The taxable retail market involves sales of taxable goods and merchandise through retail establishments. It includes various goods and products such as clothing, food and beverage, general merchandise, healthcare products, and miscellaneous items. Retail outlets offer convenience to customers by allowing them to review and purchase products in person. This helps in evaluating the quality, feel, and fit of products before buying. Moreover, the in-store try-and-buy experience reduces return rates for retailers.
The Global taxable retail market is estimated to be valued at US$ 19.15 BN in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the taxable retail market are Allergan, Novartis, Pfizer, Takeda Pharmaceutical Company, Cook Medical, Medtronic, Johnson & Johnson, AstraZeneca, GlaxoSmithKline, Sanofi, Merck, Abbott Laboratories, Bayer, Astellas Pharma, Aurobindo Pharma, Ferring Pharmaceuticals, Salix Pharmaceuticals, Eli Lilly, Bristol-Myers Squibb, Boehringer Ingelheim. The taxable retail market provides several opportunities such as increasing availability of private label products, rising demand for convenience products, and growing traction of omnichannel retailing. The global expansion of the taxable retail market is driven by factors such as increasing disposable incomes, expanding urbanization, and favorable demographic shifts like growth of the global middle class.
Market drivers
The aging population is estimated to drive growth of the Taxable Retail Market Growth. The proportion of elderly people worldwide is rising significantly. As people age, their healthcare needs increase which drives demand for related products and services in retail stores. For instance, the number of Americans over age 65 is projected to nearly double from 52 million to 88 million by 2050. This substantial rise in geriatric population base supports the market for retail products catering to elderly needs. Moreover, their additional disposable income favors retail product spending. Thus, demographic shifts related to aging population act as a key driver for the taxable retail industry.
PEST Analysis
Political: The taxable retail market is impacted by various taxes and regulations introduced by governments across the world. Changes in tax policies directly affect the demand for products in this market.
Economic: Economic growth and rise in disposable incomes are positively impacting the spending capacity of customers. However, economic slowdowns can negatively impact the overall spending power.
Social: Growing awareness about health and wellness is driving demand for certain product categories in this market. Changes in lifestyles and social trends also influence consumer buying behaviors and preferences.
Technological: Advancements in e-commerce and digital technologies are allowing players to reach more customers directly and enabling easy price comparisons. Technology is also aiding in new product development.
The geographical regions where the taxable retail market is concentrated in terms of value include North America, Western Europe, and Asian countries like China and Japan. North America alone accounts for over 35% of the global market value due to high spending power of customers and presence of leading players in countries like the US.
The fastest growing region for the taxable retail market is expected to be Asia Pacific excluding Japan from 2024 to 2031. Countries like India, Indonesia, Philippines and Vietnam are anticipated to experience strong double digit growth during the forecast period driven by developing healthcare infrastructure, rising affluence, growing medical tourism and increasing health awareness. The aging population in countries like China and South Korea is also fueling the demand for healthcare products and services in the Asia Pacific region.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.