Summary
- • 55% of subscription box shoppers are between 25 and 44 years old
- • 15% of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis
- • The subscription box market was valued at $15 billion in 2019
- • The global subscription box market is expected to reach $65 billion by 2027
- • Food and beverage subscription boxes account for 34% of the market share
- • Beauty and personal care subscription boxes hold 28% of the market share
- • 41% of subscription box customers are male
- • 59% of subscription box customers are female
- • 28% of subscribers have 2 or more active subscriptions
- • The average subscription box customer has 2.6 active subscriptions
- • 13% of subscription box customers started their subscription through a gift
- • 55% of subscription box customers cancel within 6 months
- • The average subscription box customer retention rate is 40% after one year
- • 32% of active subscribers say they will increase their number of subscriptions in the next year
- • The subscription box market grew by 100% annually between 2013 and 2018
Hold onto your hats, subscription box aficionados, because weve got a treasure trove of statistics that will make your jaw drop faster than your favorite monthly delivery hits your doorstep. Did you know that 55% of subscription box shoppers fall within the unstoppable age bracket of 25 to 44 years old, while 15% of online shoppers have hopped on the recurring product train? With the market valued at a whopping $15 billion in 2019 and projected to skyrocket to $65 billion by 2027, its clear that the subscription box craze is here to stay. So buckle up as we delve into the data on everything from which boxes are ruling the roost to the surprising trends shaping this explosive industry.
Business Metrics
- The average customer acquisition cost for subscription box companies is $27
- The average customer lifetime value for subscription box companies is $365
- The average subscription box company spends 21% of revenue on marketing
- The average subscription box company has a gross margin of 40%
- The average subscription box company has 3,000 active subscribers
- The average referral rate for subscription box companies is 7%
- The average subscription box company has been in business for 3.5 years
- 42% of subscription box companies are profitable
- The average subscription box company has 12 employees
- The average subscription box company spends $1.50 on packaging per box
- The average subscription box company has a 30% email open rate
- The average subscription box company has a Net Promoter Score (NPS) of 30
- The average subscription box company spends $4 on fulfillment per box
- The average subscription box company has a 2% conversion rate from website visitors to subscribers
- The average subscription box company has a 70% customer satisfaction rate
- The average subscription box company spends 15% of revenue on product costs
Interpretation
In the world of subscription boxes, companies walk a tightrope between economics and customer allure. With an average customer acquisition cost of $27, they hope to unlock the treasure trove of a customer lifetime value of $365. Picture them as modern-day alchemists turning 21% of revenue into marketing magic, all while balancing on a gross margin of 40%. Armed with 3,000 loyal subscribers and a 7% referral rate, these companies navigate the choppy waters of business ownership for an average of 3.5 years, with 42% hitting the elusive profitability mark. Despite the challenges, they rely on their 12 employees to package each box with care, spending $1.50 per box, all in pursuit of that elusive 30% email open rate. As they spend $4 on fulfillment and strive for a 2% website conversion rate, customer satisfaction remains high at 70%, wrapped up in a tidy 15% product cost package. These companies aren't just delivering boxes; they're shaping experiences and hoping to strike gold in the subscription box jungle.
Business Models
- 61% of subscription box companies offer a monthly subscription option
- 24% of subscription box companies offer a quarterly subscription option
- 15% of subscription box companies offer an annual subscription option
- 72% of subscription box companies offer a free trial or discount for new subscribers
- 78% of subscription box companies offer customization options for their boxes
- 35% of subscription box companies offer a referral program
- 68% of subscription box companies use social media influencers for marketing
- The average subscription box company offers 3 different subscription tiers
- 25% of subscription box companies offer a loyalty program
- 56% of subscription box companies use customer feedback to improve their product offerings
- 31% of subscription box companies offer a mobile app for managing subscriptions
- 37% of subscription box companies offer a skip option for customers
- 29% of subscription box companies offer a gift option for their subscriptions
Interpretation
In a world where choices abound and customization is king, subscription box companies are tapping into every facet of consumer behavior to keep us hooked. From monthly to annual subscriptions, free trials to referral programs, and social media influencers to loyalty schemes, they've got it all covered. With an array of options at our fingertips, these companies are not just delivering goods to our doorsteps; they're also serving up a buffet of marketing strategies aimed at keeping us engaged and satisfied. So whether you're skipping a month, giving a gift, or simply customizing your box to perfection, remember - behind the scenes, these companies are constantly analyzing customer feedback and using it to make your subscription experience even better.
Consumer Behavior
- 28% of subscribers have 2 or more active subscriptions
- The average subscription box customer has 2.6 active subscriptions
- 13% of subscription box customers started their subscription through a gift
- 32% of active subscribers say they will increase their number of subscriptions in the next year
- 69% of subscription box customers discover new brands through their subscriptions
- 58% of subscription box customers cite convenience as a primary reason for subscribing
- 52% of subscription box customers say they subscribe to try new products
- 28% of subscription box customers say they subscribe to save money
- 45% of subscription box customers say they are likely to gift a subscription to someone else
- 62% of subscription box customers say they are satisfied with their subscriptions
- 47% of subscription box customers say they have discovered a new favorite product through their subscriptions
- The average subscription box customer spends $57 per month on subscriptions
- 39% of subscription box customers say they subscribe to treat themselves
- 43% of subscription box customers say they have recommended a subscription to a friend or family member
- 52% of subscription box customers say they are likely to try a new subscription box in the next year
- 44% of subscription box customers say they have multiple subscriptions in the same category
Interpretation
In a world where variety is the spice of life, subscription box customers are living proof. With an average of 2.6 boxes in their roster, these modern connoisseurs are not afraid to dive into diverse offerings swimming in the sea of convenience and new discoveries. From gifting beginnings to self-indulgent treats, these customers are on a journey of exploration, saving money, and sharing the love with friends and family. As the subscription box universe expands, these aficionados are poised to increase their collection, embrace new brands, and uncover hidden gems, all while savoring the satisfaction of a curated experience. At an average of $57 per month, they are investing not just in products, but in joy, connection, and the thrill of the unknown. Cheers to these savvy subscribers, the true trailblazers of the modern retail landscape!
Demographics
- 55% of subscription box shoppers are between 25 and 44 years old
- 41% of subscription box customers are male
- 59% of subscription box customers are female
Interpretation
These statistics on subscription box shoppers paint a vivid picture: young to middle-aged individuals are clearly enthralled by the allure of surprises delivered to their doorsteps on a regular basis. It seems that while the gentlemen make up a respectable 41% of the subscription box community, the ladies are truly dominating the scene with their keen eye for curated delights. So, gentlemen, perhaps it's time to up your unboxing game and show the ladies that subscription boxes aren't just for the fairer sex!
Market Growth
- The global subscription box market is expected to reach $65 billion by 2027
- The subscription box market grew by 100% annually between 2013 and 2018
- The meal kit subscription box segment is expected to grow at a CAGR of 13.2% from 2020 to 2027
- The pet supplies subscription box segment is expected to grow at a CAGR of 15.7% from 2020 to 2027
Interpretation
In a world where convenience is king and surprises are coveted, the subscription box industry is poised to rule with a $65 billion crown by 2027. With growth rates that would make even the most ambitious of entrepreneurs blush, it's clear that consumers are hungry for curated experiences delivered right to their doorstep. Whether it's gourmet meals or pampered pets, the subscription box trend is here to stay, solidifying its place as the reigning monarch of modern convenience. Bow down to the curated crate, for it is the true ruler of our shopping habits!
Market Penetration
- 15% of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis
Interpretation
In a world where online shopping has become as routine as brushing one's teeth, it seems that 15% of us have taken it a step further by subscribing to receive a regular dose of surprise and delight right at our doorsteps. These subscription boxes are like the modern-day equivalent of a treasure chest, filled with goodies that bring joy and convenience straight to our homes. So, if you’re part of the 15%, here's to the thrill of the unboxing experience and the excitement of what's coming next. Just remember to recycle all those cardboard boxes—Mother Nature is depending on you.
Market Size
- The subscription box market was valued at $15 billion in 2019
- There were over 7,000 subscription box companies in the market as of 2019
Interpretation
The subscription box market seems to be spinning faster than a whirlwind romance, with a value of $15 billion in 2019 and over 7,000 companies vying for attention. It's a jungle out there in the world of surprise goodies arriving at your doorstep, but one thing is clear: consumers are hungry for curated experiences and unique treasures delivered right to their door - box enthusiasts, we salute you!
Pricing
- The average monthly cost of a subscription box is $10-$40
- The average subscription box company has a 15% annual price increase
Interpretation
In the world of subscription boxes, it seems the only thing rising faster than the excitement of getting a surprise package in the mail is the price tag attached to it! With an average monthly cost ranging from a modest $10 to a more exuberant $40, it appears that treating oneself to a curated selection of goodies is becoming increasingly luxurious. And if that's not enough to make your wallet wince, brace yourself for the annual price hike of a typical subscription box company, with a cheeky 15% increase ensuring that you’ll be paying for that joyous unboxing experience a little more dearly each year. Subscription box enthusiasts, better sharpen those budgeting skills – because in this game of unbridled indulgence, the price of luxury keeps climbing higher.
Product Categories
- Food and beverage subscription boxes account for 34% of the market share
- Beauty and personal care subscription boxes hold 28% of the market share
- 40% of subscription box customers have tried a meal kit subscription
- 33% of subscription box customers have tried a pet supplies subscription
Interpretation
In the ever-expanding universe of subscription boxes, it seems our love for delightful surprises knows no bounds. Whether pampering ourselves with beauty goodies or tantalizing our taste buds with gourmet treats, we subscription box aficionados are a diverse bunch with varying appetites (literally and metaphorically). With meal kits and pet supplies also vying for our attention, it's clear that in the game of subscription boxes, there's a box for every taste and whim - proving that surprise deliveries are the ultimate gift that keeps on giving.
Retention
- 55% of subscription box customers cancel within 6 months
- The average subscription box customer retention rate is 40% after one year
- The average subscription box company has a 6% monthly churn rate
- 53% of subscription box customers say they are likely to continue their subscriptions for at least another year
Interpretation
In a world where commitment seems as fleeting as a swipe left on a dating app, subscription box companies are navigating choppy waters. With a cancellation rate higher than a reality TV show's ratings drop after the first season, and a retention rate that fluctuates more than a yo-yo on caffeine, these numbers make even the most seasoned marketer do a double-take. But fear not, dear readers, for among the chaos, a glimmer of hope emerges - like a phoenix rising from the ashes of failed beauty products and mismatched socks - as over half of subscription box customers profess their loyalty for another year. So, as we ride the rollercoaster of the subscription box industry, let us remember that while love may fade, the allure of surprises in a neatly packaged box might just be forever.