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Subscription E-commerce Market Trend, Size, Share, Growth | market valuation of US$ 478.2 billion by 2025

10-08-2021 04:17 PM CET | IT, New Media & Software

Press release from: UnivDatos Market Insights (UMI)

Subscription E-commerce Market

Subscription E-commerce Market

Global Subscription E-commerce market is anticipated to reach the market valuation of US$ 478.2 billion by 2025 expanding at an astonishing CAGR of 68.0% in the course of forecasted period (2019-2025) from US$ 13.2 billion in 2018. Although the technology has evolved over the past few years, people have taken time to accept and adopt in their daily life. Lack of consumer acceptance towards technological advancements has remained a huge challenge for the ecommerce ecosystem. As online shopping has portrayed a rapid growth since last few years owing to its advantages in terms of round the clock facilities, reduced dependency on store visits , saving commuting costs, expanding market area and decreasing overhead expenses, subscription e-commerce services have also gained signifcsant traction in recent years. More than 85% of the world online population have ordered the products via online shopping portals.

With the growing regular demand of various product and services for daily use, subscription e-commerce business models have provided a sensible alternative to huge online shopper base, as it offer daily required products on recurring basis rather than every single time. Subscriptions are mainly offered weekly, monthly, annually as per consumer preference. It has been observed that regular customers are paid more attention leading to customer retention in contrast to customer acquisition. Companies offering subscription based services with an aim to convert one time customer to long term customers by giving them continuous access to service that they always need.

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Additionally, surging investments by numerous start-ups, increasing young and working population, proliferation of smartphones and accelerating disposable income has further driven the market potential. For instance, venture capitalists have been successful in raising around US$ 3 million in last 5 years. However, lack of awareness among the developing nations, high churn rates and unclear disclosure of billing practices, issues with return and refund policies constitute as some the bottle necks restraining the growth process of subscription e-commerce industry at global level. Under various applications of subscription e-commerce market, beauty and personal care is projected to enjoy the swiftest expansion throughout the reviewed period, accredited to changing lifestyles along with growing beauty needs of women population and rising number of working women. Emergence of Glamego and Fabbag start-ups in beauty and cosmetics and Nykka experimenting with different models in subscription has considerably intensified competitiveness across the respective domain. The application is projected to register tremendous CAGR of 67.2% over the forecast period.

In addition, under different end users of subscription e-commerce market, women subscribers occupied maximum share of 55.89% in 2018. Time efficiency by reducing regular trips to the store along with cost efficiency are two catalysts driving the growing adoption of subscription-based services among women subscribers. The segment is anticipated to bring in earnings of US$ 246.6 billion by 2025. Furthermore, under different payment modes of subscription e-commerce market, online payments held the major market share attributed to growing scope of payment wallets, digitization and cashless economy. The online segment is projected to register tremendous CAGR of 68.1% over the forecast period.

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Additionally, for better investigation and penetration of global subscription e-commerce market, the report bifurcates the respective market into different regions such as North America (US), Europe (United Kingdom, France, Nordics), Asia Pacific (India, China, Japan) and rest of world. In 2018, North America was the most lucrative and the largest market in terms of penetration of subscriptin ecommerce services, accounted for 68% share. Continued changing consumer habits has lured most of the Americans to check out number of subscription boxes of different kinds from popular categories ranging from food, beauty, fashion, grooming and pet products. In addition to this, with more than 70% of the subscription based companies based in the region and internet services booming endlessly, North America subscription e-commerce market has fostered remarkably. Furthermore, Europe and Asia Pacific, are also poised to register drastic growth in subscription e-commerce market throughout the forecast time accredited to surging demand for subscription based services ranging from beauty and personal care, healthcare to entertainment and food and beverage.

Some of the major companies profiled in Global subscription e-commerce Market includes 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, The Walt Disney Company Ltd. These players consistently aim to focus on various product launches as well as mergers and acquisitions to enhance the overall penetration of the subscription based service with an aim to cater to the young and working population, thereby strengthening their market position.

Global Subscription E-commerce Market

Market Insight, by Application

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

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Market Insights, by End Users

Women
Men
Kids
Market Insights, by Payment Mode

Online
Offline
Market Insight, by Region

North America Subscription E-commerce Market
United States
Rest of North America
Europe Subscription E-commerce Market
United Kingdom
France
Nordics (Denmark, Sweden, Norway, Finland)
Asia Pacific Subscription E-commerce Market
China
India
Japan
Rest of Asia-Pacific
Rest of World Subscription E-commerce Market
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
The Walt Disney Company Ltd.

Table OF Content:
1 MARKET INTRODUCTION

2 RESEARCH METHODOLOGY OR ASSUMPTION

3 INDUSTRY PERFORMANCE

4 EXECUTIVE SUMMARY

5 MARKET OVERVIEW

6 LEGAL & REGULATORY FRAMEWORK

7 SUBSCRIPTION BOX SHIPPING SERVICES

8 PRICING MODEL

9 USED CASE STUDY OF SUBSCRIPTION E-COMMERCE MARKET

10 DEMAND AND SUPPLY SIDE ANALYSIS

11 WORKING MODEL OF SUBSCRIPTION E-COMMERCE INDUSTRY

12 VALUE CHAIN ANALYSIS

13 MARKET INSIGHTS BY APPLICATION

14 MARKET INSIGHTS BY END USERS

15 MARKET INSIGHTS, BY PAYMENT MODE (2018-2025)

16 MARKET INSIGHTS BY REGION

17 COMPETITIVE SCENARIO

18 TOP COMPANY PROFILES

CONTACT US
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About UnivDatos Market Insights

UnivDatos Market Insights (UMI) is a passionate market research firm and a subsidiary of Universal Data Solutions. We believe in delivering insights through Market Intelligence Reports, Customized Business Research, and Primary Research. Our research studies are spread across topics across the world, we cover markets in over 100 countries using smart research techniques and agile methodologies. We offer in-depth studies, detailed analysis, and customized reports that help shape winning business strategies for our clients.

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