Remember the thrill of receiving your first subscription box? Whether it was a beauty sampler, a curated snack pack, or a monthly supply of stylish socks (yes, sock subscriptions exist), unboxing was an event. It felt like getting a personalized gift—except you were the one paying for it.
But in 2025, the subscription craze has hit a crossroads. While the model once thrived on convenience and novelty, younger shoppers—particularly Millennials and Gen Z—are now questioning whether they still need that monthly delivery of organic granola bars or another round of mystery skin care products.
So, has the magic worn off, or is there still hope for retailers riding the subscription wave? Let’s unpack it.
The Rise (and Potential Fall) of Subscription Shopping
The subscription economy exploded over the last decade, offering everything from streaming services to pet toys on autoship. For retailers, it was the golden ticket: predictable revenue, built-in customer loyalty, and an easy way to collect data on consumer preferences.
Millennials and Gen Z were all in, too. They loved the mix of surprise and customization, the ease of automated shopping, and the Instagrammable unboxing moments. But as the number of subscriptions skyrocketed, so did the subscription fatigue.
Too Many Boxes, Too Little Budget
A big issue? Cost. Monthly subscriptions can quickly add up, and younger shoppers—already dealing with inflation, student loan payments, and a rising cost of living—are re-evaluating their spending. A survey by The Motley Fool revealed that nearly 50% of Gen Z and Millennials feel they are subscribed to too many services.
And it’s not just about the price tag. Consumers are realizing that some subscriptions don’t deliver the value they once promised. How many times have you received a beauty box only to find three products you’ll never use? Or a meal kit subscription that doesn’t quite fit your dietary preferences? The novelty wears off fast when the experience stops feeling personalized.
What Retailers Can Do to Keep the Subscription Spark Alive
Does this mean the subscription model is dead? Not at all. But it does mean retailers need to evolve. Here’s how:
- More Personalization, Less Clutter. Younger consumers want products tailored to their actual needs—not a one-size-fits-all approach. Retailers should use AI and data analytics to refine selections, ensuring each box feels handpicked rather than random.
- Flexible Subscription Models. Gone are the days of rigid, every-month deliveries. Offer skip-a-month options, mix-and-match choices, or a “build-your-own-box” model. Giving consumers more control makes them less likely to cancel.
- Clear Pricing & Transparency. Hidden fees and sneaky auto-renewals? Big red flags for Gen Z and Millennials. The brands that win will be upfront about pricing and cancellation policies—because nothing kills trust faster than a surprise charge.
- Eco-Friendly & Sustainable Packaging. Younger shoppers care about sustainability. If your subscription comes wrapped in layers of plastic or unnecessary packaging, expect them to think twice before renewing.
- Exclusive Perks & Community Engagement. Successful subscription brands aren’t just selling products; they’re building communities. Consider offering exclusive content, early access to new products, or interactive experiences (think virtual events or subscriber-only forums).
The Bottom Line
Subscriptions aren’t going away, but they are evolving. Millennials and Gen Z still love the convenience of curated shopping—when it’s done right. The key for retailers? Offer real value, prioritize personalization, and make subscriptions feel like a smart investment rather than an unnecessary expense. Otherwise, that monthly box might just be the next thing to get cut from their budget.
Innovate to create compelling customer experiences.
Deliver world-class omnichannel capabilities with Sophelle’s strategy, selection, implementation, and optimization services. Let us help you refine your subscription model and elevate your ecommerce strategy. Contact Sophelle today.
