As noted in the November edition of the PYMNTS Subscription Commerce Tracker, nearly two-thirds of U.K. consumers plan to reevaluate their subscriptions in the next six months due to cost concerns, while nearly four in 10 have already canceled a subscription service.
See more: Retail Subscriptions Plummet as Subscribers Cut Nonessential Offerings
With declining customer stickiness, the festive season provides an opportunity for subscription services to expand their customer base as Brits turn to the wide variety of subscription boxes available in the country for gift ideas.
In fact, a Royal Mail report found that in 2020, U.K. consumers spent 353.7 million pounds ($427 million) on subscription gifting, a 121% increase since 2017.
Noting that the growth in subscription box gift purchasing has been driven by categories such as “entertainment and books” and “health and beauty,” the report identified the latter as the second most popular category among subscribers after food and beverages. It added that 11% of U.K. shoppers are signed up for a health and beauty subscription box service.
Many popular subscription boxes people get for their friends and family are monthly recurring versions of traditionally popular gift categories, from Scent by the Mail’s monthly box of candles and home fragrances to any one of the country’s numerous flower subscription services.
Grooming products are another popular subscription box type that will likely see a rise in demand as the U.K. enters the holiday season. Royal Mail forecasts spending on male grooming subscriptions to increase 41% by 2025, outpacing the most popular category — food and drink.
The report’s predictions are backed up by another study by Recharge Payments, which found that health and wellness is the single fastest-growing subscription category, quickly catching up with food and drinks as the subscription type that generates the most monthly recurring revenue (MRR).
Between 2020 and 2021, the report noted that MRR for health and wellness subscription boxes increased 138%.
And for those looking for something more original than a monthly box of soap or scented candles, they have the option to subscribe to the U.K. mental health charity Mind’s monthly ‘Pause’ box, which includes personal wellbeing activities promoting relaxation, creativity and reflection.
In a similar vein, another U.K. charity, Blurt, has launched the BuddyBox, which it describes as a hug in a box.
Each monthly delivery contains at least 5 products chosen to “nourish, inspire, and encourage self-care.” Like Mind’s Pause box, surprise and variety are part of the appeal and could help prevent the death knell of subscription commerce — a mounting pile of unused merchandise.
For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.