Subscription models have seen a significant uptick in users these days, especially in the U.S. In fact, the U.S. alone has over 225 million subscriptions and 61 million subscribers, which results in about 3.7 subscriptions per person. Subscription services are either categorized as direct-to-consumer (DTC) or business-to-business (B2B). Curated subscriptions make up 55%, replenishment accounts for 32%, and membership/access comprises 13% of services.
The subscription model comes with several benefits, including convenience, simplicity, and engagement for consumers, small business owners, and operators. Almost 15% of consumers and business owners choose subscription models because they are cost-effective while almost 23% of U.S. consumers say they use subscriptions because they are convenient. Usage based pricing also makes it easy for customers to put multiple subscription goods on autopilot.
Changing demographics are showing that younger generations are now more likely to subscribe to subscription services. COVID-19 lockdowns have boosted consumer interest in subscription-based services due to the inability to receive goods through normal channels. In some cases, subscriptions are just as much about fun as they are about function.
Many industries are getting into offering subscriptions for the first time. These include companies in the plants, science, and print industries such as The Sill, KiwiCo, and Lexmark OnePrint. With clear upward growth in practically every state, the subscription model is sure to stay for a long time.