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Physical Goods Subscriptions To Beat Digital Subscriptions by 2025

Subscription services for physical goods are forecast to gain further momentum, with Juniper Research expecting revenue to exceed digital subscriptions by 2025 – notching U$263 billion globally.

The figure follows around US$64 billion from physical goods subscriptions generated in 2020.

Growth is expected to capitalise on shifting consumer behavior following the coronavirus pandemic, alongside uptake from physical goods retailers seeking to boost recurring revenue with e-commerce.

The average consumer is tipped to register to at least two regular physical goods subscription boxes by the end of 2025, following a similar path to growth as digital subscriptions (e.g. Netflix and Spotify).

“The digital subscription market will be heavily disrupted by multiservice offerings,” adds research author, James Moar.

“Physical subscriptions are insulated against this to a degree, as many are produced directly by the goods providers”

“However, we expect some subscription marketplace providers to play an analogous role in the coming years.”

Juniper Research forecasts the physical goods subscription market to triple in the next five years.

 

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