The UK subscription box market, which sees regular deliveries of items from razors to bike goodies to customers, is set to nearly double in size by 2022, up from £583 million last year to £1 billion. The growth in the market will see the number of deliveries each year grow from 40.1 million to around 65.3 million, according to the report.
According to the research from Royal Mail, more than a quarter (27.4%) of UK consumers are already signed up to such a service. Retailers are also realising the opportunities with six in ten businesses saying that want to invest in new or existing subscription services in the next year. Meanwhile three-quarters of those that already offer subscription box deliveries intend to further extend their reach by adding new products to their service.
The UK Subscription Box Boom Report suggests that over half of 25-34-year-olds (52.1%) are signed up to at least one subscription service, compared to 11.7% of 55-64-year-olds and 7.6% of those over 65. Male grooming and beauty subscription services offer the biggest growth opportunities in the market with male grooming subscriptions forecast to attract almost two million members by 2022, making them the fastest growing subscription category.
Beauty subscription services are also set for growth with health and beauty revenue forecast to grow by 229.8% between 2017 and 2022, according to the report.
The report suggested a number of reasons for launching a subscription box service. They include greater brand loyalty for 44.8% of those surveyed and operating such a service. Other important reasons for starting a subscription box service include the desire for greater control, in particular control of distribution (34.5%), control of marketing and promotion (24.1%) and lower start-up costs (24.1%).
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