What are the key trends shaping Australia’s digital economy?
Australia’s online retail and travel market is projected to be worth $5.8 billion by 2021, up 10 per cent from the previous year and set to double in size by 2021.
The growth in online sales is expected to reach $4.7 billion by 2020, up 16 per cent on last year, and is forecast to grow by another 4 per cent annually by 2021-22.
The figures highlight the growing importance of digital in the lives of Australians, with over half of Australians now spending more than 30 minutes online each month, according to the Australian Digital Commerce Association (ADCA).
The number of people who are spending at least 30 minutes a day on social media is set to rise from just over 30 per cent of Australians in 2020 to more than 60 per cent by 2021 and 60 per 100 Australians by 2022.
In Australia, online businesses have a large presence in the retail and hospitality sectors, with online retailers such as Woolworths, Coles, Sainsbury’s and Woolworth Australia, as well as online travel agents, travel agencies and travel booking sites.
The ADCA said the rise in online commerce is also being fuelled by a greater emphasis on the sharing economy, with the sharing of ideas and technology that allows for more efficient delivery of services, and the growth of social media platforms.
While the growth in retail is expected in the next five years, the ADCA expects that online shopping to grow at an average annual rate of 9.5 per cent per annum.
The growth in tourism is projected at an annual growth rate of 6.7 per cent, with travel agencies forecast to increase the share of their revenue from online sales from 25 per cent in 2020-21 to 32 per cent to 2020-22 and 33 per cent between 2021-23 and 2022-23.
In addition, the online market is forecasted to grow from $1.2 trillion in 2020, or just over $20 billion a year, to $1 trillion in 2021-21.