The global social commerce market was valued at $784 billion in 2022, and is projected to reach $9864.6 billion by 2032, growing at a CAGR of 29% from 2023 to 2032.
The utilization of social networking sites such as Instagram, Twitter, Facebook, and others, to allow the online purchase and sale of items and services is referred to as social commerce. In simple terms, it is a type of e-commerce in which social media platforms serve as the p Incipal method of transaction. The social commerce market is a fast-expanding part of the e-commerce business, driven by the Increasing acceptance of social media sites and consumers' desire to purchase online. Social commerce allows companies to reach out and connect with customers via social media sites, resulting in a more personalized and dynamic buying experience.
The smartphone has become an integral part of a consumer's life, and its popularity has grown over the past two decades. The growth of technology and fierce competition between smartphone manufacturers have paved the way for easy availability of smartphones at an affordable price, which is Increasing the penetration of the product in different regions of the globe. According to ncbi.nlm.nih.gov in 2021, 6.4 billion individuals around the globe use a smartphone, and the growth rate is expected to see a significant rise in the upcoming years. The smartphone offers a unique shopping experience to consumers as online retail companies are launching their user-friendly websites with the integration of the latest technology such as the augmented reality that offers easy usage and a detailed experience. Major players such as OnePlus, and Oppo are collaborating with e-commerce companies and offering in-built apps on their mobile which offers them the chance to browse different products through the apps and simplify their shopping experience. All the above factors drive the popularity & adoption of using e-commerce websites and fueling the social commerce market growth.
The social commerce market is segmented into the business model, product type, sales channel, and region. By business model, the market is classified into business to consumer (B2C), business to business (B2B), and consumer to consumer (C2C). By product type, the market is classified into personal and beauty care, apparel, food & beverages, home products, health supplement, consumer electronics, and others. By sales channel, the market is divided into video commerce (live stream + prerecorded), social network-led commerce, social reselling, group buying, and product review platform. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, Turkey, and rest of LAMEA).
Players operating in the global social commerce market have adopted various developmental strategies to expand their social commerce market share, Increase profitability, and remain competitive in the market. Key players profiled in this report Include Verint Systems Inc., Snap, Inc., Trell Experience Pvt Ltd., Etsy, Inc., Poshmark, Inc., Inmobi Pte Ltd., Yunji Inc, Meta Platforms, Inc., Twitter, Inc., Alibaba Group Holding Limited, Pinduoduo Inc., ByteDance, Amazon.com, Inc., and Pinterest, Inc.
The utilization of social networking sites such as Instagram, Twitter, Facebook, and others, to allow the online purchase and sale of items and services is referred to as social commerce. In simple terms, it is a type of e-commerce in which social media platforms serve as the p Incipal method of transaction. The social commerce market is a fast-expanding part of the e-commerce business, driven by the Increasing acceptance of social media sites and consumers' desire to purchase online. Social commerce allows companies to reach out and connect with customers via social media sites, resulting in a more personalized and dynamic buying experience.
The smartphone has become an integral part of a consumer's life, and its popularity has grown over the past two decades. The growth of technology and fierce competition between smartphone manufacturers have paved the way for easy availability of smartphones at an affordable price, which is Increasing the penetration of the product in different regions of the globe. According to ncbi.nlm.nih.gov in 2021, 6.4 billion individuals around the globe use a smartphone, and the growth rate is expected to see a significant rise in the upcoming years. The smartphone offers a unique shopping experience to consumers as online retail companies are launching their user-friendly websites with the integration of the latest technology such as the augmented reality that offers easy usage and a detailed experience. Major players such as OnePlus, and Oppo are collaborating with e-commerce companies and offering in-built apps on their mobile which offers them the chance to browse different products through the apps and simplify their shopping experience. All the above factors drive the popularity & adoption of using e-commerce websites and fueling the social commerce market growth.
The social commerce market is segmented into the business model, product type, sales channel, and region. By business model, the market is classified into business to consumer (B2C), business to business (B2B), and consumer to consumer (C2C). By product type, the market is classified into personal and beauty care, apparel, food & beverages, home products, health supplement, consumer electronics, and others. By sales channel, the market is divided into video commerce (live stream + prerecorded), social network-led commerce, social reselling, group buying, and product review platform. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, Turkey, and rest of LAMEA).
Players operating in the global social commerce market have adopted various developmental strategies to expand their social commerce market share, Increase profitability, and remain competitive in the market. Key players profiled in this report Include Verint Systems Inc., Snap, Inc., Trell Experience Pvt Ltd., Etsy, Inc., Poshmark, Inc., Inmobi Pte Ltd., Yunji Inc, Meta Platforms, Inc., Twitter, Inc., Alibaba Group Holding Limited, Pinduoduo Inc., ByteDance, Amazon.com, Inc., and Pinterest, Inc.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the social commerce market analysis from 2022 to 2032 to identify the prevailing social commerce market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the social commerce market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report Includes the analysis of the regional as well as global social commerce market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Business Model
- Business to Consumer (B2C)
- Business to Business (B2B)
- Consumer to Consumer (C2C)
By Product Type
- Personal and Beauty Care
- Sub-type
- Skin and Sun Care
- Haircare
- Deodorant and Fragrances
- Makeup and Color Cosmetics
- Apparel
- Sub-type
- Clothing
- Footwear
- Food and Beverages
- Sub-type
- Food
- Beverages
- Home Products
- Health supplements
- Sub-type
- Functional Food
- Dietary Supplement
- Consumer Electronics
- Others
By Sales Channel
- Video Commerce (Live Stream + Prerecorded)
- Social Network-led Commerce
- Social Reselling
- Group Buying
- Product Review Platforms
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Netherlands
- Italy
- Spain
- Rest of Asia-Pacific
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- Turkey
- Rest of LAMEA
Key Market Players
- Alibaba Group Holding Limited
- Amazon.com, Inc.
- ByteDance
- Etsy, Inc.
- InMobi Pte Ltd
- Meta Platforms, Inc.
- Pinduoduo Inc.
- Pinterest, Inc.
- Poshmark, Inc.
- Snap, Inc.
- Tencent Holdings Limited
- Trell Experiences Pvt Ltd.
- Twitter, Inc.
- Verint Systems Inc.
- Yunji Inc.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: SOCIAL COMMERCE MARKET, BY BUSINESS MODEL
CHAPTER 5: SOCIAL COMMERCE MARKET, BY PRODUCT TYPE
CHAPTER 6: SOCIAL COMMERCE MARKET, BY SALES CHANNEL
CHAPTER 7: SOCIAL COMMERCE MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Social Commerce Market,' The social commerce market was valued at $784 billion in 2022, and is estimated to reach $9864.6 billion by 2032, growing at a CAGR of 29% from 2023 to 2032.Social commerce is the use of social networking platforms such as Facebook and Instagram, to advertise and sell goods and services. This method ensures that the majority of clients complete transactions without leaving social networking applications. In social commerce, customers peruse a brand's content before visiting its website to begin purchasing, which varies from standard social media marketing tactics. Social media sites such as Facebook Marketplace and Instagram live stores, on the other hand, serve as virtual storefronts.
Live commerce is engaging and engrossing, which keeps individuals interested and helps to increase the overall watch time of the live streaming. It also narrows client choice paths from understanding to making a purchase decision. To create a sense of urgency, social commerce businesses are utilizing time-limited strategies such as one-time discounts. Therefore, the rate of conversion for social commerce enterprises has reached 30% employing time-limited techniques, which is up to 10 times greater than for traditional e-commerce.
Furthermore, live commerce integrates rapid product purchases with audience interaction via a chat functionality or reaction icons. Live commerce has altered the retail business in China and positioned itself as a key sales channel in just over five years, evolving into a creative sales medium with an approximate penetration of 10%. Lastly, in today's social commerce environment, big-name celebrities and influencers with millions of subscribers are very difficult to employ as they charge high fees which is not feasible for a small and medium-sized enterprises.As a result, small and medium-sized businesses are turning to influencers with a few thousand loyal followers to create a more intimate and trusted relationship with consumers at a cheaper cost. The growing collaboration of influencers and businesses is expected to drive the social commerce sector.
Consumers involved in the e-commerce and social commerce markets are concerned about data privacy and the increased danger of data breaches. Many people are hesitant to share their financial and personal information with organizations, especially in light of recent high-profile data breaches and cyber attacks that have exposed customer data. As a result of their lack of trust, consumers are hesitant to join social shopping sites, limiting the expansion and acceptability of these channels.
Furthermore, the risk of data breaches has serious financial and reputational consequences for businesses. A data breach happens when sensitive consumer data is stolen, resulting in legal consequences, loss of customer confidence, and brand reputation damage. Furthermore, the costs of data breaches, such as cleanup and notification charges, as well as credit monitoring services, have a substantial influence on the company and worldwide social commerce sales and development.
Mobile commerce is a key driver of the expansion of social reselling. With the increased usage of smartphones and portable electronics, individuals can quickly explore and purchase things via various social media mediums, making social reselling simpler. Social reselling apps and websites have also grown in popularity, allowing individuals to construct and administer their online stores from their smartphones or tablet.
Furthermore, by facilitating frictionless transactions as well as payments via wireless payment methods, mobile commerce additionally contributed to the emergence of social reselling. Users can quickly complete purchases and payments using their smartphones or tablets with wireless payment alternatives such as Apple Pay, Google Wallet, and PayPal, which has enhanced confidence and convenience for consumers and sellers.
The social commerce market is segmented into the business model, product type, sales channel, and region. By business model, the market is classified into business to consumer (B2C), business to business (B2B), and consumer to consumer (C2C). By product type, the market is classified into personal and beauty care, apparel, food & beverages, home products, health supplement, consumer electronics, and others. By sales channel, the market is divided into video commerce (live stream + prerecorded), social network-led commerce, social reselling, group buying, and product review platform. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Spain, Italy, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, Turkey, and rest of LAMEA).
Players operating in the global social commerce market have adopted various developmental strategies to expand their social commerce market share, increase profitability, and remain competitive in the market. Key players profiled in this report include Verint Systems Inc., Snap, Inc., Trell Experience Pvt Ltd., Etsy, Inc., Poshmark, Inc., Inmobi Pte Ltd., Yunji Inc, Meta Platforms, Inc., Twitter, Inc., Alibaba Group Holding Limited, Pinduoduo Inc., ByteDance, Amazon.com, Inc., and Pinterest, Inc.
Key findings of the study
- On the basis of business model, business to consumer (B2C) segment dominated the social commerce industry in 2022 and is expected to retain its dominance throughout the forecast period.
- On the basis of product type, apparel segment dominated the social commerce industry in 2022 and is expected to retain its dominance throughout the forecast period.
- On the basis of sales channel, the video commerce (live stream + prerecorded) segment dominated the global market in 2022 and is expected to retain its dominance throughout the forecast period.
- Region wise, Asia-Pacific region accounted for the highest social commerce market share in 2022 and is expected to grow at a CAGR of 29.5%.
Companies Mentioned
- Alibaba Group Holding Limited
- Amazon.com, Inc.
- ByteDance
- Etsy, Inc.
- InMobi Pte Ltd
- Meta Platforms, Inc.
- Pinduoduo Inc.
- Pinterest, Inc.
- Poshmark, Inc.
- Snap, Inc.
- Tencent Holdings Limited
- Trell Experiences Pvt Ltd.
- Twitter, Inc.
- Verint Systems Inc.
- Yunji Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 381 |
| Published | May 2023 |
| Forecast Period | 2022 - 2032 |
| Estimated Market Value ( USD | $ 784 billion |
| Forecasted Market Value ( USD | $ 9864.6 billion |
| Compound Annual Growth Rate | 28.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 15 |
