United Kingdom Social Commerce Market Report 2024: Social Commerce Market in the UK Set to Increase from US$31.27 Billion in 2024, to Reach US$83.27 Billion by 2029
DUBLIN, March 7, 2024 /PRNewswire/ -- The "United Kingdom Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The social commerce industry in United Kingdom was forecast to grow by 26.6% on annual basis to reach US$31.27 billion in 2024. The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 21.6% during 2024-2029. The social commerce GMV in the UK will increase from US$24.71 billion in 2023 to reach US$83.27 billion by 2029.
The social commerce market is poised to grow at a steady rate over the medium term in the United Kingdom. While the sector is still in its early stages of development, the trend of social buying is on the rise in the European market. Gen Z and young millennials have increased their spending on social channels and this trend is expected to gain further momentum in 2024.
Small businesses, in the United Kingdom, are increasingly making use of social channels to reach their targeted customers. Platforms like Facebook, Instagram, Twitter, and TikTok have emerged as top sales generators for a significant chunk of small businesses across the country. Overall, a positive growth outlook is expected for the social commerce market over the next three to four years in the United Kingdom.
Young generation consumers are leading the trend of social buying in the United Kingdom
While the United Kingdom is leading the social buying trend across the European region, there is still plenty of growth opportunity in the sector. Social commerce penetration is low in the country compared to other markets like the United States and China. Young generation consumers, Gen Z, and millennials, are projected to lead the trend of social buying over the medium term in the United Kingdom.
According to a report from eMarketer, Instagram is a top choice for social buying among young generation consumers, with 37.3% of the respondents preferring the channel for purchases. This is followed by TikTok at 36.1% and Facebook at 34.3%. This shows that while Meta is dominating the social commerce market in the United Kingdom, TikTok is gaining ground rapidly among social buyers. As the market continues to mature, the publisher expects TikTok to further increase its investment in the United Kingdom's social commerce industry over the next three to four years.
Social media platforms have emerged as a strong revenue generator for smaller businesses
Social media channels have continued to gain popularity over other marketing tools in the United Kingdom market. This trend is projected to further grow over the medium term, as more and more shoppers use social platforms to make purchases. Smaller businesses, especially, are benefiting from the rise in social buying in the United Kingdom.
According to a report from BT, 28% of small businesses say that social channels are their primary revenue driver. For these businesses, social platforms are generating more sales compared to other channels such as physical stores and e-commerce platforms. The report also revealed that a quarter of the businesses are using organic reach to drive sales, while 22% are using paid social media posts to drive revenue growth.
While using Facebook Marketplace, TikTok, and Instagram shops is a great way for businesses to connect with new customers and make sales on social media, small businesses are worried that the guidelines and algorithms on each platform differ, causing confusion and making them feel like they are falling behind, according to the report.
Consequently, for social platforms to gain more prominence and drive growth, investing in support services and offering other tools to develop a brand online becomes increasingly crucial over the medium term.
Klarna seeks to expand its Creator Shops functionality in the United Kingdom market to aid business growth
Klarna has been moving beyond its buy now pay later business model aggressively. To accelerate revenue growth, the firm has entered into various business verticals, including social buying and commerce. The firm, with its Creator Shops capabilities, has achieved strong traction in the United States. Klarna now is planning to expand the Creator Shops feature in the United Kingdom market.
Through the Creators Shops feature, the firm is providing more than 500,000 creators the opportunity to create their own online stores on Klarna.com. Creators will have tools to ensure a seamless shopping experience for users, allowing them to discover and purchase the products recommended by their favorite creators all in one place.
This platform enables creators to suggest items from a wide range of retailers, share interactive videos and photos for shopping, and promote their stores on social media. This not only benefits creators but also opens up new revenue possibilities for retailers.
In the United States, the Creator Platform has grown five times year on year, highlighting the value offered by Klarna. The launch, in the United Kingdom, will also drive more creators to the platform. This will subsequently support the growth of the social commerce market over the medium term.
This report provides a detailed data centric analysis of social commerce industry, covering market opportunities and risks. With over 50+ KPIs at country level, this report provides a comprehensive understanding of social commerce market dynamics, market size and forecast, and market share statistics.
This report provides in-depth, data-centric analysis of social commerce in United Kingdom. Below is a summary of key market segments:
United Kingdom Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029
United Kingdom Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2020-2029
United Kingdom Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2020-2029
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Travel
- Hospitality
United Kingdom Social Commerce Industry Market Size and Forecast by End Use Consumer Segment, 2020-2029
- B2B
- B2C
- C2C
United Kingdom Social Commerce Industry Market Size and Forecast by End Use Device, 2020-2029
- Mobile
- Desktop
United Kingdom Social Commerce Industry Market Size and Forecast by Location, 2020-2029
- Domestic
- Cross Border
United Kingdom Social Commerce Industry Market Size and Forecast by Location, 2020-2029
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
United Kingdom Social Commerce Industry Market Size and Forecast by Payment Method, 2020-2029
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
United Kingdom Social Commerce Industry Market Size and Forecast by Platforms
- Video Commerce
- Social Network-Led Commerce
- Social Reselling
- Group Buying
- Product Review Platforms
United Kingdom Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour,2023
- By Age
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/ohbvce
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