DUBLIN--(BUSINESS WIRE)--The "Africa & Middle East 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 2022 Update" report has been added to ResearchAndMarkets.com's offering.
According to the Q1 2022 Social Commerce Survey, social commerce industry in Africa & Middle East is expected to grow by 70.3% on annual basis to reach US$8,903.7 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 55.2% during 2022-2028. The social commerce GMV in the country will increase from US$8,903.7 million in 2022 to reach US$13,337.2 million by 2028.
In Africa and Middle East, the popularity of the social commerce sector has surged significantly over the last few quarters. While the global pandemic has resulted in a growing shift toward online shopping from e-commerce platforms, consumers in large numbers have also started purchasing products through social media platforms, such as Facebook, Instagram, and TikTok, in this region.
Notably, social media platforms that have the contextual relevance and scale to drive product discovery are expected to lead the social commerce market in South Africa. In the United States, Facebook, along with Instagram and Pinterest, have provided consumers with the best product discovery feature and are therefore leading the social commerce market in the country. The same market expansion strategy can be expected from Facebook and Instagram in South Africa.
Facebook recorded the fastest growth in the social commerce space in South Africa
There has been a big rise in the number of consumers shopping through social media platforms in South Africa over the last four to eight quarters. Consequently, payments firms are experiencing a big rise in the number of payments coming to their gateway from social media platforms in the country. Among the various social media platforms that are operational in the social commerce market, Facebook recorded the biggest increase in order volumes and transactions.
The smartphone and internet penetration rates are at an all-time high in the United Arab Emirates (the UAE). The country has one of the highest adoption rates globally, with 99% of the total population using one or the other social media platform. This is a clear indication of the increasing amount of time spent by consumers online and their association with various social networking sites. Following this shift in social media consumption and consumer behavior, an increasing number of brands in the UAE are focusing more on online offerings and seamless shopping experiences.
Startups are launching video shopping platforms for social commerce shoppers in the UAE
Amid growing demand from retailers to provide their customers with an innovative online shopping experience in the UAE, startups are launching innovative video shopping platforms. For instance, in December 2021, ShopperON launched a video shopping platform in the UAE, which enables individuals to host live streams and stores to create and host their own channels on the platform.
UAE-based social and conversational commerce platforms are raising funds to expand in other markets
The popularity of social commerce is growing across the GCC region. In the midst of this growing social commerce market, UAE-based social and conversational commerce platforms are looking to expand their presence in the region to gain increasing market share and are consequently raising funding rounds to support their goals.
Regional social commerce startups are expanding their presence in Saudi Arabia
The social commerce market is evolving very rapidly in the Middle East, with several startups in the sector driving its growth. As the shopping method continues to grow in prominence among consumers, these startups are expanding rapidly to gain further market share in the region. For instance, Dubai-based social commerce startup, Zbooni also has its presence in Saudi Arabia, where it provides brands and retailers with tools to address the growing demand for social commerce. Notably, the firm has an office in Saudi Arabia, where it is witnessing increasing demand for its seller app and web-based tools. In February 2022, the firm also announced that it had launched its product for businesses and retailers in Egypt as it looks to further penetrate and grow its market share in the social commerce space.
The presence of these global and regional social commerce firms in Saudi Arabia is expected to further intensify competition over the next four to eight quarters in the Kingdom. This will keep supporting the growth of the overall market from the short to medium-term perspective in the country.
Big technology players driving social commerce sales growth in Egypt
Several of the big technology and social media platform players, such as Facebook, Instagram, and TikTok, are eyeing a piece of the growing social commerce market globally, including in Egypt. Consequently, all of these players are ramping up their investment to boost social commerce activities through their platforms. This increased investment in the social commerce strategy is driving the growth of the overall market in the country.
With the Egyptian social commerce market expected to record strong growth in the next four to six quarters, the publisher projects these big technology players to further increase their investment in the sector. This will subsequently assist the growth of the overall social commerce industry in the country from the short to medium-term perspective and will also promote further innovation and competition in the Egyptian market.
Report Scope:
- Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
- Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
- Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
- Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
- Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
For more information about this report visit https://www.researchandmarkets.com/r/jyr6aj
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