The Global Taxable Retail Market is driven by
Increasing consumer spending

The global taxable retail market consists of retail sales of
goods such as clothing, electronics, furniture, and food that are subject to
sales tax or value-added tax. Taxable retail goods provide convenience to
consumers and help meet their daily needs. Changing lifestyle patterns and
rising disposable incomes have led to increased consumer spending on various
taxable retail products. Advances in mobile technology and the growth of
e-commerce have also enabled omnichannel retailing, allowing buyers to
conveniently purchase goods online as well as in physical stores.

The Global
Taxable Retail Market is estimated to be valued at US$ 19.15 BN in 2024 and is
expected to exhibit a CAGR of 8.0% over the forecast period 2024 To 2031.



Key Takeaways



Key players operating in the taxable retail
market



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. Major
players are focusing on adopting strategies such as mergers and acquisitions to
expand their business operations and product portfolio.



Growing demand in the market



Rising disposable incomes, growth of the middle-class population, and expanding
urbanization in developing economies are fueling the demand for Taxable
Retail Market Growth. Changing consumer lifestyles and increasing
willingness to spend on branded and premium products is another key factor
boosting market revenue. Moreover, the ease of online shopping is encouraging
more customers to purchase goods via e-commerce channels.



Global expansion of the market



Key players in the taxable retail market are focusing on tapping growth
opportunities in developing regions to further enhance their global presence.
Regions such as Asia Pacific and Latin America offer highly lucrative prospects
for market expansion attributed to steadily growing economies, rising
population, and improving living standards in these areas. Penetration of
internet and smartphones is also facilitating the growth of e-retail platforms
in emerging markets.



Market drivers



One of the key drivers for the taxable retail market is increasing consumer
spending. Growth in disposable incomes coupled with expansion of middle-class
population worldwide has boosted spending capacity of individuals on retail
goods. Changing priorities and aspirations among consumers have translated into
higher expenditure on apparel, consumer electronics, furniture, cosmetics, and
food & beverages. Rising online spending on taxable retail categories
during the pandemic is another factor behind the increasing consumer outlay.
Growing global e-commerce sales will continue driving the demand for taxable
products in the coming years.



Impact of geopolitical situation on the
growth of Taxable Retail Market



The current geopolitical tensions worldwide are impacting the growth of the taxable
retail market. Supply chain disruptions amid the Russia-Ukraine conflict and
lockdowns in China due to its zero-COVID policy are affecting the availability
of drugs. Rising crude oil and raw material prices are increasing production
costs for pharma companies. Meanwhile, soaring inflation is reducing consumer
spending power in many countries. This is posing challenges for the growth of
the retail pharmaceutical industry globally. To sustain in this dynamic
environment, companies must diversify their supply chains, look for new
partners, and focus on cost optimization. They also need to explore new markets
and enhance their digital footprint to reach more customers directly. Adopting
a flexible business model will help deal with unpredictable geopolitical and
economic scenarios going forward.



Geographical regions where the Taxable
Retail Market is concentrated in terms of value



North America currently dominates the global taxable retail market and holds
the largest share in terms of value. This is mainly attributed to the presence
of well-established healthcare systems and rising healthcare spending in the US
and Canada. According to market estimates, North America accounted for over 35%
of the total taxable retail market value in 2024. Western Europe is another
major revenue generator for this industry, driven by universal healthcare
coverage and a growing aging population demanding more drugs. Countries like
Germany, France, the UK, and Italy have emerged as value hotspots in Europe.
The taxable retail markets of these regions are highly organized and mature.



Fastest growing region for the Taxable
Retail Market



Asia Pacific is projected to be the fastest growing region for the taxable
retail market during the forecast period. This growth can be attributed to
rising incomes, growing medical insurance penetration, increasing healthcare
expenditures, and expanding base of pharmaceutical companies in emerging
markets like India, China, Indonesia, Thailand, and Vietnam. Growing awareness
about lifestyle and chronic diseases in these nations is also driving up sales
of prescription and OTC drugs. In addition, many leading global pharma
companies are focusing on establishing manufacturing facilities and R&D
centers in Asia to cater to its huge population. All these factors will likely
contribute to double-digit growth rates for the taxable retail pharmaceutical
industry in Asia Pacific.