Social Commerce Global Market Report 2024

The social commerce market size has grown rapidly in recent years. It will grow from $672.11 billion in 2023 to $773.84 billion in 2024 at a compound annual growth rate (CAGR) of 15.1%. The growth observed in the historic period can be linked to several factors. These include the ascent of social media platforms and their widespread influence, the boom in influencer marketing strategies, the prevalence of user-generated content, the integration of shopping features within social media platforms, the trust placed in peer recommendations by users, and the convenience and accessibility offered by these platforms. Each of these elements played a pivotal role in driving growth and engagement within the social media landscape during that period.

The social commerce market size is expected to see rapid growth in the next few years. It will grow to $1291.47 billion in 2028 at a compound annual growth rate (CAGR) of 13.7%. Anticipated growth in the forecast period is expected to be fueled by several key factors. These include the rise of live shopping experiences, the expansion and diversification of social payment options, the emergence and growth of dedicated social commerce platforms, increased engagement within niche communities, and a growing emphasis on sustainability and ethical commerce practices. Additionally, major trends projected for this period encompass the prevalence of live commerce and video shopping, the integration of augmented reality (AR) for virtual try-ons, the proliferation of shoppable content and social ads, the incorporation of chatbots and AI into social commerce platforms, and the growing adoption of marketing and affiliate programs within these platforms. These trends are poised to shape the evolution of social commerce and drive its growth in the forecast period.

The surge in social media usage is projected to steer the growth of the social commerce market in the projected period. Social media platforms such as YouTube, Facebook, and Instagram are witnessing increased traction for various purposes. The COVID-19 period has notably seen escalated social media engagement due to restrictions on physical movement, thereby channeling shopping and marketing activities through these platforms. As highlighted by the Social Network Usage & Growth Statistics report in 2021, global social media users grew from 3.48 billion in 2019 to 3.96 billion in 2020. This uptick in social media usage directly correlates with increased market demand, indicating a driving force behind the growth of the social commerce market.

The surge in mobile commerce is expected to drive the growth of the social commerce market. Mobile commerce, conducted through handheld devices, aligns with social commerce by integrating social interactions and personalized recommendations into the mobile transaction ecosystem. Data from cybercrew.uk in March 2023 illustrates a shift to mobile commerce, with 66.7% of UK shoppers embracing mobile transactions, projecting revenues surpassing £100 billion by 2024. This growth, catalyzed by over 10 million users since the pandemic, underscores the pivotal role of mobile commerce in propelling the social commerce market.

Major players in the social commerce industry are increasingly adopting a strategic partnership approach to deliver a more integrated and seamless shopping experience for users. This strategy involves companies leveraging each other's strengths and resources to achieve mutual benefits and success. A notable example is the partnership formed in November 2023 between Amazon.com, Inc., a US-based e-commerce giant, and Meta Platforms, Inc., a US-based technology company. This collaboration is deemed a significant development in the realm of social commerce, as it serves to bridge the gap between traditional e-commerce and social media, offering users a more cohesive and efficient shopping experience. Beyond enhancing user experience, this partnership strategically positions Amazon as a prominent player in the competitive landscape of social commerce, allowing it to contend with other platforms such as TikTok and Snapchat in the evolving market.

Companies in the social commerce realm are prioritizing the development of novel technologies such as live commerce and social shopping to reinforce their market positions. Myntra's launch of 'M-Live' in November 2021 exemplifies this trend, offering a real-time, video-enabled shopping experience that engages users through live video streaming and expert-hosted sessions. M-Live enhances shopping by providing interactive insights, styling tips, and instant purchasing opportunities, fostering a community-driven shopping environment through shared knowledge and social validation.

In July 2021, Klarna, a Sweden-based financial company, successfully acquired APPRL, a Swedish social commerce company, for $1 billion. This strategic acquisition aims to diversify Klarna's portfolio within the social commerce market and enhance the overall shopping experience for customers. By integrating APPRL's expertise, Klarna aims to offer a unique and more engaging shopping environment, leveraging social commerce platforms.

Major companies operating in the social commerce market report are 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.

North America was the largest region in the social commerce market share in 2023. 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. The countries covered in the social commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Social commerce encompasses various product categories including personal and beauty care, apparel, accessories, home products, health supplements, food and beverages, among others. Customers have the convenience of directly purchasing beauty and personal care items or services through dedicated social commerce apps. These platforms are accessible across diverse devices such as laptops, PCs, and mobiles, catering to different business models such as B2C, B2B, and C2C interactions. Social commerce serves both individual consumers and commercial entities, offering a versatile avenue for transactions and engagements.

The social commerce market research report is one of a series of new reports that provides social commerce market statistics, including social commerce industry global market size, regional shares, competitors with a social commerce market share, detailed social commerce market segments, market trends and opportunities, and any further data you may need to thrive in the social commerce industry. This social commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The social commerce market includes revenues earned by entities by offering services such as promoting and selling products or services within the framework of a social media platform. Social commerce is the incorporation of e-commerce and social media which is used for buying or selling goods or services directly within a social media platform such as Facebook and Instagram. It also includes local and global marketplaces, including small businesses that sell products to various social media followers and individual buyers. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.