Estimating the Total Addressable Market (TAM) of the Socialization Economy

At the request of Elifinity — the first-ever Impact Investment Fund dedicated to socialization and the fight against loneliness, under the leadership of Nicolas Fantuz — I’ve just extended here my initial article on the Socialization Market, originally published last year, with some rational: 2024-alert-you-miss-uncharted-accessible-societal-market

The trends we identified are now clearly unfolding: from the rapid rise of companies like Timeleft from France after its investment (in the range of $2M), to major signals such as Sequoia Capital's investment in platforms like Meeno and Gigi in the range of $5M in each.

The movement is real. The momentum is building. And it's all about to accelerate.

Stay tuned — the socialization economy is emerging as one of the most human-centered and promising markets of our time.

1. Overview: The Global Context

Socialization, long treated as a byproduct of entertainment or dining, is emerging as a fundamental need with direct impacts on health, well-being, and economic performance. Loneliness has now reached global epidemic levels, with the World Health Organization recognizing it as a major health risk. Surveys indicate that up to 30% of people globally, and over 50% in modern, developed nations, report feeling lonely on a regular basis.

Over 50% in modern, developed nations, report feeling lonely on a regular basis.

Meanwhile, the restaurant and entertainment sectors together represent a $7–8 trillion global annual market, based on final consumption expenditures by households and non-profit institutions serving households (NPISHs). This figure encompasses spending on dining out, sports, leisure, tourism, and cultural activities — all traditionally linked to social interaction.

2. Estimating the Socialization-Driven Segment

Elifinity identifies a structural gap: although much of this spending touches on social interaction, the intentional, purpose-driven socialization economy remains unstructured and unconsolidated. We estimate that approximately 20% of the $7–8 trillion in household leisure spending globally is primarily motivated by the desire to socialize intentionally — not just eat or be entertained, but to connect meaningfully.

This estimate is grounded in current behavioral and social trends. If up to 50% of people in modern societies feel lonely, and a growing share are aware of this emotional need, it follows that a sizable portion of their spending will be redirected toward services explicitly designed to offer social bonding — especially as new platforms emerge to make these experiences emotionally safe, accessible, and rewarding.

Importantly, this does not mean subtracting from the restaurant, entertainment, sports, or tourism markets. Rather, the socialization economy overlaps with and often drives these markets. A dinner remains a dinner — but when it becomes an experience explicitly designed to meet new people, ease isolation, or match values and interests, it gains a new purpose. This is where the value shifts, and a new layer of economic opportunity is unlocked.

The same applies to sports and fitness: many users subscribe to gyms or attend group classes with a latent social goal. These activities become part of the socialization market when that purpose is central and acknowledged. Likewise, tourism — often pursued for emotional escape or connection — reflects an underlying need to discover new social contexts, cultures, and human interactions.

Entertainment and media consumption — often used to kill boredom or fill a social void — can increasingly be channeled into interactive, human-centric experiences that fulfill belonging needs more effectively.

The global socialization economy TAM is estimated at ~$1.5 trillion annually

Thus, the global socialization economy TAM is estimated at ~$1.5 trillion annually, built on the assumption of a 20% overlap from the larger hospitality, entertainment, sports, tourism, and recreational industries.

3. Intersection with the Wellness Economy

Socialization is increasingly recognized as a key pillar of emotional and mental well-being, alongside physical health and mindfulness. According to the Global Wellness Institute, the global wellness market reached $5.6 trillion in 2022 (GWI Report), spanning areas such as fitness, mental wellness, and workplace well-being.

As emotional AI, safe event curation, and behavioral health integration evolve, socialization is poised to become a core component of the wellness market — potentially merging with it into a unified category where belonging, emotional fitness, and relational safety are central.

This further reinforces the scale, urgency, and transformative potential of investing in socialization.

4. Clarification on Market Structure & Limitations

Today, the only consolidated segment of the socialization economy is online dating, which has seen significant M&A activity over the past decade. Yet even here, the largest player — Match Group (owner of Tinder) — remains valued below $10 billion, a fraction of the broader potential. Importantly, dating represents only a narrow and sometimes misleading portion of the socialization spectrum.

Before love comes friendship — and before friendship, the simple human need to feel welcome, useful, or part of something larger. The real opportunity lies in these early layers, still vastly unstructured and underserved.

Additionally, while social media platforms might appear related, they have not been included in this TAM estimate. This is deliberate: the social media industry largely targets self-esteem and identity projection — higher-level psychological needs in Maslow’s hierarchy — rather than belonging. In fact, many platforms have been shown to exacerbate feelings of isolation.

That said, we believe the rise of new social networks with benevolent, real-life-first objectives — such as Agoras, which transitions users from digital interaction to real-life engagement — will gradually expand the TAM as they offer healthier, purpose-driven alternatives to traditional social media.

5. Elifinity’s Initial Role & Future Vision

With an initial fund of €100 million, Elifinity may seem modest compared to the vast scope of the challenge. Yet, it represents the first structured, impact-driven capital platform aimed at consolidating and industrializing the socialization economy.

The first structured, impact-driven capital platform aimed at consolidating and industrializing the socialization economy.

This €100M launch fund is notably larger than current public allocations — for example, the EU's recent €50 million earmarked for loneliness prevention — but still only the beginning. Elifinity’s founders envision multiple follow-on funds as measurable traction and impact are demonstrated.

As the ecosystem grows, so will the fund’s size, its role in ecosystem integration, and its ability to shape a market currently fragmented and underserved — despite its crucial role in human resilience, happiness, and societal stability.

6. Note on Methodology & Future Data Validation

The current TAM estimate is based on top-down global consumption data and behavioral assumptions derived from loneliness statistics and overlapping industry expenditures. These figures will be further refined through:

• Annual market surveys, conducted with reputable global data firms.

• Geographic segmentations, to account for cultural and economic variances.

• Bottom-up aggregation of data from Elifinity’s portfolio companies.

This approach allows Elifinity to continuously refine its strategy while leading the way in defining and owning the emerging Socialization Economy.

Note: The current 20% market overlap estimate will be continuously tested and validated over time. Elifinity is committed to improving this model by commissioning annual market surveys with recognized global statistics firms, allowing for dynamic adjustment of its thesis.

Sources:

• World Bank – Final Consumption Expenditure (Households & NPISHs): https://data.worldbank.org/indicator/NE.CON.PRVT.CD

• Global Wellness Institute – Global Wellness Economy 2022: https://globalwellnessinstitute.org/industry-research/

• Cigna U.S. Loneliness Index: https://www.cigna.com/about-us/newsroom/studies-and-reports/loneliness-epidemic-research

• Harvard Health / Dr. Eric Kim: https://www.hsph.harvard.edu/news/features/loneliness-eric-kim/

• EU Loneliness Programme: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1509

• Numbeo – Cost of Living Data (Global restaurant/entertainment spend): https://www.numbeo.com/cost-of-living/

• Match Group Valuation: https://www.macrotrends.net/stocks/charts/MTCH/match-group/market-cap

📌 Compliance Note

This content is for informational and educational purposes only. It does not constitute an offer to sell or a solicitation to buy any security. Past or illustrative market projections do not guarantee future outcomes.