Beauty Subscription Box Market – Trends, Accelerators and Fulfillment Solutions

Beauty subscription box with cosmetics products in pink packages

Selling beauty products via subscription boxes has become a highly popular model for beauty sales. The beauty subscription box lets subscribers try new products and sample different items: various skincare, makeup, haircare, and other beauty items from different brands.

Users can explore an assortment of beauty offerings for an affordable amount without committing to purchasing full-size products upfront and choose to receive the boxes weekly, monthly, or bi-monthly.

It’s the “First try, then buy” option, and subscribers love it! And rightfully so.

When did it all start?

Back in 2010, Hayley Barna and Katia Beauchamp, two self-labelled “non-beauty people”, found the beauty industry hard to navigate. They met in business school and felt that everyone, not just beauty-obsessed gurus, should be able to find the best products easily.

The same year, the duo founded Birchbox. This New York City-based online monthly subscription service company sends its subscribers a box of four to five selected samples of makeup or other beauty-related products. The products include skincare items, perfumes, organic-based products, and other cosmetics. 

Beauty subscription box sector boom

The convenience factor of receiving beauty products at home and the ability to explore various brands and products without committing to full sizes has attracted many consumers to these subscription services.

Common Thread Co estimates that the beauty industry will exceed $716B by 2025, indicating that beauty e-commerce will only become more competitive. Beauty brands must implement new trends and growth strategies to gain an edge in this competitive market.

Global sales of beauty subscriptions in 2022 were a whopping US$ 723.7 million, and the market is expected to reach US$ 10.2 billion by the end of 2033. Europe will account for close to 50% of this number.

Beauty subscription box market growth accelerators

Influencers influence

Due to the impact of social media influencers, the cosmetics industry’s subscription box model has undergone numerous transformations. According to several research studies, suggestions from influencers on social media platforms have a greater than 65% effect on consumers’ purchasing patterns.

Reviews and recommendations by influencers, particularly on Instagram and YouTube, significantly impact the beauty subscription industry. For example, a collaboration between Alicia Keys and Ipsy resulted in a limited-edition beauty box in 2021 that included the singer’s favourite goods.

AI and VR for try-on

During the pandemic, the popularity of online shopping skyrocketed, as did consumers’ desire for a personalised retail experience from the safety of their homes. Beauty brands harnessed the joint powers of AI and AR by offering customers a remote shopping experience through virtual try-on features. The concept was an enormous success.

Adopting these technologies by beauty brands saves time for consumers, reduces the return rate for sellers, and strengthens the relationship between customer and brand – the virtual try-on trend in beauty experiences is here to stay!

Customisation

Customers want personalised beauty products that address their unique needs and preferences.

Subscription boxes in the beauty industry offer tailored product selections based on individual preferences, skin types, or beauty concerns. This customisation has contributed to the popularity of these services immensely.

The industry has seen a surge in competition, leading companies to innovate by offering unique products, exclusive collaborations, and enhanced personalisation to retain subscribers and attract new ones.

Beauty subscription box fulfillment

  • Expert pick and pack.
  • Memorable unboxing experience for your audience.
  • A seamless link between the warehouse and your market.
  • Branded, sealed, and safely delivered products for a loyal customer base.

While customers love subscription boxes, online shop owners dread the inefficiencies associated with them!

That’s where we come in. We specialise in custom kitting for brands, subscription box packing services, and fulfillment solutions.

A big part of subscription box fulfillment is ensuring customers receive different boxes with unique products every time. We track which kits have been sent, so you don’t have to. And don’t worry about kitting and assembly for order fulfillment ever again. We’ll put each box together for you. From customised packaging designs to efficient subscription box shipping solutions and practices, our team will work closely with your business to create a seamless packaging and shipping experience.

Our clients have total control over the fulfillment cycle. With us, you will get a comprehensive online fulfillment platform, Easy Commerce, as a complete online controlling tool for managing and analysing your supply chain.

Thanks to our years of experience and operational efficiencies, we can manage high-volume subscription box orders at a fraction of the cost your brand could do in-house.

The cost of subscription box fulfillment

With SMS Fulfillment solutions, you will get a customised offer with no hidden fees. We build long-lasting partnerships and understand the complexity of the e-commerce business.

There are no minimum quantities for storage and order volume, while parcel tracking, account management and IT support are free of charge. You only pay for the storage space you use, with no restraints on minimal amounts. Handling is charged per the total amount of work spent on each package. This means the price is based solely on your requirements and needs.

Picking and packing should be distinct; therefore, we have integrated these costs into one fee as this is the most logical way. The price depends on the number of SKUs packed.

Get in touch with our sales team for an offer.

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