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Global Subscription E-commerce Market to Grow at 68.40% During 2027, Spurred by Significant Growth in E-Commerce Sector

Published on Sep 19, 2022

The latest report by IMARC Group, titled Subscription E-commerce Market: Global Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2022-2027,” finds that the global subscription e-commerce market is expected to exhibit a CAGR of 68.40% during the forecast period (2022-2027). Subscription e-commerce refers to a business model which prompts customers to subscribe to services or products required on a routine basis. Some commonly available subscriptions are entertainment subscriptions, commodity goods subscriptions, e-commerce subscription boxes, and software as a subscription (SaaS). These models contain the sales of subscription-based e-commerce offerings by various entities that impel consumers to enroll on their websites or apps for recurring delivery of services or products. They also offer several benefits, including higher lifetime value (LTV), better cash flow management, a consistent revenue stream, improved inventory control, increased customer retention, relationship engagement, and the ability to upsell and cross-sell. As a result, subscription e-commerce services are widely adopted across the food and beverage (F&B), clothing and fashion, entertainment, and healthcare industries.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.  

Global Subscription E-commerce Market Trends:

The market is primarily driven by significant growth in the e-commerce sector and the rising popularity of social media trends. Moreover, several retailers across diverse industries, including apparel, cosmetics, food and beverage (F&B), and personal grooming, are introducing long-term subscription services to generate customer loyalty and expand their user base. This, coupled with the increasing popularity of digital media streaming through several over-the-top (OTT) platforms, such as Amazon Prime, Disney+, Netflix and Hulu, is further escalating the demand for subscription e-commerce services. Besides this, the introduction of social media-based startups that collaborate with bloggers, vloggers, and influencers to create brand awareness is further providing a positive thrust to the market growth. Additionally, the growing consumer inclination toward online shopping for discounted offers, better convenience, reduced reliance on store visits, and improved customer satisfaction is also impelling the market growth. Furthermore, the market is also propelled by the escalating demand for personalized products and curated services by customers. Other factors, such as the increasing usage of smartphones resulting in exposure to e-commerce business, the rising number of small and medium enterprises, inflating consumer disposable incomes, and the growing middle-class families, are creating a positive market outlook.

Market Summary:

  • Based on the subscription type, the market has been classified into service subscription, subscription box, digital content subscription, and others.
  • On the basis of the application, the market has been segmented into beauty and personal care, food and beverage, clothing and fashion, entertainment, and health and fitness.
  • Based on the payment method, the market has been bifurcated into online and offline.
  • On the basis of the end user, the market has been segregated into women, men, and kids.
  • Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
  • The competitive landscape of the industry has also been examined in the report, with some of the key players being Inc., Blue Apron Holdings, Dollar Shave Club, Farmhouse Delivery, Netflix Inc., and Personalized Beauty Discovery Inc.

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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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