Social Commerce Industry Size, Share of Key Players, SWOT Analysis, and Report

Social Commerce Market Size:

The global social commerce market size reached US$ 995.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 6,824.3 Billion by 2032, exhibiting a growth rate (CAGR) of 23.85% during 2024-2032. The elevating levels of consumer interaction on social media, the widespread accessibility of high-speed internet connections, the rise in smartphone and tablet usage, along with the growing preference for online shopping are the primary factors propelling the market.

Social Commerce Market Analysis:

• Major Market Drivers: The increasing number of smartphone users, rising penetration of the internet and the growing influencer marketing field are primarily driving the social commerce industry revenue. In addition to this, the inflating spending capacities of consumers and their elevating standards of living are also contributing to the social commerce market growth. 
• Key Market Trends: The contribution of modern technologies integrated into platforms of social commerce, such as AI, AR, and VR, is consistently revolutionizing the shopping experience of social commerce with increasing value additions to the market. It is through these innovations that personalized and immersive shopping experiences could possibly be offered, something that is absolutely required in current user engagement and sales.
• Geographical Trends: According to the social commerce market report by IMARC, the Asia-Pacific region is growing at a rapid pace, and most of the trends are being led by the huge internet-savvy population across the region and the prevalence of the usage of social media platforms. In addition to this, the easy availability of affordable smartphones across the region. 
• Competitive Landscape: Some of the leading companies in the market include eBay, Etsy Inc., Facebook, Meesho Inc., PayPal Payments Private Limited, Pinterest Inc., Poshmark Inc., Reddit Inc., Taobao (Alibaba Group Holding Limited), Twitter Inc. and Verizon Communications Inc., among many others. 
• Challenges and Opportunities: While challenges such as privacy concerns and regulatory compliance are significant, they also present opportunities for innovation in secure payment methods and user data protection. Moreover, the changing consumer preferences offer continuous opportunities for market players to innovate and adapt, ensuring sustained of the industry.
   

Social Commerce Market Trends:

Rise of Social Media Usage

The increasing penetration of social media is significantly impacting the social commerce market. Social media platforms are becoming key channels for brands to engage with consumers, showcase products, and drive sales. Moreover, the direct integration of shopping features into platforms like Instagram and Facebook is making it easier for consumers to discover and purchase products without leaving the app. Additionally, the growing number of users on social media is creating lucrative growth opportunities for the overall market. Since its inception in 1996, social media has managed to infiltrate more than half of the 8.06 billion people in the world. Social network platforms almost tripled their total user base in the last decade, from 970 million in 2010 to the number passing 4.95 billion users in October 2023. Moreover, 72.5% of the total US population actively uses social media, totaling a number of 246 million people. Such a massive rise in the use of social media is propelling the social commerce market share. 

Advancements in Mobile Technology

The past decade has seen significant advancements in mobile technology, with smartphones becoming a vital part of daily lives. Enhanced smartphone capabilities and internet connectivity have resulted in increased mobile commerce, with users often choosing to shop directly from their devices. Additionally, the inflating disposable incomes of the consumers is increasing the number of smart phone users, which eventually is contributing to the social commerce market value environment. For instance, the Consumer Technology Sales and Forecast study conducted by the Consumer Technology Association (CTA) also looked at new technology trends, projecting that 5G cellphones generated US$ 61.37 Billion in revenue, up by 15% from US$ 53.38 Billion in 2021. Meanwhile, 5G smartphones accounted for 62% of all smartphone units in 2021, which led to a rise of 72% in 2022. Moreover, various network providing companies are extensively investing in the deployment of 5G networks to enable fast internet services. For instance, in October 2022, Samsung Electronics stated that it successfully supported NTT East's private 5G network growth with its network solutions, including the cloud-native 5G Macro Core and Radio Access Network (RAN), enabling new and diverse use cases for corporations across multiple industries in Japan.

Expanding Influencer Marketing

Recently, influencers have emerged as a crucial force in shaping consumer behavior. These individuals are able to influence the purchasing decisions of their followers through their content, recommendations, and product endorsements. The global influencer marketing market size has more than tripled since 2019. The influencer marketing platforms gained immense popularity during the COVID-19 pandemic. Additionally, the increased social media usage during the lockdown also encouraged the adoption of influencer marketing. In response to this, various influencer management startups gained traction as they struck a perfect harmony between the creative freedom of content creators and the core values and principles of brands within the financial ecosystem. For instance, in May 2023, FINTroop, the leading influencer management platform by Dot Media, a creative martech startup, was launched. FINTroop's primary goal is to convey brand messages most innovatively and imaginatively possible. Consequently, the increasing number of influencers is creating a fostering environment for the social commerce market.

Social Commerce Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global social commerce market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on business model, device type, and product type.

Breakup by Business Model:

• Business to Consumer (B2C)
• Business to Business (B2B)
• Consumer to Consumer (C2C)
   

Business to Consumer (B2C) represents the most widely used business model

The report has provided a detailed breakup and analysis of the market based on the business model. This includes business to consumer (B2C), business to business (B2B), and consumer to consumer (C2C). According to the report, B2C represented the largest segment.

Social media servers as a significant platform to directly connect with the consumers, drive insights, and key market trends. For a long period, social media acted as a platform for users to window-shop before moving to e-commerce sites to make a purchase. However, social media platforms are now allowing brands to build communities, relationships, and trust with customers. Social media platforms such as Instagram, Facebook, and Pinterest are playing a pivotal role in bringing about this change by providing the seamless integration of e-commerce products.

Breakup by Device Type:

• Laptops and PCs
• Mobiles
• Others
   

Mobiles account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the device type. This includes laptops and PCs, mobiles, and others. According to the report, mobiles represented the largest segment.

Mobile phones dominate the market, owing to their wide availability. The convenience offered by mobile shopping aligns with the flexibility of 'on-the-go' shopping. Moreover, in recent times, live-stream shopping has gained immense traction and is enticing viewers to buy from a live shopping event. For instance, in December 2021 Walmart Inc. entered into a partnership with TikTok and underwent a first pilot test that facilitated a live-streaming shopping experience. With TikTok’s short-form video boom, every major player now has some iteration of this format such as YouTube Short, Snapchat Spotlight, and Instagram Reels. Moreover, these platforms are widely accessed by mobile phones compared to tablets and laptops.

Breakup by Product Type:

• Personal and Beauty Care
• Apparel
• Accessories
• Home Products
• Health Supplements
• Food and Beverages
• Others
   

Apparel dominates the market based on product type

The report has provided a detailed breakup and analysis of the market based on the product type. This includes personal and beauty care, apparel, accessories, home products, health supplements, food and beverages, and others. According to the report, apparel represented the largest segment.

As fashion is a visually driven industry, it has emerged as a perfect fit for the image and video-centric nature of popular social media platforms. High-quality images and videos of apparel items can effectively capture user attention and generate engagement. In 2024, the revenue in the apparel market worldwide is estimated to reach a staggering US$ 1.79 Trillion. Looking ahead to 2028, the volume in the apparel market is projected to reach 196.1 billion pieces. Furthermore, various companies in the apparel segment are utilizing advanced AR and VR technologies to provide virtual fitting rooms, allowing consumers to virtually 'try-on' clothes before making a purchase, thereby enhancing the online shopping experience.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest social commerce market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Growing number of smartphones and social media users in countries like China mainly contribute immensely to the regional market growth. Moreover, local businesses and global organizations are leveraging these platforms to engage with consumers. Furthermore, the strong influence of KOLs (Key Opinion Leaders) or influencers in these markets amplifies product reach and acceptance, thereby accelerating the market growth.

Competitive Landscape:

Major companies in the market are partnering with social media influencers for product promotions and endorsements. They are also focusing on providing a personalized shopping experience to their customers by employing advanced technologies like AI for tailored product recommendations. Additionally, businesses are optimizing their platforms for mobile shopping, given the prominence of smartphones in the segment. They are also investing in secure and varied payment options to provide convenience and build customer trust. Another prevalent strategy is active engagement with consumers through social media channels for customer feedback, queries, and resolution. These strategies are helping companies in the market improve their customer reach, engagement, and conversion rates.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• eBay
• Etsy Inc.
• Facebook
• Meesho Inc.
• PayPal Payments Private Limited
• Pinterest Inc.
• Poshmark Inc.
• Reddit Inc.
• Taobao (Alibaba Group Holding Limited)
• Twitter Inc.
• Verizon Communications Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Social Commerce Market Recent Developments

• April 2024: Paramount, the entertainment provider partnered with Shopsense AI, an artificial intelligence (AI)-powered retail media platform to integrate mobile shopping opportunities into its content, both televised and streamed.
• April 2024: YouTube has added new shopping features for use by creators. This new feature will allow creators to curate products around a common theme and build their own virtual store on YouTube. These collections will appear in the creator’s product list, Store tab and video description.
• April 2024: Social commerce platform Flip raised US$ 144 Million in a Series C funding round. With this finding, the company has launched MagicOS ads manager, an AI advertising engine. The firm will also relaunch its marketing platform for brands to incorporate AXON artificial intelligence (AI) technology from AppLovin.

Social Commerce Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the social commerce market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global social commerce market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the social commerce industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.