Instagram appears to be losing some of its luster. And Snapchat is surging, says new market analysis.
In 2019, the photo-sharing app’s user growth rate dropped to single digits for the first time to 6.7%, down from 10.1% in 2018, according to eMarketer.
That has the U.S. market research company downgrading its growth forecast to 4.5 percent in 2020, revised down from 5.4 percent; in 2021, it will be 3.2 percent instead of 4.1 percent.
Contributing to Instagram’s overall slower growth is the fact that older age groups are not joining the platform as quickly as anticipated, the firm said.
It’s also facing stiff competition from the photo-messaging application Snapchat, which has had a resurgence of late.
eMarketer estimates that Snapchat users reached 293 million in 2019, and will grow well over 350 million by 2023.
That exceeds a previous forecast by over 10 million this year, and by over 20 million within four years.
Snapchat growth rates are also expected to rise to over 14 percent.
“This means Snapchat now has a higher share of social network users than Twitter. It also means Snapchat is growing faster than Twitter and Facebook,” said eMarketer senior forecasting analyst Oscar Orozco.
“This success comes from viral face filters that Snapchat rolled out in the second quarter of 2019. Another big contributor was the revamped Android app that came out around the same time.”