Social Commerce Trends and Forecast
The future of the global social commerce market looks promising with opportunities in the business-to-consumer, business-to-business, and consumer-to-consumer markets. The global social commerce market is expected to reach an estimated $4172.8 billion by 2030 with a CAGR of 28.7% from 2024 to 2030. The major drivers for this market are an increase in the use of social media, the growth and attraction of online shopping, the amount of time spent on these sites on average during the pandemic, and the convenience of online shopping.
• Lucintel forecasts that, within the product type category, apparel is expected to witness the largest growth over the forecast period because most individuals spent their time online during the COVID-19 pandemic, fashion businesses found new ways to foster the buying experience, work with influencers and artists, and establish new connections.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period due to growing investments in the infrastructure supporting telecommunications, the increasing use of smartphones, and the popularity of social media platforms like Facebook, Instagram, and Twitter.
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Emerging Trends in the Social Commerce Market
The social commerce industry has undergone transformative trends that change the ways of how brands relate to consumers. These trends represent technological advancements and change in consumer preferences. Five key trends include:
• Augmented Reality (AR) Integration: In social commerce, AR technology provides the functionality of trying products virtually before purchase. The resulting conversion rates are increased since it looks exactly like in real life when purchased.
• Live Shopping Is on the Rise: Live shopping is fast gaining momentum across platforms. It helps a brand show its products in real time. Brands become directly involved with the consumer, increase engagement, and even trigger impulse purchases.
• Influencer Engagement: Brands are using influencers to create credibility and reach. Influencers play an indispensable role in creating consumer trust and engaging consumers, often leading to better sales conversions.
• User-Generated Content (UGC): The purchases are more and more influenced by UGC. Brands ask for and incite the consumers to express their experiences in social media, which gives a community-driven method towards the enhancement of authenticity and trust.
• Mobile-First Strategy: As the vast transaction amounts through social commerce are taking place on mobile, brands are giving more weightage to optimizing the shopping experience for mobile. This encompasses streamlined checkouts, faster loading times, and an engaging mobile interface.
These new trends redefine the landscape of social commerce, driving innovation and re-designing consumer interaction. AR, live shopping, influencer collaborations, UGC, and a mobile-first strategy are integral elements of improving user experience and sales in this really dynamic market.
Recent Developments in the Social Commerce Market
The social commerce space is in rapid transformation, driven by changing consumer behaviors and technology. Five major trends encompass the industryÄX%$%Xs new face below:
• Platform Innovations: Social media giants continue to perfect shopping mechanisms on their platforms and empower new tools for brands to deliver seamless experiences. Features including shoppable posts, product tags, and dedicated shopping sections are quickly becoming business-as-usual.
• Increased Adoption of Live Streaming: The adoption of live streaming by brands is enabling quite live shopping events and real-time engagement opportunities with the consumers. That particular interactive format brings very effective sales and creates a community for the products.
• Increased Influencer Marketing: more authentic connections being sought after by the consumer, influencing brands to expand their influencer marketing strategies. In this case, the desire to collaborate with micro and nano influencers is now gaining even more traction for targeted and relatable engagement.
• Focus on Sustainability: Sustainability consciousness among consumers is growing and is compelling brands to essentially emphasize sustainable practice and products through their social commerce activities. The stream of sustainability is increasingly making the difference in how people shop and where people want to stay.
• Better Analytics: Improvements in the use of analytics in social commerce are also being felt. Brands are now applying insights derived from consumer interactions to update and refine their strategies in order to achieve higher engagement by optimizing their contents and improving targeting.
These changes, yet newer still, have been dramatically driving the landscape of social commerce, allowing brands to extend their reach, engagement with consumers, and eventually, sales. As the platforms change and so does the consumer, businesses will appropriate these changes in their strategies.
Strategic Growth Opportunities for Social Commerce Market
Social commerce has many strategic opportunities to grow as it is gradually being understood by more businesses. Five strategic opportunities include:
• Empowering local business: Social commerce empowers local businesses to reach a wider audience. A local business, with the help of social media, reaches customers more directly, thereby enhancing the reach and potential sales of brands.
• Scaling DTC Brands: Using social commerce, DTC brands can reach and establish direct connections with consumers. By bypassing the traditional channel of retail, they can use social media to establish more brand-rich experiences and maintain control over brand stories.
• Niche Market Targeting: Social commerce enables brands to focus more intensively on niche markets. Targeted advertisements and community engagement allow companies to connect with specific consumer segments and drive loyalty.
• Omnichannel Strategies: The other sales channels integrated with social commerce offer a holistic approach towards the engagement of the consumer for brands. It enhances customer experience and encourages cross-channel purchase behaviors.
• Data-Driven Personalization: Engaging customers based on actual data for personalization in the shopping process can see incredible improvement in conversion rates. Personalized offers and recommendations made from behavioral patterns can yield direct sales.
These strategic growth opportunities open quite astounding scope within the social commerce space. Businesses will be able to effectively improve their market presence and drive growth by embracing local empowerment, DTC strategies, niche targeting, omnichannel approaches, and data-driven personalization.
Social Commerce Market Driver and Challenges
Multiple technological, economic, and regulatory drivers influence the social commerce landscape. From a stakeholderÄX%$%Xs point of view, understanding the driving forces and challenges is important in navigating this dynamic space. The factors responsible for driving the social commerce market include:
• Technological Advancements: Enhanced mobile interfaces and AR have become catalysts for driving social commerce further. Technological advancements improve online shopping interfaces, making them interactive and efficient for users.
• Change in Consumer Behavior: Consumers are now moving to social media for product discovery. With such changes in consumer behavior, brands are being nudged to shift their marketing strategies toward current e-shopping preferences.
• Purchasing Decisions Influence: Influencer marketing has changed the game for consumer purchase decisions. Brands use influencers for trust and engagement, which can lead to increased sales volumes.
• Social Media Integration: Shopping features are being integrated into social media sites to improve shopping experiences on these interfaces. Customers can now shop directly from their favorite sites for easy purchasing.
• Global Reach of E-Commerce: The expansion of e-commerce globally is enabling growth in social commerce. There is a vital need to leverage social platforms due to the massive audiences that can be reached, which has become a significant imperative.
Challenges in the social commerce market include:
• Competition and Market Saturation: The social commerce space is very crowded, making it difficult for brands to stand out. It is hard to gain consumersÄX%$%X attention without effective differentiation strategies.
• Privacy Concerns: Increased data privacy is changing consumer behavior. Brands must tread carefully on these issues to build trust with consumers while remaining compliant.
• Regulatory Hurdles: Ensuring regulation over online sales and advertising is challenging. Compliance with local laws and platform policies is necessary for running successful social commerce operations.
The interplay of these drivers and challenges largely affects the social commerce market. In some ways, opportunities arise from technological advancements and changes in consumer behavior, while on the other hand, competition and privacy issues are becoming significant factors that need to be managed effectively. These dynamics help stakeholders understand the changing landscape of social commerce.
List of Social Commerce Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies social commerce companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the social commerce companies profiled in this report include-
• Etsy
• Fashnear Technologies
• Meta Platforms
• Pinduoduo
• Pinterest
• TikTok
• Poshmark
Social Commerce by Segment
The study includes a forecast for the global social commerce by business model, product type, sales channel, and region.
Social Commerce Market by Business Model [Analysis by Value from 2018 to 2030]:
• Business to Consumer
• Business to Business
• Consumer to Consumer
Social Commerce Market by Product Type [Analysis by Value from 2018 to 2030]:
• Personal & Beauty Care
• Apparels
• Accessories
• Home Products
• Health Supplements
• Food & Beverage
• Others
Social Commerce Market by Sales Channel [Analysis by Value from 2018 to 2030]:
• Video Commerce (Live stream + Prerecorded)
• Social Network-led Commerce
• Social Reselling
• Group Buying
• Product Review Platforms
Social Commerce Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Social Commerce Market
Trend in Social Commerce:Social commerce is moving very fast across the landscape because of advancements in technology and quick-changing consumer behavior. Integration of Shopping Features into Social Media SitesShopping features are being integrated into social media websites, enabling them to discover and purchase products directly over the Internet. This trend is highly observed in countries like the United States, China, Germany, India, and Japan, where social commerce changes retail dynamics. In these lines, direct engagement by brands with customers is also based on user-generated content, influencer collaborations, and live shopping experiences. For such significance of social commerce in the new format of shopping, businesses are reshaping their approaches to reach out to this lucrative market.
• United States: Social commerce continues to expand in the US through additional shopping features on Instagram and TikTok. Shop"" in the Instagram interface, as well as TikTokÄX%$%Xs integration with Shopify, enables businesses to create more immersive shopping experiences directly within the apps. However, influencer marketing remains the biggest driver because higher requirements to determine what their consumers are saying mean people are listening more and more to trusted figures before deciding to buy. Live shopping is another new favorite for reaching audiences; brands can show their products in real-time and can engage with the audience. Companies are also investing in AR tools to enhance their efforts of virtual try-ons, making it all much less different from buying online and offline shopping.
• China: China is the birthplace of social commerce through applications such as WeChat and Douyin. Commerce within the social media channels integrates very seamlessly, and never does a user need to leave the application in order to shop. There is influencer marketing, KOLs, leading to producing sales, much of which often goes viral. Live-streamed sales events have become a cultural phenomenon and many revenue streams now generate through real-time participation. Moreover, social commerce is now wrapped up in daily activities because more often than not, people discover products through interactions with friends and other social media recommended things.
• Germany: Social commerce is growing rapidly in Germany, and Facebook and Instagram are part of this retail strategy. The more important brands become in attracting younger buyers, who enjoy their shopping through social channels, the more they need to use social media. For German retailers, those features such as shoppable posts and stories are still being experimented with so that users easily make a buy. Influencer collaboration presents an important area for a local brand to increase credibility and reach. It is also transforming the consumer behavior wherein brand sustainability has evolved as a progressively pivotal factor, so for this, brands started highlighting the green approach while leveraging social commerce strategies.
• India: Social Commerce in India is moving at a breakneck speed as use of social media is becoming increasingly rampant and widely accepted along with smartphones. Facebook, Instagram, and WhatsApp are becoming unavoidable for the brands connecting to their consumers. This also indicates the growth of small businesses and local artisans as a more accessible route to their target customers. Instead of celebrities, influencer marketing is going to gain popularity with micro-influencers that will provide genuine engagement. Live shopping events and interactive content are emerging as the most successful sales drivers for the Indian market and, thereby, as agents for customer experience.
• Japan: In Japan, e-social commerce is slowly starting to take its first steps as brands seek alternative ways of relating with consumers online. On the platforms such as Instagram and LINE, product discovery and sales are held directly through them. A Japanese consumer cares about the good name and the quality of products offered, hence, forcing business ventures to build trust from marketing like product influences and real content. Integration of mobile payment solutions with social commerce has also enhanced the way of shopping. With changing digital landscapes, companies are now engaging consumers through user-generated content and live-streaming events.
Features of the Global Social Commerce Market
Market Size Estimates: Social commerce market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Social commerce market size by business model, product type, sales channel, and region in terms of value ($B).
Regional Analysis: Social commerce market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different business model, product type, sales channel, and regions for the social commerce market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the social commerce market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the social commerce market size?
Answer: The global social commerce market is expected to reach an estimated $4172.8 billion by 2030.
Q2. What is the growth forecast for the social commerce market?
Answer: The global social commerce market is expected to grow with a CAGR of 28.7% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the social commerce market?
Answer: The major drivers for this market are an increase in the use of social media, the growth and attraction of online shopping, the amount of time spent on these sites on average during the pandemic, and the convenience of online shopping.
Q4. What are the major segments of the social commerce market?
Answer: The future of the global social commerce market looks promising with opportunities in the business-to-consumer, business-to-business, and consumer-to-consumer markets.
Q5. Who are the key social commerce market companies?
Answer: Some of the key social commerce companies are as follows:
• Etsy
• Fashnear Technologies
• Meta Platforms
• Pinduoduo
• Pinterest
• TikTok
• Poshmark
Q6. Which social commerce market segment will be the largest in the future?
Answer: Lucintel forecasts that apparel will remain the largest segment over the forecast period because most individuals spent their time online during the COVID-19 pandemic, fashion businesses found new ways to foster the buying experience, work with influencers and artists, and establish new connections.
Q7. In the social commerce market, which region is expected to be the largest in the next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period due to growing investments in the infrastructure supporting telecommunications, the increasing use of smartphones, and the popularity of social media platforms like Facebook, Instagram, and Twitter.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the social commerce market by business model (business to consumer, business to business, and consumer to consumer), product type (personal & beauty care, apparels, accessories, home products, health supplements, food & beverage, and others), sales channel (video commerce (live stream + prerecorded), social network-led commerce, social reselling, group buying, and product review platforms), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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