Subscription E-Commerce Market Size (2023 – 2030)

The Subscription Box/Subscription E-Commerce Market is valued at USD 41.80 billion in 2023 and is projected to reach a market size of USD 97.73 billion by the end of 2030. Over the outlook period of 2024-2030, the market is anticipated to grow at a CAGR of 12.9%.

The subscription e-commerce services began with Netflix and Amazon offering subscription-based access to their content, products, and services. However, with increase in the number of internet users, rapid digitization, and rising consumer demand for various products such as beauty, healthcare, food, fashion, and others led to the emergence of new e-commerce subscription platforms, some of which have specialty subscription services such as beauty companies offering specialized beauty subscription services, content streaming companies offering content specialized subscription services, and specialty food websites offering specialized access to varied cuisines in the market. This further raised consumer demand for online shopping experiences. In addition to this, the pandemic was a major contributor to increasing e-commerce sales, as consumers shopped for most of their essentials, luxuries, and allies from e-commerce platforms. Furthermore, the future holds positive for the subscription box/subscription e-commerce market, as the increasing trends in AI and predictive analytics for analyzing consumer shopping preferences, tracking deliveries, and growth in contact-less payments and delivery is further anticipated to develop the market and enhance its future growth opportunities.

Key Market Insights:

According to the International Trade Association, China is a global leader in e-commerce sales and accounts for more than 50% globally, with online sales accounting for US$ 3 trillion in the year 2022.

As per Shopify sales data, mobile shopping from Shopify merchants increased by 69% for black friday cyber monday sales in the year 2021.

According to Amazon, there are 200 million Amazon Prime subscribers in 2021.

Furthermore, the Zomato Pro subscription service has 1.5 million pro members and generated an annual revenue of Rs.57.5 crore in the year 2021.

As per Netcore’s e-commerce personalization benchmark report 2021, more than 3 in 4 shoppers want a personalized shopping experience.

Subscription Box/Subscription E-Commerce Market Drivers:

Increased consumer demand for personalized shopping experiences has boosted the demand for subscription box/subscription e-commerce in the market.

Personalization is one of the key factors in driving e-commerce sales in the market. According to McKinsey, 71% of consumers prefer companies to deliver personalized interactions. The consumer now prefers exclusivity while shopping, that is, products or services that offer them a personalized experience, specifically as per their requirements. These can include personalized salad meal box subscription services, exclusive access to games, and customized and handcrafted food items such as dry fruits, snacks, assorted desserts, and others. Moreover, many e-commerce platforms are improving their user interface experience by incorporating personalization analytics tools that analyze the online behavior and browsing activity of consumers and offer them customized services. Furthermore, the personalization experience increases consumer engagement and boosts the brand’s online presence. Moreover, companies nowadays offer complementary goodies or services along with the main product that helps in improving consumer engagement with the brand. For instance, beauty care companies provide free lufa or scrub with a body wash or gel, or a small hair mask as a gift with shampoo or conditioner.

Consumer demand for convenience shopping has driven the market demand for subscription box/subscription e-commerce in the market.

A fast-paced lifestyle and hectic schedule have induced consumer preferences for a hassle-free shopping experience that does not require them to manually order their products or services, but rather get it delivered regularly with the help of e-commerce subscription services. These subscription services enable consumers to pre-set their preferences and orders and save their time. Moreover, the subscription services offer automatic monitoring and tracking of products. In addition, automating replenishment services allows consumers to order essential items whenever they run out of such items. These include groceries, food items, bathroom care, and others. In addition, consumers can set the delivery schedule based on their availability and also avail contactless delivery option.

Subscription Box/Subscription E-Commerce Market Restraints and Challenges:

Market saturation can decrease consumer demand for subscription e-commerce services in the market. The rapid growth in digitization has increased the presence of many companies on e-commerce platforms leading to a crowded market, these channels offer more or less similar subscription services leading to a decline in consumer demand for e-commerce subscriptions.

Privacy leaks and data misuse can lead to a sharp decline in demand for subscription e-commerce services. Many e-commerce platforms gather consumer data for customization and for providing tailored shopping experiences, however, this can lead to privacy leaks and misuse of consumer data by hackers, leading to an increase in cyberattacks. Additionally, hackers can impersonate the company’s identity and scam consumers through fake promotional emails and text messages.

Subscription Box/Subscription E-Commerce Market Opportunities:

The Subscription Box/Subscription E-Commerce Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, increasing demand for hassle-free and personalized shopping experiences and rapid digitization post-pandemic is predicted to boost the market for the subscription box/subscription e-commerce and increase its market base.

SUBSCRIPTION E-COMMERCE MARKET REPORT COVERAGE:

Subscription Box/Subscription E-Commerce Market Segmentation: By End-User

• Kids

• Women

• Men

In 2022, based on market segmentation by end-users, women occupied the highest share of about 44% in the market. Women are the major users of e-commerce subscription services, particularly for beauty, personal care, fashion, and personalized shopping. Moreover, growing social media influence has further induced the purchasing decisions of women to keep up with the ongoing fashion and beauty trends, which is a major contributor to the growth of the e-commerce industry in the market.

Kids segment is the fastest-growing segment during the forecast period. Increased demand for innovative and attractive toys, craft and art supplies, educational kits, and others by kids has contributed to the increase in demand for the subscription e-commerce market. Moreover, festive discounts and offers and increased availability of themed games or toys on e-commerce platforms are further inducing kids' demand for theme-based games in the market.

Subscription Box/Subscription E-Commerce Market Segmentation: By Application

• Food & Beverage

• Fashion & Shopping

• Gaming & Entertainment

• Health & Fitness

• Beauty & Personal Care

• Others

In 2022, based on market segmentation by application, fashion & and shopping occupied the highest share of about 39% in the market. Consumers are increasingly demanding subscription e-commerce services for fashion & shopping purposes that include delivery of fashion-related items regularly, which involves apparel subscription services, accessories and jewelry subscription services, rental and try before purchasing services, and others. These services offer a variety of fashion choices to consumers and also keep them updated with the latest fashion and shopping trends via emails, newsletters, and others. The growth of this segment is attributed to increasing social media influence for trendy fashion looks and the rising youth population.

Food & Beverage is the fastest-growing segment during the forecast period. Food enthusiasts, vloggers, and others are the major users of food e-commerce subscription services. These services include regular delivery of new and delicious food items on demand by consumers. These include personalized meal boxes, gourmet food subscription services such as special access to quality cuisines, chocolates, craft beer and wines, and others; and healthy snacks or mixes subscriptions. Moreover, trends in healthy eating and veganism are further propelling the market growth for food & and beverage e-commerce subscription services in the market.
 

Subscription Box/Subscription E-Commerce Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle-East & Africa

In 2022, based on market segmentation by region, North America occupied the highest share of about 37% in the market. Rising demand for personalized shopping experiences and increasing demand for natural and organic beauty and personal care product delivery services are contributing to the demand for subscription box/subscription e-commerce in the region.

Asia-Pacific witnessed the fastest growth during the forecast period. Rapid digitization and the fast-booming e-commerce industry due to increasing demand for clothing, fitness equipment, organic food, and beverages, have contributed to the demand for subscription box/subscription e-commerce in the region.

COVID-19 Impact Analysis on the Subscription Box/Subscription E-Commerce Market:

The pandemic had a positive impact on the subscription box/subscription e-commerce market. The pandemic led to the shutdown of various industries; however, businesses shifted their presence to online platforms, which revived their sales in the later phase of the pandemic. Moreover, e-commerce subscription services offer easy and hassle-free payment options, contactless delivery, and access to detailed product and service descriptions, customer reviews, and product demonstrations on e-commerce platforms. In addition, rising health awareness increased consumer demand for health & fitness subscription e-commerce services, which included access to healthy and balanced meal boxes, at-home fitness equipment, healthy supplements, and others.

Latest Developments:

The market for subscription box/subscription e-commerce is witnessing upward growth due to increasing consumer preferences for a convenient and hassle-free shopping experience. Moreover, continuous offers, discounts, and early access services by companies have further increased consumers’ preference for e-commerce subscriptions. Additionally, social media trends such as fast fashion and Gen-Z beauty and self-care routines are boosting the demand for beauty and personal care e-commerce subscriptions in the market.

• In October 2023, Swiggy launched a cheaper subscription service to its customers called – Swiggy One. The subscription will allow users to have 10 free goods deliveries, 10 free Instamart delivery, and additional discounts. The subscription will be provided on a bi-monthly basis, with a fee of Rs 99 for three months.
• In September 2022, Sephora launched an unlimited same-day delivery subscription service with an annual fee of US $49. The service is available through its app and offers a free 30-day trial service to its customers. Moreover, customers can get their orders delivered in less than two hours.

Key Players:

• Amazon
• Shopify
• Sephora
• Salista Software
• BigCommerce
• Netflix
• Femtech Health
• Blue Apron Holdings Inc