Smart Kitchen Devices Use Subscription Models to Drive Recurring Revenue

As artificial intelligence makes its way into more kitchen devices, kitchenware companies are noting the opportunity to drive not only sales of smart appliances but also recurring revenue via ongoing subscriptions, as CES 2024 revealed.

One such device on display at the consumer electronics event in Las Vegas, for instance, was the Exobrew, a smart home brewing device that starts at $879, with ingredients sold via subscription at $25 a shipment, according to Interesting Engineering.

Meanwhile, Samsung’s AI-powered kitchen devices on display integrate with Samsung Food, the tech company’s cooking app, and in turn with its Samsung Food+ paid subscriptions, which offer features such as personalized recipes and meal plans as well as goal tracking.

Similarly, LG also showcased smart devices that will integrate with “subscription services” from the company, according to ZDNET.

Then there is Barsys, a consumer robotics company offering smart mixology devices, which announced Wednesday (Jan. 10) a partnership with alcoholic beverage eCommerce platform ReserveBar to launch a subscription service, Barsys Subscription Box, for personalized cocktails prepared with the appliance.

These innovations come as smart device ownership is on the rise. The August installment of PYMNTS Intelligence’s How We Will Pay Report, entitled “Multitasking Consumers Want to Shop — and Work — at the Same Time,” revealed that 9% of consumers own smart fridges, up from 5% in 2019. Plus, 15% own connected thermostats, up from 10%, highlighting the growing trend of integrating technology into everyday appliances.

Connected device subscriptions are also making their way into consumers’ coffee-making routines. Take, for instance, Keurig Dr Pepper, which is leveraging its app-controlled brewing appliances to drive coffee pod subscriptions.

“We’ve been increasing our own subscription business and services to the consumer,” CEO Robert Gamgort told analysts on the beverage giant’s most recent earnings call. “And as we put more smart brewers out there, [allowing] for smart consumption-based reordering, I think that eCommerce will continue to grow.”

Additionally, many consumers are seeking out subscriptions for convenience’s sake, according to the December installment of PYMNTS Intelligence’s Decision Guide report, “The Retail Subscription Features That Make Top-Performing Merchants.”

The study, which drew from a survey of more than 2,000 U.S. consumers in September, revealed that convenience was the most popular reason that consumers enrolled in retail subscriptions in the fourth quarter of 2023. Specifically, 38% of subscribers said convenience was their top motivator for doing so, more than said the same of any other factor. Additionally, the study found that 3% of consumers relied mostly or entirely on subscriptions.

Subscriptions can save consumers a trip to the store. The PYMNTS Intelligence study “The Replenish Economy: A Household Supply Deep Dive” found that 42% of subscribers shop in stores less often because of their subscriptions.

With smart appliances offering personalized experiences and subscription services, kitchenware companies are capitalizing on the growing demand for convenience and efficiency. As smart device ownership continues to rise, kitchen subscriptions are set to become more common, promising consumers greater convenience.