The global taxable retail market is primarily driven by the retail industry which aims to sell a variety of goods and merchandise to consumers for their personal or family use. Key products in this market include apparels, accessories, homeware items, consumer electronics, sports goods etc. With advancement in technology, online retail is gaining prominence with consumers shifting towards digital shopping methods owing to added convenience factors like home delivery, digital payment options, return policies etc. Online retail has especially boosted categories like consumer electronics, fashion and lifestyle products.
The global taxable retail Market is estimated to be valued at US$ 13.49 billion in 2024 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 trend of online retail
The increasing trend of online retail around the world has emerged as a key driver boosting the taxable retail market. Changing consumer preferences towards digital shopping methods due to added convenience factors like home delivery and digital payments have propelled the growth of online retail in key categories. Especially post-pandemic, online shopping witnessed a significant uptick across developed as well as developing regions. As per a recent report published by Digital Commerce 360, global online retail sales jumped to $4.9 trillion in 2021 from $4 trillion in 2020, registering impressive growth of 22.6 percent. This rising trend of online retail augments the demand for retail products and positively impacts the overall market growth.
Expansion of retail space
Continuous expansion of retail space worldwide has further strengthened the taxable retail market. Various major retailers are focusing on expanding their footprint by opening new stores, relocating to better catchment areas, and scaling up their omni-channel presence. For instance, in 2021, Walmart opened 54 new stores in Mexico and 24 new stores in China. Similarly, Target opened 30 new stores and renovated 150 existing stores in the U.S. in the same year. This expansion of retail space by major players improves access to retail products, thereby propelling market growth.
Segment Analysis
The taxable retail market can be segmented into pharmaceuticals and medical devices. The pharmaceuticals segment is dominating the market currently with over 60% market share. Factors driving the pharmaceuticals segment growth include rising healthcare expenditure, growing aging population adopting prescription drugs and increasing prevalence of chronic and lifestyle diseases. Within pharmaceuticals, pain management, diabetes and cardiovascular segments hold major market share.
PEST Analysis
Political: Regulations regarding drug pricing and medical device approval process impact the taxable retail market. Recent changes in healthcare policies influence industry dynamics.
Economic: Growing GDP, increasing per capita income and health expenditure augment market growth. However, economic uncertainties and healthcare budget cuts can hamper the market.
Social: Changing lifestyles, increasing health awareness and discretionary spending on healthcare boost the market. Aging population drives demand for medicines and medical devices.
Technological: Advancements in drug delivery systems, biologics and digital technologies present new opportunities. E-commerce platforms are changing sales and distribution channels.
Key Takeaways
The Global Taxable Retail Market Size is expected to witness high growth over the forecast period supported by increasing health spending, rising chronic diseases, growing geriatric population and technological advancements. The global taxable retail Market is estimated to be valued at US$ 13.49 billion in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030.
Regional analysis: North America holds the majority market share currently led by the US market. However, Asia Pacific region is expected to grow at the fastest pace owing to healthcare modernization, rising incomes, initiatives to increase healthcare access and expansion strategies by global players in developing countries.
Key players: Key players operating in the taxable retail market are Allergan, Novartis, Pfizer, Sanofi, GlaxoSmithKline and Merck. Allergan dominates the aesthetics market while Novartis and Pfizer have strong presence across therapeutic categories. International players are increasing focus on emerging markets through direct sales network and partnerships with local players.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
