Online shopping on social media platforms has seen a significant increase in the past few years. According to data released by Accenture, shopping on social networks such as Facebook, TikTok and WeChat is going to grow three times faster than sales from traditional channels over the next three years. The consulting company revealed that shopping on social media will reach $1.2 trillion by 2025, up from $492 billion in 2021.
Shopping on Social Media to hit $1.2 trillion by 2025
The most popular products sold via social networks include clothing, consumer electronics and home decor. Beauty and personal care are also seeing growth, with online influencers playing a significant role.
The trend offers good news for mom-and-pop shops. More than half of so-called social buyers surveyed said they are likely to support small businesses over larger retailers and would likely buy from them again. This may allow new brands to build loyalty and expand businesses.
The report also revealed that around 3.5 billion people used social media in 2021 and spend on average two and a half hours engaged with it per day. The market for social commerce is far less saturated in the U.S. and the U.K. than in China, where 80% of social media users make social-commerce purchases.
China is expected to remain the most advanced market for social commerce in size and maturity. However, the highest growth is seen in developing markets such as India and Brazil.