Malta E-commerce Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Key Highlights

• The Maltese government has been working on expanding the IT sector in recent years, assuring good service standards across Malta and Gozo. The Malta Information Technology Agency's E-Government service is the Maltese government's electronic delivery of public information and services to individuals and businesses. Consumers increasingly use mobile devices (smartphones and tablets) to access the internet.
• While Maltese customers still prefer conventional shopping, microenterprises, SMEs, and major firms have recognized the potential benefits of digital technologies. According to a study by the Malta Communications Authority, the internet is frequently used by consumers seeking information before purchasing in-store or online, and 70% of internet users research products before purchasing them.
• The United Kingdom is Malta's most popular internet shopping destination, followed by China and the United States. Only a third of digital buyers, however, shop on domestic websites. The primary reasons for not shopping online from local websites are the lower costs and limited product selection compared to overseas companies.
• COVID-19 has compelled numerous businesses to strengthen their online presence, steadily increasing e-commerce sales. In addition, the legislation imposed requirements to ensure adequate levels of transparency in online commercial communications.
• As a result of the pandemic-related restrictions, consumers, whether they are frequent e-Commerce users or prefer to shop in-store, changed their shopping patterns. According to a recent poll by the Malta Communications Authority, 27% of internet users said they increased their online buying during COVID-19, while only 1% said they made their first online purchase. Another 57% said their digital buying habits haven't changed.

Key Market Trends

Increase in Initiatives by Government is Expected to Boost the E-commerce Market

• Malta, despite its modest size, has a sophisticated telecommunications network. Internet connection is widely available, with internet service providers such as Melita, Go, and Vodafone offering various connectivity options. The public and private sectors provide free internet access via various Wi-Fi hotspots. The Malta Communications Authority (MCA) manages around 190 free Wi-Fi hotspots throughout Malta and Gonzo, including most public gardens.
• The Maltese government has been working on expanding the IT sector in recent years, assuring good service standards across Malta and Gozo. The Malta Information Technology Agency's E-Government service is the Maltese government's electronic delivery of public information and services to individuals and businesses.
• More than three-quarters of Maltese people presently use the Internet. Since 2006, when the government issued the Electronic Commerce Act requirements, which compel information service providers to provide basic identifying information to clients, e-commerce, whether business to consumer (B2C) or business to business (B2B), has expanded swiftly. Malta is the EU's second-best performer in electronic data exchange sales. Cross-border purchases of clothing and athletic products are the most common.

Growing B2C E-commerce

• More than 3/4th of Maltese individuals now use the Internet. E-commerce, whether business to consumer (B2C) or business to business (B2B), has evolved rapidly since 2006 when the government published the Electronic Commerce Act regulations, which require information service providers to furnish basic identifying information to customers. The rules also established obligations ensuring appropriate levels of transparency concerning online commercial communications. As a result, E-commerce in Malta experienced a notable boost over the past years, with consumers, businesses, and the government realizing E-commerce's potential opportunities and advantages.
• COVID-19 has resulted in many businesses shifting to a stronger online presence, leading to increased e-commerce sales. The government's E-commerce Digital Strategy, which covered seven years from 2014-2020, ensured that businesses have the necessary means and skills to capitalize on opportunities brought about by E-commerce.
• The strategy had set out four different targets to achieve its objectives: Engendering trust in E-commerce; Taking SMEs and industry to the next level; Transforming micro-enterprises, and pushing Malta as a major e-commerce player.

Competitive Landscape

• In 2021: Zalando made more progress toward its goal of establishing a sustainable fashion platform that benefits both people and the environment. Zalando has teamed up with the brand, logistics, and packaging partners to set science-based targets covering 51% of supplier-related emissions.
• November 2020: Apple has introduced an industry-leading new developer program to help small companies and independent developers accelerate innovation and move their businesses forward with the next generation of revolutionary apps on the App Store. The new App Store, Small Business Program, will help the vast majority of developers that offer digital goods and services on the store by lowering commissions on paid apps and in-app purchases.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support