Market Size of New Zealand E-commerce Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.70 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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New Zealand E-commerce Market Analysis
The New Zealand e-commerce market is expected to register a CAGR of 8.7% during the period 2022-2027. The primary factor driving the growth of the market in the region is the growing online spending and high smartphone penetration, among others.
- The New Zealand E-commerce market has been transforming rapidly over the past few years. Various factors boost the growth of the E-commerce market in the region, including higher smartphone penetration, increasing shopping frequency, and positive consumer behavior toward online shopping.
- Card payments are the most popular method for E-commerce transactions in the region. However, in the past few years, there have been significant shifts toward Buy Now Pay Later payment methods. As per New Zealand Post, Buy Now Pay Later services in the region grew by 49% in Q1 2021. Furthermore, the service is growing most rapidly among young people in New Zealand.
- As per New Zealand Post, in 2020, older age groups experiencing high levels of online retail growth in terms of their frequency and size of the spend. Then in 2021, the 40-65 years group spent 20% more, and the 65+ age group was also up 14%. Again, these trends will continue throughout the near future. It shows that any assumptions about older shoppers disliking E-commerce are growing increasingly untrue in the region. Further, older shoppers are expected to boost the market over the forecast period.
- Non-resident United States E-commerce companies selling online to New Zealand consumers must comply with local regulations, including consumer and tax procedures. A United States company providing online services to New Zealand residents will need to register for GST when their total supplies of goods and services exceed NZD 60,000 in one year. This type of regulation can resist the foreign E-commerce companies in the region, which may hamper the growth of the market.
- The COVID-19 pandemic national and regional lockdowns have led to New Zealand consumers doubling their spending on online shopping, and the change in consumer spending is further expected to continue to increase in coming years. Fast Moving Consumer Goods (FMCG), including groceries, were the most popular online purchases during the outbreak.
