Global Subscription E-Commerce Market is anticipated to foresee a significant growth, North America to witness the highest demand

Global Subscription E-commerce market was valued at US$ 13.2 billion in 2018 and is anticipated to reach US$ 478.2 billion by 2025 displaying explosive CAGR of 68.0% over the forecast period (2019-2025).  Subscriptions are an increasingly common way to buy products and services online. Although streaming-media subscriptions have been popular for some time – 46% of consumers are expected to be subscribed to an online streaming-media service, such as Netflix. The shoppers are now also turning to subscriptions for consumer goods. Most e-commerce subscribers have streaming-media subscriptions as well. E-commerce around the world is on the rise at a steady pace. It’s now accounting for more than three-quarters of overall retail growth. Facing fierce competition from direct-to-consumer retailers and next-day or even same-day delivery, subscription box providers aim to justify their place in online shoppers’ budgets and mailboxes.

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According to the survey, it has been estimated that in 2018, subscription-based company websites had about 776 million visitors globally. Subscription services make up a particular niche within the eCommerce world. The time belongs to the millennials and urbanites with the highest spending power and who are looking for convenient, personalized, time-saving, cost-efficient ways to consume and consume more. This has fueled the desires of all startups and their venture capitalists, consumer brand manufacturers & retailers, giant marketplaces, and who not. The subscription-based business model revolves around cultivating long-term customer relationships with a focus on lifetime value.

The subscription e-commerce is segmented into women, men, and kids based on end-user. Women are expected to dominate the market during the forecast period. For instance, women are increasingly more reliant on the internet to make purchases, while men are less likely to use Amazon to shop for the best price. Fewer men also subscribe to Amazon Prime, and fewer embrace mobile shopping.

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Based on the applications, the subscription e-commerce market is segmented into beauty and personal care, clothing and fashion, entertainment, health and fitness, food and beverage, and other applications. The beauty and personal care segment held the largest share in the subscription e-commerce market. A move toward country-branded beauty has also gained steam, and the “made in” stamp on cosmetics products allows brands to capitalize on their cultural associations. Globalization and renewed interest in travel and culture help drive this influential beauty trend. Women account for 90% of beauty and personal care value sales.

Based on payment mode, the market is classified into cash on delivery and online payments. Digitization of payments had a huge jump towards the goal to achieve an easy, convenient, fast, and secure payment method. Mobile commerce is set to become the primary payment method for online shopping.

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For a deep-dive analysis of the industry, the study also includes regional and country-level analysis. The report comprises regions including North America, Europe, Asia Pacific, and the rest of the world. North America dominated the market, majorly driven by the widespread adoption of subscription-based services in the United States, and numerous emerging players earmarking their footprint in the respective domain. Furthermore, changing lifestyles and busy work schedules around the globe also act as influencing factors fostering industry growth.

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Some of the major players operating in the subscription e-commerce market include Dollar Shave Club, Inc., Blue Apron Holding Inc, Personalized Beauty Discovery, Inc. (Ipsy), Hello Fresh, EdgeWell Personal Care (Harry’s), PetSmart, Inc., Netflix, Flintobox, Nature Delivered Ltd (Graze) and The Walt Disney Company. To enhance their product portfolio, these players have adopted various strategies to increase the penetration of subscription-based services in various domains among the young population owing to changing lifestyles and increasing disposable income.

Global Subscription E-commerce Market Segmentation

Market Insights, by Application

  • Beauty and Personal Care
  • Food and Beverage
  • Clothing and Fashion
  • Entertainment
  • Health and Fitness
  • Others

Market Insights, by End-User

  • Women
  • Men
  • Kids

Market Insights, by Payment Mode

  • Online
  • Offline

Market Insights, by Region

  • North America
    • United States
    • Rest of NA
  • Europe
    • France
    • Nordics
    • United Kingdom
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Rest of APAC
  • Rest of World

Top Company Profiles

  • Dollar Shave Club, Inc.
  • Blue Apron Holdings Inc.
  • Hello Fresh
  • Edgewell Personal Care (Harry’s)
  • Personalized Beauty Discovery Inc. (Ipsy)
  • PetSmart Inc
  • Netflix
  • Flintobox
  • Nature Delivered Ltd (Graze)
  • The Walt Disney Company Ltd.

UMI understands that you may have your own business need, hence we also provide fully customized solutions to clients. The global subscription e-commerce market can be customized to regional/country level or any other market segment.

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