Nexi research: Online spending in Europe grows 12% in 2023, reaching all time high of €435.3 billion

Consumer e-commerce spend grew by 12% in 2023, according to new research conducted by Kantar on behalf of Nets, part of European PayTech Nexi.

Surveying 18,000+ consumers across Europe, 88% indicated they had purchased something online in the 28 days prior to taking the survey.

Overall e-commerce spend reached an all time high of €435.3 billion in 2023, according to the research.

Spending on physical goods surpassed €200 billion, with €171.4 billion spent on travel, representing 20% growth from 2022, as the industry continues to recover post-pandemic.

Martin Pitcock, Chief Marketing Officer, eCommerce at Nexi Group comments: “When shopping online, consumers traditionally spent the most on travel.”

“The pandemic halted this growth, but the sector is now back on track and may soon eclipse physical goods as the number one area of online consumer spend.”

Despite behavioural similarities across regions, there are clear market differences developing in several areas: the mix of physical goods, the development of travel spending and the availability of online services varies massively between markets in Nordics, Central and Southern Europe.

However, convenience, lower prices, and a larger range of options were common purchasing drivers identified in every country. This is particularly clear when analysing entertainment spending.

Consumers are looking for experiences, such as tickets for cultural and sporting events, and spending big on online streaming services, topping €21 billion combined in 2023; with 49% of services spend going on streaming services for music, film, TV, and audiobooks.

The survey also revealed the growing importance of sustainable selling online. Half of consumers said they believe there is a lack of sustainable online shopping options and that they’d actively choose more sustainable shopping options if offered.

Merchants that offer these options can stand out from competitors, attracting new customers while retaining existing ones.

Pitcock says: “We see improving sustainability as the next frontier for merchants. Currently, there aren’t enough sustainable options for consumers when making purchases online and our research shows that merchants are missing opportunities to win big.”

“Merchants should look to offer recyclable packaging alternatives or greener shipping methods as a minimum. Those that don’t, will be left behind as consumers continue to express their preferences for greener shopping.”

2024 RTIH INNOVATION AWARDS

Online retail is a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.

The awards, sponsored by CADS, 3D Cloud, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.

It’s free to enter and you can do so across multiple categories.

Key 2024 dates

Friday, 25th October: Award entry deadline 

Tuesday, 29th October: 2024 shortlist revealed

30th October-6th November: Judging days

Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.