82% of UK households now receive subscription box services, a “significant rise” from 65% the previous year, according to a new report from Whistl.
The logistics company said that this growth has created a market that is now worth £395 million annually and is expected to surpass £1.8 billion by 2025, as it sees an expected annual growth rate of 23%.
The research reveals that the average monthly spend of households on subscription boxes has risen to £52, driven by higher value products and multiple subscriptions. In addition, consumers now use a service for 9 months on average, compared to 5.6 months four years ago.
Whistl has found that the most important subscription boxes in 2021 are: food (52%); shaving products (24%); clothing (22%); perfume and cosmetics (18%); and pets (14%).
The report also established that the key consumer motivations for signing up were: exclusive content (57%); time saving (55%); good value (54%); convenience (40%); and tailored products (52%).
As a result, companies across various industries are making subscriptions a key part of their business strategy, with 67% of UK retailers now planning to launch a new subscription service.
“Advancements in technology, exposure to social media and, in more recent years, the pandemic and lockdowns have together fuelled the massive growth in the range of subscription services resulting in a surge of boxes landing on our doorsteps,” Whistl director of marketing communications Melanie Darvall said.
“When looking to scale your subscription business, it’s critical to ensure you are working with the most appropriate partners to suit your business model and long term goals.”