Record growth in the e-commerce market in 2020 due to the COVID-19 pandemic

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Record growth in the e-commerce market in 2020 due to the COVID-19 pandemic

In 2020, the e-commerce market in Poland will see its highest growth in over a decade, which, combined with low forecasts for overall retail sales, will cause the share of online sales to increase significantly. Furthermore, this market will grow at a double-digit rate over the next three years, according to data from PMR’s latest report “Online Retail in Poland 2020: Analysis and Forecast of E-commerce Market Development for 2020–2025.”

According to PMR estimates, the e-commerce market in Poland was worth over 61 billion PLN in 2019. It accounted for nearly 11% of the total retail market, and by 2025, that share will reach nearly 20%. This rapid growth in market share will be driven by the COVID-19 pandemic.

As a result of the pandemic, in 2020 the e-commerce market in Poland will see its highest growth in over a dozen years (nearly 26% year-over-year). Online retail has benefited significantly from the pandemic and the restrictions imposed to curb its spread. Online stores and e-commerce platforms have seen significant increases in sales, and many brick-and-mortar retail chains have decided to launch their own online stores.

COVID-19 will significantly accelerate the growth of the online grocery market

The pandemic caused online sales to grow rapidly even in segments that had previously been the least popular among consumers—such as groceries.

In addition to customer attitudes, the main reason for this situation was the lack of a service for purchasing fresh, chilled, or frozen products outside the largest metropolitan areas and in the towns closest to them.

The COVID-19 pandemic will be a major factor in accelerating the growth of this segment. As early as the end of February, even before the first cases of coronavirus infection appeared in Poland, the largest online grocery stores observed a significant increase in sales—both in terms of average order value and the number of orders.

According to PMR data, this segment will grow by more than 40% year-over-year in 2020, increasing e-commerce’s share of the grocery market to 0.7%. Furthermore, the coronavirus is expected to prove to be a factor that positively supports the growth of online grocery sales in the long term as well. Through the end of the period forecast by PMR (2021–2025), the market will grow at a double-digit rate year-over-year.

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