More than 80% of Brits join the subscription economy

The rise of “subscription Britain” has been confirmed by a new analysis that shows 82% of UK households now receive subscription box services, a significant rise from 65% in the previous year.

The figures, revealed by mail and parcels to e-fulfilment business Whistl, estimate the market to now be worth £395m annually, with the sector forecast to surpass £1.8bn by 2025 due to an predicted annual growth rate of 23%.

The average monthly spend of households on subscription boxes has risen to £52, driven by higher value products and multiple subscriptions. Over the past four years, the length of time customers are using the service has also risen, from 5.6 to 9 months.

Whistl has found that the most important subscription boxes in 2021 include food (52%), shaving products (24%), clothing (22%), perfume and cosmetics (18%) and pet products (14%).

The company has also established the consumer motivations for signing up include exclusive content (57%), time saving (55%), good value (54%), convenience (40%) and tailored products (52%).

Companies across all industries are making subscriptions a key part of their business strategy with 67% of UK retailers planning to launch a new subscription service.

Whistl director of marketing communications Melanie Darvall said: “Advancements in technology, exposure to social media and, in more recent years, the pandemic and lockdowns have together fuelled the massive growth in the range of subscription services, resulting in a surge of boxes landing on our doorsteps.”