Summary
- • The global subscription e-commerce market size was valued at USD 72.91 billion in 2021
- • The subscription e-commerce market is expected to grow at a CAGR of 70.4% from 2022 to 2028
- • 75% of direct-to-consumer (DTC) brands will offer subscription services by 2023
- • The subscription box market is projected to reach $65 billion by 2027
- • 41% of retail subscribers have 3 or more active subscriptions
- • The churn rate for subscription box services averages 10.54%
- • Beauty and personal care subscriptions have the highest retention rate at 68%
- • 54% of online shoppers say they are members of at least one subscription program
- • The average subscriber has 2.1 retail subscriptions
- • Subscription-based companies grow revenue 5.5 times faster than S&P 500 company revenues
- • 70% of business leaders say subscription business models will be key to their prospects in the years ahead
- • The meal kit delivery services market is expected to reach $20 billion by 2027
- • 28% of subscribers say they discovered a subscription service through social media
- • 65% of consumers who subscribe to a service do so to get a good deal
- • The average subscriber spends $37.73 per month on subscription boxes
Get ready to dive deep into the world of subscription commerce as we uncover jaw-dropping statistics that will make your head spin faster than a monthly subscription fee is charged! From the projected $65 billion subscription box market by 2027 to the 70% of business leaders betting their futures on subscription models, weve got the data to show you why subscriptions are more than just a trendy convenience – theyre a booming business. So hold onto your credit cards, because were about to reveal why the subscription economy is here to stay, and why your mailbox might soon be bursting with surprises!
Consumer Behavior
- 41% of retail subscribers have 3 or more active subscriptions
- 54% of online shoppers say they are members of at least one subscription program
- The average subscriber has 2.1 retail subscriptions
- 65% of consumers who subscribe to a service do so to get a good deal
- The average subscriber spends $37.73 per month on subscription boxes
- 78% of adults in the United States have at least one subscription service
- 47% of consumers prefer subscriptions that automatically renew
- 69% of households in the United States have at least one video streaming subscription
- The average number of streaming video subscriptions per household in the US is 3.4
- 52% of subscribers say they joined a subscription service to try new products
- 15% of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis
- The average revenue per user (ARPU) for subscription box services is $64
- 62% of consumers prefer subscriptions that offer customization options
- The average order value (AOV) for subscription box services is $39.60
- 57% of consumers say they are likely to try a new subscription service in the next year
- 71% of consumers say they are more likely to subscribe to a service that offers a loyalty program
- 68% of consumers say they are more likely to subscribe to a service that offers flexible cancellation options
Interpretation
In a world where commitment issues are rampant, it seems that the only thing consumers are fully committing to is their subscription boxes - with an average of 2.1 retail subscriptions per person, and a whopping 78% of adults in the US indulging in at least one service. From seeking a good deal to wanting to try new products, it appears that subscription services have become the modern-day love language of consumers. With households averaging 3.4 streaming subscriptions, one can only wonder if we're subscribing to watch more content or simply to avoid making decisions about what to watch. But fear not, for in this tumultuous sea of subscriptions, customization options and flexible cancellation policies shine like beacons of hope, promising to keep the flame of commitment alive in this ever-evolving digital romance.
Customer Retention
- The churn rate for subscription box services averages 10.54%
- Beauty and personal care subscriptions have the highest retention rate at 68%
- 32% of subscribers say they are likely to cancel a subscription in the next year
- The average subscriber lifetime value (LTV) for subscription businesses is $2,929
- The average subscription length for box services is 5.4 months
- The average customer lifetime value (CLV) for subscription box businesses is $465
- The average monthly churn rate for subscription box services is 10.54%
- The average customer lifetime value (CLV) for SaaS businesses is $2,890
- The average customer retention rate for subscription box services is 54%
Interpretation
In the whimsical world of subscription commerce, where goodbyes tend to be as common as hellos, the numbers paint a colorful picture of loyalty and fickleness. Beauty and personal care subscriptions reign supreme with a stunning retention rate of 68%, showing that a flawless complexion is indeed a powerful bond. However, the ever-fickle 32% of subscribers flirting with cancellation keep the industry on its toes, reminding us that commitment can be as fleeting as a love affair. The tantalizing allure of an average subscriber lifetime value of $2,929 hints at a lucrative dance between businesses and their audience, while the modest 5.4-month subscription length suggests that sometimes a short, sweet fling can be just as rewarding. With an average customer lifetime value of $465, subscription box businesses prove that true love doesn't always have to come at a high price, and that sometimes it's the little things that keep us coming back for more. Despite the inevitable ups and downs, with a 54% customer retention rate, subscription box services show that in this whirlwind romance of commerce, loyalty still shines bright like a diamond.
Market Size and Growth
- The global subscription e-commerce market size was valued at USD 72.91 billion in 2021
- The subscription e-commerce market is expected to grow at a CAGR of 70.4% from 2022 to 2028
- The subscription box market is projected to reach $65 billion by 2027
- Subscription-based companies grow revenue 5.5 times faster than S&P 500 company revenues
- The meal kit delivery services market is expected to reach $20 billion by 2027
- The global video streaming (SVoD) market size is expected to reach $223.98 billion by 2028
- The global music streaming market size was valued at $23.1 billion in 2021
- The global cloud computing market size is expected to reach $1,251.09 billion by 2028
- The global software as a service (SaaS) market is projected to reach $307.3 billion by 2026
- The global digital fitness market size is expected to reach $27.4 billion by 2027
- The global online food delivery market size is expected to reach $365.1 billion by 2030
- The global e-learning market size is projected to reach $374.3 billion by 2026
- The global online grocery market size is expected to reach $1,134.5 billion by 2027
- The global digital publishing market size is expected to reach $65.3 billion by 2027
- The global online dating services market size is expected to reach $9.9 billion by 2027
- The global online fitness market size is expected to reach $59.2 billion by 2027
- The global online education market size is expected to reach $319.2 billion by 2025
Interpretation
In a world where convenience is king and choice is queen, the subscription commerce industry is reigning supreme. With statistics showing explosive growth and projected market sizes that could make even Jeff Bezos do a double-take, it's clear that the era of curated boxes, streamed content, and virtual workouts is here to stay. Subscription-based companies are sprinting ahead, leaving traditional S&P 500 companies in the dust, while meal kits, cloud computing, and online dating services are all vying for a piece of the subscription pie. As we head into a future where everything from groceries to education can be delivered to our screens with the click of a button, one thing is certain - in the subscription economy, the only limit is your credit card balance.
Market Trends
- 75% of direct-to-consumer (DTC) brands will offer subscription services by 2023
- 70% of business leaders say subscription business models will be key to their prospects in the years ahead
- 40% of e-commerce retailers in the US offer subscriptions
Interpretation
In a world where convenience is king and customer loyalty is queen, the Subscription Commerce Industry reigns supreme. With 75% of direct-to-consumer brands set to embrace subscription services by 2023, it's clear that the allure of recurring revenue is too tempting to resist. As 70% of business leaders recognize that subscription models are the golden ticket to future success, and with 40% of US e-commerce retailers already onboard, it seems the wave of the future is not just a trend - it's a tidal wave ready to sweep all traditional retail models out to sea. Subscription services: the modern-day siren's call for businesses looking to navigate the treacherous waters of consumer behavior with savvy and style.
Marketing and Acquisition
- 28% of subscribers say they discovered a subscription service through social media
- The average customer acquisition cost (CAC) for subscription businesses is $429
- The average customer acquisition cost (CAC) for subscription box businesses is $27.37
- 25% of subscribers say they discovered a subscription service through word-of-mouth
- 18% of subscribers say they discovered a subscription service through online ads
- The average customer acquisition cost (CAC) for SaaS businesses is $205
- 22% of subscribers say they discovered a subscription service through email marketing
- 20% of subscribers say they discovered a subscription service through influencer marketing
Interpretation
In the world of subscription commerce, it seems that a successful discovery method is like a well-mixed cocktail; a little bit of social media charm, a dash of word-of-mouth buzz, a splash of online ads, a sprinkle of email marketing, and a twist of influencer magic can entice the right subscribers to sip from the subscription service fountain. Despite the variety of flavors, the cost of acquiring these customers can take a toll on the business's budget, with some businesses shelling out as much as $429 to reel them in. But fear not, for those in the subscription box business have found the secret recipe, managing to snag customers at a much sweeter cost of $27.37. It seems that in this bustling marketplace, a clever mix of marketing strategies, a pinch of social influence, and a sprinkle of good old-fashioned word-of-mouth are the ingredients for success.
Pricing and Models
- 55% of subscription-based companies offer a freemium model
- 28% of subscription businesses offer a free trial
- 58% of subscription businesses offer multiple pricing tiers
- 43% of subscription businesses offer annual billing options
- 31% of subscription businesses use a usage-based pricing model
- 53% of subscription businesses offer a monthly billing cycle
- 39% of subscription businesses offer a quarterly billing option
- 48% of subscription businesses offer a free trial period of 14 days or less
- 35% of subscription businesses offer a semi-annual billing option
- 42% of subscription businesses offer a discounted annual plan
Interpretation
In the ever-evolving world of subscription commerce, numbers don't lie. With 55% of companies opting for a freemium model and 28% tempting customers with free trials, it's clear that the art of hooking subscribers is a delicate dance between enticing and engaging. However, with 58% of businesses offering multiple pricing tiers and 43% providing annual billing options, it seems that variety truly is the spice of subscription life. Whether it's a 14-day free trial or a discounted annual plan, the key takeaway is that in this competitive landscape, flexibility and innovation are the name of the game.
