Consumer behaviour is shifting dramatically, with declining interest in ownership and a growing preference for subscription-based models. This shift, often termed the 'end of ownership,' reflects a global movement towards prioritising access over possession.
A comprehensive international survey conducted by The Harris Poll, encompassing over 13,000 adults across 12 countries, found that 71% of respondents currently utilise subscription services, a notable increase from 53% five years prior. Furthermore, 74% of those surveyed anticipate that individuals will subscribe to more services and own fewer physical goods in the future. (source)
This paradigm shift is underscored by the substantial growth of the subscription economy. Over the past decade, this sector has expanded by approximately 435% and is projected to reach a market size of $1.5 trillion (~£1.2 trillion) by 2025, with an annual growth rate of 18%. (source)
The DTC opportunity
In the direct-to-consumer (DTC) sector, many products naturally align with subscription models, particularly habitual-use items such as coffee or eco-friendly toilet roll. These subscriptions capitalise on convenience and recurring need. However, there are clear distinctions when comparing subscription models for media services (e.g., Netflix), consumer goods (e.g., toilet paper or meal kits), and software-as-a-service (SaaS) products like Adobe Creative Cloud.
While all three rely on recurring payments, media and SaaS subscriptions emphasise access over ownership, offering non-physical products like entertainment or tools. In contrast, consumer goods subscriptions still involve tangible products that customers own after delivery. The similarities lie in their ability to create predictable revenue streams and encourage loyalty, while the differences revolve around ownership and the type of value delivered = functional, consumable, or experiential.
Successful DTC brands in the subscription space thrive by delivering quality products and convenience but also by fostering a sense of community. This is where consumer product subscriptions differ from purely digital services - they often engage customers through personalised experiences, curated products, and loyalty rewards. For more insights on how memberships play a role in subscriptions, see our guide: Membership Programs for Shopify Merchants.
The Broader Subscription Economy
The rise of subscriptions is not limited to DTC goods. Streaming services, such as Netflix, and software-as-a-service (SaaS) platforms have long relied on subscription models to deliver ongoing value. However, DTC brands have refined this approach by combining convenience with emotional connection, building long-term loyalty.
Challenges of Moving Away from Ownership
While subscriptions offer convenience, they are not without challenges. Industries traditionally reliant on one-off purchases must adapt their value propositions to remain relevant. Additionally, businesses must balance customer retention and churn by continuously offering value to subscribers.
The best subscription models blend convenience with emotional connection. Whether through curated experiences, loyalty rewards, or seamless customer journeys, brands must go beyond transactions. This is why companies succeed - not only by delivering great products but by creating communities that customers want to stay part of.
Final Thoughts
The rise of subscriptions signifies a fundamental change in consumer attitudes towards ownership. The preference for access-based consumption is reshaping how businesses operate, how consumers interact with brands, and how revenue models are structured.
As this trend continues, DTC brands must focus on community, experience, and long-term customer relationships to stand out. For those exploring Shopify subscription models, we’ve covered the Best Shopify Subscription Apps for DTC Brands.