Executive Summary:
While Facebook has seen a significant decline in popularity among younger users—dropping from 71% of U.S. teenagers using the platform a decade ago to just 32% in 2025—its Marketplace feature remains a major draw for Gen Z and young adults. Launched in 2016 to compete with eBay and Craigslist, Facebook Marketplace has grown to over 1.1 billion users globally, offering a convenient, cost-effective way to buy and sell goods online.
Younger users are particularly attracted to Marketplace for its affordability, sustainability, and transparency. Unlike platforms like Craigslist, Facebook provides buyers with access to seller profiles, increasing trust in transactions. Additionally, the absence of seller listing fees and the ability to avoid shipping costs make it an attractive alternative to eBay or Etsy.
With younger consumers heavily influenced by social media in their shopping habits, Meta’s continued investment in Marketplace could help retain and re-engage younger audiences. However, to sustain long-term relevance, Facebook will need to keep innovating as competition from platforms like TikTok, Bluesky, and Lemon8 grows. Marketplace may be a lifeline for Facebook’s younger demographic, but without broader platform evolution, Meta risks further user decline among the next generation.
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