In-depth Market Research on Social Shopping in the United States for 2024

The U.S. social commerce market has experienced remarkable growth, with its size valued at USD 89.11 billion in 2022. This growth is projected to continue at a compound annual growth rate (CAGR) of 29.2% from 2023 to 2030, driven by increased time spent on social media platforms during the pandemic and the convenience they offer for purchasing products. The market is expected to reach USD 114.7 billion in 2024 and USD 148.2 billion in 2025, reflecting the ongoing adoption of social commerce by both consumers and businesses. Core competitors include major platforms like Instagram, Facebook, and TikTok, which have streamlined shopping experiences and encouraged impulse purchases.

The Business-to-Consumer (B2C) segment dominates the market, holding approximately 55% of the market share in 2023. This segment is expected to grow at a CAGR of 29.6% during the forecast period, driven by rapid technological advancements and the widespread adoption of smart devices with data connectivity. The B2C segment’s growth is further supported by the increasing use of shoppable ads, in-app purchases, and influencer content, which enhance consumer engagement and drive sales. Opportunities lie in leveraging innovations such as live-streaming purchases and augmented reality (AR) filters, which create new avenues for consumer engagement and experiential shopping. However, concerns about data privacy and the potential misuse of consumer information by social media platforms may pose challenges to market growth.

The U.S. social commerce market has seen significant expansion, with its size valued at USD 89.11 billion in 2022. This growth is driven by the increasing integration of shopping features on social media platforms, which have become essential tools for both consumers and businesses. The market is projected to grow at a compound annual growth rate (CAGR) of 29.2% from 2023 to 2030, reaching USD 114.7 billion in 2024 and USD 148.2 billion in 2025. This growth is fueled by the rising number of active buyers on platforms like Facebook, Instagram, and TikTok, which have streamlined the shopping experience and encouraged impulse purchases.

The Business-to-Consumer (B2C) segment is the largest contributor to the market, accounting for approximately 55% of the market share in 2023. This segment is expected to grow at a CAGR of 29.6% during the forecast period, driven by rapid technological advancements and the widespread adoption of smart devices with data connectivity. The target market size for B2C social commerce is projected to reach USD 63.1 billion in 2024 and USD 81.6 billion in 2025, reflecting its pivotal role in the overall market expansion. The growth of the U.S. social commerce market is also supported by the surge in internet and social media usage, which has broadened the reach of social commerce platforms. Innovations such as live-streaming purchases and augmented reality (AR) filters have created new opportunities for consumer engagement and experiential shopping.

The U.S. social commerce market is a rapidly evolving sector within e-commerce, leveraging social media platforms to facilitate transactions. This analysis delves into the market segmentation based on business models, product types, and sales channels, highlighting key characteristics, potential, and challenges for each segment.

Key Segments

The U.S. social commerce market is segmented into three primary categories: business models, product types, and sales channels.

1. Business Models:

   • Business-to-Consumer (B2C): Direct transactions between businesses and consumers, often facilitated through social media platforms.
   • Business-to-Business (B2B): Transactions between businesses, leveraging social networks for networking and sales.
   • Consumer-to-Consumer (C2C): Peer-to-peer transactions, often through platforms like Facebook Marketplace or Poshmark.

2. Product Types:

   • Apparel: Dominates the market with a revenue share of 23.06%, driven by visual appeal and influencer content.
   • Personal & Beauty Care: Includes skincare, cosmetics, and grooming products.
   • Accessories: Jewelry, bags, and other fashion accessories.
   • Home Products: Furniture, décor, and household items.
   • Health Supplements: Vitamins, protein powders, and wellness products.
   • Food & Beverages: Groceries, snacks, and beverages.
   • Other Product Types: Includes toys, DIY kits, electronics, and furniture.

3. Sales Channels:

   • Video Commerce: Live-streaming and pre-recorded videos, accounting for 41.8% of revenue.
   • Social Network-Led Commerce: Direct purchases through platforms like Instagram and Facebook.
   • Social Reselling: Peer-to-peer selling platforms.
   • Group Buying: Collaborative purchasing for discounts.
   • Product Review Platforms: Platforms where users review and purchase products.

Segment Comparison

Analysis of Segments

Business Models

• B2C: This segment holds the largest market share due to its direct consumer engagement and personalized marketing strategies. The potential lies in leveraging social media’s reach to enhance customer loyalty and drive sales. However, challenges include maintaining consumer trust and navigating data privacy concerns.
• B2B: While smaller, this segment is growing as businesses increasingly use social networks for networking and sales. The challenge is creating platforms that cater specifically to B2B needs, such as bulk purchasing and professional networking.
• C2C: This segment is driven by the rise of micro-entrepreneurs and the second-hand market. Its potential lies in affordability and peer influence, but it faces challenges related to transaction security and platform reliability.

Product Types

• Apparel: Dominating the market, this segment benefits from the visual nature of social media and influencer-driven content. The challenge is staying ahead of rapidly changing fashion trends and ensuring product quality.
• Personal & Beauty Care: This segment thrives on influencer endorsements and user-generated content. The challenge is managing consumer expectations regarding product efficacy and safety.
• Video Commerce: This segment’s immersive shopping experience drives its high revenue share. The challenge is creating engaging content that converts viewers into buyers.

Sales Channels

• Social Network-Led Commerce: Platforms like Instagram and Facebook dominate this segment. The potential lies in their vast user base, but challenges include ad saturation and consumer fatigue.
• Social Reselling: This segment is growing due to its affordability and peer-driven nature. The challenge is ensuring transaction security and platform reliability.
• Group Buying: This segment appeals to budget-conscious consumers. The challenge is maintaining the quality of products and managing logistics.

The U.S. social commerce market is dominated by a mix of social media platforms and e-commerce giants that have integrated shopping features into their ecosystems. These players leverage their vast user bases, innovative technologies, and seamless shopping experiences to drive consumer engagement and sales. Below is an overview of the key players, their characteristics, advantages, and disadvantages.

Key Players

1. Instagram (Meta Platforms): Instagram is a leader in social commerce, offering shoppable posts, ads, and in-app checkout. Its strengths include a massive user base and seamless integration with Facebook’s advertising tools. However, its reliance on Meta’s ecosystem can be a limitation for brands seeking independence.

2. Facebook (Meta Platforms): Facebook pioneered social commerce with shoppable ads and marketplace features. Its strengths lie in its extensive reach and advanced targeting capabilities. However, privacy concerns and algorithm changes have created challenges for businesses.

3. TikTok: TikTok has rapidly emerged as a social commerce powerhouse, leveraging short-form video content and influencer partnerships. Its strengths include high engagement rates and a younger demographic. However, its e-commerce infrastructure is still evolving compared to competitors.

4. Pinterest: Pinterest’s Shopping List feature and visual discovery tools make it a strong contender in social commerce. Its strengths include high intent-to-purchase behavior among users. However, its user base is smaller compared to platforms like Instagram and Facebook.

5. Twitter: Twitter Shops allow brands to showcase products directly on the platform. Its strengths include real-time engagement and a broad audience. However, its social commerce features are less developed compared to other platforms.

6. Snapchat: Snapchat’s AR filters and shoppable ads provide an immersive shopping experience. Its strengths include innovation in augmented reality and a younger user base. However, its e-commerce capabilities are still in the early stages.

7. Amazon: Amazon’s integration with social media platforms and its own marketplace make it a key player. Its strengths include a vast product catalog and robust logistics. However, its social commerce features are less prominent compared to dedicated social platforms.

8. Etsy: Etsy’s focus on handmade and unique products appeals to niche markets. Its strengths include a loyal customer base and strong community engagement. However, its reach is limited compared to larger platforms.

9. Poshmark: Poshmark specializes in secondhand fashion and social selling. Its strengths include a strong community-driven model and user-friendly interface. However, its niche focus limits its broader market appeal.

10. YouTube: YouTube’s shoppable videos and integration with Google Shopping make it a growing player in social commerce. Its strengths include high video engagement and a diverse audience. However, its shopping features are less prominent compared to other platforms.

Players Comparison

Analysis of the Competitive Landscape

The competitive landscape of the U.S. social commerce market is shaped by the dominance of social media platforms like Instagram, Facebook, and TikTok, which have integrated shopping features to capitalize on their massive user bases. These platforms are driving innovation through features like shoppable posts, AR filters, and influencer partnerships, creating a seamless shopping experience for users.

However, challenges such as privacy concerns and algorithm changes are influencing market dynamics. Brands are increasingly diversifying their sales channels to reduce reliance on major e-commerce platforms, which is positively impacting the growth of social commerce.

The rise of live-streaming purchases and video-based shopping is expected to create new opportunities for growth. Additionally, the increasing prevalence of smartphones and tablets is further bolstering the market.

The U.S. social commerce market is experiencing significant growth, driven by increased internet and social media usage, particularly among younger demographics like Gen Z and millennials. Platforms such as Instagram, Facebook, and TikTok are streamlining shopping experiences, encouraging impulse buys through features like shoppable posts, in-app purchases, and live-streaming demonstrations7. Additionally, brands are leveraging social commerce to foster direct consumer connections, enhancing personalized marketing, storytelling, and community building3. The rise of micro-entrepreneurs and the popularity of handmade products are also contributing to the market’s expansion5.

The primary drivers include the widespread adoption of smartphones and tablets, which facilitate seamless social commerce experiences9. Social media platforms are investing heavily in innovative features like AR filters (Snapchat), Shopping Lists (Pinterest), and Twitter Shops, making the buying process more experiential8. The shift from traditional e-commerce to social buying is further accelerated by brands forming strategic alliances with social platforms to drive engagement and sales8. Additionally, the growing preference for personalized and interactive shopping experiences is pushing consumers toward social commerce2.

The market presents opportunities for brands to enhance customer engagement through shoppable content and live-streaming, which can boost sales and brand loyalty6. Social commerce also democratizes retail, enabling small businesses and micro-entrepreneurs to reach wider audiences2. However, challenges include consumer concerns about data privacy and security on social media platforms, which could hinder adoption4. Additionally, the slow growth rate of social commerce in the US compared to global markets requires brands to educate consumers and build trust in this shopping method1.

The U.S. social commerce market is primarily driven by a tech-savvy, digitally connected demographic. The core user base consists of younger generations, particularly Millennials and Gen Z, who are highly active on social media platforms like Instagram, TikTok, and Facebook. These platforms have become integral to their daily lives, with users spending an average of 25.6 hours monthly on TikTok alone4. Additionally, the growing popularity of hand-made products and art suggests that the market also appeals to creative individuals and niche communities5.

The demographic characteristics of the U.S. social commerce market significantly influence purchasing behavior. Younger consumers, who are more accustomed to digital interactions, are more likely to engage with shoppable ads, influencer content, and live-streaming purchases3. The convenience of immediate checkout and personalized marketing on social media platforms encourages impulse buying, further driving market demand7. However, concerns about data privacy may deter some consumers, particularly older demographics, from fully embracing social commerce4.

In the United States, the decision-making process for social commerce is heavily influenced by the seamless integration of shopping features within social media platforms. Consumers often encounter products through shoppable ads, influencer content, or organic posts, which prompt immediate interest. The process typically begins with product discovery, where users engage with content through likes, shares, or comments. This engagement often leads to impulse purchases, especially when platforms like Instagram, Facebook, and TikTok streamline the checkout process, allowing users to buy directly within the app3. The ease of product discovery and the ability to make quick purchases without leaving the platform are key drivers of this behavior2.

The primary factors influencing purchasing behavior in social commerce include convenience, product exclusivity, and price advantages. The ability to shop directly within social media platforms eliminates unnecessary steps, making the process faster and more intuitive2. Additionally, brands that offer exclusive products or limited-time deals on social media can generate significant interest1. Personalized marketing and real-time customer service further enhance consumer satisfaction and loyalty7. However, concerns about data privacy and security remain a barrier, as consumers are increasingly wary of how their information is used4.

Consumer behavior in social commerce is characterized by high engagement and a growing interest in mobile shopping. Nearly half of U.S. consumers have made a purchase via social media, and more than half express interest in doing so in the future1. The rise of live-streaming shopping and video-based content has further enhanced the interactive nature of social commerce, making it more participatory than traditional e-commerce4. Despite slower growth compared to global markets, the U.S. social commerce sector is poised for steady expansion, driven by increasing consumer activity on mobile devices and the adoption of innovative shopping features8.

The U.S. social commerce market operates under a framework of existing e-commerce and consumer protection laws, including the Federal Trade Commission (FTC) guidelines on advertising and endorsements. These regulations ensure transparency in influencer marketing and shoppable content, requiring clear disclosures for sponsored posts. Additionally, data privacy laws, such as the California Consumer Privacy Act (CCPA), impact how social platforms handle user data during transactions7.

Regulations significantly influence market entry and competition. Compliance with FTC guidelines and data privacy laws can be a barrier for smaller businesses, while larger platforms like Instagram and TikTok have the resources to adapt swiftly. These rules also enhance consumer protection by ensuring transparency and reducing fraudulent practices, which fosters trust in social commerce7. However, frequent algorithm changes by platforms can disrupt brands that rely heavily on these ecosystems7.

The regulatory environment presents both risks and opportunities. On one hand, stringent data privacy laws and the need for transparency can increase operational costs and complexity7. On the other hand, adherence to these regulations can build consumer trust and loyalty, providing a competitive edge. The growing demand for responsible platform design also opens opportunities for innovation in user experience and safety7.

Regulations shape the economic landscape of social commerce by fostering a secure and transparent environment, which encourages consumer participation and market growth7. However, compliance costs and the dynamic nature of platform algorithms can pose challenges for businesses, particularly smaller players7. Overall, the regulatory framework supports sustainable growth while addressing consumer protection and privacy concerns.

The U.S. social commerce market is thriving, driven by the surge in internet and social media usage. In 2021, social commerce sales in the U.S. reached USD 36.62 billion, reflecting a growth of over 35%3. This growth is further supported by the increasing time users spend on social media, with platforms like Facebook reaching 179.7 million users through advertisements4. These indicators highlight the significant role of digital engagement in shaping the market.

While social commerce is growing globally, its pace in the U.S. is slower compared to regions like Asia-Pacific. However, nearly half of U.S. consumers have made purchases via social media, indicating a steady adoption1. This slower growth may be attributed to consumer concerns about data privacy on social media platforms, which could constrain market expansion4.

The market is poised for strong growth due to increasing investments from social media platforms and retailers. Innovations like Pinterest’s Shopping List, Twitter Shops, and Snapchat’s AR filters are enhancing the shopping experience8. Additionally, the rise of live-streaming purchases and video-based shopping is expected to create new opportunities4. These trends suggest a shift toward more experiential and immediate shopping processes.

Economic factors are driving technological innovations in social commerce. The demand for seamless product discovery and checkout processes has led to the development of features like in-app purchases and shoppable ads2. Furthermore, the push for personalized marketing and real-time customer service is fostering advancements in AI and data analytics, enhancing consumer engagement and satisfaction7.

In summary, the U.S. social commerce market is evolving rapidly, shaped by macroeconomic trends, regional adoption rates, and technological innovations. Brands that leverage these dynamics can capitalize on emerging opportunities and stay competitive.

The U.S. social commerce market is heavily influenced by advancements in social media platforms and their integration with e-commerce functionalities. Platforms like Instagram, Facebook, and TikTok have streamlined shopping experiences by enabling features such as shoppable ads, in-app purchases, and influencer-driven content7. Additionally, innovations like Pinterest’s Shopping List, Twitter Shops, and Snapchat’s AR filters have enhanced the experiential aspect of shopping, making it more interactive and engaging8. These technologies aim to reduce friction in the purchasing process, allowing consumers to discover and buy products seamlessly within social media ecosystems2.

Key competitors in the social commerce space leverage distinct technologies to gain an edge. For instance, Instagram and Facebook focus on shoppable posts and ads, while TikTok emphasizes viral content and short-form videos to drive purchases7. Pinterest’s visual search and AR capabilities offer a unique discovery experience, and Snapchat’s AR filters provide immersive product try-ons8. These technologies cater to different consumer preferences, with Instagram and Facebook excelling in personalized marketing, while TikTok and Snapchat focus on entertainment-driven shopping.

Technological advancements have reshaped the market by fostering direct brand-consumer connections, enabling personalized storytelling, and building communities7. This has led to increased consumer engagement and loyalty. Moreover, the rise of live-streaming shopping and video commerce has created new opportunities for brands to interact with consumers in real-time4. However, concerns about data privacy and security remain a challenge, potentially limiting market growth4.

Technology has amplified consumer feedback by enabling real-time interactions and reviews on social platforms. Features like shoppable influencer content and product reviews allow consumers to share their experiences instantly, influencing purchasing decisions3. This feedback loop not only enhances transparency but also helps brands refine their offerings to meet consumer expectations.

The U.S. social commerce market is experiencing growth, driven by increased internet and social media usage, with platforms like Instagram, Facebook, and TikTok streamlining shopping experiences and encouraging impulse purchases7. Consumers appreciate the direct brand connections, personalized marketing, and real-time customer service offered by these platforms, which enhance satisfaction and loyalty7. However, concerns about data privacy and security on social media platforms remain a significant barrier to adoption4. Additionally, while nearly half of consumers have made purchases via social media, the growth rate in the U.S. is slower compared to global trends, indicating a need for brands to educate consumers and build trust1.

To address consumer concerns and improve the social commerce experience, brands should enhance security measures by implementing transparent data policies and secure payment options4. Educating consumers about the shopping process and providing clear guidance can also help users feel more comfortable purchasing via social media1. Leveraging shoppable influencer content can build trust and drive engagement3, while improving product discovery features can make it easier for users to find and purchase items1.

The U.S. social commerce market shows significant potential, with consumer interest growing despite slower adoption rates. Brands that prioritize security, education, and innovation in product discovery will be well-positioned to capitalize on this emerging trend. By addressing consumer concerns and enhancing the shopping experience, social commerce can become a more integral part of the e-commerce landscape in the U.S.