The taxable retail market includes the sales of a wide range of consumer goods including clothing, footwear, furniture, cosmetics, consumer electronics and other accessories. The market covers various formats such as brick and mortar stores, e-commerce platforms as well as direct-to-customer models. E-commerce platforms have provided consumers with more options and convenience resulting in higher sales volume especially during the pandemic.

The global taxable retail Market is estimated to be valued at US$ 13.49 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Increasing e-commerce sales has been a key driver for the growth of the global taxable retail market over the recent years. The COVID-19 pandemic further accelerated this shift towards online shopping as consumers preferred contactless shopping from the comfort of their homes. Advancements in logistics and delivery networks have allowed online sellers to provide same day or next day delivery options fuelling higher e-commerce adoption. Various taxable retailers have also enhanced their online presence and omni-channel capabilities to tap into this growing online demand. However, issues around rising inflation may negatively impact discretionary consumer spending which can hamper market growth over the forecast period.

SWOT Analysis

Strength: The taxable retail market has a large consumer base as goods sold are everyday items. Established supply chains and distribution networks help in effective delivery. Innovation in packaging and product formulation is helping companies gain market share.

Weakness: Small retailers face challenges in competing with large retail chains due to constraints in pricing, promotion and supply networks. Changes in taxation policies could impact demand.

Opportunity: Growth of e-commerce is opening new sales channels. Emerging markets offer scope for expansion given rising incomes. Developing private label brands provides opportunities to capture more value.

Threats: Economic slowdowns may negatively impact discretionary spending. Stringent regulations around product quality and labeling could lead to compliance costs. Shift to organic products is a threat to conventional products.

Key Takeaways

The Global Taxable Retail Market Size is expected to witness high growth over the forecast period supported by rising spending power. The global taxable retail Market is estimated to be valued at US$ 13.49 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030.

The Asia Pacific region is expected to dominate the market owing to rapid growth in consumerism led by China, India and other Southeast Asian countries. Countries like China and India are estimated to account for over half of the global retail market by 2030. North America currently holds a significant share and is expected to grow at a steady pace due to the presence of major retailers in the US. Growth in Latin America will be driven by economic recovery in large countries such as Brazil and Mexico. However, mature markets of Europe and Japan are likely to see relatively slower growth rates.

Key players operating in the taxable retail market are Allergan, Novartis, and Procter & Gamble. Allergan maintains a strong portfolio in consumer health and medical aesthetics. Novartis has a global footprint across pharmaceuticals, generic drugs and eye care products. Procter & Gamble leads in healthcare, grooming and home care segments with popular brands such as Olay, Head & Shoulders, Gillette and Ariel. These companies are focusing on expanding in emerging markets through strategic acquisitions and product launches.

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