Social Commerce Market: Global Industry Analysis and Forecast (2024-2030) by Business Model, Product Type, Platform/Sales Channel and, Device Type

Social Commerce Market Objective 

Stellar Market Research conducted brief analysis on Global Social Commerce Market. The purpose of this research is to provide stakeholders in the industry with a thorough insight into the Global Social Commerce Market. The analysis examines all areas of the industry, with a focus on significant companies such as market leaders, followers, and newcomers. The research is an investor's guide since it clearly depicts competitive analysis of major competitors in the Global Social Commerce Market by product, price, financial situation, product portfolio, growth plans, and geographical presence.

 

Social Commerce Market Overview

Social commerce has a dynamic landscape, where consumers navigate products and execute transactions within social media and content creation platforms, everything within a one single application. This new way of shopping helps buying things easier, improves the experience for customers, and gives companies new ways to get people interested in their products. 

 

The key driving factors for Social commerce market such as mobile connectivity, personalization and targeted advertising, rise of influencer marketing, increasing social media usage, and many others are analysed in the report. Recent technologies, like Artificial Intelligence (AI) for enhancing customer experience, Machine Learning (ML) algorithms for analysing customer data and Augmented Reality (AR) to create dynamic shopping experience, are applied to cater the rising demand for Social Commerce Market.

 

Great amount of impulsive buying, especially from Gen-Z and millennial, due to easy access to social media networking site has created huge opportunity for Social Commerce market players to enhance their sales. Recent trends in Social commerce market, such as, live streaming for allowing customer to watch live product demonstration, Integration with e-commerce platforms allowing customers to pay directly from the application, and many others are analysed thoroughly in the report.

 

Stellar market research conducted the analysis of Social commerce market over past 5 years and by using the data, came to a conclusion that APAC dominated the global Social Commerce market with 51% market share and is expected to continue its dominance during the forecast period. The dominance is majorly supported by China, Japan, South Korea and India. China, by achieving conversion rate of around 27% on social commerce apps, has dominated the Social Commerce market in APAC. Companies like Douyin (Tiktok), Alibaba, Rakuten, Yahoo! Shopping, Myntra, Flipkart, and others are few major companies operating in APAC region analysed in the report. North America and Europe are also contributing significantly to the Global Social Commerce Market.

Social Commerce Market Dynamics

Advanced technologies driving the Social Commerce Market

Around 4.9 billion people globally are active on social media, which is the most important factor for the growth of social commerce market. The latest advancements in technologies like 5G is playing a key role in propelling the growth of social commerce through mobile connectivity. The use of smartphones has granted users continuous and convenient internet access, empowering them to participate in social commerce activities effortlessly, irrespective of their location.

 

 

The reliance on autonomous guided vehicles (AGVs) is diminishing as the utilization of 5G technology grows into broader public domains. In 2023, there was a surge in the implementation of private wireless networks, with the global count of private LTE/5G networks reaching 3000. The trend indicates that this count is expected to exceed 13,000 by 2026. The global commitment to 5G infrastructure is expected to surpass $550 billion from 2023 to 2025, which drive the Social Commerce Market.

 

Technologies like Augmented-reality (AR) lenses let Snapchat users “try on” makeup and send the images to friends. Around 60% of digital buyers explore brands using social media with the help of these advanced technologies. Consumer rising interest in developing technology like Metaverse is shaping the Social Commerce Market of a new virtual market experience.

 

Integration of Payments option in social media applications

Social media platforms such as Facebook, Instagram, and Twitter have incorporated in-app payment features, facilitating users to conduct direct transactions without navigating away from the platform, allowing convenience for the user and represents a significant driver in the expansion of the social commerce market. Payments by using Visa are widely accepted payment mode during buying any product through social commerce applications. Visual-centric platforms such as Instagram and Pinterest have been influential in driving transformation by integrating payment options, driving social commerce market.

 

 

Livestreaming in Social Commerce Market

Livestreaming has emerged as a key factor within the creator economy, empowering creators, influencers, and small businesses to monetize content effectively and cultivate their brands. Live shopping experiences allows to showcase products, earn affiliate commissions, secure sponsorships, and position as industry authorities. Urgency and real-time nature of livestream social commerce lead to impulsive purchasing decisions. The quality of livestream social commerce translates into higher conversion rates and increased sales, which drives the social commerce market. Live stream done by Alibaba made around 7 billion USD in transaction in the first 30 minutes of Singles’ Day presales campaign on Taobao. Generation Z and millennials dominate the Livestreaming viewership, driving the growth of Social Commerce Market. 

 

 

China dominates in integration of live-commerce, followed by US, Germany, particularly in the beauty and fashion sectors. German beauty retailer Douglas stands out as one of the early adopters, hosting multiple shows each week in various formats, including expert workshops and influencer discussions, achieving impressive conversion rates of up to 38%.

 

Social Commerce Market Segment Analysis

By Business Model, in 2023, the Business to Consumer (B2C) segment dominated the social commerce market, making up more than 50% of the total revenue. B2C social commerce platforms provide many tools and features to help businesses advertise and sell their products directly to consumers.

Under the B2C model, businesses get services like listing their products, collecting reviews and opinions, sharing on social media, and processing payments. These technologies also allow businesses to make shopping experiences enjoyable and immersive for potential customers, growing overall demand for Social Commerce Market. The B2B model also serves specific markets like pet stores or pet foods, meeting the needs of customers. WeChat Business is a new mobile social network business that uses both business and personal connections to improve customer relationships. APAC has the biggest market of business-to-consumer (B2C) online shopping, with North America and Europe following APAC.

 

By device type, mobile dominates in the Social Commerce use by device market.  Social media apps like Instagram, Facebook, Pinterest and TikTok attract a large part of the online population every day, especially millennials and Gen Z—the first generations to grow up with digital technology. In 2023, more than half of millennials and Gen Z preferred social media on mobile device when looking for international brands.

 

According to study conducted by SMR, people in this age group make up about 58% of the total spending in global social commerce, most of it using mobile device. This shift highlights the increasing trend of using mobile devices for social commerce market.

 

Social Commerce Market Competitive Landscape

• Facebook leads with the largest number of social commerce buyers, expected to reach 66 million in 2024. TikTok, also called Douyin in China, is becoming a top player in social commerce, especially for clothes.
• Amazon and Meta (formerly Facebook) teaming up is a big move that is changing how we shop and socialize together. They are working together to make the experience of talking with friends and buying things online smoother. Amazon acquired GlowRoad at around 75 million USD in a move to boost its social commerce efforts in India.
• Douyin sold more than half of the clothes sold on the well-known e-commerce platform Tmall. Most of these sales happened through social commerce, including live auctions, which is a successful new way of selling things in the Chinese market.
• Instagram introduced Instagram Shops and in-app checkouts to make it easier for people to buy things directly on the app. This is to encourage more purchases and transactions within the Instagram platform.
• The Lego Group created a chatbot named 'Ralph' on Messenger. Its purpose is to assist shoppers in picking the perfect gift when they are buying from Lego.
• Walmart started its own Livestreaming platform. On this platform, influencers showcase and talk about new products in a fun and interactive way to promote them.
• Haagen-Dazs, with the help of TAKUMI, joined forces with social media influencers. They worked together to make content on Instagram and TikTok, aiming to boost sales on Amazon Prime.
• Puma joined forces with Snapchat to introduce special AR lenses. These lenses let users virtually try on Puma sneakers and tracksuits.

 

The purpose of this research is to provide stakeholders in the industry with a thorough insight into the Social Commerce Market. The study includes an analysis of difficult data in simple language, as well as the industry's historical and current state, as well as expected market size and trends. The analysis examines all areas of the industry, with a focus on significant companies such as market leaders, followers, and newcomers.

 

The research includes a PORTER, PESTEL analysis as well as the possible influence of microeconomic market determinants. External and internal elements that are expected to have a favourable or negative impact on the firm have been examined, providing decision-makers with a clear future vision of the industry.

 

The research also aids in comprehending the Social Commerce Market dynamics and structure by studying market segments and forecasting market size.

 

The research is an investor's guide since it clearly depicts competitive analysis of major competitors in the Social Commerce Market by product, price, financial situation, product portfolio, growth plans, and geographical presence.

 

Social Commerce Market Scope
Market Size in 2023	USD 950 Bn.
Market Size in 2030	USD 5348.02 Bn.
CAGR (2024-2030)	28%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By  Business Model Business to Consumer (B2C) Business to Business (B2B) Consumer to Consumer (C2C)
	By Product Type Personal and Beauty Care Apparel Accessories Home Products Health Supplements Food and Beverage Others
	By Platform/Sales Channel Video Commerce (Live stream + Prerecorded) Social Network-led Commerce Social Reselling Group Buying Product Review Platforms
	By Device Type Smartphone Laptop Tablets
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Social Commerce Market Players

• eBay
• Facebook
• Twitter
• Pinterest
• PayPal
• Instagram
• Verizon Communications Inc.
• Poshmark Inc.
• Etsy Inc
• Poshmark Inc.
• Amazon
• Flipkart
• Myntra
• Meesho
• Shopclues
• Souled Store
• Snapdeal
• Payments Private Limites
• Tata CLiQ
• Taobao
• Reddit Inc.
• SINA Corp.
• Alibaba Group Holding Limited
• Douyin (TikTok, ByteDance)