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Singapore’s e-commerce growth in a post-pandemic world

5 minutes
two girls packing goods for their e-commerce storefront

The e-commerce landscape in Singapore has experienced remarkable growth in recent years — accelerated largely by the pandemic’s profound impact on consumer behavior. In 2020, as lockdowns shuttered non-essential businesses and confined consumers to their homes, online shopping quickly became a necessity rather than a convenience. This shift in purchasing habits laid the foundation for long-term digital adoption.

Fast forward to today, and Singapore’s e-commerce market continues to thrive. According to Statista, revenue in the sector is expected to grow by nearly 43% between 2025 and 2029, reaching an estimated US$8.3 billion1. As consumer preferences continue to evolve and digital channels mature, businesses must understand the trends shaping this growth, and how to stay ahead in a highly competitive market.

The pandemic’s catalyst: Accelerating e-commerce adoption

Increased online grocery shopping

COVID-19 fundamentally changed how Singaporeans shop for essentials. As physical stores shut down during lockdowns, consumers quickly turned to digital solutions, especially for groceries. What began as a short-term necessity has evolved into a long-term habit, with online grocery services now deeply embedded in Singapore’s retail ecosystem.

According to Market Data Forecast, the Singapore online grocery market was valued at USD 1.4 billion in 2024 and is projected to reach USD 2.3 billion by 2033, growing at a CAGR of 9.1%2. This surge is driven by convenience, urban lifestyles, and the proliferation of mobile apps that make ordering food as easy as a tap.

Some online grocery platforms offer same-day delivery, curated meal kits, and subscription services tailored to time-strapped households. For local retailers, this marks a major e-commerce market opportunity — one that demands speed, flexibility, and reliable logistics to meet evolving consumer expectations.

Rise of home-based entertainment purchases

As daily routines shifted during the pandemic, so did how people relax and unwind. In Singapore, demand for home-based entertainment soared, with consumers investing more in streaming subscriptions, smart TVs, and audio systems to create immersive experiences at home.

According to Statista, the home entertainment market in Singapore is projected to reach a volume of US$32.1 million by 2029, with household penetration expected to climb from 23.7% in 2025 to over 56% in just four years3. The number of active households is forecasted to hit 1.1 million by 2029 — reflecting a steady shift in consumer behavior.

Streaming platforms like Netflix, Disney+, and Amazon Prime Video are leading the charge, offering on-demand access to content across genres and languages. At the same time, there’s growing interest in smart entertainment systems — from large-screen TVs to voice-controlled devices — that elevate the in-home experience.

Expansion of digital payment adoption

asian woman using her phone to pay online

One notable consumer trend shaping Singapore’s e-commerce growth is the widespread adoption of digital payments. As of 2023, nearly two million people in Singapore were using mobile wallets4. This is a number that continues to rise as consumers prioritize speed, security, and convenience at checkout.

Contactless payment options like PayNow and GrabPay have become everyday essentials, offering seamless integration with mobile apps, rewards systems, and even ride-hailing or food delivery platforms. The introduction of Singapore Quick Response Code (SGQR) has also played a key role in standardizing QR code payments, further streamlining the process for consumers and businesses alike.

Challenges and opportunities for Singaporean e-commerce businesses

Singapore’s digital economy is growing rapidly, but with growth comes increasing competition and rising customer expectations. For local e-commerce businesses, staying ahead means navigating a dynamic landscape shaped by both global and local influences.

Competition from international players

With Singapore’s open economy and digitally connected population, international e-commerce giants are never more than a click away. Platforms like Amazon, Shopee, and Shein have strong brand recognition and aggressive pricing strategies, making it challenging for smaller or local businesses to compete purely on cost.

To stand out, Singaporean brands need to lean into their unique value propositions — whether it’s offering curated local products, personalized service, or faster delivery. Differentiation can also come from showcasing authenticity and aligning with local values, such as sustainability or community support. Delivering a high-touch customer experience can go a long way in fostering loyalty in an increasingly crowded marketplace.

Maintaining a seamless omnichannel experience

Singaporean consumers don’t shop in silos. A typical buying journey might begin with a TikTok product recommendation, move to a marketplace for reviews, and end with an in-store pickup — all in the same day. Businesses must ensure consistency across every channel, from mobile apps and websites to pop-up shops and retail counters.

The challenge lies in integrating these touchpoints into a unified experience. Inventory visibility, consistent pricing, synchronized promotions, and centralized customer data are all crucial to making omnichannel retail work. For businesses that get it right, the reward is stronger engagement and a more loyal customer base.

Heightened demand for fast and flexible delivery

Singaporean consumers expect speed; not just from checkout to delivery, but at every stage of the e-commerce journey. Same-day or next-day shipping is no longer a luxury. It’s a baseline expectation, especially for high-demand categories like fashion, electronics, and health products.

To meet these expectations, businesses must invest in logistics that are not only fast but also flexible. This means offering delivery options that fit into customers’ busy schedules — whether that’s express international shipping for overseas buyers or time-definite delivery for urgent local orders.

That’s where a partner like DHL Express comes in. With a global network spanning over 220 countries and territories and robust last-mile capabilities in Singapore, DHL Express empowers businesses to deliver reliably and on time. Features like real-time tracking and customizable delivery options help enhance transparency and customer satisfaction — two things Singaporean shoppers increasingly value.

Lead Singapore’s e-commerce evolution

The pandemic may have been the initial catalyst, but it’s consumer expectations, digital innovation, and seamless logistics that continue to drive momentum today. As online shopping becomes more ingrained in daily life, businesses must remain agile — adapting to new trends, offering more personalized experiences, and delivering on the promise of speed and reliability.

Work with DHL Express to deliver faster, go further, and grow smarter in today’s competitive e-commerce landscape.

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1. Statista, April 2025

2. Market Data Forecast, March 2025

3. Statista, October 2024

4. Statista, April 2025