Insights into the growth of Estonia’s ecommerce market profiling payment methods, target audiences, marketing, social media, economy and logistics
Economy
Estonia is home to 1.3 million people with a total GDP of US$31 billion. GDP per capita is currently US$26,469 and expected to reach US$36,346 by 2025. It’s ranked as the 41st richest country in the world by the World Bank’s GDP per capita ranking.
See other opportunities in exciting markets like Slovakia, Hungary and Russia.
Digital User Insights
There are currently 700,000 ecommerce users in Estonia with 100,000 new users shopping online by 2025. The average user spends US$549 online, which will grow to US$567 by 2025.
Product Categories
Total ecommerce revenue across all product categories is US$405 million, expected to reach US$470 million. Toys, Hobbies & DIY is currently the leading product category accounting for US$114 million market share. Electronics is the second leading product category accounting for US$106 million.
By 2025, Toys, Hobbies & DIY will continue to lead, valued at US$127 million. Electronics & Media will remain in second place, reaching US$122 million.
Logistics
In 2018, Estonia ranked 36th in the World Bank Logistics ranking. 69% of Estonia’s population reside in urban areas.
Preferred Online Payments
Estonia’s population use a variety of online payment methods with 33% of shoppers choosing to use credit cards. Bank transfers and eWallets are also popular, accounting for 10% and 8% of online purchases respectively.
Where does the Estonia buy from?
Estonia from Russia (US$2.5 billion), Germany (US$1.94 billion), Finland (US$1.79 billion), Lithuania (US$1.5 billion), and Latvia (US$1.46 billion).
Internet and Device Usage
Internet penetration in Estonia is currently at 82%, and should reach 85% by 2025. Smartphone penetration is 62% and is projected to grow to 63% by 2025.
96% of online shoppers in Estonia shop online via desktop. 48% of shoppers make purchases via mobile, and 8% made their most recent purchase via tablet.
Marketing
Total Marketing spend in Estonia has risen steadily in recent years, and brands are increasingly turning to Digital and TV advertising. Digital currently accounts for US$31.4 million of advertising spend, with TV accounting for US$29 million advertising spend.
Social Media
Estonia’s social media penetration is currently 82% expected to reach 85% by 2025. Popular networks include Facebook, Pinterest, Twitter and Reddit.
For more market insights, check out the ESW series of blogs covering a range of emerging ecommerce markets.
*Insights derived from ESW data, Statista, WorldBank, OECD and other industry sources.
