Canada Social Commerce Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Canada Social Commerce Market Trends and Insights

Rise of In-App Checkout Features

Platform-native payment flows have effectively reduced cart abandonment rates, which were previously a significant challenge. For example, Meta's Instagram Checkout, integrated with Canadian processors, has improved completion times compared to traditional browser-based flows.^{[1]Shopify, “Social Commerce Solutions for Canadian Merchants,” shopify.com} Similarly, Apple Pay and Google Pay, when utilized within social apps, enhance conversions by providing users with a familiar interface. Shop Pay, with its streamlined one-click feature, supports Canadian merchants by simplifying impulse purchases of fashion and beauty items, offering a more efficient alternative to older web store processes. Additionally, compliance with the Payment Card Industry Data Security Standard ensures trust and maintains transaction efficiency.

Growth of Mobile-First Millennials' Retail Spend

Millennials aged 28-43 significantly contribute to retail spending and primarily initiate their purchases through mobile devices. Their familiarity with social checkouts is driving growth in Canada's social commerce market. Brands that focus on visual storytelling tailored to this demographic achieve stronger conversion rates. In 2024, Aritzia reported a notable portion of its online revenue originating from referrals via Instagram and TikTok. As Gen Z's earning potential increases, they are expected to further accelerate this trend. Additionally, research from the Bank of Canada indicated widespread adoption of mobile payments among millennials last year.

Increasing Ad-to-Purchase Conversion Tracking

In 2024, Canadian retailers utilizing advanced attribution through Meta's Conversions API and TikTok's Events API enhanced cost-efficiency and improved budget allocation. These tools connect social media impressions directly to completed transactions, enabling marketers to make data-driven budget decisions. Additionally, by integrating first-party data from loyalty programs with platform pixels, retailers are able to implement dynamic pricing and personalized product recommendations while adhering to the privacy requirements introduced by iOS 14.5.

Expansion of Creator-Brand Partnerships

Influencer marketing has transitioned from occasional endorsements to structured revenue-sharing models that align creator incentives with brand objectives. In Canada, mid-tier creators typically earn between CAD 500 and 2,000 per post, while macro-influencers command higher compensation per campaign.^{[2]Canadian Radio-television and Telecommunications Commission, “Digital Platform Regulations,” crtc.gc.ca} In 2024, Shopify Collabs facilitated numerous partnerships across Canada, contributing significantly to sales. Lululemon's ambassador network exemplifies the value of long-term collaboration in driving social commerce revenue.^{[3]Lululemon, “Ambassador Network Performance,” lululemon.com}

Data-Privacy Tightening Under Bill C-27

Under the Consumer Privacy Protection Act, platforms must secure explicit user consent for data usage beyond essential services. This move aims to limit the detailed targeting that enhances the efficiency of social commerce. Furthermore, platforms are required to adopt 'privacy-by-design' systems and facilitate user-initiated data deletions. Depending on their scale, compliance costs can vary significantly, ranging from CAD 50,000 to CAD 500,000.^{[4]Parliament of Canada, “Bill C-27 Consumer Privacy Protection Act,” parl.ca} While challenges like consent fatigue and diminished ad precision are evident initially, the potential for increased consumer trust could yield substantial long-term benefits.

Counterfeit Goods and Consumer Trust Issues

In 2024, the Royal Canadian Mounted Police (RCMP) observed a significant rise in the seizure of counterfeit items associated with social transactions, impacting buyer confidence.^{[5]Royal Canadian Mounted Police, “Counterfeit Goods Enforcement Statistics,” rcmp-grc.gc.ca} Complaints primarily focused on fashion accessories, electronics, and beauty products, with numerous consumers reporting fraud to federal agencies. Although stricter seller-verification programs increase onboarding costs and may pose challenges for smaller merchants, these measures are considered vital for maintaining the integrity of Canada's social commerce market.

Segment Analysis

By Product Type: Apparel Leads Despite Beauty’s Acceleration

Apparel controlled 29.77% of the Canada social commerce market in 2024, retaining clear leadership thanks to mature supply chains and high visibility on fashion-centric platforms. Personal and beauty care, however, is scaling at a 29.13% CAGR, narrowing the gap as makeup tutorials and skincare routines turn views into purchases within minutes. Sephora's integration with Instagram Shopping has demonstrated higher conversion rates compared to web-only funnels. Accessories are frequently purchased on impulse, while home products are experiencing increased demand, supported by décor influencers showcasing curated spaces on Pinterest. Meanwhile, health supplement vendors operate under strict oversight from Health Canada, prioritizing consumer safety over scalability. In the food and beverage sector, artisanal labels are gaining attention by emphasizing local sourcing through storytelling and adhering to regulations from the Canadian Food Inspection Agency to build consumer trust.

In the coming years, while apparel volumes are expected to grow, the beauty sector's faster growth rate indicates it may surpass apparel in Canada's social commerce market. Brands that integrate creator routines with streamlined purchasing processes are likely to achieve significant advantages. Beyond the leading categories, accessories are expected to retain strong profit margins due to low return rates. Home products are anticipated to leverage AR-enabled visualization to address consumer hesitations regarding high-touch items. Food sellers are positioned to benefit from advancements in same-day cold-chain logistics, while compliant supplement manufacturers are expected to rely on expert-led video content to substantiate product efficacy.

Note: Segment shares of all individual segments available upon report purchase

By Device: Smartphone Supremacy Reshapes Commerce

Smartphones generated 91.11% of social commerce purchases last year, reflecting an entrenched mobile-first culture across Canada. The category will register a 29.23% CAGR through 2030, powered by 5G expansion and frictionless mobile wallets. While laptops and desktops remain relevant for conducting detailed research on high-consideration items, their role in the Canadian social commerce market is gradually declining. This shift aligns with the growing preference for AR and AI-driven shopping assistants on handheld devices.

Digital payment platforms integrated into mobile ecosystems are facilitating faster checkouts, streamlining the purchasing process for a significant portion of consumers. Additionally, the practice of discovering products on mobile devices and completing purchases on desktops is becoming less common as social applications continue to enhance their catalog and payment capabilities. This evolution is exerting pressure on traditional web storefronts to adopt the convenience and functionality now prevalent in mobile ecosystems.

By Sales Channel: Video Commerce Transforms Discovery

Video commerce captured 43.21% revenue share in 2024, demonstrating unrivaled effectiveness at linking storytelling to purchase. In Canada, social commerce emphasizes the use of unboxing videos, short-form try-ons, and live Question and Answer sessions. These formats, including livestream events, shoppable Reels, and tutorial clips, enable audiences to observe, inquire, and make purchasing decisions in real-time, effectively supporting products that require demonstration.

Social reselling leads growth with a 31.01% CAGR, propelled by consumer interest in sustainable buying and community validation. Within six months of its launch, Poshmark expanded its user base in Canada. While Instagram Shopping and Facebook Marketplace remain key players in social-commerce, group buying has established a presence, particularly for bulk goods. Additionally, product review platforms enable buyers to assess items thoroughly before making a purchase. This aligns with findings indicating that shoppers often consult multiple sources prior to buying decisions.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

In 2024, Toronto, Vancouver, and Montreal emerged as key contributors to Canada's social commerce market. These cities feature concentrated populations of millennials and Gen Z, supported by advanced fiber and 5G infrastructure, along with efficient delivery networks capable of same-day service. Vancouver's technology corridor and proximity to Asian brands facilitate cross-border sales, particularly in electronics and fashion, targeting North American consumers.

Quebec enforces French-language consumer protection disclosures and implements distinct sales-tax collection regulations, requiring platforms to incorporate multilingual interfaces and ensure compliance with provincial standards. In British Columbia, sellers must automate tax remittance at checkout to comply with the Provincial Sales Tax. Atlantic Canada, with Halifax at the forefront, is experiencing rapid growth due to investments in broadband infrastructure and an expanding gig-economy workforce that supports last-mile delivery operations.

The northern territories face challenges such as low population density and high shipping costs, though satellite broadband projects are helping to address these issues. The Canadian Radio-television and Telecommunications Commission standardizes content regulations nationwide, while provincial agencies handle dispute resolution, creating a governance structure that balances consumer protection with regional adaptability.