UK’s Subscription Box Market Forecast to Top £1B in 2020
The subscription box market of the United Kingdom is growing fast and expected to hit the £1 billion mark by 2020, according to a new report from Royal Mail.
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Based on the survey which it conducted among 2,000 shoppers and 53 directors and senior managers, 27.4% of UK consumers are currently signed up to a subscription box service; 52% of adults aged 25 to 34 years old are signed up to at least one.
Although it’s not as mature as the US yet, UK’s subscription box industry, which was worth £583 million in 2017, is expected to grow by 72% in the next four years. The courier company’s research reveals that the number of deliveries will grow from 40.1 million to an estimated 65.3 million each year.
“Spurred on by the growth of mobile devices, subscription commerce has moved on from a past focus on magazines and newspapers to embrace everything from recipe food kits, to shaving gear and self-care.” Royal Mail Spokesperson
Which Boxes Are People Subscribing To?
Royal Mail says there’s a big growth potential in male grooming and beauty subscriptions, with the former expected to gain two million subscribers by 2022.
And considering that 30.6% of men have signed up to subscription box services, whereas only 24.3% of women did, you might want to focus on grooming products for men.
But that’s not to say you’re not going to flourish with beauty subscriptions. In fact, Royal Mail’s report shows that revenue from health and beauty subscription services will increase by 230% between 2017 and 2022.
Why Are Businesses Focusing On Subscription Boxes?
While there surely are fleeting business trends, subscription boxes are definitely not among them as these help companies understand what satisfies their customers’ desires.
51.7% of the businesses interviewed by Royal Mail said that the subscription box model is going to be their major focus in the future, while about 72% of them intend to add new products to their current offerings in the next 12 months.
Aside from driving brand loyalty, a subscription box service, according to many entrepreneurs, makes it easier for them to control the distribution, marketing, and promotion aspects of their business.
What can you say about UK’s subscription box market? Let us know in the comments below or over in our Facebook Group.
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Dave is a Co-Founder of eSeller365. For over 10 years he has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant, he built an education platform called UnderstandingE that showed the world how to utilize Magento as the “Third Generation of Multi-Channel software”.
Dave has also created a YouTube channel dedicated to entrepreneurship and eCommerce as well as a podcast dedicated to mental health awareness. When Dave isn’t working his main interests include learning and playing Chess, researching the Crypto and NFT space, and trying to find the nearest beach.