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Navigating the Future: Social Commerce Market Trends and Forecast Insights, 2025 Edition
Social Commerce Market
Social Commerce Market Size Growth Forecast: What to Expect by 2025?
In recent years, we've seen a quick-paced growth in the social commerce market, which is projected to expand from $764.49 billion in 2024 to reach $877.03 billion in 2025, indicating a Compound Annual Growth Rate (CAGR) of 14.7%. This growth in the historical period is due to factors such as the upsurge of social media platforms, the popularity of influencer marketing, the presence of user-generated content, the integration of shopping features, faith in recommendations from peers, and the high level of convenience and accessibility.
How Will the Social Commerce Market Size Evolve and Grow by 2029?
The anticipated expeditious expansion of the social commerce market in the upcoming years will see it reach a value of $1453.4 billion by 2029, at a compound annual growth rate (CAGR) of 13.5%. This forthcoming surge is accredited to the advent of live shopping experiences, growth of social payment methods, debut of social commerce channels, niche community interaction, adherence to sustainability, and ethical trading. The forecast period will witness trends such as live commerce and video shopping, the application of augmented reality (AR) for virtual try-outs, commercially viable content and social advertisements, the fusion of chatbots and AI, alongside marketing and affiliate programs.
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What Drivers Are Propelling the Growth of Social Commerce Market Forward?
The anticipated rise in social media utilization will likely fuel the expansion of the social commerce market over the projected period. Social media platforms such as YouTube, Facebook, and Instagram are being increasingly used for a variety of functions. The use of social media has been on the rise during the COVID-19 pandemic, with people being confined to their homes and resorts to online shopping and marketing via social media. For example, according to We Are Social Ltd, a British media firm, there was a jump in social media usage from 0.9% in January 2023 to 1.5% in January 2024. Hence, the surge in social media utilization is propelling the social commerce market's growth.
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Which Emerging Trends Are Transforming the Social Commerce Market in 2025?
Leading firms in the social commerce sector are strategically collaborating to offer a more cohesive and efficient shopping journey for consumers. These strategic alliances involve companies utilizing each other's capabilities and resources for shared success and benefits. For example, in November 2023, a crucial partnership was formed between Amazon.com, Inc., a US-based e-commerce firm, and Meta Platforms, Inc., a US-based tech firm. This partnership is seen as a critical turning point in social commerce as it bridges the divide between e-commerce and social media, offering a more unified and effective shopping experience for users. This partnership also cements Amazon's place as a significant stakeholder in the social commerce arena, rivaling other platforms such as TikTok and Snapchat.
What Are the Key Segments in the Social Commerce Market?
The social commerce market covered in this report is segmented -
1) By Product Type: Personal And Beauty Care, Apparel, Accessories, Home Products, Health Supplements, Food And Beverage, Other Products
2) By Device Type: Laptops And PCs, Mobiles, Other Devices
3) By Business Model: B2C, B2B, C2C
4) By End User: Individual, Commercial
Subsegments:
1) By Personal And Beauty Care: Skincare Products, Makeup And Cosmetics, Hair Care Products
2) By Apparel: Clothing, Footwear, Activewear
3) By Accessories: Jewelry, Bags and Purses, Watches
4) By Home Products: Furniture, Home Decor, Kitchenware
5) By Health Supplements: Vitamins and Minerals, Protein Supplements, Herbal Products
6) By Food and Beverage: Snacks, Beverages, Gourmet Foods
7) By Other Products: Electronics, Pet Supplies, Baby Products
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Who Are the Key Players Shaping the Social Commerce Market's Competitive Landscape?
Major companies operating in the social commerce market include 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
What Geographic Markets Are Powering Growth in the Social Commerce Market?
North America was the largest region in the social commerce market share in 2024. 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.
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