D2C Digest – Subscriptions issue

The subscription sector has been the shining star of ecommerce during the pandemic, delivering people’s favourite products right to their doorstep. In our last issue, we looked at how product subscriptions have boomed, with 26% of US and 21% of UK consumers aged 18-40 purchasing a new subscription during the pandemic.

But as people return to work and stores open again, has the outlook changed? Our latest data finds that the pandemic boom in demand is indeed starting to wear off, with fewer Americans paying for a product subscription than in 2020. 

Despite this downward trend, we see the love affair with the subscription sector is still firmly set for further success, because awareness and willingness to try is higher than ever. Millennials, especially, are out there actively looking at subscription propositions. New influences, competition and trends are driving growth across different consumer demographics.

To help you capitalise on this accelerating interest, we’ve polled consumers to discover the drivers for D2C success, including the types of subscriptions they’re considering, the qualities they’re looking for in a subscription brand and how much they’re prepared to pay. 

It’s true that demand for product subscriptions varies widely across different categories, with food and drink performing strongly in both the US and the UK. We’ve dug into the F&B sector further to find out exactly what consumers are hungry for on page 22.

You can also hear from one of today’s most exciting F&B subscription brands, Evive Nutrition, on how they’ve successfully launched their frozen smoothie cubes in the US. Other great D2C brands sharing their advice in this issue include Big Potato Games and Beavertown Brewery. Finally, don’t miss our weird and wonderful Subscriptionstein’s monster on page 47, where we visualize what the perfect subscription brand would look like!