Social Commerce Set to Surpass $1 Trillion by 2028

Strategic Insights -

Social commerce is gaining momentum worldwide, driven by the increasing demand for convenience and immediacy in online interactions. In India, it is projected to expand from $2 billion in 2020 to $60-70 billion by 2030, with social media integration and influencer impact being key drivers. The estimated revenue to surpass one trillion dollars in 2028 is expected to grow at a CAGR of 13.7 percent in the period of 2023 to 2028. This shift is prompting traditional e-commerce models to adapt by incorporating more social elements into their strategies.

Key Takeaways:

  • Social commerce is expected to surpass $1 trillion by 2028, growing at a CAGR of 13.7 percent from 2023 to 2028, according to Statista.
  • In India, social commerce is projected to expand from $2 billion in 2020 to $60-70 billion by 2030, driven by social media integration and influencer impact.
  • 70% of Indians are likely to buy a product that an influencer endorses, according to the Advertising Standards Council of India (ASCI).
  • Influencers play a significant role in driving sales, with 92% of consumers trusting recommendations from individuals over traditional advertising, according to a report by Nielson.
  • Brands are increasingly collaborating with micro-influencers to create authentic and relatable shoppable content, enhancing their social commerce strategies.
  • Out of the 4.9 billion social media users worldwide, about 76% of consumers discover products through brand posts, according to Sprinklr.
  • Platforms like Instagram and TikTok offer detailed analytics that help brands understand user interactions, preferences, and engagement.
  • Traditional e-commerce brands will need to adapt by enhancing their delivery processes, investing in logistics management, and incorporating interactive features to stay ahead.
  • Emerging technologies like AR and AI are expected to further enhance the shopping experience, with AR allowing users to virtually try on products and live-streamed events offering real-time interaction and instant purchases.

Statistics:

  • Social commerce is expected to grow at a CAGR of 13.7 percent from 2023 to 2028.
  • In India, social commerce is projected to expand from $2 billion in 2020 to $60-70 billion by 2030.
  • 130 million users on Instagram engage with shopping posts each month, while 43% of Gen Z consumers start their online product search on TikTok.
  • 92% of consumers trust recommendations from individuals over traditional advertising, according to Nielson.
  • 76% of consumers discover products through brand posts, according to Sprinklr.
  • 81% of consumers explore products on Instagram and Facebook, according to Meta.
  • The global penetration rate of social commerce had risen to approximately 23.6% in 2023, according to Statista.

Sources:

  • Statista
  • Bain & Company
  • Sprinklr
  • Nielson
  • Advertising Standards Council of India (ASCI)
  • Instagram
  • TikTok
  • Jungle Scout
  • Meta
  • Contify.com