Market Size of Denmark E-commerce Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.20 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Denmark E-commerce Market Analysis
The Denmark e-commerce market is expected to register a CAGR of 9.2% during the period 2022-2027. The market is primarily driven by advanced infrastructure, high internet penetration, and a growing number of card-based payment systems.
- Denmark is well-positioned for ongoing e-commerce growth. The region is ranked as one of the top five countries to do business with by the World Bank. International merchants find Danish e-commerce logistics and payments easy to get to grips with and set up their regional businesses. Moreover, cross-border transactions take almost a quarter of total e-commerce in Denmark, making the country an attractive proposition for international merchants.
- To access potential Danish customers via social commerce, many major market players in the region use digital advertising via Facebook. The shoppable platform has the highest reach among social media users in Denmark. As per Hootsuite, Facebook's potential advertising reach percentage of the total population is 61.8%.
- Furthermore, high internet and smartphone penetration in the region is paving the way for the e-commerce market. As per EUROSTAT, 99% of the population has access to the internet in the area.
- Moreover, Black Friday has become a key date in the Danish online shopping calendar. Danes expect good discounts over a week-long sale around the last week of November, with the event dubbed 'Black Week' in the country. Black Friday is a huge revenue opportunity for e-commerce businesses in the region.
- However, increasing fraud in payments for e-commerce or online shopping can hamper the market's growth in the region. As reported by StatBank Denmark, fraud reported in Danish payments cards in e-commerce was 2,969 in Q1 2021, and it increased to 3,492 in Q4 2021. Since most of the population in Denmark uses card payments as a preferred payment method for e-commerce purchases, increasing fraud can limit card usage in e-commerce purchases.
- The COVID-19 pandemic increased online shopping in the region. The increase in sales was present across all categories of e-commerce as consumers stayed at home during the COVID-19 outbreak to help prevent the spread of the COVID-19 virus in Denmark. Moreover, many companies have gone online or enhanced their presence due to Covid-19; this goes for B2B and B2C.
