Since its founding, FabFitFun’s name followed its subscription box offerings in the beauty, fitness and fashion product categories. Now, the hallmark curation company is expanding its offerings in one of the hottest product lines out there: pet supplies.
Last month, West Hollywood-based FabFitFun announced its first acquisition in its nearly 15-year history as it plans to take over Petco’s PupBox brand.
The terms of the deal were not disclosed.
It seems like a departure from its mainstay beauty and wellness offerings targeted towards women, but FabFitFun co-CEO Daniel Broukhim sees it as an extension of his consumer’s typical lifestyle.
“Part of taking care of yourself is taking care of the things around you, and who better to take care of than your best friend that’s your pet,” Broukhim said. “It’s just an expansion on our mission and vision of delivering self-care to as many people as we can.”
Broukhim and his team now court a pet-owner market that boomed over the pandemic and could offer scalability in an industry riding the coattails of the direct-to-door push a few years ago.
According to the America Pet Products Association, the amount spent on pets in the U.S. doubled after the onset of the Covid-19 pandemic, from $90.5 billion spent in 2018 to $137 billion in 2022.
A large portion of new pet owners fall within the millennial category, which also happens to be FabFitFun’s primary customer base.
Based on its own survey data, the company estimates about 77% of its members are pet owners, with the majority being dog owners.
The PupBox is still sold on its own website, but will be integrated into the FabFitFun website later this year. The details are still scant, but pupbox subscribers will be able to access the platform’s sales and join its membership club.
According to Broukhim, the company had been considering the acquisition for about a year.
It’s unclear as to why Petco let go of the box service it acquired less than seven years ago, but the pet subscription space has seen its fair share of consolidation.
Bark Inc. brought BarkBox, Super Chewer and its meal delivery service BARK Eats under one banner in its initial public offering three years ago. Around the same time, Caitec acquired VetPet Box.
“We’ve been thinking about how we could expand our footprint in pet,” Broukhim said. “So naturally, acquiring one (PupBox) made a lot of sense. This one kind of fell into our laps, as we’re excited that it was such a natural fit.”
Where subscription boxes stand
Even as inflation drives consumer good prices higher, subscription boxes have retained sticky subscriber numbers, and analysts forecast further growth for the market.
FabFitFun currently reports more than 2 million paying members, double what it reported prior to the pandemic.
Its 2019 series A round, which raised $80 million, marked the last fundraise for the company. Today, Broukhim says FabFitFun is profitable, though declined to share specific numbers, and is not reliant on additional capital injections.
Members can pay either $220 annually for four “swag bag” boxes shipped each quarter, or $70 per seasonal box. Each come with six products customers pick off the list FabFitFun curates. In an age with endless ecommerce options and countless brand ambassadors on social media, a large part of its value comes from its filtered product lists.
FabFitFun, was valued at just under $1 billion in 2019, and as sales surged 200% in the first year of the pandemic the company was rumored to be considering an initial public offering.
Broukhim says a public offering remains on the table for FabFitFun as the magazine referral-turned-ecommerce space matures past the startup age. Growing valuations and brand consolidation show competition intensifying amid fewer players.
IPSY, a San Mateo-based beauty subscription platform, acquired competitor BoxCharm in 2020 to become a $1 billion company.
BirchBox, one of the first cosmetic sampler boxes – it was launched in 2010 – was acquired by FemTec Health in 2021 for $45 million. The brand pivoted towards a health focus, collecting data on things such as skin elasticity and hair thickness for product recommendations.
Expanding product offerings
While betting on personalization maintains the mass customization model for many, FabFitFun focuses on the wellness’s scaling definition today by expanding its product categories.
According to a report by Research and Markets last year, the global subscription box market is expected to grow from $26.8 billion in 2022 to $59.8 billion in 2027. FabFitFun was named as a major player for the sector, alongside FemTec and Dollar Shave Club.
According to Broukhim, a large part of his company’s long-term strategy is further acquisitions in the subscription box space.
“I think we’re the best in the world at managing those businesses because we can integrate them,” Broukhim said.
