by The taxable retail market includes products such as perfumes & fragrances, healthcare, beauty & personal care, food & beverages, homecare and others. These products have wider applications and are extensively used across households for daily needs. The organized retail sector for these products has rapidly expanded over the years owing to changing consumer lifestyles and preferences. Consumers are now inclined towards purchasing these products from stores that offer convenience, quality and competitive prices. The global organized retail sector now accounts for over 25% of the total retail market sales.
The Global taxable retail market is estimated to be valued at US$ 15.55 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in The Taxable Retail Market are Allergan, Novartis, Pfizer, Takeda Pharmaceutical Company, Cook Medical, Medtronic, Johnson & Johnson, AstraZeneca, GlaxoSmithKline, Sanofi, Merck, Abbott Laboratories, Bayer, Astellas Pharma, Aurobindo Pharma, Ferring Pharmaceuticals, Salix Pharmaceuticals, Eli Lilly, Bristol-Myers Squibb, Boehringer Ingelheim. The market leaders are focusing on new product launches and acquisitions to strengthen their market position.
The taxable retail market offers significant opportunities for players involved in private labeling of products. Retailers are actively focusing on private labels owing to benefits such as enhanced margins and ability to differentiate product portfolio. This is expected to drive the demand for taxable retail products.
The taxable retail market is expanding globally with companies focusing on markets in Asia Pacific and Latin America. The high population, growing economy and increasing disposable income in developing countries is attracting major retailers to expand distribution channels and invest in these emerging regions.
Market drivers
The rising penetration of smartphones and internet has enabled online and e-commerce channels to evolve as an important medium for product research and purchases. This has provided a strong impetus to the taxable retail market by improving accessibility of products. It has allowed companies to reach wider customer base and offer customised solutions based on requirements. Furthermore, the ease of purchasing through digital platforms is driving its adoption, especially among the young population.
PEST Analysis
Political: Tax legislation and changes impact consumer spending patterns. Implementation of policies supporting universal healthcare benefits drug accessibility.
Economic: GDP growth, disposable incomes, employment rates and healthcare budgets determine discretionary spend on retail healthcare and wellness products. Recessions reduce consumer optimism and purchases.
Social: Aging demographics and health awareness drive demand for preventative products. Social trends promote wellness and quality of life. Urbanization concentrates populations near retail centers.
Technological: Digital marketing influences shopping habits. eCommerce and mHealth apps expand access yet traditional stores remain significant for trusted advice and diagnostics. Automation trims costs and prices.
North America accounts for the largest share of the taxable retail healthcare market in terms of value currently. This can be attributed to factors like a growing elderly population, advanced healthcare infrastructure, and higher per capita healthcare spending compared to other regions.
The Asia Pacific region is expected to grow the fastest in this market during the forecast period. Rapid urbanization, increasing incomes, expansion of health insurance coverage and greater access to retail clinics are some of the major factors driving the growth. The rising middle class is adopting a preventive approach to healthcare encouraging self-medication and wellness spending in the region.
