How Has the Social Commerce Market Evolved Historically and What is its Current Size
The social commerce market has seen considerable growth due to a variety of factors.
• The expansion of the social commerce market has been swift in past few years. With a compound annual growth rate (CAGR) of 14.7%, the market size is projected to increase from $764.49 billion in 2024 to $877.03 billion in 2025. Factors such as the proliferation of social media platforms, the surge in influencer marketing, user-created content, the inclusion of shopping aspects, confidence in peer suggestions, and the convenience and accessibility have all contributed to the historical period's growth.
What Is The Projected Growth And Market Size For The Social Commerce
The social commerce market is expected to maintain its strong growth trajectory in upcoming years.
• The social commerce market is predicted to experience substantial expansion in the coming years, with an anticipated market size of $1453.4 billion by 2029, at a compound annual growth rate (CAGR) of 13.5%.
The expected growth during the forecast period could be due to increased live shopping experiences, the introduction of more social payment methods, the rise of social commerce platforms, the engagement of specific communities, and the focus on sustainability and ethical commerce. Key trends for the forecast period encompass live commerce and video shopping, the use of augmented reality (AR) for virtual try-ons, shoppable content and social ads, the incorporation of chatbots and AI, as well as marketing and affiliate programs.
What Are The Leading Drivers Of Growth In The Social Commerce Market?
The anticipated surge in the use of social media is predicted to fuel the expansion of the social commerce market in the projected timeline. Increasingly, individuals are utilizing social media channels such as YouTube, Facebook, and Instagram for various reasons. During the COVID-19 pandemic, social media usage has been amplified as public outings are limited and even shopping and other forms of marketing are being conducted through social media platforms. For example, We Are Social Ltd, a media firm based out of the UK, highlighted in January 2024 that social media usage saw a 1.5% increment, a significant rise from the 0.9% marked in January 2023. Therefore, the burgeoning use of social media is a crucial driver for the expansion of the social commerce market.
What Are The Main Segments Of The Global Social Commerce Market?
The social commerce market covered in this report is segmented –
1) By Product Type: Personal And Beauty Care, Apparel, Accessories, Home Products, Health Supplements, Food And Beverage, Other Products
2) By Device Type: Laptops And PCs, Mobiles, Other Devices
3) By Business Model: B2C, B2B, C2C
4) By End User: Individual, Commercial
Subsegments:
1) By Personal And Beauty Care: Skincare Products, Makeup And Cosmetics, Hair Care Products
2) By Apparel: Clothing, Footwear, Activewear
3) By Accessories: Jewelry, Bags and Purses, Watches
4) By Home Products: Furniture, Home Decor, Kitchenware
5) By Health Supplements: Vitamins and Minerals, Protein Supplements, Herbal Products
6) By Food and Beverage: Snacks, Beverages, Gourmet Foods
7) By Other Products: Electronics, Pet Supplies, Baby Products
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What Emerging Trends Are Influencing The Growth Of The Social Commerce Market?
Leading firms in the social commerce sector are turning to strategic alliances to deliver an optimized and seamless shopping journey for consumers. Strategic alliances involve collaborating and utilizing each other's unique capabilities and assets for reciprocal advantage and growth. For example, in November 2023, e-commerce giant Amazon.com, Inc. from the US formed an alliance with US technology firm Meta Platforms, Inc. This liaison is seen as a crucial breakthrough in social commerce, bridging the divide between e-commerce and social media, and offering users a more cohesive and effective shopping experience. Furthermore, it places Amazon in the forefront as a major contender in the social commerce field, alongside other platforms like TikTok and Snapchat.
Who Are the Key Players in the Social Commerce Market?
Major companies operating in the social commerce market include:
• Amazon.com Inc.
• Microsoft Corporation
• Alibaba Group Holding Limited
• Facebook Inc.
• Tencent Holdings Limited
• ByteDance Ltd.
• Instagram LLC
• YouTube LLC
• PayPal Payments Private Limited
• Salesforce.com Inc.
• Xiaohongshu Inc.
• Pinduoduo Inc.
• Adobe Inc.
• LinkedIn Corporation
• eBay Inc.
• TikTok Inc.
• Shopify Inc.
• Twitter Inc.
• Snapchat Inc.
• Pinterest Inc.
• Etsy Inc.
• Sina Corporation
• Weibo Corporation
• Wix.com Ltd.
• Squarespace Inc.
• BigCommerce Holdings Inc.
• Poshmark Inc.
• Automattic Inc.
• Renren Inc.
• Fabulous Inc.
• Big Cartel LLC
• Volusion LLC
• Ecwid Inc.
• PrestaShop SA
• OpenCart Limited
• Miva Inc.
• Zen Cart
What Is The Most Dominant Region In The Social Commerce Market?
North America was the largest region in the social commerce market share in 2024. Europe was the second-largest region in the social commerce market. The regions covered in the social commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
