Shopping on social networks could reach $1.2 trillion by 2025

Shopping on social networks is shaping up to be a booming market especially in the near future. In the next three years, the size of the social commerce market is expected to grow 2.5 times to reach $1.2 trillion worldwide. It is a widespread trend and is largely led by Generation Z.

This growth is confirmed by the Accenture study “Why Shop for a Social Revolution.” According to the report, the value of the so-called social commerce is expected to reach $1.2 trillion by 2025, while the current global market generates $492 billion. According to Accenture, shopping on social networks will grow “three times faster than traditional e-commerce.” In other words, it is a market with high potential for influencers on networks like TikTok or Instagram.

Millennials, the biggest spenders on social media

On the front, generations Z and Y can be the source of 62% of spending via social networks. Millennials are expected to account for the majority of social commerce spending, at $401 billion, compared to $359 billion for Generation Z. 2025. As for Generation X, they will be responsible for 28% of the market, worth $344 billion for social media shopping.

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About 64% of social network users reported making a purchase on a platform in the past year, which already accounts for nearly two billion online shoppers worldwide, notes Accenture.

“The pandemic has shown the extent to which people are using social platforms as an entry point for everything they do online – news, entertainment and communications,” said Robin Murdoch, global head of software and systems industry at Accenture. “The steady rise in the time spent on social media reflects how important these platforms are in our daily lives. They are reshaping the way we buy and sell, providing platforms and brands with new opportunities for user experiences and revenue streams.”

What will be the most purchased items on social media in 2025?

Among online shoppers, 63% said they are more likely to buy from the same merchant, highlighting the importance of loyalty even on social networks. According to the study, consumers are most afraid of not being refunded properly and not being adequately protected. This was a negative point also raised in the early days of e-commerce. “Trust is an issue that will take time to overcome, but sellers who focus on these areas will be in a better position to increase their market share,” said Oliver Wright, president of global consumer services and goods for the company.

The report also identifies the purchases that are likely to be the most popular on social media by 2025. Fashion will be the main driver of growth, with 18% of all social commerce by 2025. This will be followed by electronics with 13% and home decor with 7%. The report also notes that the sale of fresh food and snack products could reach 13%, almost exclusively for the Chinese market, and that the beauty sector should gain rapid progress in the coming years.

The study included 10,053 social media users in China, India, Brazil, the United States, and the United Kingdom. It was conducted from August 12 to September 3, 2021, with in-depth interviews with buyers and sellers in the same five markets between May 26 and June 2, 2021. JB

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