What: Coresight Research has provided an analysis of the US e-commerce subscription market providing insight into key players, market growth predictions and important opportunities for strengthening business performance.

Why it is important: The overall market is expected to reach 21.8 billion dollars by 2026, having grown 10% in 2022 to 14.6 billion dollars according to Coresight Research.

Loyalty remains an important aspect of this market which Coresight has connected to personalization, proper investment in supply chain and merchandising, as well as expanded and exclusive product offers. Offering unique customer experiences will also be a significant differentiator to secure loyalty. This can be seen through flexibility that can provide non-subscription offers which can secure new customers and offer alternatives or add-ons.

Meal-kit subscription boxes are expected to capture 60% of the market in 2022 with the top meal-kit model service providers including HelloFresh, BarkBox, Home Chef and Blue Apron. The beauty and personal care subscription market is predicted to have a lower level of growth this year following the 10% year-over-year growth between 2020 and 2021 (1.5 billion dollars). By 2026, the beauty subscription market is expected to benefit from the premiumization of beauty products and innovation in personalization with a potential growth rate of 8% in 2025. Key players for beauty and care boxes include Birchbox, GlossyBox and Ipsy. The fashion subscription box market reached 3.1 billion dollars in 2021 with year-over-year growth of 20% is predicted to slow to 2% across 2022 and is likely to remain at a slow growth rate with a predicted market value of 4 billion in 2026. Key players for fashion subscription services include Dia & Co, Nadine West, KidBox and Stitch Fix.

The replenishment-based subscription market is more concentrated with the top providers being Amazon Subscribe & Save, Chewy and Sephora. Predictions expect Amazon to retain its leadership position over the next few years.

Respondents who planned to use subscription services in the next 3-6 months stated that savings (60%), convenience (58%), and high-quality products (54%) were the top three reasons that drive them to use product-subscription services.

The 15-billion-dollar market of subscription box services