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Home » Information and Communication Technology » Social Commerce Market Size, Share, Global Report, 2030

Social Commerce Market By Business Model (Business to Business (B2B), Business to Consumer (B2C), Consumer to Consumer (C2C)), By Product Type (Personal & Beauty Care, Apparels, Accessories, Home Products, Health Supplements, Food & Beverage, Others), By Platform/Sales Channel (Video Commerce (Live stream + Prerecorded), Social Network-led Commerce, Social Reselling, Group Buying, Product Review Platforms), By Geography, Size, Share, Global Report, Forecast 2021-2030

Published On: Jun-2022   |   Base Year: 2021   |   No Of Pages: 140   |   Historical Data: 2015 - 2019   |   Formats: PDF   |   Report ID: 36273690

Report DescriptionTable of Contents

The global social commerce market was $0.62 trillion in 2021 and is predicted to reach $7.03 trillion by 2030, representing a CAGR of 30.8% throughout the period of 2021-2030. 

 

The social commerce industry involves promoting and selling products and services using social networking sites like Facebook, Instagram, and Twitter. For example, shoppable ads, organic shoppable posts, in-app purchases via social media and social networks, shoppable influencer content, and shoppable videos and media leading to e-commerce sites are examples of social commerce. The degree and magnitude of consumer participation in the organization’s marketing through likes, retweets, and shares determines the overall effectiveness of a social commerce effort. Social commerce has become popular recently. As per the study published on Twitter, 97.2 million people purchased through various social networks worldwide. In 2021, social commerce sales in the United States of America were expected to increase to USD 36.62 billion, with more than a 35% increase.

 

Yahoo! coined the phrase “social commerce” in November 2005 to characterize a collection of online collaborative shopping tools such as shared shopping lists, user ratings, and other user-generated content-sharing of online product information and recommendations. In 2007, social shopping sites began to grow significantly, prompting more efforts to understand consumers and build appropriate business models and tactics. Since 2010, social commerce has become one of the fastest-growing global industry.

 

Companies that employ social commerce have a constantly expanding and accessible audience. According to a study, Facebook users are expected to reach around 970 million in 2040 from 357 million in 2020. Facebook is thus the most preferred social media platform for marketing, with 93% of social commerce companies marketing on the platform. Companies can leverage increasing social media users to reach more potential customers. Social media engagement may lead to more than direct transactions. It has been demonstrated that social commerce improves visitors to the company’s website, influencing its ranking in search engine results. One of the major advantages of social commerce is the increased engagement and reach that firms can get by sharing information. The company often takes advantage of a great branding opportunity by appearing in a follower’s updates stream. The company uses social commerce to create and sustain connections with prospects by taking advantage of engagement opportunities. Social media commerce makes it simple to track and assess performance. Metrics for impressions, interactions, and reach are incorporated into Facebook pages, Instagram business accounts, and Twitter tweets which can be used to assess a company’s engagement with its prospective customers. Furthermore, most social media posts allow the company to track visitors to its website via website click counts.

 

global social commerce market segmentation analysis 2020-2030

 

Market Dynamics

Market Drivers (New Business Opportunities for Small and Medium-sized Enterprises, Change in Consumer Preferences, COVID-19 Pandemic)

  • As it has created new vistas of opportunities for medium and small-sized enterprises (SMEs), the social commerce market has grown rapidly. Compared to e-commerce platforms, buyers are more likely expected to purchase from a smaller business when buying through social commerce. According to another study, 8 to 10 American businesses anticipate selling on social media platforms within the next three years. 30% of e-Commerce companies (mostly SMEs) have started selling on social media, and 12% of them plan on selling on these platforms by 2021.

 

  • Consumer attitudes and preferences have shifted drastically in recent years. A shift in customer preferences is one of the major aspects fuelling the expansion of the social commerce market. As mobile technology has advanced, consumers have grown accustomed to quick communication, and they now expect instant customer service. Consumers express their preferences using user ratings, customer ratings, reviews, user recommendations and referrals, and forums and communities. The social commerce companies like Facebook Commerce (f-commerce) leverage these preferences using social commerce statistics, social media optimization, social advertising, augmented reality, shared pick lists,  social network-driven sales data, peer-to-peer sales platforms, group buying, peer recommendations, influencer marketing, user-curated shopping, and participatory commerce, thus driving the industry growth. According to a study, with around 56 million buyers, Facebook is among the top social commerce platforms in the US by leveraging consumer preferences. There will be approximately 10 million advertisers for various social commerce sites on Facebook in 2022. 

 

  • The COVID-19 epidemic prompted users to spend more of their time on social media platforms, prompting businesses to raise their ad spending. As a result, businesses have expanded their reach and proximity to new customers and product categories. As social separation became the norm, users gravitated toward online research and buying various products. According to a study, around 40% of Pinterest users log onto the site to research brands and products, while around 5% of consumers in the US and UK use YouTube to research or find products to buy. Customers grew more at ease and confident in investing money and time in a digital environment, clearing the path for market expansion.

 

Market Restraints (Data Privacy Concerns)

  • Concerns among the users about social media platforms’ acquisition and potential usage of personal information are developing as a potential market restraint and threat. While technological advancements are positive for the industry, any misutilization of client data can result in personal and financial damages. Because many of social media sites are not protected against hackers, consumers are concerned about unauthorized access to data. Security issues are predicted to be short-lived, as vendors/retailers collaborate with third-party payment systems to provide consumers with more secure payment options.

 

Market Opportunities (New Markets)

  • Establishing a market in newer regions like the Indonesian, Thai, Southeast Asian, US, UK, Indian, and Chinese social commerce market is expected to foster the market's growth. According to a study, more than 424 million Chinese aged 14 years and older will make at least one social purchase. The Chinese social commerce market sales reached USD 351.65 billion in 2021 due to various users purchasing products on social commerce sites.

 

Global Social Commerce Market Analysis Of Different Segments

After the global social commerce market analysis, the market is divided by business model, product type, platform/sales channel, and region.

By Business Model

  • Business to Business (B2B)

  • Business to Consumer (B2C)

  • Consumer to Consumer (C2C)

 

By Product Type

  • Personal & Beauty Care

  • Accessories

  • Apparels

  • Food & Beverages

  • Health Supplements

  • Home Products

  • Others

 

By Platform/Sales Channel

  • Video Commerce (Live stream + Prerecorded)

  • Group Buying

  • Social Reselling

  • Group Buying Social Network-led Commerce

  • Product Review Platforms

 

By Region
North America

  • United States of America

  • Canada

 

Europe

  • United Kingdom

  • Germany

  • France

  • Rest of Europe

 

Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Singapore

  • Indonesia

  • Thailand

  • Philippines

  • Malaysia

  • Vietnam

  • Rest of Asia-Pacific

 

LAMEA

  • Brazil

  • Mexico

  • South Africa

  • Rest of LAMEA

 

global social commerce market share 2020-2030

 

The B2C category has the largest global social commerce market size during the forecasted period, with a market share of around 56%. Shifts in consumer attitude and behavior and increased digitization add to the growing need for the business-to-consumer business model. Customers may easily examine, choose, and order a product while assessing it by reading reviews made by other users on social commerce sites. According to a study, around 40% of Pinterest users worldwide log onto the site to research different brands and products. According to Pinterest, 7 in 10 Pinners state that Pinterest is their go-to place to find products and services from various B2C companies.

The C2C segment is expected to have the fastest-growing global market at a CAGR of around 24% during the projected period. The C2C segment allows direct transactions between customers by having only the website act as an intermediary. C2C is rapidly becoming popular in the world.

 

In 2021, Video Commerce spearheaded and dominated the market with a 41.8% market share. The segment is also expected to have the fastest growth rate rising at a CAGR of 32.9%. Live–selling as one of the marketing methods has improved the buyer experience and sales conversion rate. It helps increase the time consumers spend on the seller’s social media pages and easily allure new customers to those pages. According to a study, around 70 percent of internet users in the United States of America who persistently watched live streams led by influencers stated that they were likely to purchase products recommended by the influencers. Instagram stories (83%) and grid posts (93%) remain the most popular types of content posted by influencers on the platform for various social commerce products.

 

The apparel segment dominated the market in 2021, accounting for around 23% of the total share of the global social commerce market. The fashion industry is the most important online business because of its demand on social media platforms and popularity. According to a survey, 25% of surveyees purchased apparel and accessories through social media. According to another study, Instagram and Facebook are the most used to discover, learn about and purchase fashion apparel products in the United States of America. More than 50% of users stated that the content they visualize on their feed resulted in a purchase.

The beauty care and personal category are expected to develop at the fastest CAGR of more than 30% during the projected period. Shoppers like online purchasing for these items since there is no need to touch and feel them, and they have complete clarity of what customers will receive after purchasing. Marketers and owners of beauty care and personal brands value targeting of the clients and product development data.

 

In 2021, Asia-Pacific had the largest market share, holding around 70% of the market share. This region’s rise is mostly attributed to increased investments in communications infrastructure, the expansion of the smartphones and internet, and the extensive reach of social media websites like Instagram, Facebook, and Twitter. Furthermore, the rising number of smartphones and users of social media in nations like China benefits the region's market growth. According to a study, there are over 1 billion smartphone users in China. The social media penetration rate in the country is about 68%. Around 633 million Chinese use Tiktok in 2022, which is expected to rise to 835 million by 2025.

North America is the fastest-growing global social commerce market segment geographically, with a CAGR of approximately 25% throughout the projection period. The rise in the number of social media users, the number of social commerce sales, and companies using various social media platforms to promote their products and services to these users contributed to the growth of this segment. According to a study, around 45.74 million sales of various products due to social commerce were expected in North America in 2022. The number of social commerce buyers were 80.1 million in 2020, and it is expected to increase to 96.1 million by 2022.

 

Report Attribute

Details

Forecast Period

2021 - 2030

Market size value in 2021

USD 0.62 trillion

Revenue forecast in 2030

USD 7.07 trillion

Growth rate

CAGR of approximately 30.8%

Base year for estimation

2021

Historical data

2015 – 2019

Unit

USD Trillion, CAGR (2021 - 2030)

Segmentation

By Business Model, By Product Type, By Platform/Sales Channel, and By Region

By Business Model

Business to Consumer (B2C), Business to Business (B2B), Consumer to Consumer (C2C)

By Product Type

Personal & Beauty Care, Apparels, Accessories, Home Products, Health Supplements, Food & Beverage, Others

By Platform/Sales Channel

Video Commerce (Prerecorded + Livestream), Social Network-led Commerce, Group Buying, Social Reselling, Product Review Platforms

By Region

Asia Pacific, North America, Europe, LAMEA

Country Scope

United States of America, Philippines, United Kingdom, Germany, France, Canada, China, Japan, India, Australia, Singapore, South Korea, Indonesia, Thailand, Malaysia, Vietnam, Brazil, Mexico, South Africa

Company Usability Profiles

Etsy, Inc., Roposo, Pinduoduo Inc., Meta Platforms, Inc. (Instagram and Facebook),Pinterest, Inc.,Fashnear Technologies Pvt Ltd ( Meesho), Poshmark, Snap, Inc., Trell Shop, TikTok (Douyin), Taobao, WeChat (Weixin) ,Twitter, Inc., Cafepress, Betabrand, Eventbrite, Lockerz.

 

Global Social Commerce Market Competitive Landscape Analysis

Companies use various strategies to maintain their shares in a competitive market, such as product/solution introduction and development, mergers and acquisitions, geographical expansion, and partnerships. The major competitors in the global market are:

  • Etsy, Inc.

  • Roposo

  • Pinduoduo Inc.

  • Meta Platforms, Inc. (Instagram and Facebook)

  • Pinterest, Inc.

  • Fashnear Technologies Private Limited (Meesho)

  • Poshmark

  • Snap, Inc.

  • Trell Shop

  • TikTok (Douyin)

  • Taobao

  • Xiaohongshu

  • Twitter, Inc.

  • WeChat (Weixin)

  • Yunji Sharing Technology Co., Ltd.

  • Cafepress

  • Betabrand

  • Eventbrite

  • Houzz

  • Groupon

  • LivingSocial

  • Lockerz Opensky

  • Lockerz

  • Polyvore

  • Soldsie

  • Solavei

  • ShopStyle (a Rakuten subsidiary)

  • Wanelo

  • TheFind

  • Fancy.com

 

social commerce market product type segment 2020-2030

 

Recent Developments

  • On June 23rd, 2022, SleekFlow, an omnichannel social commerce platform, received $8 million in funding from Tiger Global Management. This Hong-Kong-based start-up will utilize its fresh capital to penetrate into the markets of Southeast Asia, Malaysia, and Singapore, along with the UK. The recent funding will also handhold SleekFlow to ameliorate the product development with data analytics and fintech functions, in chat payment integration for Online to Offline (O2O) and single-click checkouts via social media platforms.

 

  • On June 9th, 2022, DHgate, one of China's leading cross-border e-commerce marketplaces, announced MyyShop as a one-stop social commerce SaaS platform. MyyShop assists the merchants present at a global level by considerably reducing the barrier of cross-border e-commerce business operations with a comprehensive suite of digital solutions.

 

  • In May 2022, Fashnear Technologies Private Limited (Meesho) announced its partnership with Google Cloud to power the company’s digital transformation. Meesho believes that it will gain a substantial competitive edge through this relationship as it seeks to establish an AI-first supplier experience, stronger user acquisition techniques, and a tailored purchasing experience for the country’s next billion e-commerce customers.

 

  • In October 2021, Roposo announced that the company is launching India’s first digital destination for ‘creator-led, live entertainment commerce’. The move allows Roposo to reinvent the way India purchases and boost the country’s creative economy by providing different business options to thousands of creators on a massive scale.

 

  • In July 2021, Etsy, Inc. announced the completion of its acquisition of Depop for approximately USD 1.625 Bn. Etsy believes that the acquisition will help to extend opportunities more into the high-frequency apparel sector, categorically in the fast-growing resale space that serves the Gen Z audience.

 

  • In April 2021, Pinterest announced the expansion of its partnership with Shopify to 27 new countries. Pinterest believes that the expansion will help the merchants in these countries have a wider audience to advertise their products and services.

 

  • In June 2020, Snap expanded a new type of automated advertising to businesses worldwide to make it easier for shops and brands to sell items to relevant people via the Snapchat app. Snapchat claims that the introduction of dynamic product adverts allows marketers to reach their target Gen Z and Millennial audiences with relevant product creativity throughout the customer experience.

 

Frequently Asked Question About This Report

b: The global Social Commerce Market is expected to grow at a compound annual growth rate (CAGR) of 30.8% from 2021 to 2030 to reach USD 7.03 trillion by 2030.

b: In-app purchases via organic shoppable posts, social media and social networks, shoppable influencer content, shoppable ads, and shoppable videos and media leading to e-commerce sites are examples of social commerce.

b: Social commerce promotes and sells products and services using social networking sites like Instagram, Facebook and Twitter.

b: The clothing and apparel industry is the most popular social commerce segment by product type.

b: The new business opportunities for small and medium-sized enterprises, change in consumer preferences, and the COVID-19 pandemic has made social commerce popular.

b: The global Social Commerce Market size was $0.62784 trillion in 2021 and is predicted to reach $7.03 trillion by 2030, with a CAGR of 30.8%.

.