Dublin, May 14, 2025 (GLOBE NEWSWIRE) -- The "Canada 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 - Q2 2025 Update" report has been added to ResearchAndMarkets.com's offering.
The social commerce market in Canada is expected to grow by 11.7% on annual basis to reach US$8.47 billion in 2025. The social commerce market in the country experienced robust growth during 2021-2024, achieving a CAGR of 14.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 10.8% during 2025-2030. By the end of 2030, the social commerce sector is projected to expand from its 2024 value of USD 7.58 billion to approximately USD 14.12 billion.
Major global platforms such as Facebook, Instagram, and TikTok dominate the Canadian social commerce landscape. They leverage their extensive user bases to facilitate in-app purchasing experiences, and these platforms have become integral channels for retailers aiming to reach consumers directly through social media.
The social commerce market in Canada is expanding rapidly, with platforms such as Instagram, Facebook, and TikTok driving growth through integrated shopping features. As businesses continue to optimize their social media storefronts and refine customer engagement strategies, social commerce is expected to become an essential component of the Canadian retail ecosystem.
Social media's influence on purchasing decisions is also expected to intensify, with diverse product categories gaining traction in social commerce. The growth of influencer marketing, live demonstrations, and peer recommendations will further shape consumer behavior. As retailers across different industries expand their social commerce offerings, the market will become more competitive, requiring businesses to invest in personalization and trust-building strategies to remain relevant in Canada's evolving digital retail landscape.
Competitive Landscape and Regulatory Developments in Canada's Social Commerce Market
Canada's social commerce market is poised for substantial growth, driven by the integration of shopping features within popular social media platforms and the entry of global and local players. Strategic partnerships and acquisitions are shaping the competitive landscape, offering consumers diverse and convenient shopping experiences.
However, businesses must navigate an increasingly stringent regulatory environment following recent amendments to the Competition Act to foster fair competition and protect consumers. Staying abreast of these changes and ensuring compliance will be crucial for companies looking to capitalize on the opportunities within Canada's burgeoning social commerce sector.
Rising Adoption of Social Commerce Platforms
- Increasingly integrating shopping features within social media platforms such as Instagram, Facebook, and TikTok facilitates seamless in-app purchasing experiences. This integration caters to consumer preferences for convenience and immediacy in shopping. Additionally, the widespread adoption of smartphones and high social media engagement among Canadians contribute to this trend.
- As social commerce platforms evolve, businesses will likely invest more in optimizing their social media storefronts and enhancing customer engagement strategies. This investment is expected to increase consumer trust and higher conversion rates, further solidifying social commerce as a significant channel in the Canadian retail landscape.
Diversification of Product Categories in Social Commerce
- Canadian consumers purchase various products through social commerce platforms, with over 40% of purchases encompassing apparel, beauty, electronics, and personal care categories.
- Social media platforms' visual and interactive nature makes them well-suited for showcasing products in these categories. Features such as live demonstrations, user reviews, and influencer endorsements enhance product visibility and appeal, encouraging consumers to explore and purchase diverse items.
- As consumers become more accustomed to discovering and purchasing various products through social media, the range of product categories available via social commerce is anticipated to continue expanding. Retailers across different sectors may increasingly leverage social platforms to reach potential customers, leading to a more diverse and competitive marketplace.
Increasing Influence of Social Media on Consumer Purchasing Decisions
- Social media platforms have become pivotal in shaping consumer purchasing behavior in Canada. Many consumers use these platforms to discover new products and brands, often influenced by content from peers, influencers, and brands themselves.
- Influencer content's authenticity and relatability resonate with consumers, making them more likely to trust and act on product recommendations. Social media's interactive features, such as likes, comments, and shares, facilitate community building and peer validation, further influencing purchasing decisions.
- As the influencer marketing sector in Canada continues to expand, businesses are expected to increasingly invest in influencer partnerships to drive sales through social commerce channels. This strategy will likely become more sophisticated, focusing on micro-influencers and authentic content to maintain consumer trust.
Key Players and New Entrants
- Established players such as Facebook and Instagram have integrated shopping features, enabling businesses to showcase products and facilitate purchases within the apps. TikTok is also expanding its social commerce capabilities, recognizing the platform's influence on consumer purchasing decisions.
- In addition to these global platforms, Canadian companies are entering the social commerce space. For instance, Shopify, a Canadian e-commerce company, has partnered with platforms such as TikTok to enable merchants to sell products directly through social media channels, enhancing the social commerce ecosystem in Canada.
Outlook
- The competitive landscape of Canada's social commerce market is expected to intensify over the next few years. This anticipated growth is likely to attract further investments and encourage the introduction of innovative social commerce solutions tailored to Canadian consumers.
- As the market evolves, businesses may increasingly focus on integrating advanced technologies such as augmented reality (AR) and artificial intelligence (AI) to enhance the shopping experience on social platforms. Additionally, collaborations between e-commerce platforms and social media companies are expected to become more prevalent, further blurring the lines between social networking and online shopping.
Regulatory Changes
- In 2024, significant amendments were made to Canada's Competition Act, strengthening the country's competition law framework. These changes enhance merger control, expand enforcement against anti-competitive agreements, and increase the focus on deceptive marketing practices. The amendments also broaden access for private parties to bring cases to the Competition Tribunal, introduce steeper penalties for civil violations, and empower the Competition Bureau to conduct more proactive market studies.
- These regulatory changes aim to promote fair competition and protect consumers in the evolving digital marketplace, including the social commerce sector. Businesses operating in Canada's social commerce space must ensure compliance with these updated regulations to avoid potential legal challenges and penalties.
Companies Featured
- YouTube
- Think Dirty
- MILLIONS.CO
- PopshopLive
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