The digital economy is nursing a severe post-pandemic hangover. After years of supercharged, lockdown-fueled growth, a new report based on investor-grade intelligence from Similarweb reveals a stark rebalancing across the tech landscape. The easy wins are over. Sectors like EdTech and Online Health, once darlings of the stay-at-home era, are now facing brutal contractions.
This isn't a crash, but a correction—a return to reality that is creating a clear divide between the winners and losers heading into the final quarter of 2025. The data shows consumers are abandoning pandemic-era habits with force. Grocery & Meal Kits are down 7%, Pet Retail has slumped 9%, and the broader EdTech and Online Health sectors have plummeted 14% and 33%, respectively. This signals a decisive shift back to in-person classrooms, doctor's offices, and grocery aisles.
But where there's decline, there's also explosive growth. The report highlights a fundamental rewiring of consumer finance. Buy Now, Pay Later (BNPL) isn’t just a trend; it’s a movement, posting a staggering 19% year-over-year growth. Klarna and Affirm are leading the charge, while Shopify’s payment ecosystem has grown an incredible 106%, cementing its position as the backbone of modern e-commerce. This fintech boom stands in sharp contrast to the struggles of legacy players, with PayPal’s growth stalling into a 3% contraction.
The Platform Wars Get Real
The most dramatic shifts are happening at the very foundations of the internet. In the cloud infrastructure wars, a titan is stumbling. Amazon AWS, the undisputed market leader for years, is in a slump with a 7% contraction in traffic. Meanwhile, Google Cloud is on a meteoric rise, surging 31% and stealing significant market share. This is one of the most significant realignments in the cloud space in years, proving that no incumbent is safe.
The same story is playing out in entertainment. The streaming wars have claimed their biggest victim yet, with Netflix suffering a painful 15% contraction. The era of a single dominant streamer is over. Instead, the "Other Content Platforms" category—a bucket including HBO Max, YouTube TV, and Prime Video—is collectively surging by 22%. Consumers are no longer loyal to one service; they're building their own à la carte entertainment bundles, leaving Netflix scrambling for answers.
This rebalancing of digital economy trends extends to social media, where legacy platforms are showing their age. Facebook continues its slow stagnation with a 6% decline, while Twitter/X is still navigating a turbulent post-acquisition reality. All the momentum has shifted to "App-based social," which grew a healthy 18%, proving the future of social is mobile, visual, and increasingly fragmented.
Even in the enterprise space, businesses are getting pickier. A slowdown in spending on CRM and Marketing SaaS tools suggests companies are tightening their belts amid economic uncertainty. The focus has shifted to tools that power remote work and creativity, with Collaboration and Design tools showing resilient growth. The message from the market is clear: the pandemic boom is over, and only the platforms providing essential, undeniable value will thrive in this new, more discerning digital economy.
