively, driving sales growth. Warranty claims and customer support chatbots ensure post-purchase satisfaction, bolstering customer loyalty. Retail technology advances, including sustainable packaging, green logistics, and mobile optimization, cater to environmentally-conscious consumers. Legal compliance, data encryption, and fraud detection safeguard businesses and consumer trust. Product reviews, search functionality, and personalized recommendations enhance the shopping experience, fostering customer engagement.
Dynamic pricing and delivery networks adapt to market fluctuations and consumer preferences, respectively. E-commerce software integrates various functionalities, from circular economy initiatives and website accessibility to email automation and real-time order tracking. Overall, the e-commerce landscape continues to evolve, with businesses adopting innovative strategies to meet the needs of diverse customer segments and stay competitive.

How is this E-Commerce Retail Industry segmented?

The e-commerce retail industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Apparel and accessories
  Groceries
  Footwear
  Personal and beauty care
  Others


Modality

  Business to business (B2B)
  Business to consumer (B2C)
  Consumer to consumer (C2C)


Device

  Mobile
  Desktop


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Product Insights

The apparel and accessories segment is estimated to witness significant growth during the forecast period. The market for apparel and accessories is experiencing significant growth, fueled by several key trends. Increasing consumer affluence and a shift toward premiumization are driving this expansion, with the organized retail sector seeing particular growth. Influenced by social media trends, the Gen Z demographic is a major contributor to this rise in online shopping. This demographic is known for their preference for the latest fashion trends and their willingness to invest in premium products, making them a valuable market segment. Machine learning and artificial intelligence are increasingly being used for returns management and personalized recommendations, enhancing the customer experience.

Ethical sourcing and supply chain optimization are also essential, as consumers demand transparency and sustainability. Cybersecurity threats continue to pose challenges, requiring robust strategies and technologies. B2C and C2C e-commerce are thriving, with influencer marketing and e-commerce analytics playing significant roles. Customer reviews are essential for building trust and brand loyalty, while reputation management and affiliate marketing help expand reach. Sustainable e-commerce and b2b e-commerce are also gaining traction, with third-party logistics and social commerce offering new opportunitie

In 2023, approximately ** percent of zoomers in Mexico said they would do most of their clothing and footwear shopping online if they had the freedom to choose. On the other hand, ** percent of millennials and ** percent Gen Z consumers had a preference for buying apparel and shoes in physical stores.

Online Apparel Retail Market Outlook

The global online apparel retail market size was valued at approximately USD 500 billion in 2023 and is expected to reach around USD 1.2 trillion by 2032, growing at a compound annual growth rate (CAGR) of 10.2% during the forecast period. The market's growth is propelled by the increasing penetration of the internet, rising disposable incomes, and evolving consumer preferences for the convenience of online shopping.

One of the primary growth factors for the online apparel retail market is the burgeoning internet penetration across the globe. With more people gaining access to the internet, the number of potential online shoppers is exponentially rising. This trend is particularly evident in developing regions, where internet connectivity is rapidly improving. Additionally, technological advancements in e-commerce platforms and the proliferation of smartphones have further facilitated easy access to online retail, contributing significantly to market expansion.

Another significant driver is the change in consumer behavior and preferences. Modern consumers, especially millennials and Gen Z, increasingly prefer the convenience of online shopping over traditional brick-and-mortar stores. The ability to shop at any time, compare prices instantly, and access a wider variety of products has made online apparel shopping highly appealing. Furthermore, the COVID-19 pandemic has accelerated the shift towards online retail as lockdowns and social distancing measures made in-store shopping less feasible, thus ingraining online shopping habits among consumers.

The role of personalized shopping experiences and advanced AI-driven recommendation systems cannot be overstated. E-commerce platforms are increasingly utilizing artificial intelligence to offer personalized recommendations based on a shopper's past behavior and preferences. This customization enhances the shopping experience, increases customer satisfaction, and boosts sales conversion rates. Moreover, augmented reality (AR) technologies are being used to provide virtual fitting rooms, allowing customers to try on clothes virtually, thereby reducing return rates and enhancing the overall shopping experience.

Regionally, North America and Europe are mature markets with high internet penetration and disposable income levels. However, Asia Pacific is emerging as a lucrative market with immense growth potential due to its large population base, increasing internet users, and rapidly growing middle class. Latin America and the Middle East & Africa are also expected to witness substantial growth, driven by improving internet infrastructure and rising economic development.

Product Type Analysis

The online apparel retail market is segmented by product type into men's wear, women's wear, kids' wear, and others. Among these, women's wear holds the largest market share, driven by the wide variety of products, frequent new fashion trends, and higher spending on clothing compared to other segments. Women's wear includes a vast array of clothing items, from casual and formal wear to sportswear and lingerie, catering to diverse consumer needs.

Women Apparel has emerged as a pivotal segment within the online apparel retail market, capturing the largest market share due to its expansive range of offerings and the continuous evolution of fashion trends. This segment encompasses a diverse array of clothing options, from everyday casual wear to high-end fashion pieces, catering to various consumer tastes and preferences. The increasing influence of social media and fashion influencers has played a significant role in shaping consumer demand for women's apparel, driving online sales and encouraging brands to innovate and expand their product lines. Furthermore, the convenience of online shopping allows consumers to explore and purchase the latest trends from the comfort of their homes, further fueling the growth of this segment.

Men's wear is another significant segment, witnessing steady growth due to the increasing interest of men in fashion and grooming. The availability of a wide range of apparel, from business suits to casual and activewear, is contributing to the growth of this segment. Moreover, the rise of influencer marketing and fashion bloggers has significantly impacted men's fashion choices, further driving online sales.

Kids' wear i

The global e-commerce Buy Now, Pay Later (BNPL) market is experiencing explosive growth, projected to reach $5608 million in 2025 and exhibiting a robust Compound Annual Growth Rate (CAGR) of 29.3%. This surge is driven by several key factors. Firstly, the increasing popularity of online shopping, particularly among younger demographics like Gen Z and Millennials, fuels the demand for flexible payment options. These demographics are comfortable with digital transactions and appreciate the convenience and accessibility offered by BNPL services. Secondly, the rising penetration of smartphones and readily available financing apps further simplifies the adoption and utilization of BNPL. Furthermore, the competitive landscape, characterized by established players like PayPal and Klarna alongside innovative fintech startups, fosters innovation and drives down costs, making BNPL even more attractive to consumers and merchants. Finally, the increasing acceptance of BNPL by e-commerce platforms, both large and small, expands its reach and solidifies its position as a preferred payment method. The market is segmented by user demographics (Gen Z, Millennials, Gen X, Baby Boomers) and payment types (manual and automatic repayment schedules), allowing for tailored marketing strategies and service offerings. However, challenges remain. The risk of consumer debt accumulation associated with BNPL is a growing concern for regulators and consumers alike. The potential for increased late fees and penalties if payments are missed also represents a risk. This requires robust risk assessment practices by providers and financial literacy among consumers. Regional variations exist, with North America and Europe currently dominating the market, but rapid growth is anticipated in Asia-Pacific and other emerging markets as digital infrastructure improves and consumer confidence increases. The future success of BNPL depends on the industry’s ability to balance rapid expansion with responsible lending practices, ensuring sustainable growth and protecting both consumers and the overall financial ecosystem. The forecast period of 2025-2033 suggests sustained high growth, although it is expected the CAGR may moderate slightly in later years due to market maturity.

Ever since the Buy Now, Pay Later payment method has become mainstream; Gen Z continues to take the throne over the next four years. In 2021, 36.8 percent of Gen Z digital buyers aged 14 and older were forecast to use BNPL services, compared with only 30.3 percent of millennial users. Gen X is also likely to adopt the BNPL payment method, reaching a 30 percent usage by 2025.

Ecommerce Growth Market Outlook

As we move into a future shaped increasingly by digital transactions, the ecommerce growth market size is set to expand robustly, with global market size valued at approximately $4.9 trillion in 2023 and is forecasted to reach around $8.5 trillion by 2032, reflecting a compound annual growth rate (CAGR) of roughly 6.4%. This substantial growth is driven by factors such as technological advancements, changing consumer preferences, and the global shift towards digital commerce. The acceleration in internet penetration and the proliferation of smart devices have broadened the ecommerce platform's reach, making it more accessible to a global audience. Furthermore, the COVID-19 pandemic has significantly expedited the shift from traditional brick-and-mortar stores to online shopping, as consumers seek safer and more convenient shopping alternatives.

Several factors are contributing to the remarkable growth of the ecommerce market. First and foremost is the increasing adoption of technology and changing consumer behaviors. The ease of shopping online, coupled with a vast array of product choices and competitive pricing, has attracted a growing number of consumers to digital platforms. Additionally, millennials and Gen Z, who are digital natives, form a large portion of the online shopping demographic, and their preference for online shopping is a major growth driver. The rapid advancements in payment technologies, including digital wallets and contactless payments, have also facilitated smoother and more secure transactions, encouraging more consumers to make purchases online.

Moreover, the integration of artificial intelligence and machine learning in ecommerce platforms has transformed the shopping experience by offering personalized recommendations and improving customer service through chatbots and virtual assistants. This technological integration not only enhances user engagement but also increases conversion rates, thereby boosting revenue. Furthermore, the growth of social commerce, where products are sold directly through social media platforms, is another contributing factor. Social media influencers and marketing strategies that leverage social platforms have enabled brands to reach consumers more effectively, driving sales directly through these channels.

Another key factor driving ecommerce growth is globalization. With the internet erasing geographical boundaries, consumers can purchase products from around the world, leading to an increase in cross-border ecommerce. This is especially relevant in emerging markets where access to a diverse range of products may be limited locally. Additionally, the rise of mobile commerce, enabled by smartphone proliferation, allows consumers to shop on-the-go, providing an added layer of convenience. The increasing trust in online transactions and improvements in logistics and delivery infrastructure have further enhanced the appeal of ecommerce.

Social E-commerce is becoming an increasingly influential factor in the ecommerce landscape. This trend involves leveraging social media platforms to facilitate online shopping, allowing consumers to discover, share, and purchase products directly through social networks. The integration of shopping features within platforms like Instagram and Facebook has revolutionized the way brands interact with consumers, creating a seamless blend of social interaction and commerce. Social e-commerce not only enhances brand visibility but also fosters community engagement, as consumers are more likely to trust recommendations from peers and influencers. This approach is particularly appealing to younger demographics who are accustomed to social media as a primary means of communication and discovery. As social e-commerce continues to evolve, businesses are exploring innovative ways to integrate these platforms into their marketing strategies, driving sales and enhancing customer loyalty.

Regionally, the ecommerce market is experiencing varied growth trends driven by factors such as economic conditions, regulatory environments, and consumer behavior. In Asia Pacific, for instance, the presence of large ecommerce players like Alibaba and the rapid digitalization in countries such as China and India are contributing to robust market growth. North America remains a mature market, where established players continue to innovate, while Europe is witnessing steady growth driven by improvements in internet connectivity and consumer confidence in online shopping. Meanwhile, in regions like Latin America and Middle East & Af

Snapshot img

Social Commerce Market Size 2025-2029

The social commerce market size is forecast to increase by USD 1474.8 billion at a CAGR of 15.3% between 2024 and 2029.

The market is experiencing significant growth, driven by the personalized shopping experience and diverse product portfolios offered on social media platforms. Technological advancements in social media, enabling seamless transactions and real-time interactions, further fuel this growth. Brands and retailers are investing in customer engagement and retention strategies, including influencer marketing and social media advertising, to capitalize on the market trend. The market has witnessed significant growth due to the increasing use of laptops and PCs for social media engagement. The report provides a comprehensive analysis of these trends and the challenges they present, including data security concerns and the need for seamless integration with e-commerce platforms. Adopting these strategies can help businesses tap into the vast potential of social commerce and stay competitive In the ever-evolving digital landscape.

What will be the Size of the Social Commerce Market During the Forecast Period?

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The market represents a dynamic and rapidly evolving segment within the broader e-commerce landscape. This market enables customers to shop and discover products directly within virtual environments of social media platforms. The shopping process on these platforms often begins with content sharing and product discovery through organic or paid posts. Interested buyers can engage with brands and sellers through messaging features, influencer collaborations, and shoppable posts. Millennials and the internet-savvy population are key demographics driving the growth of social commerce. Brands and sellers leverage this market to increase brand awareness and reach a wider audience. Small businesses and individuals also benefit from the personalized shopping experience offered by social media platforms.
Modern technologies, such as messaging features, secure payment methods, and user data protection, contribute to the convenience and safety of social commerce. The market encompasses various product categories, including electronics, home decor, and more. Changing consumer preferences and the increasing use of user-generated content further fuel its growth. Despite its advantages, the market faces challenges such as privacy concerns, regulatory compliance, and ensuring secure payment methods. As the market continues to evolve, large players and smaller niche providers will need to adapt to meet the evolving needs and preferences of consumers.

How is this Social Commerce Industry segmented and which is the largest segment?

The social commerce industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Device

  Laptops and PCs
  Mobiles
  Tablets
  Others


Business Segment

  Business to consumer
  Business to business
  Consumer to consumer


Product Type

  Fashion and apparel
  Beauty and personal care
  Electronics and gadgets
  Home decor and furniture
  Others


Geography

  APAC

    China
    India
    Japan
    South Korea


  North America

    Canada
    US


  Europe

    Germany
    UK


  South America

    Brazil


  Middle East and Africa

By Device Insights

The laptops and PCs segment is estimated to witness significant growth during the forecast period. These devices offer a larger screen size, enhancing the visual appeal of social media platforms and facilitating product discovery through customer reviews, ratings, and advertisements. Social media platforms have become essential tools for shopping, with users comparing prices across various social commerce websites. Virtual environments, such as social networks and messaging features, enable interested buyers to engage in immediate communication with brands, sellers, and influencers, fostering personalized customer experiences and brand awareness. Modern technologies, including Video Commerce, livestream shopping, and shoppable posts, have further enhanced the buyer experience.
Millennials and younger generations, in particular, have shown a strong preference for social commerce, with mobile technology enabling seamless shopping on-the-go. However, concerns over cyberattacks, data collection, and security have emerged as challenges, necessitating regulatory compliance, secure payment methods, and user data protection. Brands, sellers, small businesses, and individuals alike leverage social media for marketing, personalized shopping, and consumer engagement, driving conversion rates. The latest technology trends, such as artificial intelligence and augmented reality, continue to shape the social commerc