The global social commerce market will grow from $492 billion in 2021 to $1.2 trillion by 2025, with India growing the fastest over this period, according to a report by Accenture.
By 2025, social commerce is expected to account for 17% of all ecommerce spending from today’s 10%, the report added.
Social commerce is transactions entirely within social media platforms and does not include click-through ads that take users to a brand’s website. The trend is driven by Gen Z and Millennial consumers, who will account for 62% of the spending, said the report.
The report was based on an online survey of 10,053 social media users in China, India, Brazil, the US and the UK from August 12 to September 3, 2021. It also involved in-depth interviews with shoppers and sellers from those markets in May and June.
While China would remain the largest and most mature market, the highest growth would be seen in India and Brazil. Accenture sees India’s social commerce market to grow at a 59% compound annual growth rate (CAGR) to $17 billion in gross merchandise value by 2025, and Brazil’s at a 30% CAGR to $5 billion over the same period. China’s social commerce market will grow at 26% to more than $1 trillion, and the US market at 25% to just under $100 billion.
Over that period, the most social commerce purchases globally are expected in clothing (18%), consumer electronics (13%), and home décor (7%). Fresh food and snacks could account for 13%, although mostly limited to China.
The beauty and personal care category is predicted to gain ground on ecommerce and capture an over 40% average digital spend in key markets.