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Report
Luxembourg E-Commerce - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)
Market Report I 2025-04-28 I 120 Pages I Mordor Intelligence
The Luxembourg E-Commerce Market is expected to register a CAGR of 8.9% during the forecast period.
Key Highlights
- Because of where Luxembourg is located, its e-commerce market can take advantage of its closeness to important e-commerce markets in Europe, such as Germany. Because of its location, it is easier for new international merchants to enter the e-commerce market in Luxembourg through cross-border e-commerce.
- The e-commerce market in Luxembourg is expected to grow because banking is easy and there are a lot of people with internet access and smartphones. This makes it easy for people to look for what they want and buy it online. According to the European Economic Forecast, the GDP in Luxembourg will slow down to 1.7% in 2023 before returning to 2.4% in 2024.
- According to a report by Datareportal, the internet penetration reached 98.7%, with 642.8 thousand internet users in Luxembourg at the start of 2023. About 868.8 thousand mobile connections were active in Luxembourg in early 2023. These online shoppers will boost the e-commerce market.
- The European E-commerce Report 2022 confirms 80% of Luxembourgers' shops are online.
- To lessen the effects of rising inflation, the government of Luxembourg decided to temporarily lower VAT rates through 2023.These changes will allow buyers to shop more and increase revenues for e-commerce players.
- During the COVID-19 pandemic, there was a sudden rise in e-commerce in the country because businesses had to use online retail to serve their customers. The scope of e-commerce expanded with new firms and consumer segments.
Luxembourg E-commerce Market Trends
Increased adoption of Digital Solutions
- As Luxembourg moves towards digitalization, e-commerce will see a broader scope of expansion in the coming years. According to Eurostat, internet access was at 97.64 percent in December 2022. In a study covering 220 countries for the world's fastest internet, Luxembourg was found at 8th place, leaving France behind at 10th and Germany at 33rd.
- Launching new programs like the GovTech Lab, an initiative of the government, or the research project at the Luxembourg Institute of Science and Technology aimed at building a digital twin of the entire nation depends on Luxembourg's desire to be at the forefront of innovation. MeluXine, a business-focused high performance computer (HPC) from Luxembourg, is ranked 36th globally and 10th in Europe in terms of overall power. Its distinctive modular architecture was created to accommodate the different processing needs of businesses.
- The Luxembourg government wants to be one of the leaders in 5G so that its people can get the most out of the latest technology to improve their quality of life and help the economy.The country's new national broadband strategy emphasizes securing private investments for gigabit objectives for 2025 in the country.
- The Luxembourg government assisted in the establishment of the Luxembourg House of Financial Technology (LHoFT), a not-for-profit partnership between the public and private sectors, as part of a larger effort to increase the country's share of the worldwide fintech industry. The LHoFT offers a method for individuals in the financial sector to identify emerging technology, businesses, and solutions.
Fashion Segment Accounts for Significant Share
- With digitalization, the Luxembourg fashion and footwear industry is catching up with demand. The Ministry for Consumer Protection has most recently supported the development of a study by Caritas on textile flows in Luxembourg.The study revealed that 12,26 kg of clothing and textiles are thrown away per person per year in the country, and this is because people are becoming more aware of the quality of the products they buy.
- Fairtrade, an NGO in Luxembourg, organized a fast-fashion escape game to reach new target audiences. It promotes the sustainable development of the textile industry. FairFashion Lab sells clothes made from Fairtrade organic cotton. Fairtrade cotton is more than 70% organic and uses between 50% and 90% less water.
- In July 2022, OCSiAl and CoatYarn will have created smart textile technology using graphene nanotubes. Electroconductive textile gloves that can be utilized by loading machine operators on touch screens are one of the end uses for this technology. Several electrostatically delicate industries, including healthcare, mining, and oil and gas, can significantly benefit from this approach.
Luxembourg E-commerce Industry Overview
The level of skill on Luxembourg's e-commerce market is about average because there are only a few big players.There are more and more local and international brands in the e-commerce market, which will soon make the market more competitive.The fashion industry is driving the e-commerce market. According to a report released by ecommerceDB, the fashion industry accounts for 38.3% of Luxembourg's eCommerce revenue.
In February 2022, the Luxembourgian government will take steps to modernize business models and digitize the financial industry. The Ministry of Finance and SnT inked the Finnovation Hub agreement to define the issues and execute digital techniques for the transformation of financial institutions.
In June 2022, DCC and Implico bought 19 retail forecourts in Luxembourg and upgraded them with new software. Besides Luxembourg, Implico supports more than 1,000 retail forecourts across Central and Northern Europe with efficient and sustainable management.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key market trends and share of e-commerce of total Retail sector
4.4 Impact of COVID-19 on the e-commerce sales
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased adoption of Digital Solutions
5.1.2 Range of payments to serve diverse and underbanked shoppers
5.2 Market Challenges
5.2.1 Legal barriers for adoption of e-commerce
5.3 Analysis of key demographic trends and patterns related to ecommerce industry in Country XX (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)
5.4 Analysis of the key modes of transaction in the ecommerce industry in the country (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)
5.5 Analysis of cross-border ecommerce industry in the country (Current market value of cross-border & key trends)
6 MARKET SEGMENTATION
6.1 By B2C ecommerce
6.1.1 Market size (GMV) for the period of 2017-2027
6.1.2 Market Segmentation - by Application
6.1.2.1 Beauty & Personal Care
6.1.2.2 Consumer Electronics
6.1.2.3 Fashion & Apparel
6.1.2.4 Food & Beverage
6.1.2.5 Furniture & Home
6.1.2.6 Others (Toys, DIY, Media, etc.)
6.2 By B2B ecommerce
6.2.1 Market size for the period of 2017-2027
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Wehkamp BV
7.1.2 Zalando SE
7.1.3 Auchan Retail
7.1.4 Luxcaddy
7.1.5 Next Germany GMBH
7.1.6 Amazon.com, Inc.
7.1.7 Alibaba Group
7.1.8 Hornbach Baumarkt AG
7.1.9 FNAC GROUP
7.1.10 Veepee
8 Investment Analysis
9 Future Outlook of the Market
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