Social Commerce Market

Global Social Commerce Market Size (2024 to 2029)

The global social commerce market is predicted to reach USD 1,290 billion in 2024 and USD 4,503 billion by 2029, growing at a CAGR of 28.4% during the forecast period.

Social commerce is an extended part of electronic commerce and refers to the buying and selling activities that occur, particularly on different social media platforms. Social commerce includes local and global markets made up of small and large companies selling their products to various social media followers and individual buyers. Well-known social media platforms such as Facebook, Twitter, and Instagram are used for social communications, while online sales platforms are generally used for shopping.

Current Scenario of the Global Social Commerce Market

Social commerce involves using social media websites to sell and promote products and services. Demand for social commerce is expected to accelerate due to the convenience of shopping, and increased penetration of smartphones and social media are some of the factors contributing to the growth of the market. Various e-commerce vendors advertise their products on social media platforms to reach a wider customer base. Social media platforms help these e-commerce businesses target new customers through product-related posts. When users share these posts, it helps them reach new customers. Thus, social commerce is slowly gaining ground, a trend expected to continue throughout the foreseen period.

MARKET TRENDS

All over the world, the spread of social networks coupled with the rapid growth of e-commerce is leading to the convergence of new trends in messaging, content sharing, and payment. In social commerce, social interactions and the transactional nature of e-commerce translate significantly into new shopping experiences in connected, collaborative environments. In recent years, consumers have focused more on e-commerce and primarily prefer unified payment options.

In addition, consumers' changing lifestyles and the trend towards convenience are driving the growth of the global social commerce market. Customers now want to stay on top of the latest trends and, therefore, prefer promotions offered by retailers and discounts through e-commerce channels.

This factor's impact is estimated to be high throughout the forecast period. Social commerce is on the rise worldwide, driven by the growing penetration of social media alongside e-commerce. This is likely to boost the global social commerce market for years to come.

MARKET DRIVERS

Large numbers of social media users in the world are expected to drive the growth of the social commerce market. Due to the increasing number of social media users, retailers in the Asia Pacific region use social media platforms like Facebook, Instagram, and Twitter to market their products. While the growth of the social commerce market looks promising, consumer data privacy concerns will challenge the growth of the industry. Retailers in this space are leveraging technologies such as AI, big data, and blockchain to improve the shopping experience for customers, which will play a central role in the growth of the industry. However, these technologies are in an evolving phase, and use cases are steadily explored in the social commerce industry. Therefore, privacy concerns and the incidence of cyber-attacks can hamper the growth of the market to some extent.

MARKET RESTRAINTS

Social commerce is an important online shopping channel through social media platforms such as Facebook, Twitter, and Instagram. However, these social media platforms have privacy and security issues in terms of customer data (identity, bank details, etc.). Therefore, security and privacy concerns are supposed to hamper the global market for social commerce.

REPORT COVERAGE

REGIONAL ANALYSIS

The North American social Commerce Market is expected to account for a significant portion of the global social commerce market during the conjecture period due to the increasing adoption of artificial intelligence (AI) technology in e-commerce, indicating potential market growth in the coming days.

Europe is expected to be the second largest social trading market from 2020 to 2030.

Asia-Pacific accounted for the largest share of revenue at 68.47% in 2020. Factors driving regional market growth include increased investment in telecommunications infrastructure, growing demand for smartphones, and widespread site reach on social media websites such as Facebook, Twitter, and Instagram. The increasing number of smartphones and social media users in countries such as China and India is greatly driving the growth of the regional market. Asia-Pacific is also expected to be a fast-growing market for social commerce during the forecast period due to the growth of the e-commerce industry, especially in India, Japan and China.

KEY PLAYERS IN THE GLOBAL SOCIAL COMMERCE MARKET

Some prominent players in the global social commerce market include

• Etsy, Inc.
• Fabulous
• Facebook
• PayPal Payments Private Limited
• Pinterest
• Poshmark, Inc.
• Reddit Inc.
• SINA Corp.
• Taobao (Alibaba.com)
• Twitter, Inc.

RECENT HAPPENINGS IN THE GLOBAL SOCIAL COMMERCE MARKET

• In November 2020, Facebook announced that it had signed an agreement to acquire Kustomer, which specializes in chatbots and customer service platforms, as part of an effort to help companies use Facebook to do business.

DETAILED SEGMENTATION OF THE GLOBAL SOCIAL COMMERCE MARKET INCLUDED IN THIS REPORT

This global report on the social commerce market is segmented and sub-segmented based on the channel, device type, end user, and region.

By Channel

• B2B
• B2C
• C2C

By Device Type

• Smartphone
• Laptop
• Tablets

By End-User

• Individual
• Commercial

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa.