The recently published RetailX Global Elite Top1000 report looks at the rise of subscription services and how this is helping to reshape both retail generally and ecommerce in particular.
The global subscription economy has reshaped how consumers access products and services. The digital subscription market has experienced remarkable growth, reaching a staggering $650bn even back in 2020. This has since evolved far beyond traditional magazine subscriptions or monthly box deliveries and currently spans various industries, from cloud services and ecommerce to groceries and public transport passes.
Subscriptions are becoming ubiquitous in daily life and represent a fundamental shift in consumer behaviour. In response, retailers are quickly adapting, with one in five now offering subscription programmes to meet the growing demand.
The allure of subscription services lies in their convenience, personalisation and, often, their cost-effectiveness. For consumers, the novelty and ease of regular deliveries or access to services can prove to be irresistible.
Yet there are significant geographical differences in what consumers want from such a service. Subscription adoption rates also vary significantly across countries, according to 2023 ConsumerX research. The USA leads, with 65% of consumers having paid subscriptions to online shopping premium services. Western European countries
including the Netherlands, UK, and Germany show consistent adoption rates of around 54%, while Sweden lags behind with just 26%, highlighting the maturity of the subscription market in certain regions and the huge potential for growth in others. While the subscriptions that consumers prefer vary by region, music and video streaming are popular globally.
Netflix remains a prime example of how embracing a subscription model can transform a company’s fortunes. Initially a DVD-by-mail service, Netflix used the US postal system for distribution, allowing it to focus on its core strength – developing curated catalogues of movies and TV shows. This expertise later became the foundation for its streaming platform, which proved crucial in helping the company weather the dotcom crash. Netflix now has 283mn paid memberships in more than 190 countries. The US has the largest subscriber base at 67mn, with Brazil at 15mn, having started there in 2011.
The UAE leads the way with grocery deliveries, with some 41% of respondents receiving a regular grocery delivery through a paid subscription, followed by 34% in South Africa and 31% in Australia and the US, compared with just 16% in the UK.
Our research reveals that free or cheap delivery is a primary benefit sought by subscribers. 86% of Australian subscribers receive free delivery as part of their deal, while only 72% of South African subscribers do.

Some 27% of both Australians and Brazilians subscribe to food boxes for value for money, while 20% do so for discounts. For UK subscribers, however, value for money in food boxes is less of a driver than choice (30%) or convenience (21%). In the UAE, environmental concerns play a more significant role in food box subscriptions compared with other countries.
HelloFresh, the global meal kit delivery service, expanded into the Australian market in 2012 as part of its ambitious growth strategy, partnering with Tom Rutledge, the 2011 Masterchef winner, who took on the role of Australian CEO. HelloFresh Australia has experienced significant growth since its launch and, in 2021, acquired Youfoodz, an Australian ready-to-eat meal services company. It’s maintained its position as Australia’s largest meal kit brand, while also expanding into plant-based options through partnerships with local producers like Fenn Foods.
When it comes to free or cheap annual delivery services, value for money remains crucial, especially in the UK and Brazil, where more than 40% of respondents cite it as the primary reason. Discounts within this category are popular too, particularly in Turkey and Australia. Choice and environmental factors fall further down the list of priorities.
Convenience is also a significant factor, particularly in Turkey and the US. Australia and Brazil show similar patterns in valuing convenience and value for money in delivery subscriptions, while Turkey and the UAE demonstrate a higher emphasis on convenience for delivery subscriptions compared with other factors.
Clearly, local economic conditions are influencing subscription behaviours, with consumers more carefully reviewing their subscription spending. Companies appear to be focusing on ensuring customer value to retain subscribers, a trend that aligns with previous research which found that consumers were becoming more cautious about their subscription expenditures.
As the subscription economy matures, understanding these nuanced consumer preferences will be crucial for businesses looking to do well. Retailers will therefore have to adapt their strategies to local markets, balancing consumers’ desire for value with factors such as sustainability and convenience.
The global trend towards more careful subscription spending highlights the need for companies to continually demonstrate the value of their offerings. The subscription model, when executed effectively, offers a win-win situation for both businesses and their many eager consumers.
This feature, authored by Hazel Davis, originally appeared in the RetailX Global Elite Top1000 report. Download the full report for a comprehensive analysis of the global ecommerce and multichannel market, offering a 360-degree view of consumer behaviour, company performance, and regional economies. Released at a time of global volatility. This report highlights how geopolitical shifts, such as the reelection of Donald Trump as U.S. president, shape the global economy and create both challenges and opportunities for retailers.
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