Subscription services have risen in popularity over the years as they’re growing 3.7 times faster than companies in the S&P 500. In the U.S., there are more than 220 million subscriptions and 60 million subscribers with each person having about 3 subscriptions. There is also a lot of variety in subscription services available as well as categories they can be used for.
Subscription Services: By the Numbers
More than 27,000 direct-to-consumer subscription services are selling directly to consumers rather than a middleman, although there are some business-to-business subscription models being used as well. Curated services make up 55% of subscriptions, which includes media, boxes, and physical products. Replenishment, which includes groceries, office supplies, and toiletries, comprise 32% of subscriptions. Membership/access include membership perks and other freebies, but they account for only 13% of subscriptions.
The subscription model continues to grow due to its convenience, simplicity, and engagement for both consumers and business owners. About 40% of people consider subscription models cost-effective and use them because they are convenient as they are predictable for your time and budgets. Replenishment subscriptions can even help you get items when you need them the most and base your delivery on usage. Plus, with changing demographics, younger generations are more likely to subscribe to digital and physical subscription services.
With COVID-19 lockdowns, the struggles of receiving goods through normal channels have increased consumer interest in subscription-based services. Not to mention that some subscriptions are just plain fun as they are about function. In fact, more than 35% of consumers say getting a subscription is quite enjoyable.
Conclusion
A subscription model can be used for almost any product, from plants and print to even science. With the subscription industry experiencing great growth in practically every state, it’s quite clear that the subscription model will be here for a while.
