Subscription E-commerce Global Market Report 2024

The subscription e-commerce market size has grown exponentially in recent years. It will grow from $199.41 billion in 2023 to $330.58 billion in 2024 at a compound annual growth rate (CAGR) of 65.8%. The growth observed in the historic period can be attributed to various factors including the appeal of convenience and time-saving offered by subscription services, the emphasis on personalization and curated offerings, opportunities for discovery and exploration through subscription models, the ability to foster loyalty and retention among customers, the availability of diverse product categories within subscription plans, and the flexibility offered by subscription models through adaptable plans. These elements collectively contributed to the growth and evolution observed within the subscription-based business models during that period.

The subscription e-commerce market size is expected to see exponential growth in the next few years. It will grow to $2227.63 billion in 2028 at a compound annual growth rate (CAGR) of 61.1%. The anticipated growth in the forecast period is likely to be driven by an emphasis on improving customer experience, a focus on sustainability, increased accessibility through mobile apps, efforts to optimize supply chains, and the introduction of innovative product offerings.

The rapid expansion of online shopping is poised to fuel the subscription e-commerce market. Consumers' preference for online shopping due to convenience, cost-efficiency, extensive product availability, and reduced reliance on physical stores drives this trend. Noteworthy is the US Census Bureau's estimation of a 3.3% increase in retail e-commerce sales, totaling $222.5 billion in the second quarter of 2021. This surge in online shopping is expected to underpin the demand for subscription e-commerce services.

The subscription e-commerce market is poised for expansion due to the substantial increase in consumer spending. With consumers favoring the convenience and personalized experience of subscription-based models, there's a notable shift in spending patterns. Data from the Bureau of Economic Analysis demonstrates an increase in American disposable income from $18,247.8 billion in Q1 2022 to $19,880.2 billion in Q1 2023, indicating rising consumer spending power. This trend indicates substantial potential for growth in the subscription e-commerce market.

In the subscription e-commerce sector, strategic collaborations among platforms are a notable trend. Collaborations among e-commerce entities enable market expansion and foster competitiveness. An illustrative instance involves Adobe and FedEx, which joined forces in April 2021 to integrate ShopRunner, an e-commerce platform owned by FedEx, with Adobe Commerce. This strategic collaboration aimed to drive innovation in e-commerce.

Major players are prioritizing technological advancements such as AI-powered subscription tiers to offer a more personalized learning experience. These tiers provide access to AI resources through tiered payment plans. For instance, in March 2023, Duolingo introduced Duolingo Max, leveraging OpenAI's GPT-4 technology. This subscription tier integrates AI features such as Explain My Answer and Roleplay, enhancing the language learning experience for users.

In July 2021, YouTube, a prominent social media platform, acquired Simsim to bolster support for local small businesses. This undisclosed acquisition aims to promote commerce by enabling users to create video reviews of products from small businesses, facilitating direct purchases via the Simsim app. The goal is to empower consumers with information and drive growth for smaller enterprises.

Major companies operating in the subscription e-commerce market report are Amazon.com Inc., Apple Inc., Costco Wholesale Corporation, The Home Depot Inc., The Kroger Co., Target Corporation, Unilever plc (Dollar Shave Club), Best Buy Co. Inc., Porsche AG, Netflix Inc., Salesforce Commerce Cloud Inc., Adobe Commerce Inc., PetSmart Inc., HelloFresh SE, Wix.com Ltd., Subbly LLC, Barkbox Inc., Blue Apron Holdings Inc., Drupal Association, Birchbox Inc., Ipsy Inc., Recurly Inc., WooCommerce Inc., Sephora Play Inc., Salsita Software, Saleor Inc., Rockets of Awesome Inc., Joomla! Project, Bitsbox Inc., Shop BBC, BigCommerce Pty. Ltd., Chewy Inc., CommerceTools AG, eBay Inc., Edgewell Personal Care (Harry's Inc.), Etsy Inc., Flintobox Inc., IKEA Systems B.V., Justfab Inc., Magento Inc., Nature Delivered Inc., OroCommerce Inc., Sellfy Inc., The Walt Disney Company, Walgreens Boots Alliance Inc., Walmart Inc.

North America was the largest region in the subscription e-commerce market in 2023. Asia-Pacific was the fastest-growing region in the market share. The regions covered in the subscription e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the subscription e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Subscription e-commerce encompasses various types such as service subscriptions, subscription boxes, digital content subscriptions, among others. Service subscription e-commerce operates as a service-based model, allowing users to subscribe and pay for regularly needed services exclusively. Payment modes for subscription e-commerce include both online and offline methods, catering to women, men, and children. Industries utilizing this model span beauty and personal care, food and beverage, clothing and fashion, entertainment, health and fitness, and more.

The subscription e-commerce market research report is one of a series of new reports that provides subscription e-commerce statistics, including subscription e-commerce industry global market size, regional shares, competitors with subscription e-commerce market share, detailed subscription e-commerce market segments, market trends, and opportunities, and any further data you may need to thrive in the subscription e-commerce industry. This subscription e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The subscription e-commerce market includes revenues earned by entities by replenishment/ consumables subscription model, curation subscription model, bargain/ access subscription model, fixed subscription model, unlimited subscription model, pay as you go subscription model and premium member subscription model. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.