Dublin, May 06, 2022 (GLOBE NEWSWIRE) -- The "Egypt 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.
Social commerce industry in Egypt is expected to grow by 130.6% on annual basis to reach US$1, 159.0 million in 2022
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 71.6% during 2022-2028. The social commerce GMV in the country will increase from US$1, 159.0 million in 2022 to reach US$21, 989.9 million by 2028.
The widespread popularity of social media platforms, along with the rise in smartphone and internet penetration rate in the country, has propelled the popularity of shopping through social commerce platforms in the country. According to the Q1 2022 Global Social Commerce Market Survey, there are nearly 1.3 million social sellers in Egypt, driving the growth of the social commerce market in the country.
By 2024, the social commerce market in Egypt is expected to be worth more than US$15 billion. This growth in the social commerce industry has been largely driven by social media platforms such as Facebook, Instagram, and TikTok. Moreover, innovative social commerce startups in the country have also supported the industry growth over the last four to eight quarters through their strong business models, use of artificial intelligence and data science, and leveraging of local connection with consumers.
The growing social commerce industry in the country has also attracted many regional and global private equity and venture capital firms to invest in the high-growth potential market offered by Egypt. As more and more consumers purchase products from social commerce platforms, the publisher expects a strong inflow of investments over the next four to eight quarters in the Egyptian social commerce market. While e-commerce is still the most preferred channel for consumers to make purchases in the country, social commerce is expected to gain rapid momentum over the next four to eight quarters in Egypt.
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.
Firms are raising funds to accelerate their growth and to expand in other regional markets
In the midst of Egypt's growing social commerce market and projected growth over the next four to eight quarters, social commerce firms are aggressively raising funding rounds to accelerate their growth further and expand their presence in other regional markets. For instance,
In January 2022, Brimore announced that the firm raised US$25 million in its Series A funding round, which was led by IFC and Endure Capital. Notably, the firm is planning to use the funding round for expanding its logistics and operational infrastructure, boosting product catalogs, and increasing its sellers and suppliers network. Apart from this, the firm is also planning to use the January 2022 investment to replicate its success in the Egyptian social commerce industry in other African markets from a short to medium-term perspective.
In July 2021, Taager also announced that the firm had raised US$6.4 million in a seed funding round, which was led by 4DX Ventures. The funding round also saw participation from other investors, including Raed Ventures, Beco Capital, Breyer Capital, and some individual investors.
Similar to Brimore, Taager is also looking to expand its presence in the global market, with an initial focus on regional African markets. Using its data-driven approach, the firm is planning to drive further growth by expanding its services across the region over the next four to eight quarters.
The Egyptian Government seeks taxes for influencers promoting products on social media platforms
In Egypt, influencers who are selling products through social media platforms, such as YouTube, Instagram, and other platforms, are on the radar of tax authorities as the Government looks to magnify its tax revenue in the country.
In September 2021, the Egyptian Tax Authority and Finance Ministry called on influencers and content creators promoting goods and services through their social media pages to register with the authority. Notably, the Tax Authority announced that influencers and content creators earning more than US$32, 000 annually would be subjected to taxation in the country.
The announcement from the Egyptian Tax Authority (ETA) comes in the midst of growing e-commerce and social commerce activities. The ETA also announced that the number of tax evaders has increased in the country. However, individuals from the social commerce sector, which includes influencers and content creators, did welcome the decision from the ETA.
Scope
Egypt Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Egypt Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Egypt Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Others
Egypt Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
- B2B
- B2C
- C2C
Egypt Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
- Mobile
- Desktop
Egypt Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Domestic
- Cross Border
Egypt Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
Egypt Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
Egypt Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2021
- By Age
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/hwbnda
