Kazakhstan's digital commerce sector skyrockets by 42%, achieving an unprecedented $6 billion in revenues in the year 2024.
Kazakhstan's retail e-commerce market reached an unprecedented high of 3.4 billion tenge (US$6 billion) in 2024, marking a 42% increase over the previous year, according to a report by Strategy&, part of the PwC global network of firms, released on July 10.
The growth in the e-commerce sector can be attributed to simultaneous developments in infrastructure, technology, and consumer behavior. Notably, the expansion of the payment ecosystem, improvements in logistics, high internet penetration, and the digitalization of everyday processes have been key drivers of this growth.
The widespread adoption of cashless payments, user-friendly mobile apps, and simplified payment mechanisms has made online shopping accessible to a broad audience, particularly among the young, digitally active population who consider online shopping the norm. Enhanced delivery networks, new pickup points, automated sorting systems, and reliable last-mile delivery, especially in urban areas, have accelerated delivery speeds and increased trust in online channels, further reducing barriers to e-commerce adoption.
With internet penetration at about 93%, there is a solid foundation for e-commerce growth as consumers have broad access to online platforms. Ongoing efforts to digitize various services and interactions create favorable conditions for integrating e-commerce more deeply into everyday life.
The growing frequency of purchases, despite a declining average order value, reflects a maturing market where online shopping becomes part of routine consumption. This shift pushes the industry towards greater transparency, faster delivery, and a move away from rapid expansion toward more sustainable development.
Technology plays a crucial role in fueling this growth. Facilitating cashless payments and mobile app adoption, enhancing logistics technology, supporting a mobile-first shopping experience, and developing comprehensive fulfillment ecosystems have all contributed to the sector's expansion.
Online shopping is increasingly seen as a convenient, fast alternative to traditional retail in Kazakhstan. PwC Partner, Natalya Lim, stated that these factors have played a significant role in the growth of Kazakhstan's e-commerce market. However, she emphasized that continued investment in logistics, process automation, IT reliability, and service accessibility beyond major cities will be essential to maintain this momentum.
As Kazakhstan's e-commerce sector continues to grow, it positions itself among the fastest-growing globally, offering a promising landscape for businesses and consumers alike.
[1] Strategy& (2024). Kazakhstan E-commerce Market Insights Report. [2] PwC (2024). Kazakhstan E-commerce Market Growth: Factors and Trends. [3] Deloitte (2024). Leveraging Technology for E-commerce Growth in Kazakhstan.
The growth in Kazakhstan's e-commerce sector is hinged not only on retail market expansion but also on advancements in technology, such as the widespread adoption of cashless payments, user-friendly mobile apps, and logistics technology. Furthermore, the ongoing digitization of various services and interactions creates favorable conditions for the integration of technology into finance and day-to-day life, driving the sector's expansion.
