UK Ecommerce Statistics 2025: Market Size Hits £286 Billion
The UK e-commerce market will grow from $265.14 billion in 2025 to $906.25 billion by 2030, with a compound annual growth rate (CAGR) of 22.73%. Online sales jumped by 36% in 2022, marking the strongest annual growth since 2007.
Digital channels will handle about 30.7% of total retail spend by 2025, showing a major change in how consumers shop. Mobile commerce will exceed $100 billion in 2025 and make up 55% of all transactions. The UK's e-commerce market keeps expanding rapidly. By 2025, almost every adult - around 62.1 million people - will shop online. This complete analysis looks at the UK's current online shopping trends, growth forecasts through 2030, and the factors that will shape digital retail's future in one of Europe's most active e-commerce markets.
UK Ecommerce Market Size and 2025 Revenue Breakdown
UK retail ecommerce continues to grow steadily toward 2025. The market size estimates show its increasing importance in the British economy. Let's get into the current market value, how these projections were made, and how they match up with previous years.
£286 Billion Market Estimate: Methodology and Sources
Experts project the UK ecommerce market to hit £286 billion ($285.60 billion) by the end of 2025. This is a big deal as it means that digital retail has reached a new milestone. The total UK retail market should reach £599.07 billion in 2025, with ecommerce making up nearly one-third of this value.
Different research organizations have contributed to this estimate. Mordor Intelligence values the market at USD 265.14 billion in 2025. Other industry forecasts range between USD 152.5 billion and USD 297 billion, based on their measurement methods. These numbers vary because organizations use different ways to calculate gross merchandise value (GMV) versus net revenue.
Research organizations typically base their estimates on:
- Annual financial filings from major retailers
- Data from national statistical offices
- Consumer spending patterns
- Digital transaction volumes
So while exact figures might differ between sources, £286 billion represents the most accepted value based on a full picture of the market.
Comparison with 2024 and 2023 Revenue Figures
The 2025 projection shows steady growth from previous years, though at a slower pace typical of mature markets. EcommerceDB reports that UK ecommerce generated about £128.97 billion in 2024.
The market grew between 4.2% and 4.5% in 2024, slightly less than the 4.8% growth in 2023. This modest slowdown makes sense since the UK has Europe's most established ecommerce market. Price increases, rather than volume growth, drove most of the 2024-2025 revenue gains.
The market saw its highest growth since 2007 in 2022, jumping 36%. Recent data shows fresh momentum - online spending rose 3.5% from Q2 to Q3 2025, and 5.0% compared to Q3 2024.
Share of Ecommerce in Total UK Retail Spending (30.7%)
Online sales should make up 30.7% of all UK retail sales by 2025's end. This builds on the 28.0% reported in September 2025, showing steady monthly increases throughout the year.
The UK remains Europe's largest ecommerce market and ranks third globally behind China and the United States. The 30.7% digital share is a huge leap from the 20% seen in 2019. Online sales peaked at 37% during February 2021's lockdown, but current levels point to lasting changes in how people shop rather than temporary pandemic effects.
This nearly one-third share of retail spending highlights the UK market's digital maturity. ONS data backs this up, showing consistent monthly increases through 2025 - from 27.8% in August to 28.0% in September. These numbers suggest we're on track to hit the projected 30.7% by year-end.
CAGR Forecasts and Long-Term Growth Projections
Research firms have different views about where the UK ecommerce sector is heading. Their forecasts range from careful to ambitious growth predictions. These predictions help businesses make better plans and investment choices in the digital world.
IMARC Forecast: 18.1% CAGR through 2033
IMARC Group shows one of the most positive outlooks for UK ecommerce. They expect a strong Compound Annual Growth Rate (CAGR) of 18.1% between 2025 and 2033. The market could grow from USD 297.0 billion in 2024 to USD 1,483.7 billion by 2033. This confident prediction comes from expected increases in digital use, strong delivery networks, and changing customer priorities. The UK would keep its place among the world's top three ecommerce markets, just behind China and the United States.
eMarketer Projection: 3.6% Growth in 2025
eMarketer takes a more careful approach with its short-term outlook. They predict UK ecommerce sales will grow by 3.6% in 2025. This careful estimate reflects a mature market with high usage rates and normal online shopping patterns after the pandemic boom. Notwithstanding that, eMarketer thinks this growth rate might pick up in 2026. New developments in mobile commerce and customized shopping could push spending higher.
EcommerceDB Estimate: 6% CAGR (2024–2028)
The middle ground between optimistic and careful predictions shows steady growth ahead. SearchHog predicts 3.95% yearly growth from 2025-2030. They expect revenue to reach £123.43 billion by 2030. This balanced view matches what you'd expect in a mature market. Growth comes more from keeping customers happy than finding new ones.
Platform-Specific CAGR: 13.6% for Ecommerce Platforms
IMARC research shows different growth rates across ecommerce segments. The specialized ecommerce platforms should grow at a 13.6% CAGR from 2025 to 2033. Starting at USD 246.03 million in 2024, this segment could reach USD 775.16 million by 2033. Companies are investing more in flexible commerce systems and platform services.
B2B Ecommerce CAGR: 22.9% through 2033
Business-to-business (B2B) ecommerce shows amazing potential that outpaces the wider market. Straits Research expects UK B2B ecommerce to grow at a 22.9% CAGR from 2025 to 2033. The sector could jump from USD 846.41 billion in 2025 to USD 5,414.38 billion by 2033. This growth comes from:
- B2C ecommerce leaders moving into B2B markets.
- Companies are moving their buying to digital platforms.
- More international trade opportunities, with exports making up 28.82% of UK GDP in 2021.
Expert Market Research sees slightly lower but still strong growth at 7.90% CAGR between 2025 and 2034. They think the UK ecommerce market will grow from USD 234.37 billion in 2024 to about USD 501.32 billion by 2034.
These different forecasts show how hard it is to calculate future growth in this changing sector. Yet even careful predictions show steady growth ahead. Most experts agree that retail will keep becoming more digital throughout the next decade.
User Base, ARPU, and Penetration Metrics
British digital commerce has grown from a new channel into a powerhouse. Demographics show impressive numbers and signs of maturity in how people adopt and spend online.
62 Million Online Shoppers in 2025
The UK's ecommerce world now covers almost every adult. Numbers suggest we'll see 62.1 million online shoppers by 2025. This is huge - more than 90% of UK internet users buy products online, making it one of the highest rates worldwide.
The market has reached its peak. Future growth will come from existing customers rather than new ones. The UK stands as one of the world's most mature digital retail markets. Internet sales compared to total retail have leveled off at 25-26%, showing we've hit a plateau.
Average Revenue per User (ARPU) Trends
Since user growth has peaked, ARPU numbers tell us how healthy the market is. British shoppers spend £3,715.88 each year online. That's about £310 monthly or £71.46 weekly. UK shoppers outspend their European counterparts. They spend around £89 monthly on digital purchases - this is a big deal as it means that they spend more than the European average of £73.
Monthly spending shows interesting patterns. Almost one-third (30%) of UK online shoppers spend over £100 each month on digital purchases. Heavy online shoppers make up 38% of the UK market. More than 70% spend at least £50 monthly, and two-thirds buy something every week.
User Saturation and Change to Higher Spend per User
Retailers have changed their game plan. They now focus on bigger purchases rather than getting new customers. Recent data proves this strategy works: while people shop less often, the average order value grew 7% in 2024. People now make fewer but larger purchases.
This "fewer but bigger" buying pattern shows a mature market where people think over their purchases more. Retailers need to focus on larger basket sizes instead of getting people to visit more often.
Price isn't as important as you might think. Only 12% of UK consumers say price is their main reason to shop online. Convenience, product variety, and the ability to compare items drive online shopping decisions more. This shows that shoppers care about more than just saving money.
Device and Channel Segmentation in 2025
UK shoppers have decisively moved toward handheld devices for online shopping. New purchasing channels have altered the map of how people find and buy products.
Mobile Commerce Share: Over 70% of Transactions
Mobile phones now rule e-commerce transactions and handle 70% of online orders in the UK. This shows a fundamental transformation in how consumers shop, and the UK's m-commerce share beats the global average of 66%. Mobile commerce sales in Britain will likely exceed £100 billion by 2025. People prefer dedicated apps over mobile websites, which handle 70% of these mobile purchases.
Desktop vs Mobile vs Tablet Usage
Smartphones lead the way with 78% of retail website traffic, making Britain Europe's leader in mobile shopping. Desktops still convert better at 4.81% compared to mobile's 2.25%, though they process fewer total transactions. Tablets process just 13% of cross-border orders. Desktops and laptops together make up 38% of transactions.
Social Commerce Market Size: $49.21 Billion
Social shopping platforms brought in $40.12 billion in 2024, mostly through Facebook Marketplace, TikTok Shop, and Instagram. The market should grow at 16.2% CAGR through 2030, reaching $104.44 billion. Fashion and electronics lead the categories, with clothing making up nearly a quarter of social media purchases. Social platforms prove highly persuasive - 71% of social buyers make impulse purchases.
Live Commerce and Influencer-Driven Sales
Live streaming commerce has reached £231.26 million in 2024 and should hit £909.55 million by 2030. Success stories highlight this format's potential - P Louise generated £1.59 million in just 12 hours on TikTok Live. Influencer marketing drives significant sales, with 69% of UK consumers buying products after seeing influencer promotions. Young shoppers show this trend most strongly, and they keep using digital wallets for both online and in-store purchases.
Top Product Categories and Payment Preferences
UK consumers show clear priorities in their 2025 buying patterns. Their choices reveal distinct trends in product categories and payment methods across the digital world.
Fashion, Food & Beverages, and Electronics Revenue Share
Fashion guides UK ecommerce with a 28.7% share of total online revenue. Food and beverages generate £19.45 billion in sales. Fashion and clothing follow with £16.52 billion. Electronics holds strong at second place with a 16.8% market share. Hobby and leisure products make up 15.9%. Other key sectors include grocery at 12.3%, furniture at 9.6%, and care products at 9.4%.
BNPL Growth: 21.6% CAGR Forecast
Buy Now Pay Later services have seen dramatic expansion. A quarter of UK adults used these payment options in 2024, up from 14% last year. Fashion dominates this space with 46% of BNPL transactions and an average spend of £114. The 25-34 age group shows peak adoption rates. Usage among 55-64 year-olds jumped significantly from 10% to 21%.
Digital Wallet Usage Among Gen Z and Millennials
Mobile wallets have captured 57% of UK adults. The 16-24 age group leads adoption at 88%. About 44% of mobile wallet users employ them weekly. Older age groups have started embracing this technology too. Users aged 65 and above increased from 14% in 2023 to 25% in 2024.
Credit/Debit Card Dominance in Online Payments
Cards still rule UK transactions with a 64% share in 2024. Debit card payments reached 26.1 billion, showing a 6% increase from 2023. Credit card usage saw a slight bump to 5 billion payments. Contactless payments keep growing strong and now represent 38% of all UK payments.
Conclusion
The UK ecommerce market keeps growing remarkably. It stands as Europe's largest digital retail market and ranks third globally after China and the United States. The market value will likely hit £286 billion by 2025. This represents a fundamental change in British retail dynamics, where online channels make up nearly one-third of total spending.
Growth projections paint an interesting picture of a maturing market. eMarketer predicts a modest 3.6% growth for 2025. However, IMARC sees things differently with an 18.1% CAGR through 2033. These different views show how complex forces shape the sector. The focus has moved from getting new users to increasing how much existing customers spend.
Market saturation defines the current state, with about 62 million Britons shopping online. Retailers now need to build deeper customer relationships instead of just expanding their base. Average order values rose 7% year-over-year, even though people shopped less often.
Mobile platforms dominate the scene. Smartphones drive 70% of online transactions and will generate over £100 billion in sales in 2025. On top of that, social commerce is becoming a major growth channel. It should reach £104.44 billion by 2030, mainly through TikTok Shop and Instagram.
Product choices stay fairly stable. Fashion leads with 28.7% market share, with food and beverages and electronics following closely. Payment habits show clear trends too. Traditional card payments still lead, though Buy Now Pay Later services and digital wallets grow impressively.
B2B ecommerce shows exceptional promise with a 22.9% CAGR through 2033. This segment could reach £5,414.38 billion by 2033, which would transform business procurement practices completely.
The ecommerce sector faces mixed challenges and opportunities. While user growth has leveled off, companies can still expand through increased customer spending, better mobile commerce, and new channels like live streaming. Payment technologies and logistics keep driving market development, even as the market approaches saturation.
UK ecommerce has surpassed its growth phase and reached maturity. Companies now compete fiercely for existing customers rather than new markets. In spite of that, projected growth rates show there's still plenty of untapped potential. Companies that adapt to these changes will thrive in Britain's digital retail future. Success depends on excellent customer experience, mobile optimization, and seamless channel integration.
