Sector Trend Analysis – E-commerce trends in Singapore

Country economic profile

Singapore, one of the world's most open and wealthiest economies per capita with an advanced technology sector and extensive free trade policies, remains a country heavily reliant on trade.

Singapore has the population of 6,014,723 in 2023. According to World Economics, Singapore GDP reached US$618 billion in 2023. In January 2024, based on advance estimates, the Singapore economy grew by 2.8 per cent on a year-on-year basis in the fourth quarter. (Ministry of Trade and Industry Singapore)

Income and expenditure

Despite slower income growth from 2022 to 2027, Singapore will maintain one of the highest per capita income levels in the region. The prevalence of sectors such as finance, tech, healthcare and research are set to continue to sustain higher income levels. Furthermore, the highest income class A is forecast to expand at the fastest rate across income classes. However, the lowest income class E will remain prevalent, while gender gap is expected to remain an issue. In 2022, Singapore ranked second out of 22 Asia Pacific countries with an average gross annual income of USD46,855. Over 2022-2027, Singapore is set to see moderate economic growth, resulting in an 8.9% real terms increase in per capita disposable income (Euromonitor 2023).

Global e-commerce retail market

In 2023, global e-commerce retail markets were valued at US$3.99 trillion, representing an increase in CAGR (compound annual growth rate) of 17.3% from US$1.8 trillion in 2018. China was the largest e-commerce retail market with US$1.3 trillion (33.4% market share) in 2023, followed by the United States (U.S) valued at US$1.2 trillion (29.8% market share) and the United Kingdom (U.K) with values of US$159.5 billion (4.0% market share).

Singapore was the fifty-second largest e-commerce retail market in the world valued at US$4.3 billion (0.1% market share) in 2023, representing a significant increase in growth rate of 16.1% from US$2.0 billion in 2018.

In the forecast period, global e-commerce retail markets are expected to continue to experience increasing growth, with a CAGR of 10.1%, attaining US$6.4 trillion by 2028. Similarly, Singapore is also expected to experience a positive CAGR of 5.3% as e-commerce retail sales reach US$5.6 billion by 2028.

Association of Southeast Asian Nations (Asean) e-commerce retail market

In 2023, Asean e-commerce retail markets were valued at US$124.3 billion, representing a significant increase in CAGR of 36.6% from US$26.1 billion in 2018. Indonesia was the largest Asean e-commerce retail market with values of US$60.4 billion ( 48.6% market share) in 2023, followed by Thailand with values of US$26.5 billion (21.3% market share) and Vietnam with values of US$17.4 billion (14.0% market share).

Singapore was the sixth largest e-commerce retail market in the Asean region (after the Philippines and Malaysia) valued at US$4.3 billion (7% market share) in 2023.

In the forecast period, Asean e-commerce retail sale markets are expected to continue to experience increasing growth, albeit at a CAGR of 15.6%, as retail sales attain US$256.2 billion by 2026. Indonesia, Thailand and Vietnam are expected to remain the larger of the Asean e-commerce retail sale markets in 2028.

E-commerce market-internet users and social media users

Internet users in Singapore in 2023 reached 5.3 million, an increase of CAGR 2.0% from 2018 to 2023. In 2023, 96% of population used internet, 99.4% of households with access to internet. 99.3% of households with access to broadband internet, 96.7% of internet access: once a week, 90.6% internet access: daily, 87.9% internet use: internet banking, 27.7% internet use: selling goods and services, 75.5% internet use: telephoning or making video calls, 33.9% of uses of a Laptop, notebook, netbook or tablet to access the internet, 86.2% of use of a mobile phone to access the internet.

In 2023, 5.3 million used YouTube, 4.9 million used Whatsapp, 4.4 million used Facebook, 3.7 million used Instagram, 2.8 million used Telegam, 2.66 million used TikTok, 2.63 million used Facebook messenger, 2.2 million used LinkedIn

Singapore's digital landscape

In 2023, online retail sales via mobile device were valued at US$3.5 billion, at the growth rate of CAGR 26.3% from 2018 to 2023, followed by purchases via personal computer US$1.6 billion at the growth rate of CAGR 8.6% from 2018 to 2023. App M-Commerce grew at a CAGR of 26.8%, mobile Web M-Commerce grew at a CAGR of 25.6%, mobile phone M-Commerce grew at a CAGR of 27.3% and Tablet M-Commerce grew at a CAGR of 22.0% from 2018 to 2023.

Forecasted growth is expected to continue at the rates varying from 4.4% to11.7% from 2024 to 2027.

In 2023, total online travel by device and platform were valued at US$7.6 billion, followed by purchases via personal computer US$4.7 billion. Purchases via App reached US$1.7 billion while purchase via Web reached $1.2 billion. Purchase vial mobile phone reached US$2.4 billion while purchase via tablet reached US$476.2 million in 2023.

All device types made increases in growth rates within the historic period, ranging from 16.2% (via App) to 1.6% (via PC e-commerce) from 2018 to 2023.

Singapore's e-commerce market: retail sales

E-commerce sales reached US$4.3 billion in 2023 with the growth of CAGR 16.1% from 2018 to 2023. Beauty and Personal Care E-Commerce recorded the biggest growth of CAGR 40.8% followed by pet care e-commerce at a CAGR 36.6% and Home and Garden E-Commerce at a CAGR 31.4% from 2018 to 2023.

E-commerce sales are expected to continue to experience increasing growth, with a CAGR of 4.6%, as retail sales attain US$5.6 billion in 2028. This growth will be further driven by changing consumer habits, continued demand for convenience, innovation in product offerings, and improved logistics, as the economy evolves through covid-19.

First-Party (1P) Marketplace E-Commerce enjoys the fastest growth of CAGR 29.9% followed by Health and beauty specialist E-commerce to a CAGR 27.1% and Grocery E-Commerce at CAGR 25.7% from 2018 to 2023.

Cross-border e-commerce

Cross border e-commerce retail sales in Singapore were valued at US$2.4 billion in 2023 (52.0% market share), with domestic e-commerce retail sales representing US$2.2 billion (48.0% market share),

E-commerce market: foodservice retail sales

In 2023, bill Payments E-Commerce By Device and Platform reached US$5.4 billion, Bill Payment personal computer reached US$3.99 billion followed by purchases via Bill Payments M-Commerce at US$1.4 billion in 2023. Purchases via App reached US$978.5 million while purchase via Web reached $437.7 million. Purchase vial mobile phone reached US$965.8 million while purchase via tablet reached US$450.3 million in 2023.

All device types made increases in growth rates within the historic period, ranging from 14.4% (via APP) to 2.0% (via PC e-commerce) from 2018 to 2023.

In 2023, Ticketed Entertainment E-Commerce By Device and Platform reached US$87.3 million, Ticketed Entertainment M-Commerce reached US$28.9 million followed by purchases via personal computer US$58.4 million. Purchases via App reached US$16.2 million while purchase via Web reached $12.7 million. Purchase vial mobile phone reached US$20.2 million while purchase via tablet reached US$8.7 million in 2023. Ticketed Entertainment E-Commerce By Device and Platform declined in growth by −4.1% from 2018 to 2023 while Ticketed Entertainment PC E-Commerce declined in growth by −6.1 from 2018 to 2023.

In 2023 Streaming Services E-Commerce By Device and Platform reached US$557.3 million, Streaming Services M-Commerce reached US$320.6 million followed by purchases via personal computer US$236.7 million. Purchases via App reached US$220.6 million while purchase via Web reached $100.0 million. Purchase vial mobile phone reached US$262.5 million while purchase via tablet reached US$58.0 million in 2023.

All device types made increases in growth rates within the historic period, ranging from 23.3% (via APP) to 19.1% (via mobile Web) from 2018 to 2023.

In 2023, online foodservice sales via mobile device were valued at US$2.3 billion. Purchases via App reached US$1.3 billion while purchase via Web reached $416.6 million. Purchase vial mobile phone reached US$1.6 billion while purchase via tablet reached US$144.2 million in 2023.

All device types made significant increases in growth rates within the historic period, ranging from 42.5% (via mobile phone) to 25.1% (via PC e-commerce) from 2018 to 2023.

Top e-commerce companies and brands

Sea Ltd and Alibaba Group Holding Ltd were the largest companies in terms of e-commerce sales in Singapore with retail values of US$1.2 billion and US$727.0 million respectively in 2023. Of note, Sea Ltd accumulated the largest growth of 62.8% as sales increased from US$106.6 million in 2018 to the most recent value of US$1.2 billion in 2023. In contrast, Giosis Group experienced the largest decline in growth rate (−17.9%), as sales declined from US$501.6 million in 2018 to US$187.4 million in 2023.

Shopee Marketplace (Sea Ltd) and Lazada Marketplace (Alibaba Group Holding Ltd) were the top e-commerce brands in Singapore with US$1.2 billion and US$438.0 million respectively in 2023 Shopee Marketplace (Sea Ltd) also experienced the largest increase in growth rate (62.8%) as the value increased from US$106.6 million 2018 to US$1.2 billion in 2023. Qoo10 Marketplace (Giosis Group) experienced the largest decline in growth rate (−17.9%), as sales declined from US$501.6 million in 2018 to US$187.4 million in 2023.

Opportunities for Canada

The Regional Comprehensive Economic Partnership ("RCEP") Agreement is a Free Trade Agreement ("FTA") between 15 countries: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam, Australia, China, Japan, Republic of Korea, and New Zealand.

It is the world's largest FTA, comprising about 30% of global GDP and about a third of the world's population. RCEP negotiations were formally launched at the 2012 ASEAN Summit in Cambodia and the Agreement was signed on 15 November 2020. The quorum for entry into force was met in November 2021.

The RCEP Agreement entered into force on 1 January 2022 for ten participating countries (Australia, Brunei Darussalam, Cambodia, China, Japan, Lao PDR, New Zealand, Singapore, Thailand and Vietnam). It has also entered into force for South Korea (1 February), Myanmar (4 March) and Malaysia (18 March). It will enter into force for the remaining participating countries 60 days after they have deposited their instrument of ratification with the Depositary.(Ministry of Trade and Industry Singapore)

At the end of 2020, Singapore became a member of the largest trade bloc in the world, the Regional Comprehensive Economic Partnership (RCEP). Singapore's membership within the trade bloc is expected to increase its position in the regional supply chain among the harmonization of trade policies between and/of member states.

The Singaporean e-commerce market and its growth has been attributed to the country's sizable internet and mobile internet penetration rate, and per capita income, which are among the highest in Southeast Asia. The e-commerce consumer is fluent in English and Chinese, and are considered mature online shoppers able to access, and use a wide range of regional and international digital platforms at their disposal.

As a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Singapore represents an additional market that Canada may access allowing Canadian SMEs (small and medium enterprises

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Find a Trade Commissioner

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Resources

• Euromonitor International 2024
• Euromonitor International 2023: Income and Expenditure: Singapore Country Report | 13 October 2023
• Global Trade Tracker 2024
• Ministry of Trade and Industry Singapore, Singapore's GDP Grew by 2.8 Per Cent in the Fourth Quarter of 2023 and by 1.2 Per Cent in 2023
• World Economics 2023

Sector Trend Analysis – E-commerce trends in Singapore
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

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