UAE social commerce industry to grow by 22 per cent, says report

The UAE’s social commerce industry is set to increase by 21.6 per cent this year, market intelligence company Research And Markets said.

Social commerce is the use of social media platforms like Facebook, Instagram and WhatsApp to market and sell products and services. This type of selling model lets customers complete purchases without leaving social media apps.

This is in contrast to e-commerce, where customers are redirected to an online retail website.

The social commerce industry in the UAE is expected to grow by 21.6 per cent on annual basis to reach $975.2 million this year.

The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 19.9 per cent between the years 2022 and 2028, the report added.

The social commerce gross merchandise value in the country will increase from $975.2 million in 2023 to reach $2899 million by 2028.

“In the United Arab Emirates, consumers are spending an increasing amount of time on social media platforms. The affinity with these mobile applications is driving an upsurge in social commerce.

Social media channels, such as Facebook and Instagram, have made it easier for brands to interact with their consumers and drive their sales leveraging the massive outreach among consumers in the Emirates,” the report added.

Beauty and personal care segment is expected to lead the growth in the UAE’s social commerce industry.

The beauty and personal care market through social commerce in the UAE is expected to increase by six-fold within the next two years to reach $1 billion, Redseer Consulting said.

The sector was estimated to generate revenue of $200 million last year.

According to Redseer, 66 percent of UAE consumers use social media for product discovery in beauty and personal care segments, while about 28 percent take purchase decisions based on their online searches.

TikTok has gained widespread popularity among consumers and brands in the UAE, Research And Markets said, adding that Gen Z is driving retailers to advertise on TikTok.

Alshaya, the retail group based in the Middle East, leveraged the live streaming capabilities offered by the social channel to create its online shopping event, targeted towards Gen Z consumers,” Research And Markets said.

“The group ran the live stream campaign for eight days, with eight brands under the group offering the best deals one day after the other for the Black Friday event.”

Vendors who keep up with social media trends will have better online sales, the report concluded.

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