Britons spend £552-a-year on subscriptions, research suggests
Britons are spending an average of £552 each year on subscriptions ranging from meal kits to entertainment platforms, according to new figures.
Research from Barclaycard Payments has revealed that the average Briton is spending £46 on subscriptions each month, with the figure rapidly rising.
The company said that almost two-thirds, 65%, of UK homes are signed up to regular subscription services.
It said that data from credit and debit card spending has shown the UK has a subscription economy worth around £323 million.
Demand for home delivery subscriptions, for items ranging from groceries to magazines, has jumped after the coronavirus lockdown kept people at home.
Barclaycard said spending on subscriptions increased by 39.4% for the year to July.
It said that around 22% of retailers developed a subscription service during lockdown in an attempt to take advantage of the consumer trend.
The lending business said entertainment services, such as Netflix or Amazon Prime, are the most popular type of subscription, followed by grocery products and meal kits.
Kirsty Morris, managing director for account development at Barclaycard Payments, said: “Subscription services provide an exciting opportunity to engage consumers with products and services at home, whether that’s digital content or streaming services, meal kits, or more personalised offerings such as bespoke alcohol kits or on-demand exercise classes.
“For many retailers this has meant adapting quickly to offer new products and services to respond to the growing demand.
Retail consultant Mary Portas said: “Subscriptions were already a vital tool for UK retailers prior to the pandemic, helping businesses to remain nimble and transport their product or experience direct to their customers’ homes.
“Due to the prolonged period of lockdown, the public has grown accustomed to the range of products on offer, as well as the ease at which they can be regularly surprised and delighted by the brands they care about.”