Social Commerce Market Size, Share, Forecast, & Trends Analysis by Business Model (B2B, B2C, C2C), Platform Type (Social Media, E-commerce), Sales Channel (Video Commerce, Influencer Marketing, Others), Product and Geography—Global Forecast to 2031

The Social Commerce Market was valued at $839.8 billion in 2023. This market is expected to reach $6,059.6 billion by 2031 from an estimated $1,040.6 billion in 2024, at a CAGR of 28.6% during the forecast period of 2024-2031.

Social Commerce Market Size & Forecast

The growth of the social commerce market is driven by the increased use of social media platforms, widespread adoption of mobile devices, and rising digitization. Additionally, the growing use of AI and chatbots to streamline sales and customer service, expanding partnerships between brands and social media influencers to engage audiences, and increasing internet penetration in developing countries are expected to generate growth opportunities for stakeholders in this market.

Key Findings

• By Business Model: In 2024, the Business-to-consumer (B2C) Segment to Dominate the Social Commerce Market.
• By Platform Type: In 2024, the Video Commerce Segment is Expected to Dominate the Social Commerce Market.
• By Sales Channel: In 2024, the Social Media Platforms Segment is Expected to Account for the Largest Share of the Social Commerce Market.
• By Product: In 2024, the Fashion & Apparel Segment is Expected to Account for the Largest Share of the Social Commerce Market.
• By Geography: In 2024, the Asia-Pacific region is Expected to Dominate the Social Commerce Market.

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Social Commerce Market Drivers

Increased Usage of Social Media Platforms

Social media usage has surged in recent years, largely due to the widespread availability of smartphones and affordable internet access, allowing more people to connect and engage from nearly anywhere. These platforms provide quick and convenient methods for communication, content sharing, and staying in touch with friends and family, making them essential tools for modern interaction.

The rising usage of social media platforms has fundamentally transformed communication and commerce in today’s digital landscape. With billions of users globally, platforms like Facebook, Instagram, TikTok, and Twitter have become vital for brands aiming to engage with their audiences. This increased social media activity greatly benefits social commerce by creating dynamic spaces where brands and consumers can interact seamlessly. As more users engage with these platforms, businesses gain access to larger audiences, allowing them to showcase products directly within users' feeds through shoppable posts and ads. This direct integration of e-commerce features enables a streamlined shopping experience where users can discover, share, and purchase products without leaving the platform. Consequently, the growing use of social media platforms is expected to drive significant growth in the social commerce market during the forecasted period.

Social Commerce Market Trend

Rising Integration Between E-Commerce and Social Commerce Platforms

The increasing integration of e-commerce and social commerce platforms is transforming the retail landscape by creating seamless and engaging shopping experiences for consumers. Features like shoppable posts and integrated checkout options allow users to easily discover and purchase products directly within social media apps, enhancing convenience. Real-time inventory synchronization ensures accurate product availability across channels, while personalized shopping experiences driven by advanced algorithms foster deeper customer engagement. Furthermore, the incorporation of user-generated content and influencer marketing tools enhances credibility and trust, encouraging purchases through authentic interactions.

As social commerce gains popularity, e-commerce platforms are simplifying the integration of e-commerce and social commerce into the retail sales experience. For example, Shopify Inc. (U.S.) has integrated with Facebook and Instagram, allowing users to automatically sync their Shopify product catalog with both platforms to create ads and shoppable posts. By leveraging these integrations, brands not only enhance visibility and sales but also foster community and loyalty, making the convergence of e-commerce and social commerce a prominent trend in modern retail.

Social Commerce Market Opportunity

Growing Partnerships Between Brand and Social Media Influencers to Reach the Audience

Influencer partnerships involve collaborations between a brand and an individual who has a substantial following on social media platforms. The influencer works with the brand to promote its products or services to its audience, which can be achieved through sponsored posts, product reviews, or other content creation methods. The primary goal of these partnerships is to leverage the influencer's reach and credibility to help the brand acquire new customers and expand its customer base.

Many businesses are increasingly adopting influencer marketing strategies as an affordable, effective, and targeted approach to brand growth. By promoting audience interaction and maintaining transparency in partnerships, brands can cultivate lasting connections that enhance visibility and drive engagement, ultimately leading to increased conversions and brand loyalty. As a result, influencer partnerships have become a popular and effective strategy for businesses to expand their reach, raise brand awareness, and boost sales, creating significant opportunities for market growth.

Social Commerce Market Analysis: Top Market Opportunity:

The Video Commerce Segment is Expected to Dominate the Social Commerce Market

Based on sales channel, the social commerce market is segmented into video commerce, influencer marketing, live shopping events, user-generated content (UGC), community groups, and other sales channels. In 2024, the video commerce segment is estimated to account for the largest share of the social commerce market. Video commerce on social media enhances consumer engagement and drives sales through dynamic visual content. Many platforms enable brands to create videos with embedded links, allowing users to click on featured products and purchase them directly, thereby enhancing the shopping experience. The large share of this segment is attributed to the growing popularity of video content across platforms like YouTube, TikTok, and Instagram, as well as increased consumer engagement with this format. Video content provides a dynamic, immersive shopping experience, allowing consumers to see products in action. Additionally, the high adoption of video content by influencers to promote products further fuels the substantial share of the segment.

However, the influencer marketing segment is slated to register the highest CAGR during the forecast period. Influencer marketing is a type of social media marketing that involves endorsements and product placements from individuals and organizations with recognized expertise or social influence in their respective fields. This approach is rapidly gaining traction within social commerce, becoming a crucial strategy for brands seeking to expand their reach and engagement. The growth of this segment is driven by consumers' trust in influencers and the increasing collaboration between brands and social media figures to enhance audience reach and customer engagement.

Geographical Analysis

Asia-Pacific Dominates the Social Commerce Market in 2024

In 2024, Asia-Pacific is estimated to account for the largest share of over 49% of the social commerce market. The large share of Asia-Pacific in the social commerce market is primarily driven by rapid digitalization, the integration of e-commerce functionalities into social platforms, and the increased adoption of smartphones and mobile devices. Additionally, retailers' increased focus on expanding social commerce for their customers is expected to further propel market growth in the region. For example, in May 2024, VTEX (U.K.), a composable and complete commerce platform for leading brands and retailers, partnered with Pinterest (U.S.) to assist consumer brands in broadening their social commerce footprint and connecting with a larger customer base.

However, Asia-Pacific is slated to register the highest CAGR of 30% during the forecast period. This market's growth is attributed to factors like increasing preference for online shopping, rising influence of social media, and rising focus of online retailers on leveraging interactive content such as live streaming, influencer partnerships, and shoppable posts to engage consumers directly on social media.

Key Companies

The report includes a competitive landscape based on an extensive assessment of the key strategic developments that led market participants to adopt over the past three years (2021-2024). The key players profiled in the global social commerce market report are Fashnear Technologies Private Limited (Meesho) (India), Meta Platforms, Inc. (U.S.), PDD Holdings Inc. (Ireland), Pinterest, Inc. (U.S.), Poshmark, Inc. (U.S.), Roposo (India), Snap, Inc. (U.S.), X Corp. (U.S.), Xiaohongshu (China), Yunji Inc. (China), and Etsy, Inc. (U.S.).

Social Commerce Industry Overview: Latest Developments from Key Industry Players

• In August 2024, Amazon.com, Inc. (U.S.) partnered with TikTok (U.S.) to enable users to shop directly within the app. This integration allows TikTok users to access Amazon's shopping features without leaving the social media platform, enhancing the overall shopping experience.
• In April 2021, Pinterest (U.S.) partnered with Shopify, Inc. (Canada), an e-commerce solution provider, to enhance its social commerce presence internationally. This partnership enables Pinterest to offer its platform in 27 countries, including the U.K., Austria, Brazil, Italy, France, Germany, Australia, Spain, and Switzerland.

Social Commerce Market Research Summary

Key questions answered in the social commerce market report: