Malaysia Social Commerce Market Report 2025: Key Trends & KPIs (2021–2030)
The Malaysia Social Commerce Market is poised for significant growth, projected to reach USD 1.36 billion by 2025, up from USD 1.11 billion in 2024, marking a 21.8% annual increase. This upward trend is expected to continue, with the market anticipated to expand at a CAGR of 16.1% from 2025 to 2030, culminating in a market size of approximately USD 2.87 billion by 2030 .
Market Dynamics and Growth Drivers
Malaysia’s social commerce landscape is rapidly evolving, driven by high social media engagement, widespread smartphone adoption, and the integration of shopping features into popular platforms like Facebook, Instagram, and TikTok. These platforms have become essential tools for businesses to reach consumers directly, offering seamless shopping experiences within social media environments.
The rise of influencer marketing and live shopping events has further propelled the , allowing brands to connect with audiences in more authentic and engaging ways. Consumers are increasingly drawn to personalized shopping experiences, prompting businesses to leverage data analytics and AI-driven tools to tailor offerings to individual preferences.
Consumer Behavior and Demographics
Malaysian consumers are exhibiting a growing preference for ethical and sustainable shopping practices. This shift is encouraging businesses to align their operations with environmental responsibility and local sourcing. Additionally, the demand for transparency and authenticity in marketing is influencing how brands communicate with their audiences, emphasizing genuine engagement over traditional advertising methods.
Regulatory Landscape
The Malaysian government is implementing new regulations to oversee social commerce activities, including licensing requirements for social media services and a review of e-commerce laws. These measures aim to ensure consumer protection and data privacy, requiring businesses to adapt to stricter compliance standards while continuing to innovate in their digital strategies.
Competitive Landscape
The is characterized by a mix of established players and emerging entrants. Major platforms like Facebook, Instagram, YouTube, PG Mall, and TikTok Seller dominate the space, offering integrated shopping features tailored to the local market. Simultaneously, local startups are leveraging these platforms to reach broader audiences, intensifying competition and driving innovation within the sector .(Research and Markets)
Market Segmentation
- By Product Categories: The encompasses various segments, including Clothing & Footwear, Beauty and Personal Care, Food & Grocery, Appliances and Electronics, Home Improvement, Travel, and Hospitality.
- By Business Model: The social commerce market operates through B2B, B2C, and C2C models, with B2C being the most lucrative segment, registering the fastest growth during the forecast period .(Grand View Research)
- By Device: Mobile devices are the primary medium for social commerce transactions, reflecting the high smartphone penetration in Malaysia.
- By Location: The market is segmented into Domestic and Cross-Border commerce, with domestic transactions currently leading but cross-border commerce showing significant growth potential.
- By City Tier: Tier-1 cities dominate the market share, but Tier-2 and Tier-3 cities are emerging as new growth areas due to increasing internet penetration and digital literacy.
- By Payment Method: Digital and Mobile Wallets are the most preferred payment methods, followed by Credit Cards, Debit Cards, Bank Transfers, Prepaid Cards, and Cash.
- By Platforms: The includes Video Commerce, Social Network-Led Commerce, Social Reselling, Group Buying, and Product Review Platforms.
- By Consumer Demographics: The market analysis covers various demographics, including Age, Income Level, and Gender, providing insights into consumer behavior and preferences.
Outlook
Malaysia’s social commerce is set for robust growth, driven by technological advancements, changing consumer behaviors, and supportive regulatory frameworks. Businesses that can adapt to these dynamics, prioritize ethical practices, and leverage data-driven strategies will be well-positioned to capitalize on the opportunities in this burgeoning sector.
For more detailed insights and data, you can refer to the full report available at ResearchAndMarkets.com.
