The insight: Temu’s European expansion—and advertising blitz—is delivering substantial growth.

• Over 25% of the EU’s population—115.7 million people—made at least one purchase on Temu in the first six months of 2025, according to the company’s most recent transparency report.
• The ecommerce company’s EU revenues soared 124% YoY in 2024, while profits jumped 171%, The Guardian reported.

Why it matters: Temu’s meteoric rise in the EU shows the wide-ranging appeal of its bargain goods, particularly as uncertainty pushes shoppers to prioritize low prices above nearly everything else. That trend is also benefiting rival Shein, which is in the process of opening brick-and-mortar stores in France.

While EU shoppers can’t get enough of Temu and Shein, governments in the region are doing everything they can to slow the two retailers’ ascent.

• Temu is facing an antitrust probe in Germany over whether the company illegally influences third-party pricing on its marketplace.
• Both companies could be banned from advertising in France under a proposed bill to regulate fast-fashion retailers.
• EU member states are moving to implement parcel fees to curb the flow of imports. Romania introduced a €5 ($5.40) fee in August, while the Netherlands and Poland are considering similar initiatives.
• A proposal to impose a €2 ($2.16) surcharge on low-cost imports into the EU is also in the works.

Our take: The challenging economic climate is a prime opportunity for Temu to extend its hold on European shoppers—but its ability to do so may soon be hampered by regulatory efforts to change its pricing and advertising tactics.