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INTERNATIONAL TRADE NEWS

Title INTERNATIONAL TRADE NEWS

THE SUBSCRIPTION & GIFT BOX BOOM

The world has been experiencing a ‘subscription and gift box boom’ over the past five years.

The sector had seen high growth in the years preceding the Covid pandemic and sky rocketed in 2020 due to retail closures, work from home mandates and increased disposable income. In the U.S., the subscription box market is expected to be worth $1.5 trillion by 2025, doubling the $650 billion it’s worth today. Closer to home, the subscription box market in the U.K. is expected to be worth €2.13 billion by 2025, compared to €648m in 2017. On average, companies offering subscription services grew four times faster than the S&P 500 in 2020. In Europe, the U.K. has been the market leader in this sector and Irish companies should look to trends in the U.K. to predict consumer behaviour in Ireland. Almost half (44%) of U.K. online shoppers, 30% of the overall population, now subscribe to some kind of subscription box service, up from 27% in 2017. Of them, 74% are signed up to multiple services and 56% are signed up to four or more. Over half of 25 to 34-year olds (52%) are signed up to at least one, compared to 12% of 55 to 64-year olds and just 8% of those aged over 65. Food witnessed the highest growth yearover-year in 2020. Another area of high growth has been in essential non-food items, such as male grooming and other predictable replenishment items. The male grooming subscription market grew 108% between 2017 and 2020 to reach a value of £41.7 million. Elsewhere, other everyday health and beauty products are also seeing strong growth. This sector has grown from being worth £43 million in 2017 to £79 million in 2020. It is forecast to grow to £92 million by 2025. While competition between companies offering subscription boxes is stiff in the UK, the market potential for growth is still immense across the EU. In 2020, a report found that only 20% of EU citizens were aware of the concept of a subscription box, as opposed to 30% of U.K. citizens who were already signed up to at least one.

Over half (56%) of EU companies in a recent poll say they plan on introducing a subscription box in the next 12 months.

For companies looking to introduce a subscription offering, a useful place to start is looking at the three different types of subscription boxes, Curation, Replenishment and Access.

CURATION (55%):

A company sends collections of new items for customers to sample and use. Tips for success: Personalization is the most important aspect that respondents cited for the curation box. The success of these boxes is driven by understanding every consumer’s unique needs, whether it’s taste, style preferences, size, cost or even psyche. Engaging with their consumers in real-time, gathering feedback, through customer surveys, feedback and data and adjusting offerings is critical.

MOST POPULAR SUBSCRIPTION BOXES:

REPLENISHMENT (32%):

A company sends consistent replacements of the same types of products such as razors, skincare, oral care, dog food etc. Tips for success: The average subscription box consumer is young, affluent, living in an urban area and subscription boxes like these help are incredibly convenient as its helps them free up time. Convenience (consistent, on time delivery) and value for money are most important reasons for subscribers of this category.

ACCESS (13%):

A service allows members to access perks and discounts on items and to gain exclusive access to unreleased products they cannot get elsewhere. Tips for success: Subscribers in this category want to feel a sense of community and exclusivity. Similar to the Curation box, correspondence with subscribers should be very personalised.

Title INTERNATIONAL TRADE NEWS

EU PROPOSES AMENDMENTS TO THE NORTHERN IRELAND PROTOCOL

The sector had seen high growth in the The EU has unveiled new proposals that would slash the majority of the red tape burden on Irish Sea trade created by Brexit’s Northern Ireland Protocol.

The proposed measures would see an 80% reduction in checks envisaged for retail agri-food products arriving in the North of Ireland from Great Britain.

The requirement to submit documentary information online ahead of shipping the goods will remain, but the EU said it forecasts an 80% reduction in both identity checks on Lorries arriving at ports and the more intensive physical inspections of their contents.

The proposed changes to the contentious post-Brexit trading arrangements would also remove the prospect of certain British produce, including Cumberland sausages, being banned from export to Northern Ireland.

The plan also includes a 50% reduction in customs paperwork required to move products into Northern Ireland from Great Britain. More products and companies would be exempt from customs tariffs as a result of expanding trusted trader arrangements and a concept that differentiates between goods destined for Northern Ireland and those “at risk” of onward transportation into the Irish Republic The new proposals emerged amidst increasing UK pressure to renegotiate the Northern Ireland Protocol, something the EU has consistently refused. Instead, the EU is offering a high degree of flexibility in customs enforcement and regulatory checks, effectively applying a lot more benefit of the doubt so that many more goods can cross from Britain to Northern Ireland unimpeded. Such an arrangement would have been considered a dramatic concession and a victory for Brexiters had it been offered at an earlier stage in the process.

SUSTAINABILITY TRENDS TO WATCH 2021 - 2022

With a younger generation that is educated and versed in climate change issues, the impact it has on the environment and the earth’s future, the focus on “Going Green” is of top priority to be implemented and progressed across all industries.

Pursuing knowledge and practices that can lead to a more environmentally friendly and ecologically responsible lifestyle is a trend that is here to stay.

“Research suggests that 54% of these young adults think a company’s environmental and social efforts are very or extremely important when considering whether to purchase a service or a product.”

-Energy Watch Inc

Businesses around the world are adapting, pivoting and ultimately focusing on building a better and stronger world for all, utilizing sustainability measures in their business operations, producing crueltyfree products, and investing in strategic innovation that will make a significant change for the future. Meanwhile, sustainable grocery delivery services like Imperfect Foods and Misfits

Market, which sell products that would ordinarily be discarded, are gaining popularity. • Fashion brands must be sustainable – or risk not making the cut with consumers.

Research from BCG found that 38% of consumers switched from their preferred clothing brand to a different one that has better environmental and social practices. • Lifestyle changes like switching to electric vehicles, demanding sustainable or (less!) packaging and digitalization (to save paper) will rise among consumers in the coming year. Meet our members that are actively operating under a sustainability model and creating amazing products that are socially responsible for our world. For more information on how you can play a part to protect the environment and help sustain its natural resources for future generations, please visit Energy Watch Inc.

According to Energy Watch Inc., the types of consumer products that you can expect to see going sustainable are:

• Food production is currently responsible for 26% of greenhouse gases and has a major part to play in habitat destruction and freshwater consumption. Consumers are more aware of these facts than ever before, hence the growth of veganism and plant-based diets. Data shows, consumption of plant-based meat and dairy substitutes rose significantly during the pandemic. According to

Nielsen, sales of meat alternatives were up 140% in the US. Unilever expects to increase its plant-based meat and dairy alternatives sales to €1bn in five to seven years.

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