UK monthly spending on subscription-based goods and services has grown by an average of 9 per cent a year over the past three years, rapidly outpacing sluggish spending in other areas, according to data shared with FT Money. UK payments data from Barclays indicated the compound annual growth rate of subscription spending since August 2023 was five and a half times the 1.6 per cent growth in overall consumer spending. Subscription spending consistently outpaced growth in essential goods and services, such as fuel, groceries, childcare and education (up 0.75 per cent per year), and non-essential goods, such as entertainment or beauty products (up 2 per cent per year).
Jessica Gardner, a partner at law firm Fieldfisher, said the data suggests subscriptions are increasingly treated as recurring household commitments rather than discretionary purchases. Consumers may be keeping existing subscriptions even as they cut back elsewhere, taking out additional ones or moving to higher-tier or bundled offerings. Since subscription transactions grew by 5.1 per cent a year, slower than spending, the average value of each transaction is rising.
Separate figures from HSBC indicated that spending on health technology subscriptions, including smart rings such as Oura and wrist wearables, nearly quadrupled between 2023 and 2025, rising from £28mn to £106mn. Spending on pet food subscriptions rose 36.5 per cent over the same period, while meal-in-a-box subscriptions fell from £1.1bn to £1bn and spending on dating apps dropped to £22mn from £30mn.
The government estimates there are around 155mn active subscriptions in the UK, worth about £26bn a year, and that £1.6bn is spent on "unwanted" subscriptions annually. New rules for consumer subscription contracts are expected to take effect in January next year, aiming to curb so-called "subscription traps" through clearer renewal reminders, cooling-off rights and simpler cancellation.
Source: Financial Times Companies · Summarized by HeadlinesBriefing