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State of the US Direct-to-Consumer Subscriptions 2022 — Industry Report

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The US DTC Subscriptions economy has grown 5-8x faster than traditional businesses in the last decade, outpacing growth rates seen in retail and S&P 500.

In this report, we unpack insights specific to the market, consumer, and technologies related to DTC subscriptions, estimate the TAM, and wrap up with forward-looking thoughts on the industry.


The Total Addressable Market (companies) of DTC subscriptions is about 4% of US eCommerce.

There are about 225 million active subscriptions in the US today, and women account for 60% of the subscriber base.

DTC subscriptions can be classified into three categories – Replenishment, Curation and Memberships. The curation segment is the largest, accounting for 55% of all active subscriptions.

Memberships is a fast-growing segment and its market share is almost as much as Box subscriptions.

Millennials and Gen-Zers together make up 42% of the US population and the largest subscriber cohort. They inherently value automated purchasing for several reasons such as convenience, selection and personalization.

Spending on subscriptions increased by 15% between 2018 and 2021, yet consumers underestimated their spending by 340%!

When compared to the B2C industry average of 7.05%, subscription boxes have some of the highest monthly churn rates at 10.5%. 90% of this is voluntary churn. Within subscription boxes itself, the curation segment has the highest levels of churn.


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Pipecandy takes complex sets of data, translate them into digestible and relevant POVs, and offer simple frameworks to help me think about our business challenges and opportunities. Their reports are a required reading for D2C & eCommerce executives.

Chip Overstreet
Spiceology

Chip Overstreet

CEO, Spiceology