75% of Direct to Consumer (DTC) Brands will Offer Subscription Services by 2023 – Know Why?

SUBTA (Subscription Trade Association) states, ” 75% of Direct to Consumer (DTC) organizations will offer subscription services by 2023.”

In this article, we will elaborate and understand the reasons behind this statistical rise, backed with certain proofs and facts, that would verify the above statement.

Subscription Business Facts

  • The subscription industry has experienced an incredible growth rate of 17% over the past five years.
  • Increased adoption of subscriptions during the last year due to the COVID-19 lifestyle changes, resulted in a 12% rise for a single year.
  • More than half the community of online shoppers have already subscribed to at least one, or more subscription box services. Globally, 27% of consumers plan on investing more in such services.
  • The highest community of online subscribers range between 18-24years, with 38% of these consumers planning to increase their investments in subscription models.

Subscription Business Statistics

  • 42% of subscription shoppers are dominantly male, with 2-3 active subscriptions, that may be because men prefer convenient-automated purchases to limit store trips.
  • 28% of women subscribe to subscription services with 2-3 ongoing subscriptions.
  • Millennials hold 70% of the subscription market subscriber base, while Gen Z are the largest community of online subscribers with a subscription rate of 90%.

The above-stated facts and statistics throw a clear light on the rapid economic growth in the subscription market. Retail businesses, Media and Streaming Industries, Digital e-commerce market are constantly adapting to this transition, contributing to the success of the subscription model.

Subscriptions have become more appealing for brands for many reasons. Most importantly they allow the consumer to engage in a relationship with the brands. In many cases, they also save the consumer money; subscriptions can bring value and a lower cost monthly versus a one-time larger payment.” – Chris George, co-founder of SUBTA (Multichannel Merchant)

DTC Subscriptions and its Benefits

A DTC model sells its products directly to the consumer through the e-commerce platform. This cuts down the role of a middleman, in contrast to a traditional retailing concept, consequently reducing the product prices, increasing the profit margin for the producer, and creating a greater value for the consumer but cutting short the acquisition process, thus a win-win.

Let’s take a look at benefits the benefits of a DTC Subscription Model:

  • Control: The manufacturer or the producer enjoys the power of quality control, easy accessibility, and timely delivery. This direct relationship works ideal in a subscription business model as the consumer indefinitely looks forward to receiving such hassle-free services or products on a recurring basis.
  • Free of Markups: As mentioned above, since there are no middlemen involved in the process, it invariably cuts down the markups, making it more affordable for the consumer to subscribe for a longer duration and establish a long-term association with the brand.
  • Accessibility Over Ownership: Over the years, the priorities of the consumers have tremendously evolved. They enjoy the value that is created by the accessibility provided to them over the ownership
  • Flexibility: The flexibility provided by the DTC Subscription Models, greatly contributes to its success. The leverage to increase, decrease, or pause a subscription, availability of certain discounts, and festive offers make the entire concept more appealing to the consumer.
  • Personalized Experience: Consumers are bound to enjoy the perks of customization and personalization provided to them by constantly maintaining direct relationships by the means of valuable conversations. This along with the comfort of receiving your products or services right at your doorstep is something that every consumer loves to have access to.
  • Customer Lifetime Value (LTV): The union of subscription and DTC business is perfect to establish a stable and scalable business. Subscription business allows you to develop a long term relationship with your customer, contributing to an increased LTV for your business.


To summarize, it’s completely advisable and safe to consider making a switch or starting up a DTC subscription business, for the countless possibilities and business opportunities that this model offers. If your next question is how to get started? The answer is right here with My Subscription Business. Get in touch with us to establish an online presence and get started the right digital way!

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