Estonia, Latvia and Lithuania are the countries, where entrepreneurship is thriving. A lot of sectors are widely developed – including the e-commerce industry. The success of such brands as Taxify or KS Digital can only confirm a really huge potential of this market.
Total Baltic population is estimated at 6 million people (including Estonia, Latvia and Lithuania). More and more experts can see the development potential of this area. In the past, a number of startups that achieved international success was founded there. When it comes to Europe, Great Britain is considered to be one of the most attractive markets. It is said that Berlin is becoming a new Europe’s Silicon Valley and great opportunities can also be found in the Nordics countries.
Obviously, all of this statements are true. However, one should not forget about the Baltics countries – Estonia, Latvia and Lithuania. In this article, we will try to show that a Baltics countries are a great place with a big potential market to launch your business. Based on our experience in cooperation with one of the largest e-commerce companies in Lithuania – KS Digital, we have decided to take a closer look at this three attractive markets.
Despite its relatively small population, Estonia is developing very dynamically in terms of entrepreneurship. The best proof is the success, which Taxify has obtained in recent years. A taxi network, which is a direct competitor of the american Uber, managed to show itself perfectly well in the market realities. So far, it has gathered over 10 million customers. A similar story can be seen with such brands as Skype, Toggl and TransferWise. All these companies developed their products in this county. In addition, the Estonian market is considered to be a good place for business development as you can find up to 125 business angels there.
In 2019 the e-commerce market in Estonia is estimated at $345 million dollars. The annual growth rate (CAGR 2019-2023) should amount to 9.3%, while by 2023 it should increase up to $493 million dollars. The fashion industry has the largest share in the market, the value of which is $130 million dollars. Currently, there are 660,000 online stores in Estonia, while in 2023 this number is expected to increase up to 690,000.
According to the World Economic Forum, Latvia ranks third in terms of early-developed entrepreneurship – just a bit behind Sweden and Estonia. This makes it a really interesting place for the activities of both investors and entrepreneurs. And what about the statistics on the e-commerce market?
Revenue on e-commerce market in 2019 is to amount up to $362 million dollars. The annual growth rate (CAGR 2019-2023) is currently 7.3%, while by 2023 it is predicted to increase to $480 million dollars. The most dynamically developing e-commerce industry is electronics and media with an annual value of $120 million dollars in 2019.
Any examples? The startups from the e-commerce market are developing at an impressive rate. CG Trader or Foodout Group may serve as quite good examples. The number of business angels that can be found on this market is also significant. According to official statistics, there are about 66 of them.
According to Payment Sense, the startup market in Lithuania is growing by more than 4% annually. In terms of investments in this country, you may find many venture capital and private equity investors, such as BaltCap, Open Circle Capital and others.
Currently, MailerLite is the most popular startup in Lithuania. It is a tool used for e-mail marketing. TransferGo, RedTrack.io and XtGem are considered to be among the most recognizable startups as well. You should not forget about business angels that are also active in Lithuania. It is estimated that over 75 are already supporting the activities of many organizations.
Just like the above mentioned countries, the e-commerce industry in Lithuania looks really good. Expected revenue in 2019 should amount to $702 million dollars. The annual growth rate (CAGR 2019-2023) is estimated at 7.9%, which should lead to an increase in the market value up to $952 million dollars in 2023. The largest segment of this market includes goods in the fields of toys, hobbies and DIY.
There is no doubt that Baltics countries are a great place with a big potential market to launch your business . The success of Taxify or KS Digital can only confirm this statement. In our opinion, in the coming years we can expect the emergence of new startups and companies that will conquer international markets.