The subscription box market in the UK is predicted to reach a staggering £1.8 billion by 2025, according to a new report from Royal Mail. This growth comes as no surprise, considering the market’s doubling in size between 2017 and 2020, with a spend of nearly £1.4 billion and 88 million separate deliveries.
However, it is important to note that interest in subscription boxes varies across different regions of the country. The report reveals that Londoners have the highest engagement, with 45% of them subscribed to at least one box. Following closely behind are the West Midlands, with 37% of shoppers subscribed, and Northern Ireland, with 36% of shoppers subscribed. Interestingly, the Northeast sees subscribers showing more interest in multiple boxes, averaging at 5.2 per person, compared to London’s average of five boxes per person.
What is even more promising for the subscription box industry is the high level of loyalty among its customers. A remarkable 76% of subscription box shoppers plan to either continue or increase their subscriptions in the future. This result suggests a high level of satisfaction and loyalty, as only 24% of shoppers said they intended to cancel their subscriptions anytime soon.
To cater to customer demands and make subscription boxes even more popular, retailers are introducing greater flexibility. One such concept is the introduction of ‘holidays’ for subscribers who either don’t need more of a particular item or will be away. This gives subscribers more control over their deliveries and prevents them from receiving unnecessary items.
While subscription boxes have long been popular in the beauty sector, the fashion sector is also catching on to this trend. Companies like Stitch Fix, Moss Box (by Moss Bros), Lookiero, and Sock Butler are entering the market, offering curated fashion items to subscribers. This aligns with the rising popularity of fashion rental services, allowing customers to continually refresh their wardrobes without purchasing new clothes.
Another noteworthy aspect highlighted in the Royal Mail report is the increasing sustainability of subscription box services. UK shoppers are becoming more environmentally conscious and actively embracing sustainable options. Subscription boxes are seen as a more sustainable alternative to traditional shopping, often prioritizing ethical sourcing, packaging, and recycling practices.
The continued expansion of the subscription box market in the UK presents a lucrative opportunity for both retailers and consumers. With increasing flexibility, a wide range of product categories, and a focus on sustainability, it’s no wonder that subscription boxes are gaining popularity and loyalty among British shoppers.
Useful links:
1. “The Best Subscription Boxes in the UK” – The Guardian
2. “Why Subscription Boxes Are a Sustainable Choice for Consumers” – Vox
