Global Social Commerce Market Size, Share, Growth Analysis, By Business Model(B2B, B2C), By Product(Personal & Beauty Care, Apparels) - Industry Forecast 2024-2031

Global social commerce market size was valued at USD 0.72 trillion in 2022 and is poised to grow from USD 0.95 trillion in 2023 to USD 8.97 trillion by 2031, at a CAGR of 32.34% during the forecast period (2024-2031).

The significance of e-commerce in retail continues to rise, reshaping the landscape of social commerce. Over the past decades, online shopping has witnessed a substantial surge, facilitated by the widespread availability of internet connectivity and the ubiquity of smartphones across the globe. Social commerce has emerged as a novel avenue in retail, expanding consumer access to a vast array of products and catering to the escalating demand for convenience. The increasing popularity of online shopping, coupled with its inherent ease, propels the growth of social commerce. Customers now have the convenience of ordering goods from the comfort of their homes, with vendors offering a plethora of services such as discounts, cashback, swift deliveries, click-and-collect options, and enhanced shopping experiences like extended reality (ESR) and chatbot assistance. Businesses are actively investing in cutting-edge technologies like augmented reality, machine learning, and artificial intelligence to enhance the overall consumer journey. In the United States alone, social commerce sales were projected to soar by more than 35%, reaching a staggering USD 36.62 billion. The forecast period anticipates a substantial market expansion driven by the increasing convenience associated with online shopping. Noteworthy examples of social commerce platforms include industry giants like Facebook, Twitter, and Pinterest, which play a pivotal role in bridging the gap between customers and local retailers, thereby fostering the growth of local businesses.

Top-down and bottom-up approaches were used to estimate and validate the size of the global social commerce market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Social Commerce Market Segmental Analysis

Global social commerce market is segmented based on the business model, product, platform and region. By product, the market is segmented into personal & beauty care, apparels, accessories, home products, health supplements, food & beverage, others. By business model, market is segmented into b2b, c2c, b2c. By platform, the market is segmented into the video commerce, social network-led commerce, social reselling, group buying, product review platforms. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Social Commerce Market

Many businesses are using social commerce as a means to engage with their existing and prospective clientele. This trend is influenced by various factors, including the increased usage of social media platforms, with studies indicating that the average individual spends over two hours daily on these platforms. The interactive nature of social media platforms, which allows users to make purchases in a more engaging manner compared to traditional e-commerce platforms, contributes to their effectiveness as marketing tools. Consequently, social media platforms are witnessing a sustained surge in online purchasing activity. Over the past decade, social media networks have garnered significant attention and experienced rapid growth in user numbers.

Restraints in the Global Social Commerce Market

Hackers have increasingly set their sights on social media sites due to the realization that social commerce platforms handle substantial volumes of sensitive information, ranging from financial data to personal details. Any breach of data on these platforms can severely impact a company's reputation and result in emotional and financial repercussions for individuals. Moreover, there is a significant risk of data exploitation following such breaches. To mitigate these risks, businesses involved in social commerce prioritize robust data security measures and ensure the backup of essential data. Additionally, governmental organizations worldwide have enacted data security and privacy legislation to address these concerns.

Market Trends of the Global Social Commerce Market

To enhance their service offerings, social commerce organizations are swiftly integrating AI and big data technology into their operations. Big data, comprising vast repositories of offline and online data, has emerged as a valuable resource for analyzing historical trends and gaining deep insights into customer behavior, thereby enhancing overall customer satisfaction levels. The integration of big data with social commerce enables companies to leverage valuable insights to drive sales growth, attract new customers, and optimize operational efficiency.