These Subscription Box Statistics for 2021 Will Inspire You to Start Your Own
Do you have a favorite product that you buy regularly? If yes, why would you bother with going to the store or filling an online form every time? This is where subscription boxes services come in to automate the entire process and simplify recurring deliveries.
From a business perspective, these could be an excellent way to secure steady income in the foreseeable future. If someone subscribes to your product or service, that means you can count on them buying those goods in the upcoming period.
Although this is a smart idea, you might still be having second thoughts. That’s why we gathered some impressive subscription box statistics. These numbers are so encouraging that you’ll want to design your new ecommerce offering today!
The Industry is Burgeoning
How do you determine if an industry has been successful in recent years? You look at the growth trends to see if there’s a popularity increase. Recent statistics on subscription boxes paint the whole picture.
It was in 2019 when the market passed the $10 billion milestone, which is impressive. That’s even without counting Amazon Prime, which might even double that number. If we go back into the past, we’ll discover that’s growth from only $57 million in 2011. That means the subscription box industry increased its revenue more than 175 times in the past decade. The industry value was $2.6 billion in 2016, so it almost quadrupled in only five years!
Why are subscription box statistics important? The reason is obvious – it shows a growing interest of users in these services. It would be foolish not to consider pandemic contributed to the increased interest. With people more oriented to buying online than before, subscription boxes have become a welcoming product that simplifies things.
International Sales Are a New Normal
While we are discussing subscription box popularity, let’s also be sure to mention that it goes beyond national borders. You don’t have to limit yourself to your country. Furthermore, it’s an estimation that 90% of the brands have international customers for their boxes.
This is another effect of globalization – we’ve never been this close with the rest of the world. Shipping to any continent is possible, although the prices vary. The bottom line is this: If you design a decent deal and offer your subscription boxes to international customers, you’ll surely attract new subscribers.
It’s all about designing the offer to fit potential buyers. You want to come up with a unique concept or product that they might need. As long as you find the balance of price and quality, you’ll see the subscribers coming quickly.
Curated Subscriptions Are the Most Popular
The facts don’t lie, and they imply 55% of users pick curated subscriptions. Before we dwell on the specifics, perhaps you might need an explanation of this service type.
Here is an overview of all three major subscription types:
- Access subscriptions – these give you access to particular products. Those could be magazine editions, digital books, images, videos, or any other content.
- Replenishment – this subscription automates the ordering of a particular product. For example, you could order monthly supplies of cosmetics or pet food. They would arrive at regular intervals to your doorstep, so you’d never run out of the product.
- Curation subscriptions – these boxes contain items picked by the seller. They often contain products on promotions or exclusive units for subscribers.
The statistics show that the majority goes to the last-mentioned subscription type. The other two take only 45% together. So, if you want to maximize your odds of success, you can’t go wrong with designing a curated offer. Make sure to tailor it to your industry requirements. The secret always lies in delivering to customers the value they expect.
Averate Retention is 12+ Months
Here’s another intriguing piece of information – replenishment subscriptions top the long-lasting list of these boxes. According to the reports, 45% of users stick to this subscription for 12 months o rmore. That’s because most customers understand they truly need that product. They plan to use it for a long time, which is why they won’t unsubscribe easily.
The rate of long-term subscriptions is quite high for access and curation options, too. The estimations are that every third user sticks to their subscription for 12+ months. That’s a high retention rate, which only confirms that buyers love this purchasing option.
Another useful subscription box statics is that the cancelation rate is the highest in the first several months. Approximately 70% of subscribers cancel within the first six months. However, if you manage to keep them during that time, the odds are you’ll get yourself a long-term customer.
Who Loves Subscription Boxes More – Men or Women?
If you guessed women, you were correct. That’s probably because there are so many beauty products offered in these packages. McKinsey Analysis published the subscription box statistics that clearly show 60% of users are female.
Not everything is as it seems because there’s a catch: The experts indicate that men are more likely to have multiple subscriptions active. Only 28% of women have 3+ active services, but that number is higher among males.
When it comes to the customers’ age, the numbers won’t surprise you. The majority of customers are from 25 to 44 years old. Those who have a yearly income between $50K and $100K are most likely to sign up for a replenishment service.
It’s worth noting that millennials are most eager to sign up for subscription packages. Almost every third millennial has or plans to register for one or more deals. It’s interesting to also note that only 8% of the boomers are ready to do the same.
Let’s Wrap This Up
A subscription box can be a vital purchasing option for both the customer and the seller. From the client’s point of view, it can allow them to try new products at affordable prices. If they pick a replenishment package, they don’t have to worry about forgetting to order a new product batch.
As for the seller, they can promote products and reach new customers. A sample item offered in a curated box can result in a long-term user of that product. Additionally, replenishment deals imply you can count on a steady income from that buyer, at least for a while.
The subscription box statistics clearly show an increase in the industry’s popularity. The big brands are launching their packages, so now it’s the right time to jump on board and create an offer!
Need even more tips? Read our related guide: Here’s Why Monthly Subscription Boxes Are Booming