Social Commerce Market

The Global Social Commerce Market size is predicted to reach $8 billion by 2031, growing at a CAGR of 30.3% during the forecast period 2024-2031 according to the latest market research report published by IndustryARC. The increasing popularity of social media, the growing use of mobile devices are poised to propel the market growth, finds IndustryARC in its recent  report, titled “Social Commerce Market Size, Share & Trends Analysis Report By Product Type (Electronics & Accessories, Apparels, Personal & Beauty Care, Home Products, Food & Beverage, Health Supplements, Others), By Business Model [Business to Business (B2B), Business to Consumer (B2C), Consumer to Consumer (C2C)], By Platform (Social Network, Video Commerce, Social  Network-Led Commerce, Product Review Platform, Group, Others) By Access (Laptops & Desktops, Mobile Devices), By Region and Segment Forecasts, 2024–2031”

The Social Commerce industry in the North America region is expanding due to its tech-savvy population, robust digital infrastructure, and widespread adoption of social media platforms. With platforms like Instagram and Facebook introducing seamless shopping features, consumers embraced the convenience of making purchases directly within their social feeds. This convergence of social interactions and e-commerce, along with the region's strong consumer culture, propelled the rapid expansion of social commerce in North America.

The Apparel segment had the largest market share of 24% in 2023 owing to its visual appeal and widespread consumer interest. Clothing and fashion items are inherently suited to social platforms, where visual content thrives. Consumers seek style inspiration and real-life visuals before making apparel purchases. Social commerce seamlessly integrates product showcases, user-generated content, and influencer endorsements, providing a holistic shopping experience. The ability to connect with products visually and see how they fit within personal lifestyles has propelled apparel to the forefront of the social commerce landscape.

C2C is analyzed to grow with the highest CAGR of 34.2% during the  forecast period. This is owing to its peer-driven authenticity. C2C social commerce leverages user-generated content, reviews, and recommendations, building trust among consumers. This approach capitalizes on the power of social connections and word-of-mouth marketing, fueling rapid adoption. Platforms facilitating C2C interactions enable individuals to become sellers, expanding product variety and choice.

  

Asia-Pacific region held a major market share of 36% in 2023. The strong presence in this region can be attributed to its innovative integration of social media and e-commerce platforms. With tech giants like WeChat and Alibaba pioneering the concept, consumers readily embraced the convenience of shopping within their favorite social apps. High mobile penetration, cultural openness to new technologies, and the influence of social media influencers further amplified the region's dominance.

 

Leveraging live streaming presents significant opportunities in the social commerce market. Live streaming combines real-time engagement with interactive product showcases, enabling businesses to connect directly with their audience. Brands can demonstrate products, answer questions, and provide a unique behind-the-scenes experience. This dynamic approach humanizes the shopping process, builds trust, and enhances user engagement. The immersive nature of live streaming fosters authentic interactions, driving immediate conversions and creating a sense of community.

With shrinking attention spans, businesses can capitalize on brief but impactful interactions. Crafting concise, engaging content that delivers value in seconds resonates with time-constrained consumers. Social media platforms provide an ideal stage for capturing micro-moments, enabling businesses to spark interest, share product highlights, and direct users to quick purchasing decisions. By embracing these bite-sized interactions, brands can create memorable touchpoints, enhance user engagement, and drive conversions, aligning seamlessly with the fast-paced nature of social commerce.

With evolving consumer preferences for visual content, brands can craft immersive video experiences that showcase products, share demonstrations, and offer informative narratives. Interactive elements within videos, such as clickable links and in-video shopping options, enable seamless transitions from product discovery to purchase. By providing engaging, informative, and entertaining video content, businesses can capture consumer attention, drive engagement, and ultimately boost conversions. The expansion of video shopping capabilities aligns with the demand for dynamic, user-centric experiences, fueling growth in the social commerce landscape.

The integration of Augmented Reality (AR) opens exciting opportunities in the social commerce market. AR enables consumers to visualize products in their own environment, enhancing the online shopping experience. Businesses can implement virtual try-on features for fashion and cosmetics, enabling confident purchasing decisions. AR-driven interactive elements engage users, allowing them to explore products from all angles. The technology fosters a sense of immersion and personalization, mitigating the limitations of online shopping. By seamlessly integrating AR, brands can elevate consumer engagement, boost conversion rates, and position themselves at the forefront of innovative social commerce trends.

● Social Commerce Market Size and Forecast 

● Social Commerce Market Trends

● Social Commerce Market Analysis by Product Type

● CAGR of the market during the forecast period 2024-2031

● Value Chain analysis of key stake holders

● Detailed analysis of market drivers and opportunities during the forecast period

● Social Commerce Market size estimation and forecast

● Analysis and predictions on end users’ behavior and upcoming trends 

● Competitive landscape and Vendor market analysis including offerings, developments, and financials

● Comprehensive analysis of challenges and constraints in the Social Commerce Market

● The COVID-19 pandemic reshaped the social commerce landscape as consumer behavior evolved. Lockdowns and restrictions fueled a surge in online shopping, prompting businesses to emphasize their digital presence. Social commerce emerged as a key beneficiary, capitalizing on the increased digital engagement. Live streaming and virtual interactions bridged the gap between brands and consumers, driving sales and interaction. The pandemic accelerated the convergence of e-commerce and social media, establishing social commerce as an essential channel for businesses to navigate the evolving retail landscape.

● The Ukraine crisis had potential implications for the social commerce arena. Geopolitical tensions introduced uncertainties that resonated across the global market. Cross-border commerce experienced disruptions due to trade tensions and economic shifts. Consumer sentiment and spending patterns also underwent changes amid geopolitical unrest. Brands navigated challenges related to supply chains and risk exposure. 

The Global Social Commerce Market is fragmented with several global and regional companies operating with expansive manufacturing capabilities and extensive distribution networks. The key companies profiled are listed below:

Meta Platform, Inc. 

Social Customer Relationship Management Market – The Social Customer Relationship Management Market is projected to grow at a CAGR of 20.4% from 2024 to 2031.  The rising adoption of digitalization across retail & e-commerce industries, growing penetration of users in social media platforms be it Facebook, Instagram and so on, along with increased emphasis on online shopping amidst COVID-19 outbreak have been eventually driving the market growth of social CRM industry

Social Audit Services Market – The Social Audit Services Market is projected to grow at a CAGR of 17.1% from 2024 to 2031. The growing social awareness among industries, shift towards environment friendly alternatives as well as focus on getting social recognized certifications to raise business growth have been attributing the market growth.  

Social Media Contextual Advertising Market – The Social Media Contextual Advertising Market is projected to grow at a CAGR of 30% from 2024 to 2031. The increasing processing power and bandwidth allow new formats like live broadcasting, 360° or virtual reality videos that will make this advertising environment increasingly attractive. The main driver of future developments is technology. 

Commerce Artificial Intelligence Market – The Commerce Artificial Intelligence Market is projected to grow at a CAGR of 40.1% from 2024 to 2031. Commerce AI Market is majorly driven by increased usage of artificial intelligence in customer relationship management, warehouse automation and in online stores, especially in clothing. The expanding investments in AI-based solutions along with the rising machine ability for verdict creation from trillion bytes of online data is estimated to drive the market growth.

IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the market. The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of markets.  

IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format which assists an intelligent and informed decision-making process.

Mr. Venkat Reddy

IndustryARC

Email: [email protected]

USA: (+1) 970-236-3677

Web: https://www.industryarc.com

Follow us on: LinkedIn | Facebook | Twitter