The global social commerce market is anticipated to reach USD 945.92 billion in 2023. The adoption of social commerce is expected to surpass USD 13,040.3 billion by 2033. Future Market Insights forecasts the demand for social commerce to grow by 30% CAGR between 2023 and 2033.
The rapid growth of the social commerce industry is not just due to the latest trend, but a shift in the way customers shop online. With the convenience, influence, and opportunities it provides, the market is expected to continue to grow in the coming years. Social commerce takes the lead in revolutionizing the way customers shop online.
Latest Trends Driving the Adoption of Social Commerce
Social media is not only a source of entertainment, but it is also a platform that has a significant impact on purchasing decisions. People tend to buy products that have been recommended or seen by someone they trust. This trend, along with the increasing number of interested buyers from platforms like Pinterest, Snapchat, Facebook, and Instagram, is driving the market growth.
In addition, social commerce gives merchants and brands the power to combine social media and e-commerce, providing a unique branding opportunity. Brands can create an enhanced social media presence and engage with customers through daily content.
Leveling the Playing Field: Opportunities for Small Businesses
Social commerce is not just for large corporations, but it also provides opportunities for small businesses and individuals. Consumers are more likely to buy from small businesses through social commerce compared to traditional e-commerce sites. With the increasing amount of time people spend on social media platforms, small businesses can reach a wider audience and increase their sales.
Changing Consumer Preferences: Driving Market Growth
Consumers' preferences and attitudes have changed, and this shift is driving the social commerce market growth. With the innovations in mobile technology and the desire for instant customer service, consumers are looking for new ways to engage with brands using technology. Younger generations, such as millennials and Gen Z, are dominating the social commerce industry, with over 60% of purchases made through social media platforms.
Challenges Affecting the Market Growth
Despite the positive growth projections for the market in the coming years due to various benefits, there is a growing concern among social media users about the collection and potential misuse of their personal information by these platforms. This concern has the potential to hinder market growth, as users become increasingly wary of sharing their data online.
However, the market is responding to these security concerns by partnering with third-party payment platforms to offer a safer and more secure payment environment to consumers. Retailers and vendors are making efforts to ensure data privacy and reduce the risk of cyberattacks, and as such, these long-term concerns are expected to be addressed and resolved shortly.
| Attributes | Details |
|---|---|
| Social Commerce Market Estimated Year Value (2023) | USD 945.92 billion |
| Social Commerce Market Projected Year Value (2033) | USD 13,040.3 billion |
| Value CAGR (2023 to 2033) | 30% |
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The social commerce business has expanded quickly, since it has opened up new horizons of opportunity for medium and small-sized enterprises (SMEs). When purchasing through social commerce as opposed to e-commerce platforms, customers are more likely to expect to do so from a smaller company. Another study found that during the forecast period, 8 to 10 American firms plan to sell on social media platforms. 12% of e-Commerce businesses (mainly SMEs) currently sell on social media, and 30% of them want to do so by 2033.
During the forecast period, the market is projected to experience substantial growth compared to the period of 2017 to 2022. The social commerce market is likely to record a 30% CAGR from 2023 to 2033, in comparison to the 21% CAGR registered from 2017 to 2022.
Market Growth during 2023 to 2033
| USD billion 2025 | 1,598.6 |
|---|---|
| USD billion 2028 | 3,512.13 |
| USD billion 2032 | 10,031.0 |
As per FMI, the USA social commerce industry is estimated to capture a market share of around 40% in the global market. With a large number of consumers and businesses adopting social media for commerce purposes, the region is expected to continue to play a significant role in the growth of the global market. The country is considered to be a hub for technological advancements and innovation, which is one of the key factors driving the growth of the social commerce industry in the region.
The USA e-commerce industry is well-established, with a large number of online retailers operating in the country. This has led to the rise of social commerce, as consumers increasingly use social media to make purchases. Social media platforms like Facebook, Twitter, and Instagram are widely used in the country and are increasingly integrating shopping features, making it easier for consumers to make purchases directly from the platforms.
In addition, the USA has a large number of businesses that are leveraging social media for marketing and advertising purposes. Companies are investing in social media marketing to reach out to their target audience and drive sales. This is expected to drive the growth of the social commerce industry in the region.
As per FMI, the German social commerce industry is estimated to capture a market share of around 20% in the global market. With a large number of consumers and businesses adopting social media for commerce purposes, Germany is expected to continue to play a significant role in the growth of the global market.
Germany is a key player in the European social commerce industry and holds a significant share of the global market. The country has a large number of e-commerce businesses, with a well-established online shopping industry. This has led to the rise of social commerce, as consumers increasingly use social media to make purchases.
Social media platforms like Facebook, Twitter, and Instagram are widely used in Germany and are increasingly integrating shopping features, making it easier for consumers to make purchases directly from the platforms. Additionally, businesses in the country are leveraging social media for marketing and advertising purposes, providing a boost to the growth of the social commerce industry.
Germany has a high adoption rate of digital technologies and a large number of tech-savvy consumers, further driving the growth of the social commerce market in the region. The country has a strong economy, which is expected to provide further support to the growth of the market.
The Asia Pacific social commerce industry is estimated to capture a market share of around 30% in the global market. With a large number of consumers and businesses adopting social media for commerce purposes, the region is expected to continue to play a significant role in the growth of the global market.
Asia Pacific is one of the fastest-growing regions in the social commerce industry and is expected to play a significant role in the growth of the global market. The region is home to a large number of developing economies, with a growing number of consumers and businesses adopting digital technologies, including social media.
Countries like China, India, and Indonesia are witnessing rapid growth in their e-commerce industries, with a large number of consumers using social media for commerce purposes. Social media platforms like WeChat and Shopee are widely used in the region and are increasingly integrating shopping features, making it easier for consumers to make purchases directly from the platforms.
In addition, businesses in the region are increasingly leveraging social media for marketing and advertising purposes. Companies are investing in social media marketing to reach out to their target audience and drive sales, which is expected to drive the growth of the social commerce industry in the region.
As per FMI, the South Korea social commerce market is estimated to capture a market share of around 15% in the global market. With a large number of consumers and businesses adopting social media for commerce purposes, the region is expected to continue to play a significant role in the growth of the global market.
South Korea has emerged as a key player in the global social commerce industry, with a significant share of the market. The country is known for its high-tech infrastructure and widespread use of technology, which has helped to drive the growth of the social commerce industry.
In South Korea, social media platforms like KakaoTalk, Naver, and Band are widely used by consumers and businesses. These platforms have integrated shopping features, making it easier for consumers to make purchases directly from the platforms. Additionally, the country's e-commerce industry is well-established, with a large number of online retailers operating in the region.
In addition, South Korean businesses are leveraging social media for marketing and advertising purposes. Companies are investing in social media marketing to reach out to their target audience and drive sales, which is expected to drive the growth of the social commerce industry in the region.
The business-to-consumer (B2C) segment in the social commerce market has held a dominant position, with a market share of 56% in 2022. This segment is expected to continue its significant growth rate during the forecast period, driven by shifts in consumer behavior, adoption of digital modes, and rising demand for easier shopping experiences. Social commerce platforms allow customers to easily browse, select, and purchase products, while also viewing reviews from other users.
On the other hand, the customer-to-customer (C2C) segment is expected to experience a rapid growth rate of 28% during the forecast period. This segment refers to websites that act as intermediaries between customers, enabling them to switch between the roles of seller and buyer based on their needs.
The business-to-business (B2B) segment is expected to experience steady growth in the coming years, as companies and businesses use this model to sell their products and services to other buyer companies. This segment also caters to niche markets and fulfills the unique requirements of its customers.
Video Commerce dominated the social commerce market with a staggering 42.5% share in 2022, and is projected to grow at a CAGR of 33.6% in the forecast years. With live-stream shopping emerging as a popular trend, retailers are capitalizing on this opportunity to increase sales conversion rates and enhance the customer experience.
For example, Walmart Inc. entered into a partnership with TikTok and conducted a successful pilot test for live-stream shopping in December 2021. As video commerce continues to grow in popularity, key players are jumping on the bandwagon with their versions, such as YouTube Short, Snapchat Spotlight, and Instagram Reels. The boom in short-form videos, particularly in the Asia Pacific region and in Western countries, is expected to drive engagement and further boost the growth of the video commerce segment.
In 2022, the apparel industry dominated the social commerce market, with a revenue share of approximately 23.4%. Clothing and apparel is the most popular product category on social media platforms, due to their widespread popularity and demand. During the pandemic, fashion retailers have utilized social media to create unique shopping experiences, collaborate with influencers and connect with customers in new ways.
The personal and beauty care segment is poised for significant growth, with an estimated CAGR of 36.2% during the forecast period. Consumers are drawn to online shopping for personal and beauty care products, as they have a clear understanding of the product and user experience. Personal and beauty care brands place a high value on customer data and use it for targeted marketing and product development.
The social commerce industry is highly competitive, with a large number of players operating in the industry. Leading players in the market include Amazon, Facebook, Alibaba, Twitter, and Google. These companies are investing in innovation and developing new technologies to enhance the shopping experience for consumers.
Innovative Technologies by Key Players and Investment Opportunities
Amazon
Amazon is leveraging its vast e-commerce ecosystem to integrate social shopping features into its platform. The company is also investing in AI-powered recommendations and personalized shopping experiences to enhance the customer experience.
Facebook is leveraging its massive user base to drive the growth of its social commerce offerings. The company is integrating shopping features into its platform, allowing consumers to make purchases directly from the platform. Facebook is also investing in augmented reality and virtual reality technologies to enhance the shopping experience for consumers.
Alibaba
Alibaba is leveraging its expertise in e-commerce and logistics to drive the growth of its social commerce offerings. The company is integrating social shopping features into its platform, making it easier for consumers to make purchases. Alibaba is also investing in AI and machine learning technologies to enhance the shopping experience for consumers.
Twitter is leveraging its massive user base and real-time news feed to drive the growth of its social commerce offerings. The company is integrating shopping features into its platform, allowing consumers to make purchases directly from the platform. Twitter is also investing in AI-powered recommendations and personalized shopping experiences to enhance the customer experience.
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Recent Developments in the Market
The market has the potential to be worth USD 945.92 billion in 2023.
From 2017 through 2022, sales soared profoundly at a 21% HCAGR.
The market is expected to sustain growth at a 30% CAGR through 2033.
By 2033, the global market is expected to be around USD 13,040.3 billion.
With a market share of 56%, the business-to-consumer (B2C) segment prevails.
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