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

India Social Commerce Market Trends and Insights

Rapid UPI Penetration and Zero-MDR Policy

India's Unified Payments Interface (UPI) has become a critical component in the social commerce ecosystem, facilitating efficient and cost-effective digital transactions. In March 2025, UPI processed 18.3 billion transactions, amounting to ₹24.77 lakh crore, reflecting a 13.5% increase in transaction volume compared to the previous month.^{[2]DDNews, “UPI transaction volume up 13.5% in March, value at record Rs 24.77 lakh crore”, ddnews.gov.in} This growth reduces payment-related barriers for micro-entrepreneurs and small vendors, enabling operations without incurring high gateway fees. The government's zero merchant discount rate (MDR) policy for UPI transactions has redefined the cost structure of social commerce by removing payment processing fees for small-value transactions. This policy enhances platform profitability on low-value orders and allows micro-entrepreneurs to process payments without fee-related deductions. The Reserve Bank of India (RBI) is actively promoting the adoption of point-of-sale (PoS) systems in smaller towns, where social commerce is still developing. Through initiatives like the Payments Infrastructure Development Fund, supported by substantial financial resources, the RBI is driving this expansion. For instance, rural kirana stores collaborating with social commerce platforms can now accept digital payments without additional costs, enabling their participation in group-buying and reseller networks that were previously limited to cash transactions. Additionally, UPI's interoperability simplifies integration with various payment providers, reducing technical challenges for new entrants and fostering advancements in embedded finance solutions.

The RBI's allocation of ₹500 crore from the Payments Infrastructure Development Fund to expand PoS devices in smaller towns further supports rural kirana stores in joining group-buying networks. UPI's interoperability enables social commerce applications to integrate multiple payment partners without added technical complexity, encouraging innovation in embedded finance. This development allows creators and small businesses to offer secure, instant payments within chat or app interfaces, enhancing platform engagement and contributing to the growth of India's social commerce market, which is valued at USD 8–10 billion.

Creator-Economy Trust Flywheel

Platforms such as Roposo illustrate the transformation of the creator economy into "creator-preneurship," where creators generate revenue through branded content, memberships, and live product launches. This model fosters trust through peer recommendations, which serve as a key driver for purchase decisions, resulting in higher conversion rates compared to traditional e-commerce discovery methods. The creator ecosystem is expanding significantly, with nano and micro-creators demonstrating strong conversion potential due to their close connections with audiences and perceived authenticity. For example, beauty and personal care brands collaborate with micro-influencers in smaller cities to showcase product usage through short-form videos, encouraging immediate purchase decisions and bypassing conventional decision-making processes. Revenue-sharing arrangements between creators and platforms further enhance this trust-based model. These arrangements reward creators based on actual sales rather than impressions, motivating them to endorse products they genuinely use. This structure strengthens the foundation of trust, which is critical for driving repeat purchases and increasing customer lifetime value within social commerce platforms.

Social-First Discovery Among Tier-2/3 Shoppers

Consumers in Tier-2 and Tier-3 markets exhibit distinct discovery behaviors compared to those in metropolitan areas, with a strong preference for social validation over traditional search-driven product research. These consumers rely significantly on community recommendations and peer endorsements. Additionally, the use of vernacular content has been increasing steadily as platforms adapt to local language preferences and cultural nuances. This social-first approach addresses the information gap often encountered by first-time online buyers in traditional e-commerce. In this context, community-driven models have emerged, where local entrepreneurs act as intermediaries, offering product education, managing fulfillment, and providing post-purchase support within their networks. The growing adoption of voice search among mainstream consumers further highlights a shift toward discovery mechanisms that align with social interaction patterns rather than text-based searches. This behavior, concentrated in specific geographic areas, creates a ripple effect. Successful adoption of social commerce in one community often accelerates adoption in neighboring areas through word-of-mouth and demonstration effects. This dynamic enables platforms to expand their reach efficiently while keeping customer acquisition costs relatively low.

WhatsApp Business API Enabling Chat-Commerce

India, with a substantial WhatsApp user base, is experiencing a notable shift toward chat-commerce, facilitated by the WhatsApp Business API. This integration enables businesses and small sellers to efficiently share catalogs, process payments, and track orders within a single chat interface. Platforms leveraging catalog sharing demonstrate the scalability of this model. For consumers in smaller cities, conversational commerce is particularly advantageous as it eliminates the need for multiple app installations while offering a familiar and accessible interface. Additionally, generative AI-powered auto-reply bots are helping small businesses reduce operational costs by managing routine queries and support tasks. Meta’s implementation of click-to-WhatsApp ads, combined with UPI-enabled payments, simplifies the checkout process, enhancing revenue generation. This integration of messaging, payments, and commerce underscores WhatsApp's role in advancing the social commerce ecosystem in India, enabling personalized engagement and expanding opportunities for micro-entrepreneurs.

Counterfeit and Quality-Control Challenges

Social commerce platforms face significant challenges related to product authenticity, which undermines consumer trust. Peer-to-peer selling models, in particular, lack the centralized quality control typically found in traditional e-commerce marketplaces. The presence of unverified sellers and resellers increases the likelihood of counterfeit products entering the supply chain. This issue is especially critical in the beauty and personal care sectors, where substandard cosmetics and skincare products pose safety risks. To address these concerns, social commerce platforms are allocating resources toward seller verification, product authentication technologies, and customer protection mechanisms. However, these measures lead to higher operational costs and impact profitability in the short term. For instance, adopting technologies such as blockchain for product tracking and AI for image-based authenticity verification requires substantial investment, affecting overall cost structures. The challenge is further compounded in Tier-2 and Tier-3 markets, where consumers often lack the experience to distinguish between genuine and counterfeit products. This can result in negative customer experiences, which harm the platform's reputation and reduce customer retention. Additionally, compliance with the Consumer Protection Act of 2019 obligates platforms to ensure product quality and authenticity. This creates additional costs and exposes platforms to legal and regulatory risks, which can be particularly burdensome for smaller social commerce entities with limited resources to manage these requirements effectively.

Fragmented Logistics in Rural Pin-Codes

In rural India, last-mile delivery infrastructure remains underdeveloped, as traditional logistics providers face challenges in reaching remote pin-codes. These areas are critical for social commerce platforms aiming to expand their customer base. The fragmented logistics network in these regions results in delivery delays, increased shipping costs, and inconsistent service quality, which undermine the convenience essential for social commerce adoption. Meesho's Valmo initiative, which incorporates regional micro-entrepreneurs into its logistics operations, highlights the complexities of addressing rural delivery challenges.^{[3]Singh, Manish, “Meesho taps micro-entrepreneurs to plug gaps in India’s supply chain network”, techcrunch.com} A single shipment often requires coordination among multiple micro-entrepreneurs before reaching its final destination. While this approach has achieved cost efficiencies, the operational intricacies and coordination demands underscore the structural barriers to social commerce growth in underserved regions. Additional challenges, such as inadequate road infrastructure, limited transportation options, and seasonal accessibility issues, further exacerbate delivery uncertainties. These factors negatively impact customer satisfaction and increase return-to-origin costs for platforms. The fragmented logistics network particularly affects the distribution of perishable and time-sensitive goods, restricting the range of products that social commerce platforms can effectively offer in rural areas. This limitation hampers revenue growth opportunities in these high-potential segments.

Segment Analysis

By Product Type: Beauty Care Drives Premium Shift

The personal and beauty care segment is expanding at a 39.31% CAGR, almost matching the overall India social commerce market growth pace, while apparel maintains the largest 31.57% share. Smartphone-optimized try-on filters and creator tutorials are streamlining purchase decisions for serums, masks, and color cosmetics. Meesho's recent sales of face packs and press-on nails highlight the growing demand for cost-effective self-care kits. Increasing disposable incomes in smaller cities are encouraging a shift towards premium products, with imported K-beauty lines entering the market through community-based resellers. To address counterfeit risks and enhance customer trust, authenticity programs with QR-based verification are being introduced. Home products and health supplements are achieving significant growth, supported by live demonstrations that provide clarity on product usage and build consumer confidence. In contrast, food and beverages face challenges due to regulatory compliance complexities, though regional snack brands are effectively using group buying to connect with diaspora communities. Accessories, due to their lightweight nature and ease of sharing on social platforms, are performing well in flash-sale formats. Although smaller in scale, categories like pet care and books are expanding rapidly, reflecting a shift in consumer preferences beyond traditional product categories.

The social commerce market in India for personal and beauty care is expected to grow substantially in the coming years. While the share of apparel within the market may see a slight decline due to a broader category mix, overall revenue from apparel is anticipated to increase significantly as the market expands. Video-led content, such as “get ready with me” streams, is fostering the adoption of premium skincare routines. Additionally, nano-creators from smaller cities are driving the discovery of Ayurvedic brands by leveraging their local credibility. Brands that customize packaging and instructions in regional languages, such as Gujarati, Marathi, and Kannada, are experiencing improved conversion rates and reduced return rates.

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

By Device: Smartphone-Centric Adoption Accelerates

Smartphones held an 89.77% revenue share in 2024 and are forecast to grow at a 37.97% CAGR. Smartphones priced under USD 200 are now equipped with multicore processors, enabling smooth AR try-ons, which are becoming increasingly important for beauty and fashion consumers. The deployment of 5G has significantly reduced buffering, ensuring reliable HD livestreaming even in less urbanized areas, thereby enhancing viewer engagement. Voice commerce is expanding as platforms like WhatsApp and regional voice assistants support product searches in multiple local languages. Laptops and desktops remain essential for B2B resellers to manage bulk catalog uploads and oversee analytics across various stores, although their relevance in this context is expected to decline gradually.

The social commerce market in India, primarily driven by smartphone usage, is expected to grow substantially, emphasizing the importance of designing user experiences tailored for mobile devices. AI-powered auto-captioning is facilitating real-time translations, thereby broadening accessibility for bilingual audiences. Additionally, user-generated unboxing videos, created using smartphone cameras, are serving as a cost-effective advertising method by reducing reliance on traditional paid media. Hardware manufacturers are integrating commerce shortcuts into devices and collaborating with platforms to share revenue, further strengthening the role of smartphones in the distribution ecosystem.

By Sales Channel: Reselling Model Outpaces All Others

Video commerce accounted for a 41.82% share in 2024, leveraging algorithmic feeds that surface shoppable clips within seconds. Social reselling, though smaller, is surging at a 38.17% CAGR as homemakers and students monetize personal networks. Tier-3 households with a focus on cost savings are increasingly adopting group buying, where orders are combined to access factory-level discounts. Social network-driven commerce through platforms like Instagram Shops and Facebook Marketplace continues to provide visibility for branded catalogs but is experiencing slower growth compared to peer-driven models. Additionally, product review forums significantly influence purchasing decisions, particularly for high-value items such as electronics and health supplements.

The social commerce market in India is witnessing substantial growth, with video commerce emerging as a key driver. Social reselling is also expanding, supported by the introduction of affiliate dashboards that enable real-time tracking of seller earnings, enhancing transparency and motivation. In addition, Tier-3 resellers are addressing trust issues in last-mile deliveries by managing localized cash-on-delivery reconciliations. Content designed around entertainment is proving to be more engaging than static browsing, contributing to the increasing prominence of video commerce in the market.

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

Geography Analysis

Uttar Pradesh and Bihar, two northern states, are experiencing significant growth in user additions due to their large populations, increasing smartphone usage, and a cultural preference for community purchasing. Hindi-language content sees the highest engagement, driving the adoption of apparel and affordable beauty products. In the northeastern region, which includes Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim, a substantial portion of orders is influenced by content created by micro-influencers, emphasizing their role in addressing cultural nuances. Karnataka records the highest density of transactions on the ONDC platform, followed by Delhi and Telangana, reflecting a positive response to evolving commerce frameworks.

In southern states such as Karnataka, Tamil Nadu, and Telangana, advanced features like voice search and augmented reality try-ons are widely utilized, showcasing the region's strong digital infrastructure. Maharashtra and Gujarat are prominent in B2B social commerce, with textile and jewelry manufacturers leveraging peer platforms to connect with retailers across the country. Emerging towns like Ambur, Rourkela, Sangli, and Zirakpur are demonstrating rapid repeat purchases in women's fashion and baby care, indicating increased customer retention as initial barriers to entry are reduced.

Rural areas represent a vast untapped opportunity, with a significant number of potential users. Government initiatives, including Digital India and ONDC-linked Common Service Centers, are addressing digital literacy challenges by providing shared devices and facilitating order placements. Numerous farmer-producer organizations and self-help groups are already engaging with ONDC buyer applications. Seasonal cash flow patterns influence purchasing behavior, prompting platforms to adjust inventory and financing options to align with agricultural cycles, thereby fostering customer loyalty. Consequently, the distribution of social commerce activity in India is expected to align more closely with the availability of regional content, logistical networks, and the presence of content creators, rather than traditional urbanization trends.