Taxable Retail Market is Anticipated to Witness High Growth Owing...

Taxable Retail Market is Anticipated to Witness High Growth Owing to Increasing Government Initiatives to Regulate Taxation

Posted 2024-03-14 07:40:31

The taxable retail market covers a wide range of products including groceries, clothing, electronics, fuel, automobiles, home furnishings, and personal care products and services that attract various local, state, and federal taxes. The growing consumer demand for these goods along with rising disposable incomes has been driving the expansion of the taxable retail sector globally. However, frequent changes in tax codes and policies at national and local levels pose compliance challenges for retailers. Governments are now introducing digital solutions and initiatives to streamline tax and regulatory systems, which is expected to create transparency and support market growth.

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 from 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. These players are focusing on partnerships, new product launches, and expanding their physical presence across various untapped markets to strengthen their positions.

The key opportunities in the taxable retail market include rising demand from tier 2 and tier 3 cities in emerging economies, growing popularity of online shopping, and expansion of private label brands offering high-quality goods at competitive prices. The companies are investing in R&D to develop innovative products as well as exploring overseas markets through joint ventures and strategic collaborations with local players.

Globally, the taxable retail industry players are expanding their footprint in Asia Pacific and Latin American regions where spending power is increasing steadily. These areas provide a lucrative growth avenue owing to growing middle-class population and rapid urbanization. Partnerships with regional e-commerce giants can help global retailers penetrate new Asian and Latin American cities effectively.

Market Drivers
The primary driver for the taxable retail market is the increasing consumer spending on daily necessities and discretionary items. Driven by rising employment rates and favorable income levels, people now have more money to spend on their lifestyles and comforts. This bolsters the demand for diverse retail goods and services available in the market.

Market Restraints
Frequent changes in the global trade policies and significant variations in tax rates across jurisdictions pose challenges for retailers operating internationally. With new protectionist tendencies, complications in overseas expansions have increased. Additionally, growing consumer preference for less taxed items like organic and private label products is negatively impacting some established taxable categories.

Segment Analysis
The taxable retail market can be segmented based on type of drug into generics and branded drugs. The generics drug segment dominates the market currently accounting for over 60% share. This is because generics drugs are much more affordable than branded drugs offering similar therapeutic efficacy. The affordability of generics drugs make them highly preferable for mass consumption.

Global Analysis
Regionally, North America is the largest market for taxable retail drugs currently accounting for over 35% of global sales. This is due to factors such as rising healthcare spending in United States, presence of major pharmaceutical companies, and preference for branded drugs amongst consumers for perceived higher efficacy. Asia Pacific is the fastest growing regional market projected to expand at around 8% CAGR during the forecast period. This can be attributed to expansion of healthcare infrastructure, growing medical insurance penetration, increasing affordability of medicines in major countries like India and China driving higher demand.

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