The European E-commerce Report 2025 reveals a sector that refuses to stand still. With B2C turnover projected to rise another 7% in 2025, Europe’s e-commerce sector is on course for another record-breaking year. But behind the headline number lies a story of sharp regional contrasts, shifting consumer behaviour, and mounting pressure from global competition.
In 2024, Europe’s online retail turnover climbed to €819 billion, up from €765 billion the year before. While the overall picture looks positive, the pace of growth varied dramatically across regions, as the European E-commerce Report 2025 shows:
- Eastern Europe surged by 18%, the fastest on the continent.
- Southern Europe posted a healthy 9% gain, reaching €182.9 billion.
- Central Europe grew 8%, edging past €85.9 billion.
- Northern Europe kept pace with the continental average at 7%.
- Western Europe, despite being the largest region, grew just 5%, a sign of market maturity.
These differences underscore the fragmented nature of the European digital economy. Mature markets are stabilising, while emerging ones are accelerating at breakneck speed.
France tops the charts, but surprises emerge
For the first time, France overtook the UK as Europe’s largest e-commerce market, recording €175.3 billion in turnover. The UK, now measured on goods-only sales, slipped to second place at €127 billion. Spain leapfrogged Germany to claim third, with €95.2 billion compared to Germany’s €94 billion.
Other highlights include:
- Ukraine: recovery-driven surge of 92%
- Italy: €58.5 billion
- Poland: €43.4 billion
- Bosnia and Herzegovina: fastest growth at 117%, boosted by new measurement methods
By contrast, mature markets like Germany and the Czech Republic reported no growth, showing how differently national markets are evolving.
Inflation eases, real growth returns
After a difficult 2023 with 6.1% inflation, 2024 saw price pressures cool to 2.6%. This shift enabled 4.2% real growth in online retail across Europe.
Even after adjusting for inflation:
- Western Europe lagged at 3%, proving that slowing inflation alone can’t revive saturated markets.
- Eastern Europe still outperformed, with 10% real growth.
- Southern Europe achieved 7%, while Central Europe saw 5%.
Internet and e-shopper expansion nears its peak
The European E-commerce Report 2025 shows digital access reaching near-universal levels. Internet penetration hit 93% in 2024 and is expected to reach 94% in 2025. Northern and Western Europe are almost fully connected, while Eastern Europe lags at 85%.
Shopping behaviour is catching up fast. 73% of Europeans aged 16–74 now buy online, up from 71% a year earlier. Yet the gap between leaders and laggards is stark:
- Moldova sits at the bottom with just 27%, while Albania (38%) and Bosnia and Herzegovina (44%) also remain far behind.
- Ireland tops the list with 95% of adults shopping online, followed closely by the Netherlands (94%).
For retailers, this split signals where the growth opportunities still lie.
Sustainability, AI, and competition define the future
The report highlights three big forces shaping Europe’s digital retail future:
- Global competition heating up – EU-based businesses face increasing pressure from non-EU rivals who often avoid strict regulations, taxation, and product standards
- Sustainability on the rise – from second-hand marketplaces to eco-friendly delivery fleets, green practices are no longer optional.
- AI as a game-changer – companies are deploying artificial intelligence to personalise shopping, optimise logistics, and improve customer service, though SMEs struggle with adoption.
Consumers demand flexibility and value
Shoppers aren’t just buying more – they’re buying differently. Home delivery still dominates, but click-and-collect, parcel lockers, and mobile wallets are gaining traction. Economic uncertainty means more people are comparing prices across borders, delaying big-ticket purchases, or opting for refurbished and second-hand goods.
This shift in behaviour reflects a new reality: Europe’s e-commerce boom is no longer just about growth; it’s about adapting to consumers who want choice, affordability, and sustainability.
Final takeaway
The European E-commerce Report 2025 makes one thing clear: the Europe’s e-commerce sector is thriving but fractured. With 7% growth projected in 2025, online retail continues its unstoppable climb. Yet businesses that succeed will be those that adapt – whether by embracing sustainability, navigating regulatory hurdles, or innovating with AI.
Europe’s e-commerce future isn’t just about size. It’s about who can stay competitive in a rapidly changing, increasingly demanding market.
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