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Rising Social Media Usage Fuels Growth In The Social Commerce Market: Pivotal Factor Influencing Social Commerce Market Growth in 2025
Social Commerce Market
Social Commerce Market Size Growth Forecast: What to Expect by 2025?
The size of the social commerce market has experienced swift expansion in the last few years. The market is expected to surge from $764.49 billion in 2024 to $872.71 billion in 2025, reflecting a compound annual growth rate (CAGR) of 14.2%. The historical growth has been fueled by factors such as the emergence of social media platforms, an explosion in influencer marketing, integration of shopping features in these platforms, the rise in user-created content, reliance on peer suggestions, as well as the added convenience and accessibility.
How Will the Social Commerce Market Size Evolve and Grow by 2029?
Anticipated swift expansion is on the horizon for the social commerce market in the ensuing years. A prediction is set for a market value of $1440.6 billion by 2029, commanding a compound annual growth rate (CAGR) of 13.3%. Factors contributing to this projected growth within the forecast period incorporate live shopping encounters, proliferation of social payment methods, the rise of social commerce platforms, and comprehensive community involvement. Moreover, the importance of sustainability and ethical commerce can't be overstated. Noteworthy trends within the forecast period consist of live commerce and video shopping, the use of augmented reality (AR) for virtual 'try before you buy' experiences, the implementation of purchasable content and social ads, and the incorporation of AI and chatbots, as well as marketing and affiliate schemes.
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What Drivers Are Propelling the Growth of Social Commerce Market Forward?
The anticipated rise in social media engagement is projected to spur the expansion of the social commerce market in the upcoming period. Social media platforms such as YouTube, Facebook, and Instagram are being utilised for various reasons more than ever before. There has been a surge in the use of social media during the COVID-19 period given that people are restricted from moving outdoors and even purchases and other marketing activities are being conducted through social media. This is evident from the data provided by We Are Social Ltd, a media company based in the UK, which showed a jump in social media engagement from 0.9% in January 2023 to 1.5% in January 2024. Consequently, the surge in social media engagement fuells the expansion of the social commerce market.
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Which Emerging Trends Are Transforming the Social Commerce Market in 2025?
Leading firms in the social commerce sector are turning to strategic partnerships as a way to offer users a more cohesive and convenient shopping journey. Such a partnership is a method where businesses exploit each other's capabilities and assets to gain reciprocal advantages and prosperity. For instance, in November 2023, a critical collaboration transpired between Amazon.com, Inc., a US e-commerce corporation, and Meta Platforms, Inc., a US technology company. This alliance marks a significant move in the world of social commerce, creating a bridge between e-commerce and social networks and facilitating a seamless and effective shopping experience for users. Moreover, it places Amazon in a strong position in the social commerce field, where it competes against 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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