Online retail in Germany regains momentum in 2025, driven by FMCG and digital transformation
Written by
Editorial TeamPublished on
Online retail in Germany is regaining momentum in 2025, with growth of up to 5.7%. Discover key drivers, sector performance, and forecasts through 2029.
Online retail in Germany shows strong recovery in 2025
After several difficult years shaped by economic uncertainty and restrained consumer spending, online retail in Germany is clearly gaining momentum again in 2025. According to new data from IFH KÖLN, B2C e-commerce is continuing the recovery that began in 2024, demonstrating renewed resilience despite inflationary pressure and subdued consumer confidence. The figures highlight that digital commerce is no longer simply rebounding—it is strengthening its structural role within the German retail ecosystem.
This renewed momentum is reflected in expected revenue growth of between 2.7% and 5.7% in 2025, following a 3.8% increase in the previous year. In an optimistic scenario, Germany’s online retail market could reach up to €110 billion, reinforcing e-commerce as a central pillar of retail rather than a supplementary channel.
What is driving online retail growth?
A key factor behind this positive development is the ongoing digital transformation of traditional retailers. More brick-and-mortar businesses are investing in omnichannel strategies, while smartphones and social media platforms increasingly guide purchasing decisions. As digital touchpoints become a natural part of everyday life, consumers are shifting more of their shopping activity online—often seamlessly and without conscious intent.
At the same time, structural changes in physical retail are accelerating online adoption. Declining store density and local supply gaps, particularly outside major urban areas, are making online shopping a practical necessity. In many regions, e-commerce is stepping in to compensate for reduced offline availability, further strengthening its relevance.
Sector performance: FMCG leads the market
Across nearly all industries, online channels are outperforming overall market development, with fast-moving consumer goods (FMCG) remaining the dominant growth driver. The sector is recording online gains of up to 14.6%, reflecting strong consumer demand for convenience, speed, and reliable access to everyday products.
Food retail plays a central role within this growth. Large providers are expanding delivery coverage, while quick-commerce services are regaining importance in select markets. Fast availability and flexible delivery options are resonating strongly with consumers and reinforcing FMCG’s leading position in online retail growth.
Health & wellness gains ground while home & living trails
Beyond FMCG, the Health & Wellness sector has emerged as the second-strongest online performer, achieving growth of up to 8.8%. Increased health awareness and improved digital service offerings are encouraging consumers to purchase these products online with greater confidence.
In contrast, Home & Living remains the weakest-performing sector in online terms, although it still achieves moderate growth of up to 2.9%. This suggests that while digital adoption is progressing, certain product categories continue to rely more heavily on physical retail experiences.
Long-term outlook: Online retail growth through 2029
Looking ahead, the long-term outlook for online retail in Germany remains clearly positive. Scenario-based forecasts from IFH KÖLN show continued growth under all assumptions. In the medium scenario, which extends current market dynamics, online retail is expected to grow by an average of 4.2% per year through 2029.
This trajectory would result in online retail revenues of approximately €128 billion by 2029, with upside potential of up to €141 billion if growth accelerates. Even conservative projections point to sustained expansion, underscoring the durability of e-commerce as a growth engine.
Conclusion: Online retail becomes a structural growth driver
Overall, online retail growth in Germany in 2025 reflects a long-term structural shift rather than a temporary rebound. With FMCG and Health & Wellness leading the way, digital channels are becoming indispensable across sectors. For retailers, continued investment in digital infrastructure, logistics, and customer experience will be essential to remaining competitive in an increasingly online-first retail landscape.
