Consumer Behavior

Young lonely consumers big on retail subscriptions

Photo by istock.com

April 12, 2021

Subscription service adoption among those age 16 to 24 is booming, with 30% tapping mobile apps and the prime reason is a quest to combat loneliness.

The age group's spend in the U.S. is now at $8.2 billion each year, according to Emarsys data.

"Loneliness has been a huge problem during the pandemic with many people feeling stranded and not able to see their family and friends. It's understandable how young people especially have turned to mobile apps for a bit of escapism," Chris Godderidge, VP mobile at Emarsys, said in a press release on the findings.

Many in the demographic segment are signed up to over $600 worth of subscriptions.

Of those using apps, 27% signed up to make themselves feel "more connected" and another 27% cite a mood-boosting factor.

"I can see the appeal of signing up to both digital and subscription services. Digital subscriptions give you something to turn to when feeling down or bored, while the mystery of a physical subscription service gives you something exciting to look forward to when you can't go out or easily see friends and family," Pamela Danziger, author and shopping expert, said in the release.

Yet while many are signing up they aren't staying loyal with many canceling subscriptions after five months or so, according to the data. Top reasons for cancelling are a lack of value, a free trial ran out and the subscription was not personalized to their taste and need.