United States Social Commerce Intelligence Report 2024: Market to Grow by Over 18% to Reach $72.93 Billion in 2024 - Forecasts to 2028 as Platforms are Betting on Shoppable Ads to Drive Revenues
Social commerce industry in United States is expected to grow by 18.1% on annual basis to reach US$72.93 billion in 2024.
DUBLIN, April 1, 2024 /PRNewswire/ -- The "United States Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
Social commerce industry in United States is expected to grow by 18.1% on annual basis to reach US$72.93 billion in 2024.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 14.7% during 2024-2029. The social commerce GMV in the country will increase from US$61.73 billion in 2023 to reach US$144.60 billion by 2029.
The United States social commerce market is poised to grow at a rapid rate over the medium term. Both domestic and global firms are increasing their investment in the sector. This will aid innovation and competitive landscape in the social commerce market, supporting the broader industry growth over the medium term. TikTok, for instance, is spending big to build a logistics network to drive the platform's appeal among sellers and buyers.
In the United States, firms are also projected to raise venture capital and private equity funding in 2024, to develop and launch new social commerce features. This will further aid the competitive landscape in the fast-growing sector over the medium term. Overall, the publisher maintains a robust growth outlook for the social commerce industry in the United States over the next three to four years.
Social media platforms are betting on shoppable ads to drive sales and revenue growth in the United States
An increasing number of shoppers have become social commerce buyers in the United States. The trend is especially higher among Gen Z shoppers. To tap into the growth market, social media platforms are betting on shoppable ads in the United States.
- Pinterest, for instance, experienced a surge of 11% in ad revenues 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. The firm, while having its own checkout option, is not focusing on direct commerce. This is because shoppers prefer making a purchase from the retailers directly.
- Meta is also placing emphasis on ads that allow users to shop directly. Instead of handling the actual buying and selling, the firm has teamed up with Amazon. This collaboration lets Facebook and Instagram users buy products from Amazon without having to leave their social media feeds. It is like combining Meta's expertise in advertising that encourages discovery with Amazon's extensive retail system.
Pinterest and Snap have also entered into similar strategic partnerships. These collaborations might disrupt the social commerce sector in the United States, potentially affecting the growth rate of TikTok over the medium term.
TikTok is increasing investment in the social commerce sector to tap into the United States market
According to a report from eMarketer, the United States social commerce sales are projected to exceed US$100 billion by 2025. This growth will be driven by the rising adoption of social commerce buying among Gen Z shoppers and increasing spending from existing buyers over the medium term. TikTok, which is well-funded, is seeking to tap into this growth potential over the next three to four years.
- TikTok is making a big investment in the United States social commerce market. The firm, notably, is spending big to build a logistic network. This is part of the firm's strategy to boost the platform's appeal among sellers and buyers. The firm reported strong growth in the social commerce sector in 2023. The publisher expects another strong show from the Chinese firm over the next 12 months. TikTok, notably, is finding success in categories like beauty and personal care. As per NielsenIQ, this accounted for nearly 85% of its total sales in September 2023.
TikTok has adopted a different growth strategy in the United States. While others are betting on shoppable ad formats to drive revenue growth, TikTok is focused on direct platform sales. The firm launched the e-commerce marketplace TikTok Shop in September and is expected to launch more features to support direct sales over the medium term.
Firms are raising venture capital and private equity funding to launch social commerce features
With live shopping projected to grow over the next few years in the United States, firms are raising venture capital and private equity funding to launch new features and services on their platform.
- SuperOrdinary, in October 2023, announced that the firm raised US$58 million as part of its Series B funding round at a valuation of US$800 million. Manzanita, Alliance Consumer Growth, and Demira Gate Investments are among the investors that participated in the Series B round. The firm, notably, assists consumer brands from America and Europe in expanding their presence on platforms such as Amazon, selling via social commerce, and entering the Chinese market.
- SuperOrdinary anticipates becoming profitable, over the next 12 months, with a growth exceeding 50% and achieving US$350 million in revenue. The company reports a 30% annual revenue increase over the past year, and during this period, its engineering team has tripled in size. With fresh capital, the firm is planning to add more capabilities in the United States, including livestreaming and creator-led e-commerce.
Going forward, the publisher expects more such social commerce firms to raise venture capital and private equity funding in the United States. This will drive innovation and a competitive landscape in the fast-growing sector over the next three to four years.
This report provides a detailed data centric analysis of social commerce industry, covering market opportunities and risks. With over 50+ KPIs at country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
United States Social Commerce Key Players
- YouTube
- Amazon Shopping
- Verishop and Verishop Mini
United States Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029
United States Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029
United States Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2020-2029
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Travel
- Hospitality
United States Social Commerce Industry Market Size and Forecast by End Use Consumer Segment, 2020-2029
- B2B
- B2C
- C2C
United States Social Commerce Industry Market Size and Forecast by End Use Device, 2020-2029
- Mobile
- Desktop
United States Social Commerce Industry Market Size and Forecast by Location, 2020-2029
- Domestic
- Cross Border
United States Social Commerce Industry Market Size and Forecast by Location, 2020-2029
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
United States 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 Payment
- Cash
United States Social Commerce Industry Market Size and Forecast by Platforms
- Video Commerce
- Social Network-Led Commerce
- Social Reselling
- Group Buying
- Product Review Platforms
United States Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour,2023
- By Age
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/qsi67s
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