Malta E-commerce Market - Growth, Trends, COVID-19 Impact, and Forecast (2022-2027)

The Malta E-commerce Market is Segmented by B2C E-commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-commerce.

Market Snapshot

Malta E Commerce Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 15.91 %

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Market Overview

The Malta E-commerce market is expected to register a CAGR of 15.91% from 2022-2027. The market is primarily driven by advanced infrastructure, high internet penetration, and a growing number of card-based payment systems.

  • The Maltese government has been working on expanding the IT sector in recent years, assuring good service standards across Malta and Gozo. The Malta Information Technology Agency's E-Government service is the Maltese government's electronic delivery of public information and services to individuals and businesses. Consumers increasingly use mobile devices (smartphones and tablets) to access the internet.
  • While Maltese customers still prefer conventional shopping, microenterprises, SMEs, and major firms have recognized the potential benefits of digital technologies. According to a study by the Malta Communications Authority, the internet is frequently used by consumers seeking information before purchasing in-store or online, and 70% of internet users research products before purchasing them.
  • The United Kingdom is Malta's most popular internet shopping destination, followed by China and the United States. Only a third of digital buyers, however, shop on domestic websites. The primary reasons for not shopping online from local websites are the lower costs and limited product selection compared to overseas companies.
  • COVID-19 has compelled numerous businesses to strengthen their online presence, steadily increasing e-commerce sales. In addition, the legislation imposed requirements to ensure adequate levels of transparency in online commercial communications.
  • As a result of the pandemic-related restrictions, consumers, whether they are frequent e-Commerce users or prefer to shop in-store, changed their shopping patterns. According to a recent poll by the Malta Communications Authority, 27% of internet users said they increased their online buying during COVID-19, while only 1% said they made their first online purchase. Another 57% said their digital buying habits haven't changed.

Scope of the Report

E-commerce is the purchasing and selling of products and services over the Internet. It is conducted over computers, mobiles, tablets, and other smart devices. There are primarily two types of e-commerce, including Business-to-Consumer (B2C) and Business-to-Business (B2B).

The Malta E-commerce Market is segmented into B2C E-commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-commerce.

By B2C E-commerce
Market size (GMV) for the period of 2017-2027
Market Segmentation - by Application
Beauty & Personal Care
Consumer Electronics
Fashion & Apparel
Food & Beverage
Furniture & Home
Others (Toys, DIY, Media, etc.)
By B2B E-commerce
Market size for the period of 2017-2027

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Key Market Trends

Increase in Initiatives by Government is Expected to Boost the E-commerce Market

  • Malta, despite its modest size, has a sophisticated telecommunications network. Internet connection is widely available, with internet service providers such as Melita, Go, and Vodafone offering various connectivity options. The public and private sectors provide free internet access via various Wi-Fi hotspots. The Malta Communications Authority (MCA) manages around 190 free Wi-Fi hotspots throughout Malta and Gonzo, including most public gardens.
  • The Maltese government has been working on expanding the IT sector in recent years, assuring good service standards across Malta and Gozo. The Malta Information Technology Agency's E-Government service is the Maltese government's electronic delivery of public information and services to individuals and businesses.
  • More than three-quarters of Maltese people presently use the Internet. Since 2006, when the government issued the Electronic Commerce Act requirements, which compel information service providers to provide basic identifying information to clients, e-commerce, whether business to consumer (B2C) or business to business (B2B), has expanded swiftly. Malta is the EU's second-best performer in electronic data exchange sales. Cross-border purchases of clothing and athletic products are the most common.
Malta E Commerce Market Share

Growing B2C E-commerce

  • More than 3/4th of Maltese individuals now use the Internet. E-commerce, whether business to consumer (B2C) or business to business (B2B), has evolved rapidly since 2006 when the government published the Electronic Commerce Act regulations, which require information service providers to furnish basic identifying information to customers. The rules also established obligations ensuring appropriate levels of transparency concerning online commercial communications. As a result, E-commerce in Malta experienced a notable boost over the past years, with consumers, businesses, and the government realizing E-commerce's potential opportunities and advantages.
  • COVID-19 has resulted in many businesses shifting to a stronger online presence, leading to increased e-commerce sales. The government's E-commerce Digital Strategy, which covered seven years from 2014-2020, ensured that businesses have the necessary means and skills to capitalize on opportunities brought about by E-commerce.
  • The strategy had set out four different targets to achieve its objectives: Engendering trust in E-commerce; Taking SMEs and industry to the next level; Transforming micro-enterprises, and pushing Malta as a major e-commerce player.
Malta E-commerce Market

Competitive Landscape

Malta's E-commerce market is moderately fragmented in nature. Key major players include ISB LIMITED, YellowBit IT Solutions, Amazon, Apple, and Zalando. These major players account for a considerable percentage of online sales in the region and actively participate in partnerships and product innovations to gain more market share.

  • In 2021: Zalando made more progress toward its goal of establishing a sustainable fashion platform that benefits both people and the environment. Zalando has teamed up with the brand, logistics, and packaging partners to set science-based targets covering 51% of supplier-related emissions.
  • November 2020: Apple has introduced an industry-leading new developer program to help small companies and independent developers accelerate innovation and move their businesses forward with the next generation of revolutionary apps on the App Store. The new App Store, Small Business Program, will help the vast majority of developers that offer digital goods and services on the store by lowering commissions on paid apps and in-app purchases.

Recent Development

  • February 2022: ASOS has renewed its cloud relationship with Microsoft, committing to using the Microsoft Cloud as its primary cloud platform for the next five years. ASOS leverages Microsoft Azure and its AI capabilities to power its digital media and supports new data-driven and innovative workstreams, building on a long history of working with Microsoft.
  • January 2022: Zalando, Europe's leading online fashion and lifestyle platform, has invested in Ambercycle Inc., a material science firm. Zalando, H&M CO: LAB, KIRKBI, Temasek, and BESTSELLER's Invest FWD participated in the company's Series A fundraising round. Ambercycle hopes to develop infrastructure and materials for circularity in the fashion sector with this additional funding.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key market trends and share of E-commerce of total Retail sector

    4. 4.4 Impact of COVID-19 on the E-commerce sales

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Penetration of Internet and Smartphone Usage

      2. 5.1.2 Increase in Initiatives by Government

    2. 5.2 Market Challenges

      1. 5.2.1 Fraud with Payment Cards in E-commerce

    3. 5.3 Analysis of key demographic trends and patterns related to E-commerce industry in Malta (Coverage to include Population, Internet Penetration, E-commerce Penetration, Age & Income etc.)

    4. 5.4 Analysis of the key modes of transaction in the E-commerce industry in Malta (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)

    5. 5.5 Analysis of cross-border E-commerce industry in Malta (Current market value of cross-border & key trends)

    6. 5.6 Current positioning of country Malta in the E-commerce industry in region Europe

  6. 6. Market Segmentation

    1. 6.1 By B2C E-commerce

      1. 6.1.1 Market size (GMV) for the period of 2017-2027

      2. 6.1.2 Market Segmentation - by Application

        1. 6.1.2.1 Beauty & Personal Care

        2. 6.1.2.2 Consumer Electronics

        3. 6.1.2.3 Fashion & Apparel

        4. 6.1.2.4 Food & Beverage

        5. 6.1.2.5 Furniture & Home

        6. 6.1.2.6 Others (Toys, DIY, Media, etc.)

    2. 6.2 By B2B E-commerce

      1. 6.2.1 Market size for the period of 2017-2027

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1 eBay

      2. 7.1.2 Amazon

      3. 7.1.3 YellowBit IT Solutions

      4. 7.1.4 Zalando

      5. 7.1.5 Asos

      6. 7.1.6 AliExpress

      7. 7.1.7 Shopify

      8. 7.1.8 Shein

      9. 7.1.9 ISB Limited

      10. 7.1.10 Apple

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

**Subject to Availability

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Frequently Asked Questions

The Malta E-commerce Market market is studied from 2020 - 2027.

The Malta E-commerce Market is growing at a CAGR of 15.91% over the next 5 years.

YellowBit IT Solutions, Amazon, Zalando, Apple, Shein are the major companies operating in Malta E-commerce Market.

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