Growth Forecasts for Product Categories on Amazon to 2023
According to Insider Intelligence/eMarketer, two categories will see the strongest sales growth this year and next: Health and personal care and: Food and drinks. Both categories should see a 30-35% jump in sales share this year as well as next year if the forecast is correct.
But computer and consumer electronics will continue to be the top product categories in 2023. Statista estimates that Electronics accounts for just over 28% of sales and will continue to do so until 2027. However, a report from eMarketer points to the possibility of a sales share growth of more than 49% in 2023.
Similarly, Statista expected the fashion category to grow by 1% through 2027. But in a more recent report it claims that Clothes Amazon’s fastest growing category with a compound annual growth rate of 12.4%. Well, eMarketer expects a much bigger increase in share of sales, around 32%.
Finally, there was Statista’s older forecast Home and DIY sales will continue to account for only a tenth of sales through 2027. But eMarketer paints a different picture. The sales share of products such as office equipment, supplies, furniture and furnishings could increase by more than 49% this year and next.
Wait, there’s more! JungleScout’s Consumer Trends Report shows that out of 1,000 shoppers surveyed, GenZs and Millennials are the most likely to shop on Amazon today. And they tend to buy more groceries, cleaning supplies and nutritional supplements, and less of the other categories mentioned above.
Furthermore, more than a third of respondents do not buy any toys and games or arts and crafts from Amazon. Also, a significant number of people are buying more of each category than last year. But they don’t match those who buy less in 2023. This indicates a possible decline in sales and revenue.
It also points to last year’s “housekeeping,” as Business Insider called it. Hobbies, books, sports and gardening are no longer a priority. Post-pandemic lifestyle changes may very well make room for more immediate needs such as food, health, clothing, electronics and furniture.