DUBLIN, Feb. 26, 2024 (GLOBE NEWSWIRE) — “US Social Commerce Market Intelligence and Future Growth Dynamics Databook – Social Commerce Trends by End-Use Sector, Operational KPIs, Retail Product Dynamics, and Added “50+ KPIs on Consumer Demographics – Q1 2024 Update'' report ResearchAndMarkets.com Recruitment.
The US social commerce industry is expected to grow by 18.1% annually, reaching US$72.93 billion by 2024. The social commerce industry is expected to grow steadily during the forecast period, registering a CAGR of 14.7% during 2024-2029. Social commerce GMV in the US is expected to reach USD 144.6 billion by 2029, up from USD 61.73 billion in 2023.
The US social commerce market is expected to grow rapidly over the medium term. Both domestic and global companies are increasing their investments in this area. This will foster innovation and a competitive environment in the social commerce market, supporting broader industry growth in the medium term. TikTok, for example, is investing heavily in building a logistics network to increase the platform's appeal among buyers and sellers.
In the US, companies are also expected to raise venture capital and private equity funding in 2024 to develop and launch new social commerce capabilities. This will further strengthen the competitive environment in the fast-growing sector in the medium term. Overall, the company maintains solid growth prospects for the US social commerce industry over the next three to four years.
Social media platforms are betting on shoppable ads to drive sales and revenue growth in the US
In the US, more and more shoppers are becoming social commerce buyers. This trend is especially evident among Gen Z shoppers. Social media platforms are betting on shoppable ads in the US to tap into a growing market.
For example, Pinterest saw an 11% increase in ad revenue in Q3 2023. This comes at a time when brands and retailers are looking for ways to connect with shoppers during the product discovery process. Although the company has its own checkout option, it is not focused on direct transactions. This is because shoppers prefer to buy directly from retailers.
Meta is also focusing on advertising that allows users to shop directly. Instead of handling actual buying and selling, the company partnered with Amazon. This integration will allow Facebook and Instagram users to purchase products from Amazon without leaving their social media feeds. This combines Meta's advertising expertise to drive discovery with Amazon's extensive retail system.
Pinterest and Snap have similar strategic partnerships. These collaborations could disrupt the US social commerce space and impact TikTok's growth rate in the medium term.
TikTok is increasing investment in social commerce space to tap US market
According to a report from eMarketer, social commerce sales in the US are expected to exceed USD 100 billion by 2025. This growth will be driven by increased adoption of social commerce purchasing among Gen Z shoppers and increased spending from existing buyers in the medium term. Deeply funded, TikTok is looking to capitalize on this growth potential over the next three to four years.
TikTok is investing heavily in the US social commerce market. In particular, the company is investing a large amount of money in building its logistics network. This is part of the company's strategy to increase the platform's appeal among buyers and sellers. The company reported strong growth in its social commerce segment in 2023. The publisher expects further strength from the Chinese company over the next 12 months. TikTok has been particularly successful in categories such as beauty and personal care. This accounted for nearly 85% of his total sales in September 2023, according to NielsenIQ.
TikTok is adopting a different growth strategy in the US. While other companies are betting on shoppable ad formats to drive revenue growth, TikTok is focused on direct sales for its platform. The company launched its e-commerce marketplace TikTok Shop in September and is expected to release further features to support direct sales in the medium term.
Companies are raising venture capital and private equity funding to launch social commerce capabilities
Live shopping is expected to grow in the U.S. over the next few years, and companies are raising venture capital and private equity funding to launch new features and services on the platform. This will foster innovation and a competitive environment in a fast-growing sector over the next three to four years.
This report provides a detailed data-centric analysis of the Social Commerce industry, covering market opportunities and risks. This report includes over 50 KPIs at the country level to provide a comprehensive understanding of Social Commerce market dynamics, market size and forecast, and market share statistics.
Company scope
- YouTube
- amazon shopping
- Verishop and Verishop Mini
Report scope
This report provides an in-depth, data-centric analysis of social commerce in the United States. Below is an overview of the major market segments.
US e-commerce industry market size and future growth dynamics by key performance indicators, 2020-2029
US Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029
Market size and forecast by retail product category in the US social commerce industry, 2020-2029
- clothing and footwear
- beauty and personal care
- food and groceries
- Home appliances/electronic equipment
- home repair
- trip
- hospitality
US Social Commerce Industry Market Size and Forecast by End-Use Consumer Segment, 2020-2029
US Social Commerce Industry Market Size and Forecast by End Use Device, 2020-2029
US Social Commerce Industry Market Size and Forecast by Location, 2020-2029
US Social Commerce Industry Market Size and Forecast by Location, 2020-2029
- first class city
- 2nd class city
- 3rd class city
US Social Commerce Industry Market Size and Forecast by Payment Method, 2020-2029
- credit card
- debit card
- Bank transfer
- prepaid card
- Digital & Mobile Wallet
- Other digital payments
- cash
US social commerce industry market size and forecast by platform
- video commerce
- Social network-driven commerce
- social resale
- group purchase
- product review platform
US social commerce industry market size and forecast by consumer demographics and behavior, 2023
- By age
- By income level
- By gender
Key attributes:
| report attributes | detail |
| number of pages | 70 |
| Forecast period | 2024-2029 |
| Estimated market value in 2024 (USD) | $72.9 billion |
| Projected market value to 2029 (USD) | $144.6 billion |
| compound annual growth rate | 14.7% |
| Target area | America |
For more information on this report, please visit https://www.researchandmarkets.com/r/241v46.
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US social commerce market
