DUBLIN, Nov. 27, 2023 /PRNewswire/ — The “Global Subscription E-commerce Market: Insights and Forecast (2023-2028)” report has been added to ResearchAndMarkets.com’s offering.
Subscription growth among millennials, rapid urbanization, rising popularity of online streaming services, increasing internet penetration, and growing use of mobile devices are expected to drive overall market growth during the forecasted period. The global subscription e-commerce market is likely to reach US$165.64 billion in 2023, progressing at a CAGR of 70.97% over the projected period.
- By Application Type: In terms of application type, the report offers insights of the global subscription e-commerce market into four segments: beauty and personal care, food and beverages, entertainment and others. Entertainment subscription e-commerce market is the fastest growing segment of global subscription e-commerce market owing to rising penetration of internet, wide variety of exclusive content available in different languages, increased convenience of accessing these services from any device and cost effectiveness in terms of lower price charged as compared to TV cables.
- By End User: On the basis of end user, the report provides the bifurcation of the market into three segments: women, men and kids. Women subscription e-commerce market is both the largest and fastest growing segment of global subscription e-commerce market owing to rising number of working women, increasing presence of startups which are offering numerous feminine products and cosmetics, increasing penetration of social media trends and expanding e-commerce sector.
- By Mode of Payment: The report further provides the bifurcation of the market into two segments according to the mode of payment: online payment and cash on delivery. Online payment subscription e-commerce market is both the largest and fastest growing segment of global subscription e-commerce market owing to digitalization, increasing trend of online shopping, many digital subscription services complying to online payments, increasing government initiatives to promote cashless economy and rising scope of payment wallets among younger generation.
The North American subscription e-commerce market holds the largest share in global subscription e-commerce market owing to expanding e-commerce industry, growing influence of social media platforms & celebrity endorsements on consumer lifestyles, rapid digitalization of businesses and rising adoption of cloud solutions contributing significantly to the expansion of digital commerce in the region. Whereas, Asia Pacific subscription e-commerce market is the fastest growing region of global subscription e-commerce market owing to large consumer base, rapid urbanization, increasing penetration of internet, massive sales volumes and thriving social and mobile commerce ecosystem along with continuous launch of innovative subscription boxes by leading brands. China holds the largest share of Asia Pacific subscription e-commerce market.
Top Impacting Factors
Driver: Growing Use of Subscriptions among Millennials
Millennials are driving the growth of the subscription e-commerce industry. Due to busy lifestyle and lack of time for purchasing goods from physical stores or ordering the same products online every week or every month, millennials prefer to subscribe to a product or service that they need on a regular basis. Millennials are generally more loyal to the specific brands of products that they prefer to use and are thus more likely to subscribe to a product or service for a long term. Also, the rapidly growing purchasing power of the millennials is anticipated to support the growth of the market. The income of millennials is expected to be higher than those of other generations group, that is, the baby boomers, generation X and the post millennials. As the income of the millennial population would grow, the number of subscriptions made by them for various products as well as online streaming media would also grow rapidly, thus providing a boost to the growth of global subscription e-commerce market.
Challenge: E-commerce Fraud
All the subscriptions made by the consumers require them to pay for those services online using their debit or credit cards. Online payment for subscriptions carries a risk for the consumers as well as the players in the subscription e-commerce market. While signing up for subscriptions, many people make payments using their debit or credit cards and are required to provide certain details regarding the same. Such details can be stolen and misused by third party users. Hackers can gain access to the data which they can use themselves or sell it to cyber thieves who use it for making fraudulent transactions. Fraudsters might also make use of fake debit or credit cards to pay the company. In such a case, the service provider would be left without any payment for the transaction. Thus, the rising incidence of e-commerce fraud can act as a major obstacle in the growth of the subscription e-commerce market.
Trend: Increasing Integration of Artificial Intelligence (AI)
Artificial intelligence (AI) helps in bringing the personalization aspect in e-commerce platforms such as providing predictive recommendations based upon the customers’ search and purchase history. Recommendation engines are the most widely used applications of AI in the online media streaming industry. AI is extremely helpful for platforms which run on a subscription-based model as it helps in making recommendations and providing products and services to the users based on their preferences. As a result, many companies are refining their subscription models with the help of AI to offer products that appeal directly to the consumers’ interests. Thus, the growth of artificial intelligence would enable the players in the market to know their customers’ interests and preferences and thus provide a more personalized experience to their customers, boosting the growth of global subscription e-commerce market in the upcoming years.
Analysis of Key Players
The market for subscription e-commerce has been moderately fragmented due to the presence of large number of e-commerce platforms that operate in e-commerce subscription market. The key players of subscription e-commerce market covered in the report include:
- The Walt Disney Company
- Peloton Interactive
- Blue Apron Holdings
- Beauty For All Industries
- Femtec Health
- Stitch Fix
- Loot Crate
For more information about this report visit https://www.researchandmarkets.com/r/w5sz45
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