A subscription box is a set of niche products packaged in small boxes for regular targeted delivery with the aim of creating an experience and providing added value on top of the actual product. The subscription box has been physically delivered to the customer, and a digital subscription cannot be classified as a subscription box. In addition, at least one or more items in the box must be mysterious or unknown to the customer prior to delivery.
Subscriptions can be divided into three types: supplemental, managed, and accessible. With a supplemental subscription, consumers can automatically purchase daily necessities such as hair dryers and toilet paper; Manage subscriptions to deliver new products or highly personalized experiences, such as clothing, beauty, and food; Access to subscriptions for discounted rates or member-only privileges. Among them, the management subscription box currently occupies the largest market. In 2019, the market value of managed subscription boxes in the United States accounted for 55.09%, the market share of supplementary subscription boxes was 32.39%, and the market share of access subscription boxes was relatively low, only 12.52%. In terms of its application field, the beauty products field occupies the largest share with 33.84%, followed by the food & beverage field with 31.80%, and the clothing field ranks third with a share of 20.59%.
The southern region is currently the largest revenue market, while the western region has the lowest market share
In 2019, the subscription box market in the region was valued at $2624.92 million, accounting for 29.94% of the entire U.S. market, followed by the Northeast region with a market value of $2503.48 million and a market share of 28.56%, and the Midwest region accounting for 21.93% of the market value of $1922.69 million The market in the western region accounted for the lowest proportion, at 19.57%.
The United States is the most economically powerful country in the world, with the world's largest GDP and per capita GDP ranking among the highest in the world. The prevalence of consumerism has also made the United States one of the largest consumer markets in the world. Consumerism is a social and economic order that encourages people to acquire more and more goods and services. As much of the United States has shifted from traditional rural households to cities, much of the middle class's sense of consumption has come close to consumerism since the 18th century. They argue that the more you consume, the better off the country's economy is, and that more goods are produced means more jobs and more spending, which creates demand for more goods. This consumer awareness actually enhances the desire to consume and the ability to accept new things in the United States, giving the industry the opportunity to expand the market.
The rapid development of the Internet and e-commerce has provided an inexhaustible impetus to the subscription box industry in the United States
According to our research data, the market value of the subscription box industry in the United States was $2514.00 million in 2015, and has increased year by year since then, and has increased to $8766.73 million in 2019, with a compound growth rate of 36.65% from 2015 to 2019. On this basis, we carried out a series of function operations and derived the data for the next few years with scientific models. Finally, we predict that in the future, the U.S. subscription box market will continue to expand, and the market value will continue to rise rapidly during the forecast period, reaching $37,508.28 million by 2027.
The rise of the internet and e-commerce has enabled companies to build their own websites to comprehensively promote brand culture and introduce product features for potential customers to learn about in advance or review after the fact. Customer access will be limited by space and can be resolved quickly even in the event of traffic congestion. In addition, in the past, due to communication and transportation costs, the company's operations were often limited to fixed regions and could not effectively develop the national market. But in the age of the internet, the flow of information has never been so fast. Customers will spontaneously search for relevant information online and pay online. The Internet and e-commerce have shortened the distance between companies and customers, strengthened ties, improved transaction efficiency, and promoted the development of the industry.
In the United States, the status of women is among the highest in the world, and the number of people involved in the workforce is higher than in many developing countries. With the increasing frequency of women's participation in work, women have become more and more autonomous in consumption, and women have gradually become the main force in the consumer market. Beauty-related products such as cosmetics and skincare products have expanded rapidly in recent years, and the subscription box services associated with them have also benefited. In addition, food and beverages are necessities in people's lives. The United States is a big beverage country, and young people may drink several cans of Coca-Cola a day, which has become a way of life for most Americans. Thus, these two applications are expected to continue to provide profitable opportunities for the industry during the forecast period.
However, the subscription box provides a unique experience to customers through value-added, but not everyone agrees with this model. Conversely, some consumers believe that subscription boxes consume more energy when transporting goods over long distances than shopping in stores, which leads to wasted product and shipping costs. In addition, the content in the subscription box does not always appeal to customers, and customers often lack proper punishment for what they don't like or don't need, resulting in wasted resources and prohibitive disposal costs. As a result, there has been serious criticism of subscription boxes, which are not conducive to the development of a circular economy. The United States is a very environmentally conscious country. If a product carries a label that is not conducive to environmental protection, the long-term development of the industry may be limited.