Market Size of Latvia E-commerce Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latvia E-commerce Market Analysis
The Latvia E-commerce market is expected to register a CAGR of 11.4% during the period 2022-2027. The Latvia E-commerce market is primarily driven by the growing internet penetration and an increased number of online shoppers in the country.
- The growing internet penetration paved the way for the E-commerce market in the region. As per the Official Statistics of Latvia, household internet access increased to 91.1% in 2021, compared to 86.2% in 2018 in the region. The growth is further supported by strong smartphone penetration in the region.
- As per the Central Statistical Bureau of Latvia, at the beginning of 2021 internet was used in almost all enterprises (99.97 %). The Central Statistical Bureau's annual survey on the use of information and communication technologies (ICT) and E-commerce in enterprises shows that 68 % of enterprises had their website. Furthermore, 95.5 % of large enterprises, 87.3 % of medium-sized enterprises, and 63.5 % of small enterprises had their own website. For work internet was used by 52.5 % of all employees of enterprises, which is 8.1 percentage points more than in 2020.
- Many enterprises in the region use social media platforms for digital advertising purposes. For instance, as per the Central Statistical Bureau of Latvia, in 2021, 57.7 % of enterprises used social media. In comparison to 2019, this indicator has risen by 16.8% points. The opportunities provided by social media were used by 90.1 % of large enterprises. In the group of medium-sized enterprises, it was used by 68.4 %, and in a group of small enterprises, it was used by 54.8 %.
- However, challenges related to EU applied Value Added Tax (VAT) to sales by non-EU-based companies of electronically supplied services (ESS) can hamper the growth of the market in the region. Furthermore, longer than indicated delivery period by E-commerce companies in the region can also affect the development of the E-commerce market.
- The COVID-19 pandemic accelerated the expansion of the E-commerce market towards new firms, consumers, and types of products in the region. It has provided consumers with access to a variety of products from the convenience and safety of their homes. E-commerce transactions in Latvia have partly shifted from luxury goods and services to everyday necessities such as groceries, relevant to a large number of individuals.
