Logistics & Industrial Capital Markets 2024 Outlook Report

E-Commerce In 2023, the share of the online retail penetration rate moderately fell; however, there has more recently been an uptick recorded, with the penetration rate currently at 12.8%. Online retail sales are expected to grow by $17.2 billion by the end of 2027, resulting in warehouse demand of 1.38 million sqm over the period. At this point, the penetration rate in Australia is forecast to total 16.5%.

Growth in online food sales will underpin the growth of e-commerce over the next five years. The online food sector has grown by approximately 30% per annum since 2017, with Australians currently spending almost $12 billion on online food goods. Significant growth is forecasted to continue, with online food sales expected to reach $19.5 billion by 2027.

Figure 20. Australian E-Commerce Market ($bn)

$20 $30 $40 $50 $60 $70 $80

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

$0 $10

2011

2021

2017

2012

2015

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2018

2016

2019

2014

2027

2022

2025

2023

2026

2024

2020

Annual Online Spend

Penetration Rate (RHS)

Source: Statista, NAB, Cushman & Wakefield

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