Metaverse eCommerce - South Africa

The Metaverse eCommerce market is projected to reach a value of US$61.7m in 2024.
This market segment is expected to exhibit an annual growth rate (CAGR 2024-2030) of 44.77%, resulting in a projected market volume of US$567.8m by 2030.
South Africa is a part of this growing market.
China is the leading generator of value in the Metaverse eCommerce market, with a projected market volume of US$10.2bn in 2024.
This indicates the significant presence and contribution of China in this market segment.
Looking at the number of users, it is expected to amount to 6.1m users by 2030.
User penetration, which currently stands at 3.0% in 2024, is projected to increase to 9.5% by 2030.
These figures demonstrate the growing popularity and adoption of Metaverse eCommerce market among users.
In terms of average value per user (ARPU), it is expected to amount to US$33.8.
This metric provides insight into the average spending or value generated by each user in the Metaverse eCommerce market.
South Africa is experiencing a growing trend in Metaverse eCommerce, with a rise in virtual shopping experiences and digital asset trading.

Definition:

The eCommerce market refers to the buying and selling of goods and services within virtual reality environments, such as virtual worlds, social VR platforms, and other immersive digital spaces. These can include virtual storefronts, digital marketplaces, and other online shopping experiences that allow users to purchase real-world products or virtual items using virtual currencies and/or real-world money. Metaverse eCommerce can also include virtual shopping experiences, where users can explore and interact with virtual stores, try on virtual clothing and accessories, and make purchases through virtual cash or real-world money.

Structure:

The eCommerce market also covers the markets Beauty, Health, Personal & Household Care, Toys, Hobbys, DIY & Media, Furniture, Electronics, Fashion, and Food & Beverages. All of them refer to the specific goods that can be bought in the metaverse.

Additional Notes:

The market comprises market sizes, users, average revenue per user, and penetration rates. Market sizes are generated through in-app purchases and consumer spending on items, products, and hardware such as headsets and glasses. Market numbers for eCommerce are also featured in the Digital Market Insights. Key players in the market include companies, such as IKEA, Virtual Realms, and Holition. For more information on the data displayed, use the info button right next to the boxes.

Marketplaces in the metaverse, such as Decentraland's Marketplace
Items bought for avatars used in the metaverse, such as Costumes or Skins
Fashion for avatars, such as Gucci stores
Electronics, such as AR and VR hardware

Physical items used for the metaverse, such as Oculus Quest
Purchase of games that are considered metaverse, such as Roblox or Sandbox

The Metaverse eCommerce market in South Africa is experiencing significant growth and development.

Customer preferences: Customers in South Africa are increasingly embracing the concept of the Metaverse and its potential for eCommerce. They are drawn to the immersive and interactive nature of the Metaverse, which allows them to explore virtual environments and engage with products and services in a unique way. Additionally, customers appreciate the convenience and accessibility of shopping in the Metaverse, as it eliminates the need to physically visit stores or navigate crowded shopping malls.

Trends in the market: One of the key trends in the Metaverse eCommerce market in South Africa is the rise of virtual shopping experiences. Retailers are creating virtual stores within the Metaverse, where customers can browse and purchase products using their avatars. These virtual stores often feature realistic 3D models of products, allowing customers to examine them from different angles and even try them on virtually. This trend is particularly popular in the fashion and beauty industries, where customers can virtually try on clothes, accessories, and makeup before making a purchase. Another trend in the market is the integration of social elements into the Metaverse eCommerce experience. South African customers value social interactions and enjoy connecting with others, even in virtual environments. As a result, retailers are incorporating social features into their virtual stores, such as virtual events, live chats, and multiplayer games. These social elements enhance the overall shopping experience and make it more engaging and enjoyable for customers.

Local special circumstances: South Africa has a rapidly growing internet penetration rate, which is driving the adoption of Metaverse eCommerce. As more people gain access to the internet, they are exploring new ways to shop and interact online. The Metaverse provides an exciting and innovative platform for eCommerce, attracting both tech-savvy consumers and those looking for novel shopping experiences. Additionally, South Africa has a young and tech-savvy population, which further contributes to the growth of the Metaverse eCommerce market.

Underlying macroeconomic factors: The growth of the Metaverse eCommerce market in South Africa is also influenced by several macroeconomic factors. The country has a strong and stable economy, which provides a favorable environment for businesses to invest in and develop Metaverse eCommerce platforms. Furthermore, South Africa has a well-developed digital infrastructure, including reliable internet connectivity and advanced payment systems, which support the growth of the Metaverse eCommerce market. As a result, both local and international retailers are increasingly entering the South African Metaverse eCommerce market to capitalize on the growing customer demand and favorable business environment.

Data coverage:

Figures are based on in-app spending, consumer spending, in-game spending, app downloads, and investment and funding data.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use reports, third-party studies, and research companies. Next we use relevant key market indicators and data from country-specific associations such as GDP, consumer spending, and internet penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are consumer spending per capita, level of digitalization, and cloud revenues.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Before Mark Zuckerberg announced Facebook’s name change to Meta to the surprise and sniggers of social media users, the metaverse was a niche and futuristic concept familiar to the tech and science-fiction aficionados. Yet now, it has become the catchphrase that sets the scene for the next stage of the internet. Facebook’s rebranding of Meta as one of the building blocks of the metaverse was powerful enough to trigger immediate response from the world’s biggest retail and consumer brands. In the week following Zuckerberg’s Meta presentation, Nike made patent applications for a number of its logos and slogans, and in December 2021 acquired the virtual sneakers company RTFKT. Nike is one of the growing number of retail brands that are silently preparing their launch into the metaverse where fashion is flaunted not as physical goods but as virtual assets. According to a study, Nike applied for 12 IoT patents in the three months running up to May 2022.