The Subscription Trade Association, SUBTA, recently released its analysis of the last 12 months in the subscription industry. The report revealed significant growth across six key segments. In an effort to represent the full scope of the subscription space, the data considers all models – from boxes to streaming, to online news media, and more.
- By the end of 2021, the subscription box market was expected to reach $15 billion in sales.
- The average American household spends $47 per month on streaming services.
- The membership segment is more competitive than you might think.
- Auto-replenishment subscriptions are becoming increasingly popular.
- One in every five U.S. consumers subscribes to at least one news source online.
Where to Build Your Sub-Box – Top Platforms from 2021
Subscription eCommerce made great strides in 2021, but continuity marketing – the great grandfather that the modern subscription model never met – has been around for ages. In fact, Fosdick has been providing continuity fulfillment since the 1970s working with companies like International Silver, Playtex, and Danbury Mint. These experiences have given Fosdick a certain advantage, and these days, we are extremely well-poised to meet the unique needs of modern subscription box brands.
In 2022, when tech-enabled merchants and digitally native companies aim to create a repeat customer base, they ultimately land on some version of modern eCommerce subscription.
Statistics generally show that consumers are generally more loyal once they’ve become subscribers of their favorite brand’s new monthly box, curation, kit, or service. For retailers, a subscription offering opens the door to infinite marketing potential that may have not previously been accessible.
This is partly due to the way in which a company’s subscriber base provides all kinds of natural consumer data, and it becomes pretty seamless to forecast various financial markers. Just paying attention to subscribers month over month drives important decisions about products and services, pricing, and other factors that affect the scalability of a particular brand’s subscription model.
The nitty-gritty details
So, you’re a DTC marketer who understands exactly what a subscription model might look like for their brand and the potential positive impact. Your next question will likely be about eCommerce subscription platforms, and which, among the droves the software providers, is the finest.
Don’t Miss Out on these Subs in 2022
The verdict is in, on subscription boxes – the model is no gimmick and these brands are here to stay.
According to Fast Company, as of October of 2018, there were 3,500 subscription box providers, up 40% from the prior year. That kind of growth is nothing to sneeze at, but it pails in comparison to numbers from the last few years.
As with direct-to-consumer eCommerce, and online shopping more generally, when the pandemic hit, subscription models exploded.
Food and beverage brands and meal kits are a great example: forced to stay at home, companies like Blue Apron, HelloFresh offered the world a respite from the weekday dinner rotation that seemed on an endless loop.
Two years later, the subscription boxes like those mentioned above generate roughly $15 billion in revenue.
Consumers who are interested in learning more about subscription box businesses or considering adding another program to their current lineup may find themselves easily overwhelmed. Choosing a service can be difficult, if only because there are so many to choose from, each with its own distinct take on a particular product category or service.
Chris George, the co-founder of the Membership Trade Association (SUBTA), suggests searching for boxes that provide you “three to four times the value of what you pay for the subscription, together with the fantastic sensation of surprise and excitement” when picking a new subscription box.
Here are the boxes that did all that and more in 2021:
- Fab Fit Fun
- Birch Box
- The Crafter’s Box
- Breo Box
- Hello Fresh
- Bark Box
- Every Plate
- Scent Bird
- Blue Land
Check out a full review of each of these ten sub-box brands here!