If you shave with a razor that arrived yesterday, brew coffee from beans that came two days ago and settle in with this month’s new book, you’re among the majority of Americans engaged in the booming subscription economy.
According to a recent Harris Poll survey, a majority of Americans (60%) subscribe to at least one product subscription service—not counting streaming companies such as Netflix. Subscription purchases hit $650 billion in 2020 and are forecast to hit $1.5 trillion in 2025.
Subscriptions make good sense for both consumers and businesses. Companies get a reliable revenue stream while customers enjoy convenience and, often, savings and flexibility. While 3 in 5 Americans subscribe to at least one subscription service, a plurality among that group pays for two to three.
What are we buying? Entertainment (see Loot Crate) was the top specific category in our survey, with 1 in 4 Americans saying they subscribe. Clothing and accessories (such as Stitch Fix) followed closely at 24%, as did health and beauty products (including Dollar Shave Club). Petcare (BarkBox, for example) and coffee (such as Trade Coffee) rounded out the top five at 23%. We asked about 11 popular types of subscription but “other” was generally the most popular category—potentially a nod to just how vast the array of options is.