Meta’s flagship app is undergoing a significant transformation, signaling a potential shift in the company’s priorities away from the metaverse and back toward its social networking roots. This strategic realignment comes at a critical juncture for the tech giant, as it faces stagnant growth in key markets while trying to appeal to younger demographics who have largely migrated to other platforms.
The app overhaul, announced Tuesday, represents Meta’s acknowledgment that despite its ambitious metaverse plans, Facebook’s core social networking features still drive user engagement across generations. This pivot follows reports that Meta is considering substantial reductions to its metaverse initiatives, which had previously been positioned as the company’s future direction before the recent AI revolution captured the industry’s attention.
Facebook’s Demographic Challenge and Marketplace Success
While Facebook maintains an impressive global user base in the billions, its growth has plateaued in critical markets like the United States. The platform’s user demographics have shifted significantly, with Baby Boomers and Gen X forming its most loyal audience. This aging user base has pushed Meta to actively pursue younger users through various initiatives.
Interestingly, Facebook Marketplace has emerged as the platform’s unexpected success story among Gen Z users. According to a 2025 eMarketer report, more than half of Facebook’s Gen Z users in the United States regularly engage with Marketplace. Meta’s internal data confirms this trend, revealing that 25% of young adult daily active users in the U.S. and Canada use Marketplace regularly.
Recognizing this success, the redesign will elevate Marketplace from its previously buried position in the app’s