Due to social limitations in the last year thanks to Covid-19, one particular online area that is booming is online subscription businesses. This is very simply where a product is sent to your door every week, fortnight or month - and the most popular ones include coffee, chocolate, cocktails and vegetable boxes.
In fact, a recent poll by KAM Media showed that now 50% of adults in the UK are familiar with do-it-yourself kits that are delivered to your home and made up from scratch, usually following the set of ingredients or recipes.
Coronavirus has hugely shifted how we shop, as consumers were told to stay in their homes as much as possible. This has meant an increased demand in online shopping as people seek out their favourite products and services - and have disposable income for not going out to restaurants or on holidays.
The Growth of Subscription Businesses
Data from Zuora shows that 22.5% of companies have seen a rise in their subscriptions. In the UK, an average household spends roughly £46 on subscriptions per month and an annual figure of £552.
Restaurant or bar operators have turned their attention from serving guests in-house to creating branded kits and packs and delivering these on a daily, weekly or monthly basis to customers. This has been perfect for people stuck at home still looking to get quality coffee or restaurant-quality meals, especially luxury goods like steak.
While many subscription services were thriving before, such as meal kits, flower deliveries and fresh vegetable boxes, the pandemic has presented a niche for many entrepreneurs to enter the market. Now consumers can pretty much order any type of product with everything from makeup to wine to items for their pets. The barriers to entry are somewhat low, using the likes of Shopify and Instagram to set up and sell their products.
The branding is often bright and quirky, the boxes are large and colourful and the products are sustainable, organic and fresh - and this has become most popular.
Food and Drink Are Most Popular
Unsurprisingly, food and drink subscription boxes are those in the highest demand. Clever meal boxes, snacks and recipe kits have become increasingly popular. Working from home also gave rise to an increase in coffee subscriptions as people were forced to give up their daily Starbucks on route to work, but still waiting quality.
For many, it has been hard to separate the work-life balance - spending longer hours at home, remote working and being away from gyms and other social places. Subscriptions such as wine delivery, wellness products and books have increased, showing how people have tried to add some well needed wind-down time to their routines.
Subscriptions are also making nice gifts. With the average £30 spent on a loved one for special occasions, it is now possible to purchase 3 months of coffee or gin subscriptions - and the individual has the pleasure of receiving something new and fresh each month.