DUBLIN, May 05, 2022–(BUSINESS WIRE)–The report “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 from ResearchAndMarkets.com offer.

The social commerce industry in Egypt is expected to grow 130.6% on a yearly basis to reach US$1,159.0 million in 2022

The social commerce industry is expected to grow steadily over the forecast period, registering a CAGR of 71.6% during the period 2022-2028. The GMV of social commerce in the country will grow 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 increasing 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 almost 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 over US$15 billion. This growth of the social commerce industry has been largely driven by social media platforms such as Facebook, Instagram, and TikTok. Additionally, innovative social commerce startups in the country have also supported industry growth over the past four to eight quarters with their strong business models, use of artificial intelligence and data science. data, and operating the 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 buy products on social commerce platforms, the publisher expects a strong influx of investment over the next four to eight quarters in the Egyptian social commerce market. While e-commerce remains the preferred channel for consumers to make purchases in the country, social commerce is expected to gain momentum over the next four to eight quarters in Egypt.

Big Tech Players Drive Social Commerce Sales Growth in Egypt

Several of the big players in tech and social media platforms, such as Facebook, Instagram and TikTok, are eyeing part of the growing global social commerce market, including in Egypt. Therefore, all these players are increasing their investments 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.

As the Egyptian social commerce market is expected to see strong growth over the next four to six quarters, the publisher predicts that these big tech players will further increase their investments in the sector. This will then contribute to the growth of the entire social commerce industry in the country in the short to medium term and will also foster innovation and competition in the Egyptian market.

Companies are raising funds to accelerate their growth and expand into other regional markets

Amid the growth of the social commerce market in Egypt and the expected growth over the next four to eight quarters, social commerce companies are aggressively raising funding rounds to further accelerate their growth and expand their presence into other regional markets. For example,

In January 2022, Brimore announced that the company had raised US$25 million in its Series A funding round, led by IFC and Endure Capital. Notably, the company plans to use the funding round to expand its logistics and operational infrastructure, boost product catalogs, and grow its network of vendors and suppliers. Apart from this, the company also plans to use the January 2022 investment to replicate its success in the Egyptian social commerce industry in other African markets in the short to medium term.

In July 2021, Taager also announced that the company had raised US$6.4 million in a seed funding round, led by 4DX Ventures. The funding round also saw the participation of other investors, including Raed Ventures, Beco Capital, Breyer Capital and some individual investors.

Similar to Brimore, Taager is also looking to expand its global market presence, initially focusing on African regional markets. With its data-driven approach, the company plans to continue growing by expanding its services across the region over the next four to eight quarters.

Egyptian government demands taxes for influencers promoting products on social media platforms

In Egypt, influencers who sell products through social media platforms, such as YouTube, Instagram and other platforms, are on the tax authorities’ radar as the government seeks to increase tax revenue in the country.

In September 2021, the Egyptian Tax Authority and Ministry of Finance 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 $32,000 per year would be subject to tax in the country.

The announcement by the Egyptian Tax Authority (ETA) comes amid growing e-commerce and social commerce activities. ETA also announced that the number of tax evaders has increased in the country. However, people in the social commerce industry, which includes influencers and content creators, welcomed ETA’s decision.

Scope

Egypt E-commerce 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

Egypt Social Commerce Industry Market Size and Forecast by End-Use Segment, 2019 – 2028

Egypt Social Commerce Industry Market Size and Forecast by End-Use Device, 2019 – 2028

Egypt Social Commerce Industry Market Size and Forecast by Location, 2019 – 2028

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

  • Payment

  • Prepaid card

  • Digital and mobile wallet

  • Other digital payment

  • Species

Egypt social commerce industry market size and forecast by demographics and consumer behavior, 2021

  • By age

  • By income level

  • By gender

For more information on this report visit https://www.researchandmarkets.com/r/gaz9h3

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220505005796/en/

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