The global social e-commerce market is expected to reach $1.2 trillion in 2025

A new study by Accenture found that the $492 billion global social commerce industry is expected to grow three times faster than traditional commerce to $1.2 trillion by 2025. Growth is expected to be driven primarily by Gen Z and Millennial users, who will account for 62% of global social commerce spending by 2025.

64% of social media users surveyed said they had purchased something on social media in the last year, which Accenture estimates reflects nearly 2 billion social buyers worldwide.

While the opportunity is significant for large enterprises, individuals and small brands will also benefit. 59% of social buyers surveyed said they are more likely to support small and medium-sized enterprises through social commerce than through e-commerce websites. In addition, 63% of respondents are more likely to buy from the same seller again.

The survey found that the industries with the highest global social e-commerce purchases by 2025 are apparel (accounting for 18% of social e-commerce), consumer electronics (13%) and home improvement (7%). Fresh food and snacks also account for a large share (13%). Beauty and personal care has a smaller total sales volume, but is expected to quickly gain a foothold in the social e-commerce industry by 2025, accounting for an average of more than 40% of digital spending in major markets.

Other findings include:

• Consumers in developing countries are more likely to use social commerce. Eight out of ten social media users in China use social commerce to purchase goods in specific categories, while the majority of social media users in the UK and the US have not purchased goods on social media.
• Shoppers in China, India, and Brazil care more about features that help them discover and evaluate potential purchases, while shoppers in the UK and the US place more emphasis on pricing and discounts.
• Trust is more important to the older generation. Older shoppers emphasize safety and value brand familiarity, while younger generations are attracted to live streaming and trust buyer reviews more.