(MENAFN- GlobeNewsWire - Nasdaq) In 2023, the global video commerce market surged to a valuation of $695.01 billion, with projections to reach $3.70 trillion by 2029. Dubbed "Video Commerce," this innovative e-commerce model enables real-time product showcases and interactive shopping experiences. The surge is driven by Gen Z's tech-savvy habits and major e-commerce platforms like Amazon and Alibaba harnessing its potential. As video commerce integrates across social media, e-commerce sites, and apps, it's particularly gripping in China and poised for growth globally. Key sectors include apparel and beauty, with significant interest in Asia Pacific, Europe, and increasing traction in North America. Major players such as Alibaba, Amazon, and TikTok are pioneering this transformative trend.

Dublin, Nov. 21, 2025 (GLOBE NEWSWIRE) -- The "Video Commerce Market: 2025 Edition" has been added to ResearchAndMarkets's offering.

The global video commerce market was valued at US$695.01 billion in 2023. The market value is expected to reach US$3.70 trillion by 2029. The market is expected to grow at a CAGR of approximately 32% during the forecasted period of 2024-2029.

The growth of the video commerce market is underpinned by young adults (Gen Z and younger cohorts), who generally favor new technologies, have more confidence in social platforms and online transactions, and use their smartphones to a far greater extent than older generations. Big e-commerce brands like Amazon, Pinduoduo, Alibaba, and are taking advantage of this strategy to dominate the e-commerce market. Video commerce has become a part of daily life in China, where more than two-thirds of consumers reported buying products from a video commerce broadcast in 2022.

Market Segmentation Analysis
By Product Category

The report provides the video commerce market analysis based on the following product categories: Apparel, Personal & Beauty Care, Accessories, Home Products, Health, Food & Beverages, and Others. The apparel segment held the highest share in the market, whereas personal & beauty care is expected to be the fastest-growing segment in the forecasted period. Apparel is a highly visual product, and video commerce provides customers with a way to see how the product looks and fits on a real person, offering more information and engagement than just photos. Video commerce can also provide personalized recommendations based on a customer's skin type, hair type, or other characteristics, creating a more personalized shopping experience and increasing customer loyalty. These benefits suggest significant growth for video commerce in the personal and beauty care segment in the coming years.

By Region

The report provides insight into the video commerce market based on regions, namely Asia Pacific, North America, Europe, and the Rest of the World. Asia Pacific held the highest share of the market. In China, live commerce has transformed the retail industry, establishing itself as a major sales channel in less than five years. China's video commerce leadership is also evident in much higher e-commerce penetration rates. Major e-commerce platforms in China, like Alibaba's Taobao and have integrated video commerce into their platforms. The video commerce market has also been flourishing in India, with the number of video commerce consumers increasing over the years. For instance, WATConsult reported 146 million video commerce users in 2020 in India, a number expected to grow to 216 million by the end of 2022.

In North America, the video commerce market is still in its infancy. However, significant growth is expected in the coming years due to the rise of smartphones, improved technology, convenience, and better payment options. The maturity level of the US video commerce market is comparable to where China was in 2018, indicating that the US market is lagging the Chinese market by at least five to six years. It is anticipated that the US and other Western markets will follow the Chinese adoption curve of video commerce, given Gen Z smartphone usage and video consumption trends.

In Europe, the popularity of video commerce has increased in the past few years. An independent study by Forrester in December 2020 found that 70% of the surveyed consumers in the UK, Spain, France, and Poland showed a keen interest in video commerce.

Competitive Landscape

Key players in the market employ strategies like new launches, mergers, acquisitions, and collaborations. TikTok has launched TikTok Shop in the US for in-app purchases in collaboration with TalkShopLive, which supports the streams. TikTok Shop also partnered with Bambuser in the US. In April 2023, Firework was named a BigCommerce Technology Partner, providing access to Firework's full suite of video commerce capabilities. In June 2024, Channelize updated its video commerce capabilities to include effortless Playlists Management and Floating Video Playlist Layout, allowing brands to create and display unlimited playlists on different website pages.

The global video commerce market is concentrated and broadly categorized into social media platforms, e-commerce platforms, and dedicated technology providers. Platforms like Facebook, Instagram, TikTok, and YouTube support Video Commerce capabilities. Broadcasting on social media platforms can drive more traffic than on a native brand site.

Market Dynamics

Growth Drivers

• Increasing Video Commerce Penetration in E-Commerce
• Escalating Social Commerce Market
• Increasing Number of Internet Users
• Increased Adoption of Video Commerce Technology by the Fashion Industry
• Surging Gen Z and Millennial Population
• Advantages of Video Commerce Over Other Form of Commerce

Challenges

• Lack of Awareness
• Regulatory Challenge
• Slower-Than-Expected Technology Adoption

Market Trends

• Growing Integration of AR and VR in Video Commerce
• Increase in Mobile 5G Subscriptions
• Increasing Trend of Short-Form Videos
• Escalating Role of AI
• Rising Trend of Interactive Videos
• Personalization
• Rapid Growth of Live Video Streaming

The Key Players in the Global Video Commerce Market Include

• Alibaba Group (Taobao)
• Shopify Inc.
• Inc. (Amazon Live)
• Alphabet Inc. (YouTube)
• Wayfair Inc.
• Bambuser
• Channelize
• Firework
• LiSA
• BuyWith
• ShopShops
• LiveScale

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