Subscription Box Market

Market Overview:

The global subscription box market size reached US$ 32.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 105.4 Billion by 2032, exhibiting a growth rate (CAGR) of 14% during 2024-2032. The growing demand for personalized items and curated products, rising utilization of subscription boxes by social media-based start-ups, and increasing influence of various social media blogs represent some of the key factors driving the market.

Latest Developments in the Industry:

• The Unilever Plc acquired Nature Delivered Ltd. (Graze) in February 2019 to deliver tasty snacking options in beautiful packaging to consumers. The company is currently leveraging the tech and e-commerce expertise of graze to offer the opportunity to consumers to snack in a healthier way.
• Blue Apron Holdings Inc is a United States-based company, which delivers fresh ingredients and recipes to its subscribers. This company is utilizing tech and operational infrastructure to offer an agile, scalable and seamless e-commerce experience with subscription at its core.

Growth Opportunities in the Subscription Box Industry:

Expanding Preference for Curated Products Propelling Market Growth

Product personalization is the process of altering any product according to the needs or desires of customers. It can be custom-made products or some designs and prints on the already available product using an online product personalization software. The subscription box allows customers to tailor products according to their tastes and preferences. The trend has become increasingly important to consumers on account of their psychology and cost-effectiveness. This, coupled with the rising personalization of products to increase brand loyalty and trust of customers, represents one of the key factors propelling the growth of the market.

Growing Emphasis on Customer Relationships Emerging as a Key Success Factor

Consumers are inclining towards automated purchasing that gives them tangible benefits, such as lower costs or increased personalization. A subscription business assists in turning a customer base into a loyal base as a subscription box offers various benefits, such as personalized items with a substance of surprise at a lower cost. Additionally, the rising demand for subscription boxes due to the increasing understanding of the unique needs of consumers, including taste, style preferences, size, and cost, is positively influencing the market.

Other Market Trends:

Various luxury brands in the fashion and cosmetics industry are launching free product trials and offering heavy discounts through the adoption of subscription boxes. This, along with the growing utilization of subscription boxes by social media-based start-ups for creating brand awareness, maintaining consistent revenue, and promoting built-in marketing, is positively influencing the market. In addition, the rising demand for introducing long-term subscription box service for developing customer loyalty and catering to specific consumer tastes and preferences is strengthening the growth of the market. Moreover, the increasing influence of various social media blogs and numerous celebrity endorsements is bolstering the growth of the market.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented due to the large number of regional players. The volume of new entrants is moderate in the subscription box industry global as there is little product differentiation and switching costs, however, requirement of economies of scales to remain profitable restrain the entry of new players.

Challenges Impacting the Subscription Box Market:

Fierce Competition among Key Players and Market Saturation

Many companies are using the opportunity to start subscription e-commerce businesses, as the subscription box industry is gaining immense popularity in a short period. As a result, there is a wide and easy availability of tools to start a business in this field, resulting in a low barrier to entry and potential for over-saturation in the market. It is difficult to produce a unique and creative product in the market with a large number of existing players. This creates innovation obstacles for existing players, thereby threatening their growth in the market despite providing high-quality products.

Lack of Long-Term Contracts Among Suppliers

The lack of proper long-term agreement (LTA) with vendors could result in insufficient standardization and demand aggregation that could lead to suboptimal use of long LTA. Limited suppliers in the market enhance the market power of suppliers, thereby increasing prices. Additionally, getting good quality supplies and maintaining long-term contracts with customers has become challenging for suppliers, thereby causing a threat to the subscription box market growth.

What is a Subscription box?

A subscription box is a package of niche retail products sent directly to a customer on a recurring basis. It is a marketing strategy and a successful way of product distribution with an element of surprise for the customers. It provides an opportunity for the product companies to reach a wide range of customers for their product trial and the consumer gets the new products periodically. It is used by subscription-based e-commerce businesses wherein businesses sell products individually and offer daily, weekly, monthly, annual, or seasonal access to a product or service. Additionally, as it varies largely in cost and is accessible to a wider range of customers with different socioeconomic backgrounds, the demand for the subscription boxe is rising across the globe.

COVID-19 Impact:

The demand for subscription boxes surged during COVID-19 pandemic. The pandemic changed the habits of individuals, including shopping, working, eating, and socializing. These changes not only accelerated the shift towards e-commerce and online shopping but also encouraged many new consumers towards subscription products. The growing demand for personalized and curated products during the pandemic has also resulted in rising sales of subscription boxes worldwide. On the other hand, the coronavirus pandemic led to a logistical and transportation slowdown. Restrictions on on-road movement impacted the subscription box supply negatively in the short term. However, to keep pace with the demand, the companies strengthened their transportation services, resulting in a medium impact on the subscription boxes industry.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global subscription box market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on type, gender, and application.

Breakup by Type:

• Replenishment Subscription
• Curation Subscription
• Access Subscription
   

The report has provided a detailed breakup and analysis of the subscription box market based on the type. This includes replenishment subscription, curation subscription, and access subscription. According to the report, replenishment subscription represented the largest segment as it allows customers to automate the purchase of everyday goods along with various discounts on a recurring basis. In addition, it helps the consumers to restock products regularly without going out to the store.

Breakup by Gender:

• Male
• Female
   

A detailed breakup and analysis of the subscription box market based on the gender has also been provided in the report. This includes male and female. According to the report, female accounted for the largest market share due to the rising demand for online shopping and the changing shopping preferences as per convenience. In addition, the growing awareness among females about the availability of subscription boxes for apparel, beauty, and hosiery is offering a favorable market outlook.

Breakup by Application:

• Clothing and Fashion
• Beauty
• Food and Beverages
• Pet Food
• Baby Products
• Health and Fitness
• Others
   

A detailed breakup and analysis of the subscription box market based on the application has also been provided in the report. This includes clothing and fashion, beauty, food and beverages, pet food, baby products, health and fitness, and others. According to the report, food and beverages accounted for the largest market share due to the convenience of food-to-table delivery. In addition, these boxes benefit from a definite need for recurring shipment and a very large, existing market. Apart from this, the growing health consciousness among the masses and focus on consuming fixed quantity of food providing them nutrients in appropriate measure is positively influencing the respective segment.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include 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 the Middle East and Africa. According to the report, North America (the United States and Canada) was the largest market for subscription box. Some of the factors driving the North America subscription box market included the rising number of tech-savvy population and the rapid industrialization. In addition, the rising cross border e-commerce trade, along with the burgeoning e-commerce industry, is propelling the growth of the market.

Competitive Landscape:

The report has also provided a comprehensive subscription box market analysis of the competitive landscape in the market. Some of the subscription box companies covered in the report include:

• Amazon Subscribe & Save (Amazon.com, Inc.): It is one of the world’s largest e-commerce and technology companies. It relies on advanced technologies to improve its operations and provide new products and services, such as cloud computing, digital streaming, and artificial intelligence (AI).
• BarkBox: It is a subscription-based company that provides monthly boxes of dog toys, treats, and other goodies to dog owners. It offers a range of subscription options, including a monthly box, a six-month subscription, and a yearly subscription.
• Birchbox: It is a New York-based online retailer that specializes in beauty and grooming products. The company offers monthly subscription boxes that contain a curated selection of sample-sized beauty and grooming products.
• Blue Apron Holdings Inc.: It is a meal kit delivery company that aids in delivering ingredients and recipes to customers' doors. This company offers weekly meal kits that comprise pre-portioned ingredients and products for customers to prepare at home.
• Dollar Shave Club Inc. (Unilever plc): It is a grooming brand for men that offers products through a subscription-based model. It also provides affordable and high-quality grooming products where customers can choose from several subscription plans that can vary in price.
• FabFitFun: It is a popular subscription box company that provides its subscribers with a personalized selection of beauty, fitness, wellness, and lifestyle products every season. The contents of each box are customized based on the preferences of subscribers and include anything from skincare and makeup to home decor and fitness equipment.
• Glossybox (The Hut.com Ltd.): It is a subscription-based beauty box company that aims to provide subscribers with a monthly selection of luxury beauty products from well-known and emerging brands. The subscription box comprises beauty products, including skincare, makeup, haircare, and fragrance products.
• Grove Collaborative Inc.: It is an online retailer of natural and eco-friendly household and personal care products. This company operates on a subscription-based model, where customers can choose from a selection of products and have them delivered on a regular basis.
• Harry's Inc.: It is a company where customers receive new shaving cream, razor blades, and other grooming products by mail. It provides high-quality materials and incorporates an ergonomic design to ensure a comfortable and effective shaving experience.
• HelloFresh SE: It is a multinational meal kit delivery company that provides a range of ready-to-eat (RTE) meals, snacks, and sides, as well as wine and meal kit gift cards. It offers pre-measured ingredients and recipes to customers on a weekly basis that helps them prepare healthy and delicious meals at home without the hassle of grocery shopping or meal planning.
• Loot Crate: It is a fan-based commerce and community platform headquartered in Los Angeles. This company sends monthly themed geek, gaming, and pop-culture collectibles and accessories to subscribers.
• Personalized Beauty Discovery Inc.: It is a beauty technology company that provides personalized beauty products and services to consumers. It offers a range of personalized beauty products, including skincare, haircare, and makeup, that are tailored to the unique needs and preferences of each customer.
• TechStyle Fashion Group: It is a fashion and lifestyle company that operates several popular e-commerce brands, such as Fabletics, Savage X Fenty, ShoeDazzle, and FabKids. It provides a subscription service that delivers a monthly selection of workout clothes to its members.

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the subscription box market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global subscription box market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the subscription box industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.