Top Emerging Trends Of Social Commerce Market Progress Forecast 2030 |Grand View Research, Inc.

Posted by Mrudula Anil Karmarkar on February 15th, 2024

San Francisco, 15 February 2024: The ReportSocial Commerce MarketSize, Share & Trends Analysis Report By Business Model, By Product Type, By Platform/Sales Channel, By Region, And Segment Forecasts, 2023 - 2030

The global social commerce market size is anticipated to reach USD 6,243.94 billion by 2030, and it is set to expand at 31.6% CAGR from 2023 to 2030, according to a new study by Grand View Research Inc. Growing ease of online purchases is considered the most significant factor driving social commerce demand. Combining entertainment with impulsive purchasing habits continues to drive social commerce. It provides brands, and retailers with a new medium, which holds enormous potential for value generation.

The growing use of the internet for advertising practices has revolutionized the business model of various companies. Moreover, it has also created alternate revenue streams. The easy availability of high-speed and affordable internet services for customers offers marketers a new channel to reach out to their target audience. This has led to the rise of influencer marketing practices. Brands have developed more individualized advertising campaigns, improving the client experience. Their commercial relationships continue to scale by utilizing these marketing techniques.

A survey organized by the influencer marketing hub suggested that more than 40% of the participants have made at least one purchase as a result of social media company postings or influencer content. The fact that influencers can help organizations achieve key marketing goals including engagement, sales, high-quality content, and brand awareness, which in turn drives the significant demand for influencer marketing.With the upsurge in influencer marketing, Instagram shopping brands are seen leveraging these individuals to create awareness and validation for their products and services.

Furthermore, the growing popularity of the live-stream shopping trend is expected to drive market growth during the forecast period. Before the pandemic, the ‘shoppable video’ was well-known in China. Furthermore, COVID-19 brought with it a live commerce experience that has led to a resurgence in this method of shopping. The live shopping experience most closely resembles in-person shopping. Through this, buyers can watch people try products in real-time, allowing the brand to get feedback instantly. The pandemic accelerated the adoption of live stream shopping, giving ample opportunity for it to reach the untapped markets.

Increased adoption of social media, average time spent on these platforms during the pandemic, and ease of buying products online are expected to drive the market growth. Social commerce integration with social media platforms to drive and/or process online purchases has led to new forms of shopping in collaboration with virtual environments.

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By allowing customers to shop and checkout directly via social media platforms, social commerce eliminates unnecessary additional steps and helps streamline buying process. The market is expected to gain traction owing to a penetration of a smooth shopping process and product discovery and checkout. Moreover, the increased number of interested buyers from different social media platforms such as Pinterest, Snapchat, Facebook, and Instagram are also expected to drive market growth over the forecast period.

Social Commerce Market Report Highlights

  • B2C segment dominated the market in 2022 and is expected to continue dominance with a shift in consumer mindset and rising digitization contribute
  • The personal & beauty care segment is expected to grow at a high pace during 2022 due to offerings such as cashback, discounts, same-day or next-day deliveries, EMI options by social commerce platforms
  • Asia Pacific is anticipated to grow at a healthy CAGR of 33.1% over the forecast period. This growth is attributable to the proliferation of the internet and smartphones in the region

Social commerce enabled the convergence of content shopping, sharing, payments, and messaging features. Seamless access to social media networking sites coupled with a high level of impulse buying, especially amongst Gen Z and millennials, has created huge potential for several brands/sellers to increase their sales, which will lead to attracting new customers.

Moreover, social commerce has given merchants/brands the power to merge social media and e-commerce sites, thereby providing a huge branding opportunity. This has led to enhanced social media presence and has allowed brand awareness to stay in the minds of customers through daily engaging content.

Social commerce has become a democratizing force as it has opened new avenues of opportunities for small businesses and individuals. Social buyers are more likely to buy from a small business when shopping through social commerce in comparison to that of e-commerce sites. Several factors support this trend, including the fact that individuals are spending an increasing amount of time on social media platforms. Studies suggest that an average individual spends over two hours on a social media platform each day and is likely to buy from a brand that they have not encountered previously.

Social media users are apprehensive about illegal access to data as many social media sites are not shielded against the risk of cyberattacks. Security concerns are expected to be a short-term hindrance as retailers/vendors are working collectively with third-party payment platforms to offer a safer and more secure payment environment to consumers.

Social Commerce Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 913.90 billion

Revenue forecast in 2030

USD 6,243.94 billion

Growth Rate

CAGR of 31.6% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

A shift in consumer preference is one of the significant factors driving the social commerce market growth. Along with innovations in mobile technology, consumers have become accustomed to immediate communication and now look forward to instant customer service. Additionally, consumers are looking for new avenues to engage with brands using the latest technology, with younger generations seen dominating the social commerce charge. As per the global web index report, the usage of social commerce is comparatively high among millennials and generation Z, who are prone to purchase over 60% from social media platforms.

COVID-19 compelled users to spend more time on the social media platform, which pushed retailers to increase their investments in advertisements. This, in turn, has led brands to extend their reach to new customers and varied product categories. Furthermore, pandemic-induced lockdowns and restrictions in 2020 triggered a behavior shift among in-store buyers, including non-digital communities. Users began to lean toward online shopping as social distancing became the norm. Customers became more comfortable and confident while spending time and money in a digital environment, thereby paving the way for social commerce market growth.

Despite the market being estimated to record significant growth in coming years owing to benefits mentioned above, increasing concerns among users over data collection and potential use of personal information by social media platforms are emerging as possible restraint for market growth. While advances in technology are helping to predict the market, any misuse of customer-related data can lead to losses and potential liabilities for both consumers and sellers.

List of Key Players in the Social Commerce Market

  • Etsy, Inc.
  • Fashnear Technologies Private Limited (Meesho)
  • Meta Platforms, Inc. (Facebook)
  • Pinduoduo Inc.
  • Pinterest, Inc.
  • Poshmark
  • Roposo
  • Snap, Inc.
  • Taobao
  • TikTok (Douyin)
  • Trell Shop
  • Twitter, Inc.

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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