The Latest Subscription Commerce Industry Statistics Explained
The subscription box market was valued at $13.4 billion in 2021.
The statistic that the subscription box market was valued at $13.4 billion in 2021 indicates the total revenue generated by companies offering subscription box services in that year. This value represents the combined financial impact of various subscription box services across different industries and signifies the growing popularity and profitability of this business model. The high valuation suggests a strong consumer demand for curated products delivered on a recurring basis, indicating the potential for further market expansion and investment opportunities within the subscription box industry.
Subscription commerce has grown by more than 100% year on year for the past 5 years.
The statistic indicates that the subscription commerce industry has shown significant growth consistently over the past five years, with its overall size more than doubling each year compared to the previous year. This steady and substantial growth trend suggests a strong and expanding demand for subscription-based business models in various industries. It could be attributed to factors such as convenience, personalized offerings, and cost savings that subscriptions often provide to consumers. This statistic highlights the increasing popularity and success of subscription commerce as a business strategy, making it an attractive market for businesses seeking sustainable growth opportunities.
Subscription businesses grow revenues 5 times quicker than S&P 500 company revenues.
The statistic “Subscription businesses grow revenues 5 times quicker than S&P 500 company revenues” indicates that companies following a subscription-based business model are experiencing significantly faster revenue growth compared to companies listed in the S&P 500 index, which consists of the top 500 publicly traded companies in the US. This implies that the subscription model is proving to be more successful in driving revenue increases at a rapid pace, potentially due to its ability to generate consistent, recurring revenue streams from a loyal customer base. As a result, investors and businesses may be increasingly drawn to the subscription-based business model as a way to achieve faster revenue growth and potentially outperform traditional business models.
The largest subscription box services in 2018 were Amazon Subscribe & Save, Dollar Shave Club, Ipsy, Blue Apron and Birchbox.
The statistic states that in 2018, the largest subscription box services were Amazon Subscribe & Save, Dollar Shave Club, Ipsy, Blue Apron, and Birchbox. This indicates that these companies had high subscription numbers and a significant market presence compared to other subscription box services during that year. Subscription box services have become popular in recent years as they offer consumers convenience, personalized products, and value for money. The inclusion of Amazon Subscribe & Save is notable as it reflects the dominance of the e-commerce giant in various sectors. Dollar Shave Club’s focus on grooming products, Ipsy’s beauty offerings, Blue Apron’s meal kits, and Birchbox’s beauty and grooming products further highlight the diversity within the subscription box industry.
Subscription boxes touch nearly all product categories, but Food & Drink, Beauty, and Apparel and Accessories are the most popular, accounting for over half of all purchases.
The statistic indicates that subscription boxes have a wide reach across various product categories, with Food & Drink, Beauty, and Apparel and Accessories being the most popular choices among consumers. These three categories collectively make up more than half of all purchases in the subscription box market. This suggests that consumers are particularly interested in receiving regular deliveries of food and beverages, beauty products, and clothing and accessories through subscription services. The popularity of these categories underscores the diversity of products available through subscription boxes and highlights the strong appeal of convenience and surprise element that subscription services offer to consumers in these specific areas.
Men are more likely to have 3 or more active subscriptions: 42% versus 28% of women.
The statistic ‘Men are more likely to have 3 or more active subscriptions: 42% versus 28% of women’ suggests that a higher proportion of men have three or more active subscriptions compared to women. Specifically, 42% of men have three or more active subscriptions, whereas only 28% of women fall into the same category. This finding indicates a gender disparity in the number of subscriptions individuals maintain, with men being more inclined to have multiple active subscriptions. The difference in subscription behavior between men and women may reflect varying preferences, spending habits, or needs when it comes to subscribing to services or products. Further analysis could delve into the reasons behind this discrepancy and explore potential implications for businesses targeting subscription-based markets.
40% of online retail subscriptions were in e-commerce.
The statistic “40% of online retail subscriptions were in e-commerce” indicates that out of all the online retail subscriptions surveyed, 40% of them were specifically related to e-commerce platforms or activities. This suggests that a significant portion of consumers who have online retail subscriptions are engaging with e-commerce services such as online shopping, digital marketplaces, or subscription-based retail services. This statistic highlights the growing trend of consumers turning to e-commerce platforms for their retail needs and emphasizes the importance of e-commerce in the modern retail landscape.
In 2020, Subscription business models grew nearly 6 times the rate of US retail sales.
The statistic indicates that subscription business models experienced a growth rate almost six times higher than that of overall retail sales in the United States during the year 2020. This suggests a significant trend towards subscription-based services, such as streaming platforms, food delivery services, and subscription boxes, which have seen increased adoption and customer retention. The exponential growth of subscription models compared to traditional retail sales may reflect changing consumer preferences, the convenience of recurring payments for goods and services, and the shift towards digital and online shopping experiences. The data points to a potential transformation in the retail landscape, with subscription-based businesses playing an increasingly prominent role in the market.
The apparel subscription market is projected to grow at a Compound Annual Growth Rate (CAGR) of 5.67% during the period 2020-2024.
The statistic indicates that the apparel subscription market is expected to experience steady growth at an annual rate of 5.67% over the period of 2020 to 2024. This Compound Annual Growth Rate (CAGR) serves as a measure to assess the year-over-year growth of the market, providing a more consistent view of growth than simple annual growth rates. The projection suggests that the apparel subscription market is anticipated to expand gradually over the specified timeframe, reflecting potential opportunities for businesses operating within this sector and indicating increasing consumer interest in subscription-based apparel services.
There are currently around 7,000 subscription box companies.
The statistic “There are currently around 7,000 subscription box companies” indicates that the subscription box industry is a rapidly growing sector within the retail market. Subscription box companies offer a variety of curated products that are typically delivered on a regular basis to subscribers. The large number of companies operating in this space suggests high consumer demand for personalized and convenient shopping experiences. This industry’s growth may be attributed to the increasing popularity of online shopping, desire for novelty and surprise, and the convenience factor of having products delivered directly to customers’ doors. Additionally, the market competition among the 7,000 companies likely leads to innovation, diversification of offerings, and potentially competitive pricing for consumers.
65% of people are trying new brands for the first time after receiving product samples in their subscription boxes.
The statistic that 65% of people are trying new brands for the first time after receiving product samples in their subscription boxes indicates a significant impact of sampling strategies on consumer behavior. This statistic suggests that product samples included in subscription boxes are effective in introducing consumers to new brands and products they may not have otherwise considered purchasing. The high percentage of individuals trying new brands highlights the importance of sampling initiatives in creating awareness, generating interest, and potentially converting consumers into repeat customers. This statistic underscores the value of subscription box marketing as a powerful tool for brand discovery and adoption among consumers.
On average, consumers spend around $58 per month on subscription services.
This statistic indicates that, when the spending patterns of consumers are aggregated, the average monthly expenditure on subscription services is approximately $58. This suggests that subscription services are a common spending category for many consumers, with the average individual allocating a significant portion of their monthly budget towards these recurring services. Understanding this average amount can provide insights for businesses in the subscription industry to tailor their pricing strategies and marketing efforts to target consumers who are willing to spend around $58 per month on such services. Moreover, consumers can use this statistic to assess their own spending habits and budget accordingly towards subscription services.
The median price point for subscription boxes is $25.
The statement means that when arranging all the price points of subscription boxes in ascending order, the middle price point is $25. This indicates that half of the subscription boxes are priced below $25 and the other half are priced above $25. The median is a measure of central tendency that is less affected by extreme values compared to the mean, making it a good indicator of the typical price point in the subscription box market. This information can be useful for individuals looking to understand the market trends and consumer preferences in the subscription box industry.
22.5% of subscription box consumers hold a master’s or higher degree.
The statistic “22.5% of subscription box consumers hold a master’s or higher degree” indicates that approximately one-fifth of individuals who subscribe to subscription boxes have completed a master’s degree or higher level of education. This suggests that subscription box consumers tend to have higher levels of education compared to the general population, as the percentage of individuals with master’s degrees or above in the general population is typically lower. The statistic may imply that subscription box companies target a demographic that values education and has a higher disposable income, as pursuing advanced degrees often correlates with higher earning potential. Understanding the educational background of subscription box consumers can help marketers tailor their products and messaging to better cater to this specific audience segment.
55% of box merchants offer a monthly payment option which their customers prefer.
The statistic ‘55% of box merchants offer a monthly payment option which their customers prefer’ indicates that more than half of box merchants provide their customers with the choice of making monthly payments, and a majority of customers prefer this option. This suggests that offering a monthly payment option is a common practice among box merchants and is likely seen as beneficial by customers. The statistic implies that providing flexibility in payment terms can positively impact customer satisfaction and potentially increase sales for box merchants.
Over 10% of consumers in the U.S. have signed up for at least one subscription box.
The statement “Over 10% of consumers in the U.S. have signed up for at least one subscription box” indicates that a significant portion of the U.S. population has engaged with the subscription box market. Subscription boxes are a popular business model where consumers sign up to receive a curated collection of products regularly, usually on a monthly basis. This statistic suggests that subscription boxes have gained substantial traction among consumers, demonstrating a growing trend of convenience and personalization in shopping habits. Additionally, it showcases how this particular market segment has been successful in capturing a notable share of consumer spending and engagement in the U.S.
Essen Haus, a German subscription box company, saw a 92% increase in customer activity in 2020 compared to 2019.
The statistic indicates that Essen Haus, a German subscription box company, experienced a substantial 92% increase in customer activity from 2019 to 2020. This significant rise suggests a surge in customers engaging with the company, likely leading to increased sales, subscriptions, and overall interest in their products. Such a substantial increase in customer activity can reflect positively on the company’s marketing strategies, product offerings, customer relationship management, or the overall market demand for German subscription boxes. The 92% increase signals a notable growth in the company’s customer base and potential revenue, showcasing a successful year of growth and expansion for Essen Haus.
The skincare subscription industry has seen a 73% surge during COVID-19 lockdowns.
The statistic that the skincare subscription industry has experienced a 73% surge during COVID-19 lockdowns indicates a significant increase in demand for skincare products that are delivered through subscription-based services. This surge can be attributed to various factors such as the shift towards online shopping and the increased emphasis on self-care and personal well-being during the pandemic. As people spent more time at home, they may have prioritized self-care routines, leading to an uptick in subscriptions for skincare products. Additionally, the convenience and consistency offered by subscription services could have been particularly appealing during a time when traditional retail channels were disrupted. Overall, the significant growth in the skincare subscription industry reflects evolving consumer preferences and behaviors during lockdowns.
The subscription commerce conversion rate is highest on desktop, averaging at 2.90%.
This statistic indicates that the conversion rate for subscription commerce, or the percentage of website visitors who make a purchase, is highest when using a desktop device, with an average conversion rate of 2.90%. This suggests that users who visit subscription commerce websites through a desktop are more likely to complete a purchase compared to those using other devices such as mobile or tablet. Businesses may want to consider optimizing their website layout and user experience specifically for desktop users to capitalize on this higher conversion rate and potentially increase revenue from their subscription commerce offerings.
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