Subscription box boom

The UK subscription box market* is forecast to grow by 72% by 2022, according to our latest report which has received widespread coverage across the media.

The market is forecast to be valued at £1 billion by 2022, 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.

Alongside the report, we have launched our very own podcast, with an initial series that will take a closer look at the burgeoning subscription box market.

The first episode of the series features contributions from Cornerstone, GlobalData and Zuora. Take a listen here:

Over a quarter (27.4%) of UK consumers are currently signed up to a subscription box service, either for themselves or on behalf of somebody else. Male grooming and beauty subscription services offer the biggest growth opportunities in the market. Our report suggests that male grooming subscriptions could attract almost two million members by 2022, making them the fastest growing subscription category.

‘Niche’ products also represent a strong growth opportunity, especially within the food and drink sector. Six in ten (58.6%) businesses intend to invest in new or existing subscription services in the next year. Almost three quarters (72.4%) intend to add new products to their service in the next 12 months. In terms of the likely longevity of this type of business model, over half (51.7%) of the businesses we surveyed agree that subscriptions are set to be a major focus for their company in the future.

Of course, a boom in subscription boxes will also mean an increase in the number of deliveries. The vast majority of subscription items are letterbox-able and so are ideally suited for foot delivery by Royal Mail. With the UK's biggest by far ‘Feet on the Street’ network covering 90,000 postmen and women, we are playing a key role in keeping carbon emissions low.

This is the first instalment of our subscription box series, with a full report set to launch later in the year. Our research has been covered extensively across the media with articles published in The Times, Telegraph, Independent, Daily Mail, and Metro among others.

*A subscription box is a recurring, physical delivery of products packaged as an experience and designed to offer additional value on top of the actual retail products contained in the box, such as through a surprise, a saving on what is on offer in the shops, or by giving the user a chance to experiment with a tailored selection of products.