In the US the subscription e-commerce market has grown by more than 100% per cent a year over the past five years, with the largest retailers generating more than $2.6B in sales in the past 12 months. The most recent research from McKinsey reveals that almost one in six people in the States have signed up for one or more subscriptions to receive products on a recurring basis, frequently through monthly boxes.
And it is no different in the UK. Whilst the market is still in relative infancy compared to the USA, it is in a phase of rapid growth. According to Royal Mail the UK subscription box market is forecast to grow by 72 per cent by 2022 and be worth £1 billion compared to £583 million estimated spend in 2017. This will see the number of deliveries each year grow from 40.1 million to an estimated 65.3 million.
Author: Mike Fox